Moral obligation debt

Moral obligation debt,

Definition of Moral obligation debt:

  1. A bond or debt carried by a local, state, or federal government which is not secured by the issuer to its full amount, and hence carries both a higher risk and a higher yield. This type of debt is usually incurred in order to bypass various restrictions on governmental borrowing. Also called general obligation bonds.

Meaning of Moral obligation debt & Moral obligation debt Definition