In the municipal lease context, which of the following is typically part of the required documentation?

• A. License agreement for software
• B. Mortgage deed
• C. Certificates of essential use
• D. Audit report

Answer: (C)

The main idea is proving that the leased asset will be used to deliver an essential government service. A certificate of essential use documents that commitment, showing the asset supports an indispensable public function. This kind of certification helps ensure the financing is for a public purpose and aligns with restrictions on private use, which is important for public-financing deals and maintaining proper tax-exempt treatment.

The other items don’t directly establish that essential public use. A software license agreement governs rights to use software, not the asset’s role in public operations. A mortgage deed relates to real estate ownership, not equipment leasing. An audit report, while important for ongoing financial oversight, isn’t the standard upfront document used to demonstrate the asset’s essential governmental function in a municipal lease.