General Obligation of a State or Political Subdivision Law and Legal Definition

According to 12 CFR 1.2 [Title 12 Banks and Banking; Chapter I Comptroller of the Currency, Department of the Treasury; Part 1 Investment Securities], general obligation of a state or political subdivision means:

"(1) An obligation supported by the full faith and credit of an obligor possessing general powers of taxation, including property taxation; or

(2) An obligation payable from a special fund or by an obligor not possessing general powers of taxation, when an obligor possessing general powers of taxation, including property taxation, has unconditionally promised to make payments into the fund or otherwise provide funds to cover all required payments on the obligation."