Full Faith and Credit | Practical Law

Full Faith and Credit | Practical Law

Full Faith and Credit

Full Faith and Credit

Practical Law Glossary Item 8-386-5670 (Approx. 2 pages)

Glossary

Full Faith and Credit

Refers to a debt or other payment obligation that is guaranteed by the US Department of the Treasury (Treasury Department) or other government entity. Practically speaking, this means that the taxing and borrowing authority of the relevant government entity can be used, if necessary, to repay the debt or other payment obligation. Examples of obligations that are backed by the full faith and credit of the Treasury Department include FDIC-insured deposits and Treasury bills.