RFP Installment Financing agreement

Town of Shallotte 

Request for Proposal for Installment Financing Agreement 

The Town of Shallotte, North Carolina desires to enter into an installment financing agreement pursuant to N.C.G.S §160A-20 in the principal amount not to exceed $527,012.04 for the purpose of financing the cost of the items described below.  The Town of Shallotte is soliciting your proposal to provide the necessary financing for this project, subject to the terms and conditions set forth in this Request for Proposal.

  1. Pertinent Information

The Project consists of:

Vehicles: One 2024 Sutphen Pumper 1500 gpm 1000 gallon with and 8.9L Cummins engine.  

VIN # 1S9A1BND0S3003059

 

  1. Contract Specifications

  1. The desired amount of the financing is not to exceed $ 527,012.04.

  1. The desired term of the financing is 8 or 10 years.  The Town of Shallotte desires the debt service payment schedule to reflect amortization over an 8 or 10 year period.  Please provide schedule for both.

3. Installment payments are to be made annually in arrears starting August 1, 2025.                                                   

4. The interest rate(s) shall be fixed for the term.      

5. The interest rate(s) proposed must be guaranteed for at least sixty (60) days.  The Town of Shallotte desires to close the transaction no later than June 2, 2025.

6. Prepayment terms will be negotiated between the Town of Shallotte and the successful bidder.  The Town of Shallotte desires prepayment of principal at any time without penalty.

  1. The Town of Shallotte’s obligations under the installment financing agreement will be secured a security interest in all or a portion of the vehicle being financed as negotiated between the Town of Shallotte and the successful bidder.  No deficiency judgment may be rendered against the Town of Shallotte for breach of a contractual obligation under the Installment Financing Agreement, and the taxing power of the Town of Shallotte will not be pledged to secure repayment there under. 

8. The Installment Financing Agreement must not contain a non-substitution clause and there must be a non-appropriation clause in the installment financing agreement.

 

C. Submission of Proposal

A copy of your proposal must be received by 2:00 pm on May 15, 2025, in the office of Isaac Norris, Jr. CPA, Town Finance Director, for the Town of Shallotte, 106 Cheers Street, Shallotte, N. C. 28470 or PO Box 2287, Shallotte, NC 28459-2287.  You may also submit your proposal via email at inorris@townofshallotte.org 

 

Proposals must specify at a minimum the following information.

  1. The term of the financing.

  1. The interest rate.

  1. The terms of repayment.  Please attach a sample debt service schedule.

  1. Proposed terms for optional prepayment.  Please also state whether you would allow a prepayment without penalty from excess proceeds.

  1. A list of all additional costs to be associated with this transaction, including origination or placement fees, escrow fees, counsel fees and expenses.  State whether or not any of such fees or expenses will be capped.

  1. A statement to the effect that the bank agrees to the contract specifications set forth in Part B of the Request for Proposal.

  1. Proposed collateral to secure financing and the method for creating the lien or security interest in such collateral.

  1. Bids should be based on gross funding of the Project (without consideration of investment earnings).

 

The Town of Shallotte reserves the right to request additional information from the bidders and reserves the right to reject all proposals and to waive any irregularity or informality.  Although the selection will be based substantially on lowest total financing cost (including both interest cost and up-front fees and expenses), the Town of Shallotte reserves the right to select the bidder that best meet the needs of the Town of Shallotte.

 

If further information is needed or if you have any questions regarding this Request for Proposal, please contact Isaac Norris, Jr.  at 910-754-4032, extension 1005.

 

RFP Installment Financing Agreement