An obligation bond creates a personal obligation on the part of the borrower to compensate the lender for costs in excess of the value of the mortgaged property or assets, such as closing costs or transaction costs.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
obligation bond — A municipal bond with a face value greater than the value of the underlying property. The difference is designed to compensate the lender for costs exceeding the mortgage value. Bloomberg Financial Dictionary … Financial and business terms
General obligation bond — A general obligation bond is a common type of municipal bond in the United States that is secured by a state or local government s pledge to use legally available resources, including tax revenues, to repay bond holders.Most general obligation… … Wikipedia
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
Limited-tax general obligation bond — A general obligation bond that is limited as to revenue sources. The New York Times Financial Glossary … Financial and business terms
limited-tax general obligation bond — A general obligation bond of a government backed by specified or constrained revenue sources. Bloomberg Financial Dictionary … Financial and business terms
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… … Financial and business terms
General Obligation Bond - GO — A municipal bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project. General obligation bonds are issued with the belief that a municipality will be able to repay its debt obligation… … Investment dictionary
general obligation bond — A bond issued by a public body as the obligation of the body payable from its general resources raised by taxation, as distinguished from a bond issued by such a body but payable from a special fund only. 43 Am J1st Publ Sec § 282 … Ballentine's law dictionary
general-obligation bond — /jen euhr euhl ob li gay sheuhn/ a bond issued by a state or city and backed by general tax revenue and the issuer s credit. Cf. revenue bond. * * * … Universalium
General Obligation Bond — (GO BOND) A municipal bond (tax free for federal income) that is backed by the municipality issuing it. GO bonds are considered less risky than revenue bonds, which are issued by municipalities, tax free, but are backed only by the revenue from… … American business jargon