What is an ‘Obligation’
An obligation in finance is the responsibility to meet the terms of a contract. If an obligation is not met, the legal system often provides recourse for the injured party.
Explaining ‘Obligation’
Financial obligations represent any outstanding debts or regular payments that you must make. If you owe or will owe money to anybody, that is one of your financial obligations. Almost any form of money represents a financial obligation – coins, bank notes, or bonds are all promises that you will be credited the accepted value of the item. Most formal financial obligations, like mortgages, student loans or scheduled service payments, are set down in written contracts signed by both parties.
Further Reading
- Method and instrument for financing backed by collateralized debt obligation-type structures – patents.google.com [PDF]
- On the fidelity Road to Director's Obligation [J] – en.cnki.com.cn [PDF]
- Green Finance, Social Obligation and the Business Choices of State-Owned Banks – en.cnki.com.cn [PDF]
- The Internal Auditing Obligation for Corporate Governance [J] – en.cnki.com.cn [PDF]
- Obligation, reason, and Frankfurt examples – www.oxfordhandbooks.com [PDF]
- Comparative costs of negotiated versus competitive bond sales: new evidence from state general obligation bonds – www.sciencedirect.com [PDF]
- The Historical Obligation of Chinese Endowment Insurance [J] – en.cnki.com.cn [PDF]
- Government Obligation of Public Service under International Vision [J] – en.cnki.com.cn [PDF]
- On Five Issues of Natural Obligation [J] – en.cnki.com.cn [PDF]
