Legal Foundations and Strategic Structuring of Lease Financing
Part 1: May 12, 2026 | 10:00-11:30AM
Part 2: May 21, 2026 | 10:00-11:30AM
The growth and evolution of lease financing as tool for municipalities to navigate California’s constitutional borrowing constraints was the inspiration for CDIAC’s three-volume publication series Lease Financing in California. Now, building from its publications, CDIAC presents a new two-part webinar series, Legal Foundations and Strategic Structuring of Lease Financing. The series will examine the legal principles that underpins lease financing in California and how these legal principles formed key structural elements of lease financings. The series will also discuss the key financing decisions and best practices and explore how many structural conventions are being carefully reconsidered in light of challenging fiscal conditions and market preferences.
Series Note: The webinars will cover legal concepts and more complex content related to lease financing in California. Prior to joining the webinars, it is recommended that participants have exposure to the fundamental legal requirements, market considerations, and recommended practices for lease financing in California available in CDIAC’s Lease Financing in California content series available on CDIAC’s website.
Part 1: The Structure of Lease Financing: Legal Precedents, Conventions, and Misconceptions
The first session of this two-part series will cover a history of lease financing and examine the landmark court cases whose rulings created the “lease exception” to the state’s constitutional debt limit. Speakers will examine how the legal framework directly influences the compulsory structural elements of lease financings but also discuss those elements where the law is less settled and thoughtful decision-making by issuers is warranted. The session will provide issuers with practical guidance on separating the legally essential from financing decisions, such as debt service structure, fair rental value, overcollateralization, abatement, right to relet, insurance, substitution, and bankruptcy, among others.
Speakers:
- David Brodsly, Managing Director, KNN Public Finance
- Daniel (Dan) Deaton, Partner, Nixon Peabody LLP
- John Palmer, Partner, Orrick, Herrington & Sutcliffe
Part 2: Risks, Realities, and Market Preferences of Lease Financing Decisions
The second session will focus on understanding the business and financing decisions agencies face in lease transactions, especially the features that may have been perceived as investor requirements that may no longer be so. Speakers will examine why these certain decisions, previously considered non-negotiable, may, in fact, not be as essential as previously thought, such as insurance requirements, asset selection, and remedies. Through practical insights and expert guidance, this session will help public agencies to make informed financing decisions when navigating their lease financings.
Speakers:
- Margie Backstrom, Managing Director, KNN Public Finance
- Daniel (Dan) Deaton, Partner, Nixon Peabody LLP
- Melissa Shick, Director, KNN Public Finance
- Anna Van Degna, Public Finance Director, City & County of San Francisco
Recommended Resources
- Lease Financing in California Content Series: This content series explores the legal requirements, market considerations, and recommended practices for municipal lease financing in California.
- Legal Foundations of Lease Financing in California | August 2022 (CDIAC #22-06)
- Practical Considerations and Decision Points for Municipal Lease Financing in California | June 2023 (CDIAC #23-05)
- Recommended Lease Financing Practices for California Public Agencies | August 2025 (CDIAC #25-05)
Contact Information
If you have questions about this program, please contact CDIAC at CDIACEducation@treasurer.ca.gov.
