overlapping debt

Overlapping Debt

The debt of a political entity such as a state where its tax base overlaps the tax base of another political entity such as a city within the state.

Notes:

If the issuer of a municipal bond has overlapping debt, it should be considered.

See also: Municipal Bond

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Overlapping debt

The portion of debt of political subdivisions or neighboring special districts that a municipality is responsible for.

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overlapping debt

Debt of a municipality that is shared with another political entity. For example, a city may share responsibility with the county in which the city is located for bonds issued by the county to finance a facility such as a public auditorium. Compare underlying debt.