underlying debt

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Underlying debt

Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility.

Underlying Debt

A bond or other debt issued by a municipality and guaranteed by another government entity. For example, if a state guarantees payment, at least in part, for municipal bonds issued by cities in that state, those bonds are called the state's underlying debt. This debt is usually lower risk than other debts.

underlying debt

Debt of a municipal organization for which a higher municipal organization is at least partially responsible. For example, debt of a hospital authority may be guaranteed by a county such that the hospital debt is underlying the debt of the county. Compare overlapping debt.
References in periodicals archive ?
The projects will play an important role in helping find long-term solutions for low-income families struggling with financial difficulties by dealing with their underlying debts.
The same trial court also oversaw a process which recently determined that Midland's procedures are sound and designed to produce affidavits that accurately describe the underlying debts.
Club sources insist there are no serious underlying debts or tax liabilities at the club - total debt is understood to be EUR40k.
I analyzed court fees in relation to the value of underlying debts.
The company is certain of the validity regarding the underlying debts at issue.