Obligation

1.

Any financial commitment undertaken, most commonly in relation to repaying money.

For example the obligation to repay a bond - together with related interest - or the obligation to repay other borrowings or other debt.

This type of obligation is sometimes known as a 'debt obligation'.

2.

More generally, any legally binding financial or non-financial commitment.

These may be contractual obligations, or other legally binding obligations.

3.

More broadly still, any type of commitment, whether or not it is legally binding.

See also

• Aval
• Bond
• Constructive obligation
• Debt
• Discharge
• Obligating event
• Obligor