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The lease purchase agreement between the city and the SLMFC establishes that the city must make rental and additional rental payments, subject to appropriation, to the trustee, an assignee of the corporation. The underlying 'A+' rating reflects sound district financial management characterized by ample reserves, substantial capital needs related to enrollment growth and state mandated class size reduction requirements, and the strong legal features of the master lease purchase agreement related to this issue. The 2007 certificates are being issued pursuant to a master lease purchase agreement, providing strong incentives for appropriation. |
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