Glossary of Municipal Securities Terms

BONDED DEBT

The portion of an issuer’s total tax-supported debt represented by outstanding bonds. Bonded debt can be calculated in several manners:

Direct Debt or Gross Bonded Debt – The sum of the total bonded debt and any short-term debt of the issuer. Direct debt may be incurred in the issuer’s own name or assumed through the annexation of territory or consolidation with another governmental unit.

Net Direct Debt or Net Bonded Debt – Direct debt less sinking fund accumulations and all self-supporting debt.

Overall Debt or Total Overall Debt or Total Direct and Overlapping Debt ­– Total direct debt plus the issuer’s applicable share of the total debt of all overlapping jurisdictions.

Net Overall Debt or Total Direct and Overlapping Debt – Net direct debt plus the issuer’s applicable share of the net debt of all overlapping jurisdictions.

Overlapping Debt – The issuer’s proportionate share of the debt of other local governmental units that either overlap it (the issuer is located either wholly or partly within the geographic limits of the other units) or underlie it (the other units are located within the geographic limits of the issuer). The debt is generally apportioned based upon relative assessed values.

See: DEBT RATIOS; TAX-SUPPORTED DEBT.

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