Full Faith And Credit
The Government National Mortgage Association (Ginnie Mae) is one example of a government agency that is backed by the full faith and credit of the U.S. government. It is generally accepted that the U.S. government will never default on its loan obligations. The full faith and credit of the U.S. government essentially confers risk-free status to securities such as U.S. Treasuries. Similarly, securities backed by Ginnie Mae mortgages have lower yields than other mortgage-backed securities because they are assumed to carry less risk.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
full faith and credit — n: the recognition and enforcement of the public acts, records, and judicial proceedings of one state by another see also article iv of the constitution in the back matter compare choice of law, comity … Law dictionary
full faith and credit — noun a guarantee to pay interest and principal on debt; usually issued by the United States Treasury • Hypernyms: ↑guarantee * * * noun : an obligation under the United States Constitution of one state to recognize and give effect to the public… … Useful english dictionary
full faith and credit — A pledge of the general taxing power for the payment of debt obligations. Bonds carrying such pledges are referred to as general obligation bonds or full faith and credit bonds. American Banker Glossary … Financial and business terms
full faith and credit — The promise that accompanies government debt issues. ► “Perhaps the most important new condition is that deals be backed with some full faith credit guarantee.” (International Business, May 1995, p. 20) … American business jargon
full faith and credit — The measure of the recognition required by Article IV, section 1, of the Constitution of the United States to be accorded by a court to the public acts, records, and judicial proceedings of a state other than that in which the court is sitting.… … Ballentine's law dictionary
full faith and credit — the obligation under Article IV of the U.S. Constitution for each state to recognize the public acts, records, and judicial proceedings of every other state. * * * … Universalium
full faith and credit clause — n often cap both Fs & both Cs: the clause in Article IV of the U.S. Constitution that requires states to give full faith and credit to the public acts, records, and judicial proceedings of the other states Merriam Webster’s Dictionary of Law.… … Law dictionary
Full Faith and Credit Clause — Article IV, Section 1 of the United States Constitution, commonly known as the Full Faith and Credit Clause, addresses the duties that states within the United States have to respect the public acts, records, and judicial rulings of other states … Wikipedia
full faith and credit clause — The clause of the U.S. Constitution (Art. IV, Sec. 1) which provides that the various states must recognize legislative acts, public records, and judicial decisions of the other states within the United States. There are exceptions to this, a… … Black's law dictionary
Full faith-and-credit obligations — The security pledges for larger municipal bond issuers, such as states and large cities which have diverse funding sources. The New York Times Financial Glossary … Financial and business terms