Investment dictionary

OBLIGATION BOND

Obligation Bond: translation

A municipal bond used to secure a mortgage on property or other physical assets that can be liquidated. The face value of the bond is greater than the value of the property itself.

An obligation bond creates a personal obligation on the part of the borrower to compensate the lender for costs in excess of the value of the mortgaged property or assets, such as closing costs or transaction costs.


  1. obligation bond—obligation bond translation A municipal bond with a face value greater than the value of the underlying property. The difference is designed to compensate the lender for ...Financial and business terms
  2. obligation bond—фин. облигация с личным обязательствомu облигация с номиналом выше стоимости активов которыми она обеспечена предполагает появление личных обязательств держателя по уплат...Англо-русский экономический словарь