debt created by a municipality when it issues municipal bonds to fund other development projects by a governmental unit serving the same area. For example, a city may use income from general obligation bonds to service county or school district bonds.
municipal accounting term referring to a municipality's share of the debt of its political subdivisions or the special districts sharing its geographical area. It is usually determined by the ratio of assessed valuation of taxable property lying within the corporate limits of the municipality to the assessed valuation of each overlapping district. Overlapping debt is often greater than the direct debt of a municipality, and both must be taken into account in determining the debt burden carried by taxable real estate within a municipality when evaluating municipal bond investments.
