Statutory debt limit


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Statutory debt limit

The cap that Congress imposes on the amount of public debt that may be outstanding whether temporary or permanent. When this limit is reached, the Treasury may not sell new debt issues until Congress raises the limit. For a detailed listing of changes in the limit since 1941, see Budget of the United States Government. See: Debt outstanding subject to limitation.

Debt Ceiling

The maximum amount that a government can borrow. The term especially applies to municipalities; rising above the debt ceiling may trigger a reduction it a municipality's credit rating. Cities and other local governments that are near the debt limit may issue participation certificates--a right to the receivables for a certain project--instead of direct debt. The United States also has a national debt ceiling, but Congress simply raises it every time the national debt approaches the ceiling.
References in periodicals archive ?
The statute governing G Fund investments expressly authorizes the Secretary of the Treasury to suspend investment of the G Fund to avoid breaching the statutory debt limit.
On September 29, 2007, legislation was enacted to raise the statutory debt limit by $850 billion to $9,815 billion.
14 /PRNewswire/ -- House Democratic Leader Nancy Pelosi issued the following statement today in response to the announcement this morning by Treasury Secretary John Snow that the statutory debt limit has been reached, and the Bush Administration can avoid default only by resorting to extraordinary accounting measures:
GAO also found no instances of noncompliance in fiscal year 2006 with selected provisions of the statutory debt limit and debt issuance suspension period laws we tested.
GAO also found no instances of noncompliance in fiscal year 2005 with selected provisions of the statutory debt limit and debt issuance suspension period laws we tested.
The bonds will not be general obligations of the state of Connecticut and its faith and credit are not pledged; the bonds will however be included in direct state debt for purposes of computation of the statutory debt limit.
As a result of the increasing federal debt, on October 14, 2004, Treasury entered into a debt issuance suspension period to avoid exceeding the current $7,384 billion statutory debt limit and requested the Congress take action to raise the debt limit by mid- November 2004.
The system's sizeable capital needs will require additional borrowing, although the system is now at its statutory debt limit.
As a home-rule city, Bloomington has no statutory debt limit.
The bonds are not general obligations of the state and its faith and credit are not pledged; the bonds will, however, be included in direct state debt for purposes of computation of the statutory debt limit.
The county continues to operate near the statutory debt limits, maintaining a $11.
The additional bonds test, statutory debt limits and strong MADS coverage of around 9-10.