How do I know that the county will have enough money to pay me in the year 2036, and what happens if the county (or its paying agent) fails to make an interest payment to me?
The installment purchase agreement (IPA) is a contract between the seller and the county similar in nature to a county bond. The county would quickly lose all credibility in making farmland easement purchases if it failed to comply with its bargain with landowners. It has been the county’s practice to purchase securities just prior to closing that have a value at maturity equal to the amount of the payment that will be due.

These securities, however, are not pledged to the seller or to the IPA. Regardless of the method selected by the county to provide for payment of the IPA principal or interest, the county is responsible for honoring its obligations and taking the steps necessary to do so. As in its sale of bonds, the county’s promise to pay in the IPA rests upon a pledge of its full faith and credit, as well as its power to tax.

Show All Answers

1. What is an installment purchase agreement (IPA)?
2. How does the sale of my easement change with an installment purchase agreement?
3. Why is the county using installment purchase agreements for easement purchases?
4. How can structuring payment through an installment purchase agreement benefit me?
5. Why is payment being deferred as late as 2036?
6. What is the interest rate that I will earn under the installment purchase agreement?
7. If payment for my easement is deferred, does this mean that the easement will not be effective until 2036?
8. What happens if I sell the property before 2036?
9. Can I sell or transfer the installment purchase agreement?
10. If my property increases in value between the time that I sign the easement and the year 2036, will the county pay me more for my easement?
11. What happens if I am willing to sell but only want to sell for a cash payment?
12. Will structuring payment of the purchase price through the installment purchase agreement cost me money?
13. Can I use the county's advisers to assist me in selling my easement to the county with an installment purchase agreement?
14. How do I know that the county will have enough money to pay me in the year 2036, and what happens if the county (or its paying agent) fails to make an interest payment to me?
15. How can I find out more about installment purchase agreements?