NON-APPROPRIATION CLAUSE – A provision of a bond contract that allows the government to terminate a lease securing a long-term certificate of participation or other revenue obligation financing if its appropriating body does not appropriate funds for the lease payments. This clause permits a long-term financing without technically incurring debt. Such obligations are not considered debt in most states and thereby generally are not subject to debt limitations because the lease payments are characterized as payments for use of the facilities rather than as payments on a promise to repay bonded debt. Compare: ABATEMENT CLAUSE; ANNUAL APPROPRIATION PLEDGE; COVENANT TO BUDGET AND APPROPRIATE. See: CERTIFICATE OF PARTICIPATION; LEASE RENTAL BOND.