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Finance allah shmoop what is a moral obligation bond So

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one of our writers totally messed this one up and

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we started a video about promises to pay dentists So

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a moral obligation bond is one that gets paid because

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well you have good morals or you feel morally obligated

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to pay hey if you don't necessarily legally have to

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pay it but you're morally obligated Teo do so let's

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think about this Hospitals universities do gooder projects of all

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shapes and sizes that is on a lone dusty highway

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west of omaha a tiny city wants to build a

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trucker parking hub with excellent hot dogs clean ish showers

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and a mud flap emporium They need three million bucks

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to build this thing for the kindly loving truckers while

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it's still human beings doing nothing and well on their

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own city can't afford it the state realizing how good

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this depot would be for commerce in business coming into

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and out of the state they decide to guarantee the

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bonds of that little city The city is backing it

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without reams of paper a forest full of paper sign

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contracts or any other major structural legal limits in practice

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The bonds air publicized as a gift to the area

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and they create extreme embarrassment to the politicos who backed

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it Should that bond ever fail That is whoever's managing

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the facility and supposed to collect the you know shower

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tuition from the truckers stops collecting it and or the

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truckers find somewhere else to go with mohr cleanest showers

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or this is a municipal moral obligation bond but the

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term applies to bonds that are not government backed as

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well The holy rollers church of greater baltimore is raising

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money to replace all the stained glass windows that have

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been broken by you know errant baseball's from the neighboring

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field They get each of their congregants toe loan the

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church three grand and no they're not passing contracts along

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with the collection plate there's nothing in writing saying that

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the church will use that money to replace the windows

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they promised or because the members let the church get

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their dough back The church has a moral obligation to

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pay back the money that they were loaned to make

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good on their promise and if they default well they'll 00:02:10.823 --> [endTime] have to answer to the big guy in charge

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