WASHINGTON--The Texas Supreme Court is being asked to review an appeals court ruling that found a municipal lease contract to be unconstitutional debt because it contains a clause pledging the municipality to seek appropriations for lease payments each year.

Since such "good faith" or "best efforts" clauses are common in lease-purchase financings in Texas and the rest of the country -- and often are included at the behest of investors, insurers, and ratings agencies -- the case is sending jitters through the leasing market.

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