overlapping debt

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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

A situation in which two governments with overlapping jurisdiction each have debt. For example, if the City and the State of New York have both issued bonds to pay for their operations, both the city and the state have overlapping debt. Having overlapping debt may affect one or both governments' ability to repay.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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