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North City Enters into a Lease Agreement That Contains a Nonappropriation

Question 30

Multiple Choice

North City enters into a lease agreement that contains a nonappropriation clause. The clause


A) Has been held by courts in 26 states to effectively cancel the lease.
B) Stipulates that the yearly lease payment must be appropriated by the city council each year.
C) Prohibits the city from replacing leased property with similar property.
D) Permits the city to lease at lower rates than would be possible without the presence of the clause.

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