More savings. In addition to savings from nationwide pooled or cooperative purchasing, DEPO enables state and local governments ("SLGs") to achieve additional savings and flexibility by pooling… their Financing/Leasing needs. Optimum financing terms for tax-exempt entities normally are accorded to debt financings that are perceived to be highly "marketable." Smaller transactions, because of their size, are generally less marketable than larger ones due to the small amount of float, reduced liquidity, the consequent reduced trading activity and reduced level of support from market-makers.

Efficient approach. Without disturbing the integrity of each SLG's individual financing or leasing needs, DEPO enables SLGs to pool their financing or leasing needs with the similar needs of other SLGs, at any time, using traditional financing vehicles, but with highly standardized documentation (that has the effect of reducing transaction costs) and a single global tax-exempt opinion, where applicable, rendered by one of the nation's leading bond law firms.

Financing instrument. The instrument, itself, will be a Master Trust or Master Lease (instead of a traditional Note, Bond or Lease) obligation that will be insured by a major bond insurer. Each entity's obligation is only for its respective portion of the financing (i.e. obligations are "several" but not "joint") just as would be the case with traditional individual debt obligations. Major investment banking firms, banks and bond funds will bid more aggressively due to the increased marketability of the larger financing package and reduced costs of customer acquisition (i.e., reduced marketing costs), resulting in improved terms and reduced costs.

SLGs gain financing flexibility.
   with the ability to join currently-active financing/leasing pools at virtually any time

   reduced need to tap current budgets or other line-items for payment of current
      capital asset or commodity purchases

   reduced need for individual SLGs to delay financing in order to accumulate larger
      and "more marketable financing packages"

   ability to include financing needs, other than for current purchases, in the pooled
      financing

Process. DEPO aggregates the financing needs (purchase obligations or other) of several SLGs. National bond attorneys, Vinson & Elkins, prepares Official Statement and necessary documentation in concert with the various SLG-designated legal and financial representatives. Jointly with participating SLGs, DEPO obtains credit enhancement insurance, applies for credit-rating, releases the composite bid requests to all qualified underwriters, investors and bidders, and upon receipt of the bids, submits all bids to the SLG participants for acceptance/rejection. Upon award, funds are wire transferred to awarding SLGs.