The Risk of Non Appropriation of Small Ticket Municipal Leasing Out of Stock
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By Calvin M. Boardman
August 2000
Among the many risks faced by lessors in the process of leasing equipment is one particular type described as non-appropriation risk. This type of risk is difficult to predict and even more difficult to price. The purpose of this study is to examine the nature of non-appropriation risk and to observe its frequency of occurrence, particularly for small ticket municipal leases. The study examined lease characteristics often used by lessors to lessen the incidence of non-appropriation. The study concludes with a list of helpful suggestions put forward by those in the industry who have found their suggestions to be helpful in reducing, or even eliminating, non-appropriations.
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