What is a Certificate of Obligation?
March 30, 2009 by How Savings Bonds Work
Filed under More Bonds Answers
Can you answer curiousfuturepublicadmin’s question about Bonds?:
Specifically pertaining to municipal bonds, what is a certificate of obligation?
Us Treasury Savings Bonds
Specifically pertaining to municipal bonds, what is a certificate of obligation?
Us Treasury Savings Bonds
Bonds Feedback: In the financial term of ‘Obligation’, it means..
“Obligation refers to an outstanding debt that a party must still repay - and if they do not pay, they default on the debt. For example, when the U.S. government issues Treasury bonds it has the obligation to pay back the principal to the debt holders.”
Assuming if the Bond is from Municipal, then the Municipal involved is in the obligation.