debt limit

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Debt limit

The maximum amount that a municipality can borrow.

Debt Ceiling

The maximum amount that a government can borrow. The term especially applies to municipalities; rising above the debt ceiling may trigger a reduction it a municipality's credit rating. Cities and other local governments that are near the debt limit may issue participation certificates--a right to the receivables for a certain project--instead of direct debt. The United States also has a national debt ceiling, but Congress simply raises it every time the national debt approaches the ceiling.

debt limit

The statutory maximum amount of debt that a municipality may have outstanding.
References in periodicals archive ?
Republicans also say the debt limit consequences are big enough that Obama cannot continue to avoid negotiations with them.
In other words, Obama-era spending forced borrowings that brought us to the current debt limit.
The amendment would raise the debt limit by $1 trillion to match $1.
Obama originally intended to exercise his authority to raise the debt limit on Dec.
Quoting unidentified congressional sources, ABC said the deal would raise the debt limit through the 2012 election, cut more than $1 trillion in spending over 10 years and set up a new congressional panel to recommend additional deficit reductions totaling more than $1 trillion.
After failing to reach an accord -- and apparently disbanding last week -- the group says it's nearing an agreement on a proposal, which could offer an alternate strategy for pushing an increase in the debt limit through Congress before the Aug.
Moody's placed US debt on review for a possible downgrade "given the rising possibility that the statutory debt limit will not be raised on a timely basis".
Americans opposed to raising the federal debt limit commonly cite a government spending problem; those in favor cite a threat to the economy from not raising it.
US Treasury Secretary Timothy Geithner has warned that Republicans will be at fault for the country's first ever debt default if they refuse to drop demands for sharp budget cuts as a condition of extending the government's debt limit.
On July 30, 2008, legislation was enacted to raise the statutory debt limit from $9,815 billion to $10,615 billion.
The delay was caused by maneuvering the Treasury Department was required to perform to make room for additional debt sales given that Congress has still not approved legislation to increase the current debt limit of $6.
While this provides the City with enough for its current four-year program, Anderson said, "It's still an interim measure and we need a long-term resolution of the debt limit.