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 ?
The bonds are secured by the district's full faith and credit pledge of ad valorem property taxes levied without limitation as to amount or rate.
The commission has opted to exercise the general obligation full faith and credit pledge of the state, although the bonds are expected to be self-supporting through revenues dedicated to the mobility fund.
The bonds are GOs of Chesterfield County, backed by an irrevocable full faith and credit pledge.