Certificate Of Obligation
From Open Risk Manual
Definition
A Certificate Of Obligation is a Municipal Security available to governing councils in case of emergency, such as a Natural Disaster, that needs immediate action without time for voter referendum.
For example, if a hurricane destroys the police and emergency services building, there is no time to go through the process of voter referendum. The local council must be able to borrow the money to set up provisional buildings and necessary equipment for police and emergency services so that the community is served in continuity.
