nonsubstitution clause

A provision in some municipal leases. This lease provision stipulates that if the municipal lessee terminates the lease under a nonappropriation clause, the lessee will not use any other property performing a similar function to that performed by the property covered by the lease for the period of time covered by the lease. The nonsubstitution clause is intended to be a deterrent to termination of the lease contract under a nonappropriation clause. American Banker Glossary