General obligation bond

General obligation bond,

Definition of General obligation bond:

  1. Government bond issued with the governments commitment to use its full taxing and borrowing authority (and other revenue resources) to make timely payment of interest and principal. Bonds issued by government agencies (municipalities, for example) may not have this power, and may rely only on the revenue from the project (to finance which the bond was issued). Also called full faith and credit bond.

Meaning of General obligation bond & General obligation bond Definition