moral obligation bond

moral obligation bond
Revenue bonds issued by state agencies, government commissions, or other special purpose municipal entities that purport to have the added backing of a moral obligation of the city or state government. Since there is no legal obligation for the state or city to back the principal or interest due on these bonds, the moral obligation provides limited, if not dubious, support. American Banker Glossary
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A tax-exempt bond issued by a municipality or a state financial intermediary that is backed by the moral, but not legal, obligation of a state government to appropriate funds in case of default . Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Moral Obligation Bond — A type of revenue bond issued by a municipality or similar government body. A moral obligation bond not only gives investors the tax exemption benefits inherent in a municipal bond, but also provides an additional moral pledge of commitment… …   Investment dictionary

  • Obligation — • Defined in the Institutes of Justinian as a legal bond which by a legal necessity binds us to do something according to the laws of our State Catholic Encyclopedia. Kevin Knight. 2006. Obligation     Obligation …   Catholic encyclopedia

  • obligation — ob·li·ga·tion /ˌä blə gā shən/ n 1: a promise, acknowledgment, or agreement (as a contract) that binds one to a specific performance (as payment); also: the binding power of such an agreement or indication held that the amendment did not… …   Law dictionary

  • obligation — A generic word, derived from the Latin substantive obligatio, having many, wide, and varied meanings, according to the context in which it is used. That which a person is bound to do or forbear; any duty imposed by law, promise, contract,… …   Black's law dictionary

  • Bond — (b[o^]nd), n. [The same word as band. Cf. {Band}, {Bend}.] 1. That which binds, ties, fastens, or confines, or by which anything is fastened or bound, as a cord, chain, etc.; a band; a ligament; a shackle or a manacle. [1913 Webster] Gnawing with …   The Collaborative International Dictionary of English

  • Bond creditor — Bond Bond (b[o^]nd), n. [The same word as band. Cf. {Band}, {Bend}.] 1. That which binds, ties, fastens, or confines, or by which anything is fastened or bound, as a cord, chain, etc.; a band; a ligament; a shackle or a manacle. [1913 Webster]… …   The Collaborative International Dictionary of English

  • Bond debt — Bond Bond (b[o^]nd), n. [The same word as band. Cf. {Band}, {Bend}.] 1. That which binds, ties, fastens, or confines, or by which anything is fastened or bound, as a cord, chain, etc.; a band; a ligament; a shackle or a manacle. [1913 Webster]… …   The Collaborative International Dictionary of English

  • Bond of a slate — Bond Bond (b[o^]nd), n. [The same word as band. Cf. {Band}, {Bend}.] 1. That which binds, ties, fastens, or confines, or by which anything is fastened or bound, as a cord, chain, etc.; a band; a ligament; a shackle or a manacle. [1913 Webster]… …   The Collaborative International Dictionary of English

  • Bond timber — Bond Bond (b[o^]nd), n. [The same word as band. Cf. {Band}, {Bend}.] 1. That which binds, ties, fastens, or confines, or by which anything is fastened or bound, as a cord, chain, etc.; a band; a ligament; a shackle or a manacle. [1913 Webster]… …   The Collaborative International Dictionary of English

  • Obligation — Ob li*ga tion, n. [F. obligation. L. obligatio. See {Oblige}.] 1. The act of obligating. [1913 Webster] 2. That which obligates or constrains; the binding power of a promise, contract, oath, or vow, or of law; that which constitutes legal or… …   The Collaborative International Dictionary of English

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