Corporate Background
Municipal Finance Corporation (MFC), a California corporation, specializes in the structuring, documentation, funding and administration of tax-exempt financings for public agencies.
MFC offers public agencies a simple and cost-effective alternative to the issuance of bonds or certificates of participation. MFC has developed a reputation for creativity and innovation in meeting the capital financing needs of its clients.
About Our Services
At Municipal Finance, our services are highly personalized and always reflective of the responsibilities associated with public transactions. Each of our professionals has vast and diverse experience in creating comprehensive financing strategies.
What Are The Usual Forms Of Financing?
Depending on any constitutional debt limitation and statutory authority pertinent to the agency, the financing may take the form of either a lease/purchase, loan or installment sale agreement. In any instance, the financing will be structured as a fully-amortized obligation. The agency assumes all risks associated with the use and ownership of the property being financed.
What Can Be Financed?
All forms of essential use, governmental purpose property or infrastructure including:
Public Buildings, Schools, Modular Buildings
Fire Stations, Fire Trucks & Rescue Equipment
Police Stations & Police Cars
Schools & School Buses
Computer Systems & Software
Telephone Systems
Construction Equipment & Communications Equipment
Medical Equipment & Office Equipment
Energy Management Systems & Retrofit Projects
Electrical Generating Equipment
Water/Wastewater Treatment Plants
Water and Sewer Lines & Water Meters
Roads and Bridges
Unimproved Land
How Do Municipal Finance’s Programs Work?
MFC handles all aspects of the transaction, from presentation of financing alternatives to administration of vendor/contractor payments. Documentation preparation, credit review and funding administration are all performed by MFC. This results in sole performance accountability by MFC and limited demands on the agency’s staff.
What Are The General Financing Parameters?
Financing amounts between $50,000 to $10,000,000.
3 to 25 year amortization terms.
Payments structured monthly, quarterly, semiannually or annually.
Flexible prepayment provisions.
What Steps Must The Agency Take?
Provide financial statements and other supporting credit data.
Adopt resolution approving financing.
Solicit document review and legal opinion from agency’s legal counsel.
Authorize the issuance of insurance certificates.
Execute documentation.
Authorize disbursement of payments to vendors/contractors.
Certify to the receipt and acceptance of the property.