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 high court said the case went to the jury on the mistaken theory that the underlying debts owned by LVNV were "void" because the company was unlicensed.
Often, partnership interests are owned through a disregarded entity, such as a single-member LLC (SMLLC) or a qualified S corporation subsidiary, which will allow the entity's owner to be the partner for income tax purposes while effectively limiting liability for the partnership's underlying debts.
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.
Club sources insist there are no serious underlying debts or tax liabilities at the club - total debt is understood to be EUR40k.
Unlike preventive organizations, debtors in suspensive reorganizations are required to pay all underlying debts, including secured debts, labor-related debts and taxes.
The payment schedule submitted by the debtor must propose to pay all unsecured creditors at least 50 percent of their underlying debt immediately; or an increased percentage over time--60 percent over 6 months, 75 percent over 12 months, 90 percent over 18 months, or 100 percent over 24 months.
in this case, the bond constitutes an additional guarantee pending a determination of the veracity or existence of the underlying debt; or
I analyzed court fees in relation to the value of underlying debts. In a 1740 court session, for example, I found that, for the lowest quartile of debts (debts in the smallest amounts), court fees represented 79% of the value of the underlying debt.
In addition, Article 23 of the Bankruptcy Law recognizes the right of secured creditors to foreclose and auction the assets securing the underlying debts without court intervention.
Article 209 of the Bankruptcy Law allows privileged creditors, regardless of whether the underlying debts are guaranteed by security interests, mortgages, warrants, or maritime or aircraft mortgages, to require a special reorganization rather than a preventive reorganization.
Even ignoring situations in which the allocation of CODI does not follow the allocation of the underlying debts, the partners are faced with two sources of income recognition: the recognition of their portions of the partnership's CODI and the potential for income recognition under Sec.
Treating CODI as a partnership level item creates the potential for double taxation of income if the allocation CODI does not follow the allocation of the underlying debt. The problem arises because, unlike the approach in which the deemed Sec.