### Question
How is the term municipal obligation defined?


### Answer
The term **municipal obligation** is defined in *12 U.S.C. § 1828* as the following:

> an obligation of—


(i) a State or any political subdivision thereof

#### Citation:
  - *12 U.S.C. § 1828*
  - Heading: **CHAPTER 16-FEDERAL DEPOSIT INSURANCE CORPORATION**

