### Question
What does municipal securities mean?


### Answer
**Municipal securities** has the following meaning in *15 U.S.C. § 78c*:

> securities which are direct obligations of, or obligations guaranteed as to principal or interest by, a State or any political subdivision thereof, or any agency or instrumentality of a State or any political subdivision thereof, or any municipal corporate instrumentality of one or more States, or any security which is an industrial development bond (as defined in section 103(c)(2) [2](#78c_2_target) of title 26) the interest on which is excludable from gross income under section 103(a)(1) [2](#78c_2_target) of title 26 if, by reason of the application of paragraph (4) or (6) of section 103(c) [2](#78c_2_target) of title 26 (determined as if paragraphs (4)(A), (5), and (7) were not included in such section 103(c)),[2](#78c_2_target) paragraph (1) of such section 103(c) [2](#78c_2_target) does not apply to such security

#### Citation:
  - *15 U.S.C. § 78c*
  - Heading: **CHAPTER 2B-SECURITIES EXCHANGES**

