3.3.2.1 Lease Revenue Bonds and Certificates of Participation

3.3.2.1 Lease Revenue Bonds and Certificates of Participation

Some long term general fund obligations of cities, counties, and school districts may be structured as leases in order to take advantage of the Lease Exception to the debt limit in the California Constitution. See Section 3.6.1, Financing Leases and Section 1.2.4.3, Lease Exception (the “Offner-Dean Lease Exception”). A lease can be the source of repayment for revenue bonds issued by joint exercise of powers agencies or authorities (See Section 3.6.4, Joint Powers Agency or Authority (JPA) Bonds and Other Issuances) or interests in a lease can be sold as COPs (See Section 3.6.3, Certificates of Participation). A lease may also be used to acquire equipment from a vendor (See Section 3.7.2, Direct Leases).