Dictionary Home »
Business » underlying debt
underlying debt business definition
- Debt of a municipal organization for which a higher municipal organization is at least partially responsible. For example, hospital authority debt may be guaranteed by a county such that the hospital debt is underlying the debt of the county. Compare overlapping debt.
- A first mortgage on real estate when the same property is being used as collateral for other debt. For example, a first mortgage is the underlying debt when a home equity loan on the same property is also outstanding. Also called underlying mortgage.
Learn more about underlying debt