A type of state-issued municipal bond which is backed by a moral, but not a legal, obligation.
A tax-exempt bond issued by a municipality or a state financial intermediary that is backed by the moral, but not legal, obligation of a state government to appropriate funds in case of default.
A municipal security that is not backed by the full faith and credit of the Issuer, but state law permits the Issuer or other government entity to recognize a moral, rather than a legal, obligation to provide a means of payment of the security.
A municipal bond that adds to its primary source of security a promise by the state to make up shortfalls in a debt service reserve fund, subject to legislative appropriation.
A government bond that has not had the formal approval of either the voters or their legislature. It is backed only by the government's "moral obligation" to repay the principal and interest on time.
A bond secured by revenues which is additionally secured by a moral, but not legal pledge from the state to make up any deficiencies. The state legislature would have to approve any makeup funds.
A type of municipal security, issued by a state agency, that is not backed by the full faith and credit of a state. State law may provide that the agency request an appropriation from the legislature to replenish the issuer's debt service reserve fund if a shortfall occurs.
A revenue bond which, in addition to its primary source of security, possesses a structure whereby a state pledges to make up shortfalls in a debt service reserve fund, subject to legislative appropriation. There is no legal obligation for the state to make such a payment, but market participants recognize that failure to honor the "moral" pledge would have negative consequences for the state's own creditworthiness.