CDIAC's Legal Foundations and Strategic Structuring of Lease Financing, Part 1

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.