A moral obligation bond is a municipal bond which the issuer includes a non-binding covenant in the bond indenture to include a budget recommendation to the legislative body responsible for appropriations, to make up any shortfall in money needed for debt service.
It is called a moral obligation bond because the legislative body responsible for appropriations is not legally required to make the appropriation. Sometimes a moral obligation pledge is included instead of a general obligation pledge is included because it does not require voter approval.
For the definition and explanation of more bond related words visit the Learn Bonds glossary where we give the meaning of many additional terms.
76.4% of retail investor accounts lose money when trading CFDs with this provider.
Total Number of Stocks & Shares+2000
Charge per Trade
FTSE 100Zero Commission
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
David Waring was the founder of LearnBonds.com and has been a major contributor to the extensive library of investing news and information available on the site. Until the launch of Learnbonds.com in late 2011 there was no single site on the internet catering exclusively to the individual bond investor. This was true even though more individuals own stocks than bonds. Learn Bonds was launched to fill that gap.