How was the Program Established?

HOW WAS THE PROGRAM ESTABLISHED?

The State Master Lease Purchase Statute was enacted in June 1990.  The statute requires that all State Agencies must participate in the Program when acquiring equipment by lease purchase unless the equipment cannot be acquired by lease purchase under the Program or unless the equipment can be acquired elsewhere by lease purchase at an overall cost that is lower than that for which such equipment can be acquired by lease purchase under the Program.  However; some exceptions are allowed by the statute.  The exceptions are the Mississippi Institutions of Higher Learning and any State Agency that has specific statutory lease purchase authority to acquire equipment by lease purchase. In 2006, DFA solicited proposals for a financial advisor and lessor in connection with the Program.  Through the competitive process, DFA selected FirstSouthwest Company (“FirstSouthwest”) to act as Financial Advisor to the State and FirstSouthwest Leasing to act as Lessor under the Program; in October 2011, DFA again awarded the Program to FirstSouthwest and FirstSouthwest Leasing.  The Program has been approved by the State Bond Commission and validated by judicial order pursuant to State law.

As of September 30, 2011, thirty-seven (37) State Agencies have participated in the Program since its inception. Please see the attached Exhibit "A" for a list of series funded over the last five years under the Program.