backing of the debt of a government entity with all the resources of the entity, including its taxing and borrowing power. Bonds backed up by the full faith and credit of the issuer are called general obligation bond .

phrase meaning that the full taxing and borrowing power, plus revenue other than taxes, is pledged in payment of interest and repayment of principal of a bond issued by a government entity. U.S. government securities and general obligation bonds of states and local governments are backed by this pledge.

expression for the commitment by a state, local, or national government to pledge its taxing authority, plus nontax revenues, in payment of principal and interest on outstanding debt securities. For example, a general obligation bond is backed by the issuing municipality's ad valorem taxing power. U.S. Treasury obligations and some federal agency securities also are backed by this pledge.

phrase meaning that the full taxing and borrowing power, plus revenue other than taxes, is pledged in payment of interest and repayment of principal of a bond issued by a government entity. U.S. government securities and general obligation bonds of states and local governments are backed by this pledge.