MORAL OBLIGATION BOND – A bond, usually issued by a state agency or authority, that is secured by a non-binding covenant that any amount necessary to make up any deficiency in pledged revenues available for debt service will be included in the budget recommendation made to the state legislature or other legislative body, which may appropriate moneys to make up the shortfall.  The legislature or other legislative body, however, is not legally obligated to make such an appropriation.  Compare:  GENERAL OBLIGATION BOND.