Public-Finance Transaction Law and Legal Definition

.

Pursuant to the Uniform Commercial Code, "Public-finance transaction" means a secured transaction in connection with which debt securities are issued, and all or a portion of the securities issued have an initial stated maturity of at least 20 years. Furthermore, the debtor, obligor, secured party, account debtor or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest in the transaction must be a State or a governmental unit of a State.