1. duty, pressure, compulsion Students usually feel an obligation to attend lectures.
2. task, job, duty, work, calling, business, charge, role, function, mission, province, assignment, pigeon (informal), chore I feel that's my obligation, to do whatever is possible.
3. responsibility, duty, liability, accountability, culpability, answerability, accountableness I have an ethical and moral obligation to my client.
4. contract, promise, agreement, understanding, bond, debt, commitment, engagement The companies failed to meet their obligation to plant new trees.
under an obligation in (someone's) debt, indebted, obliged, grateful, thankful, obligated, beholden, duty-bound, honour-bound, owing a favour I'd rather not be under any obligation to him.
without obligation free, for free (informal), for nothing, unpaid, complimentary, free of charge, on the house, without charge, gratuitous, gratis, buckshee (Brit. slang) Our advice and quotations are without obligation.
Note added at 20 minute (2009-11-30 10:08:51 GMT)
Bonds may be secured or unsecured. A secured bond is backed by collateral, meaning it has the money or physical assets that a bond issuer must give to investors if the bond defaults. Securing ensures that capital will be available to pay the principal on the bond. Corporate bonds and municipal bonds may be secured or unsecured. Federal government bonds, however, are unsecured.
After learning about some major types of secured bonds, we will discuss unsecured bonds, also called debentures. These bonds, instead of being secured with some kind of collateral, are backed by creditworthiness of the issuer.
This tutorial will discuss the following:
Popular Types Of Unsecured Bonds
Secured bonds are given names that reflect the type of collateral that backs them. Some major types of secured bonds are listed below.
Mortgage bonds are secured corporate bonds that are backed by real estate, although they may include equipment as well. They may cover all mortgageable property or just specific pieces. Because mortgage bond collateral provides a clear claim on a company's assets, mortgage bonds are considered high-grade and safe from default. A trustee acting on behalf of bondholders holds the collateral; if the bond defaults, this trustee may foreclose for the bondholders.
These bonds come in two types: first mortgage bonds and junior mortgage bonds. Should an issuer have to liquidate, first mortgage bonds are paid off before juniors are.
To finance projects such as bridges, hospitals and power plants, municipalities sell revenue bonds (or limited obligation bonds). The revenue generated by those projects secures them.
Financial assets in the form of a securities portfolio containing stocks and bonds secure collateral trust bonds. A third-party trustee holds the securities.
Equipment trust certificates are backed by company equipment. They are popular with airlines and railroads that need to finance new purchases of equipment. The equipment bought may be the same equipment that is collateralized. A trustee for the bondholders keeps the title to the equipment. After all the bondholders have been paid back, the trustee then returns the title to the company.
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