moral obligation bond definition

moral obligation bond

Debt obligation issued by a municipality or other governmental entity without the security of a general obligation bond. Instead, it is backed by the government's pledge to appropriate future funds of the issuing entity in case of a default. This commitment is 'moral' and not legal because the succeeding legislatures cannot be obligated to abide by its provisions.

moral obligation bond is in the Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.

moral obligation bond appears in the definition of the following term: municipal bond

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