Full Faith-and-Credit Obligation

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Full Faith-and-Credit Obligation

A bond secured by an unconditional promise to pay by another entity. The term usually refers to a debt security backed by the United States government. For example, a U.S. Treasury security and a Ginnie Mae pass-through are both full faith-and-credit obligations. These securities carry very low risk.
References in periodicals archive ?
One of the fundamental insurance coverages that all municipalities need is full faith and credit bonds for their public officers.