A commitment that is ‘moral’ and not legal because succeeding legislatures are not obligated to abide by such provisions made by preceding legislatures. Municipality, or other governmental entity, issued debt obligation lacking a general obligation bond’s security. Instead, in case of a default, government’s pledge to appropriate future funds of the issuing entity is its backing.
Link to This DefinitionDid you find this definition of MORAL OBLIGATION BOND helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary