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 ?
In his decision, Judge Moody correctly held: "The Supreme Court has clearly established that the Full Faith and Credit Clause does not require a State to apply another State's law in violation of its own legitimate public policy.
Almost immediately, senior Treasury Department officials denied full faith and credit was needed.
1% of 2005 personal income and debt is almost two-thirds full faith and credit GOs.
The ERBs are general obligations of the State of California and carry a pledge of its full faith and credit.
5 billion outstanding `AA' full faith and credit bonds are affirmed, and the credit trend remains stable.
The Notes are a general obligation of the County, backed by the County's full faith and credit.
7 million State of Florida full faith and credit state board of education capital outlay bonds, 2006 series A, for bid on 18 hours notice as early as May 30.
1 billion outstanding full faith and credit bonds is affirmed.
The Texas Transportation Commission is authorized to issue bonds backed by fund revenues and to pledge the full faith and credit of the state to the payment of the debt in the event that revenue and moneys dedicated to and on deposit in the mobility fund are insufficient.
NEW YORK, June 28 /PRNewswire/ -- Florida's $300 million Full Faith and Credit, State Board of Education, Public Education Capital Outlay Bonds, 1993 Series C, are rated AA by Fitch.
NEW YORK -- Fitch Ratings assigns a rating of 'AAApre' to the $163,345,000 State of Florida, full faith and credit, State Board of Education public education capital outlay bonds, 2000 series A, maturing June 1, 2011 - 2030, based on an escrow fund invested in direct U.