Why is a non-appropriation clause necessary?

Sourcewell membership is free for all government agencies, public and private schools/colleges, tribal governments, and nonprofit organizations.

Once you receive your member number, you can purchase on any Sourcewell awarded contract, including competitively-bid financing through NCL Government Capital.

1. Find a Vendor: Sourcewell has hundreds of awarded vendor contracts across multiple industries. You can search their site by product type or filter construction contracts by state and county.
2. Obtain a Quote: After finding what you need through Sourcewell, you can quickly contact the vendor for a quote that includes flexible financing through NCL Government Capital.
3. Complete Your Purchase: The NCL team will work with your preferred vendor to create the terms, structure, and payment schedule that fits your budget so you can take delivery right away.

Every agency is required to budget expenditures for the next fiscal year. In the event the agency does not include the lease payments in the budget, the agency can elect to return the equipment and cancel the lease without penalty.

A Tax-Exempt Municipal Lease is similar to a loan with the exception of the non-appropriation clause. The agency takes ownership of the equipment (or project) from day one, and NCL Government Capital is a secured party. There are no end of lease options to buy, renew or return equipment. The agency owns the equipment free and clear upon NCL’s receipt of the last payment.

There are a variety of reasons an agency may choose to non-appropriate. One of the common reasons is that the agency determines the leased equipment is no longer essential, therefore choosing not to budget for future payments.

In the event an agency non-appropriates, they are required to return the equipment to NCL Government Capital. NCL, in turn, remarkets the equipment. The manufacturer/dealer has no responsibility.