GFOA CPFO Exam - Topic 10 Question 17 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 17
Topic #: 10

The lease agreement contains a ___________ clause that permits the government to cancel the capital lease, without defaulting, by not appropriating payment for the lease.

AAppropriation

BNon-appropriation

CIt depends

DNone-of these

Show Suggested Answer

Suggested Answer: B

by Vincent at May 04, 2022, 11:54 AM

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Ulysses

7 months ago

I've seen this in many agreements, it's a common clause.

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Roslyn

7 months ago

Non-appropriation makes sense, but what if they just forget to fund it?

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Youlanda

8 months ago

Wait, are you sure? I thought it could be something else.

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Jill

8 months ago

Totally agree, that's the right term!

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Wayne

8 months ago

It's definitely a non-appropriation clause.

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Tesha

8 months ago

I’m torn between A and B; I remember we discussed how these clauses work, but I can’t recall the exact terminology.

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Marcos

8 months ago

I’m not entirely sure, but I remember something about appropriation clauses being related to funding.

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Mila

8 months ago

I think the answer might be B, non-appropriation clause, because it allows the government to cancel without defaulting.

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Dana

8 months ago

I feel like I’ve seen a similar question before, and it was definitely about non-appropriation.

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Gene

8 months ago

Okay, let me think this through step-by-step. I know OPA has something to do with policies, so I'll focus on that.

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Yasuko

8 months ago

Ugh, I'm a bit unsure about this one. I'll have to read through the options carefully to figure out the right approach.

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