Definitions for "Government Security"
(also called agency securities) securities issued by U.S. Government agencies such as REFCORP or Federal Land Bank. They have high credit ratings, but are not considered to be Government Obligations and therefore are not directly guaranteed by the government as Treasuries are.
A GOVERNMENT SECURITY includes securities that are guaranteed by or are direct obligations of the U.S.; securities that are issued or guaranteed by corporations in which the U.S. has a direct or indirect interest and which are designated by the Secretary of the Treasury as exempted securities; and securities issued or guaranteed by a corporation and designated as exempt securities by statute. It also includes certain PUTS, CALLS, OPTIONS, STRADDLES, or PRIVILEGES on any of the foregoing securities. The term GOVERNMENT SECURITY isdefined in Section 3(a)(42) of the 1934 ACT.
A debt obligation of the U.S. government, backed by its full faith, credit and taxing power, and regarded as having no risk of default. The government issues short-term Treasury bills, medium-term Treasury notes and long-term Treasury bonds.
Keywords:  promising, repay, future, fixed, per
A contract of the government promising to pay a lender a fixed rate of interest per year and repay the original loan at a fixed future date.