Glossary of Municipal Securities Terms

NON-APPROPRIATION CLAUSE

A provision of a bond contract that allows the lessee or borrower to terminate certain obligations under a long-term certificate of participation or other revenue obligation financing if the appropriating body does not appropriate funds for the lease payments. See: CERTIFICATE OF PARTICIPATION; LEASE-PURCHASE AGREEMENT; LEASE RENTAL BOND; ANNUAL APPROPRIATION PLEDGE; SUBJECT TO APPROPRIATION.

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