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 ?
Part I explores the Full Faith and Credit Clause, its current judicial
The Full Faith and Credit Clause touches upon almost all areas of
the Articles's full faith and credit provision, his attorney argued
Union, and, as such, it is entitled to full faith and credit in each of
In this matter of fundamental constitutional importance, it is crucial to understand precisely not only what the Full Faith and Credit Clause was intended to do but what it was not intended to do.
According to the Supreme Court's interpretation of the Full Faith and Credit Clause, states that have valid public policy exceptions to legal acts of other states do not have to recognize those acts.
Part I of this Comment discusses the drafting and interpretation of the Full Faith and Credit Clause, and describes its coordination with conflict-of-laws rules.
Although a substantial amount of scholarly attention has been paid to the history of the Full Faith and Credit Clause,(24) the information surrounding the drafting of the Clause is sparse.
The text of the full faith and credit clause, as ratified by the states in 1789, provides for a theoretical framework of federalism that is based on a hierarchical model.
26) Consequently, the mandatory language of the full faith and credit clause, at least in theory, limits the sovereignty of the states in their relations with other states based on notions that the federal government is supreme when it comes to regulating this aspect of intergovernmental relations.
In January 1989, House Banking Committee members, disturbed by the cost of the FSLIC's year end deals, considered introducing a resolution that FSLIC assistance obligations were not backed by the full faith and credit.
In FIRREA, Congress demonstrated it knows how to pledge full faith and credit by doing so for future obligations of the FDIC and the RTC, so long as the principal amounts and terms to maturity of such obligations are stated (a condition typically not satisfied by assistance obligations such as yield subsidies).