Full faith and credit

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Full Faith and Credit

A situation in which a government agrees to repay a debt no matter what. For example, if a bond is backed by the full faith and credit of the United States, the U.S. government must find some way to repay the bond. U.S. Treasury securities, Ginnie Mae bonds, and some other debt securities are call full-faith-and-credit bonds because they have this backing. Municipalities may also attach full faith and credit to their bonds, but this means less than the credit of the United States.

Full faith and credit.

Federal and municipal governments can promise repayment of debt securities they issue because they can raise money through taxes, borrowing, and other sources of revenue. That power is described as full faith and credit.

References in periodicals archive ?
The current offering is secured by the county's full faith and credit pledge but debt service is actually paid from rates and charges generated by the self-supporting district; therefore all of the outstanding district debt is excluded from the county's debt levels.
The credit considerations for bonds of the State of Florida must take into account not only general characteristics of its debt, financial and economic positions, but also the legal dedications of specific taxes for each type of debt, in addition to the full faith and credit pledge.
At least 88% of the GBR loans and 93% of 1990 resolution loans are estimated to be of investment-grade quality, and nearly all borrowers back their SRF loans with their communities' full faith and credit pledge.
Scheduled to be sold competitively on June 13, the BANs are secured by the city's full faith and credit pledge and will mature on Nov.