Definition of Net Direct Debt

Net Direct Debt is the total amount of general obligation debt, including notes and short-term financing issued by a municipality or state.

Applying "Net Direct Debt" to Securities Exams:

Net Direct Debt is the total amount of the outstanding general obligation debt issued by and for the use of a state or municipality. Direct debt is usually less than the total debt of a municipality as municipalities will often have overlapping debt issued by another municipality county or state that it must repay a portion of.

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