Definition of Coterminous

Coterminous refers to municipalities that share the same borders and have overlapping debt.

Applying "Coterminous" to Securities Exams:

In certain instances two municipalities will be responsible for the same municipal debt issue.
Ex: A city located within a county may issue a bond that is backed by both the full faith and credit of the city and the county. The debt is then said to be shared, or coterminous debt.

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