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I Second, the actual effect on lenders of having a non-appropriation clause, should the i right be exercised, is no different than that produced by having a no deficiency provision alOne. In both c~es the len.der receives nothing but the property financed. Since this is the practical result, what is the harm in making abselutely clear the unit's righls? The courtier I argument to this point iT that not having a non-appropriation clause does maim a difference to the governing body. Without one them, this argument states, its members will feel more of a moral obligation to continue with the payments than they would with a specific non- I appropriation provision. The third argument promulgated for including non-appropriation clauses in these Icontracts is that by having them in, should the governmental unit actually desire to cease making payments under the contracts, such nonpayment will not result in a 'default.' There are many reasons why governmental units should wish this to be true. For example, many sta~ laws dealing with the issuance of securities require affu'mativ¢ statemenls that the issuers have 'never been in default.' 'Therefore, there might be a legal problem in the sale of its genera obligation bonds, in cemin other states after a North Carolina unit faUs to I appropriate on an installment sale conuact without a specific non-appropriation clause. It might be possible to structure pro~;isions close to what was used in the Wayne I County by governmental appropriate not result in documents where failure the unit would a 'default.' If this is done, then that might be the best of both sides. Such a provision would almost eeminiy be sufficient to 'reserve the right' to the extent neo*,~.,,3,, under i Section 159-13 as well as preventing the stigma of a 'default.' Yet there would not be a specific non-appropriation clause and the lender should therefore have somewhat more I comfort. l~ote that the position of the rating agencies on the ~e,sity for non-appropriation i clau~.~ is not a hard and fa~t role.. They m7 that it ver~ much dq~nd~ upon the circumstances of thc pazficular governmental unit, thc property to be financed and other factors. Sometimes the lack of a non*appropriatiun clause will have no positive effect on thc I rating, somedmc~ it will. The result of all this is that care should be taken in s~'ucturing installment I t~nsacfions, notwithstanding the exceUent result in the Wayne County ~. There arc many factors and arguments to be wcighod which will have an impact on the structure. Iust l~cause one potential ?rob!,~rn cr canecm h~, b,~n cl *ear~ up d~:s not mean these Ih'ansacfions arc ensy or uncomplicated. I ! ! i