underlying debt(redirected from Underlying Debts)
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.
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.