Municipal Securities Definition
A municipal security is a debt obligation of the state or any political subdivision of the state. The following facts are true of municipal securities:
• The debt instrument may be a long-term bond or short-term note.
• The security may be either a direct obligation issued by the state to pay principal and interest, or it may be issued by a private entity and guaranteed as to principal or interest by the state.
• A political subdivision includes cities and counties.
• An agency is an administrative entity that is