NIGP 94952: Principal on State Notes & Loans

NIGP 94952 Principal On State Notes & Loans, an Item code, encompasses tax-exempt financing arrangements that state and local governments use to fund capital acquisitions through lease purchase agreements and fixed-rate lending structures. The City of Kingman, Arizona, exemplifies the scope of work: it solicited qualified financial institutions—banks, credit unions, and FDIC-insured lenders—to provide tax-exempt lease purchase financing for approximately $2.5 million in vehicle and heavy equipment acquisition, structured as a 10-year fixed-rate component of $923,160.72 and a 5-year fixed-rate component of $1,613,616.76. State and local issuing bodies under this code seek financing partners capable of delivering fixed interest rates with annual level payments, prepayment flexibility without penalty, full rate and fee transparency, and compliance with government lending requirements. The code serves cities and municipalities pursuing capital financing alternatives to cash purchases or traditional bond issuance.

The City of Kingman's IFB 2025IFB041, posted March 7, 2026 with a response deadline of January 27, 2026, represents recent activity in the western United States. The solicitation required bidders to submit sealed bids electronically through the city's OpenGov procurement portal, with question submission closed by January 12, 2026 and an anticipated loan closing date of February 24, 2026. Bidders were required to provide sample loan and lease purchase agreements, proof of regulatory standing, detailed amortization schedules, W-9 forms, business licenses, and references; the selection criterion was lowest overall cost to the city combined with ability to meet specified dates. The city reserved the right to reject any bid not in compliance with prescribed procedures and did not identify incumbent vendors or set-aside designations.