Municipal Assistance Corporation - MAC

AAA

DEFINITION of 'Municipal Assistance Corporation - MAC'

A corporation created by the state of New York to aid New York City in an extreme financial crisis. The city had exhausted all lending organizations and was no longer able to have any debt issuances underwritten. MAC was authorized to sell bonds issued by the city to enable cash flow to return to the city's government.

INVESTOPEDIA EXPLAINS 'Municipal Assistance Corporation - MAC'

The state stepped in to avoid social unrest in the nations largest city. Among such unrest, they were afraid of breaking union contracts, as well as the inability to pay government employees. The state also advanced the city with additional funds to assist the revamping of their financial state and tide them over until enough of the new bonds could be issued.

RELATED TERMS
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Government Security

    A bond (or debt obligation) issued by a government authority, ...
  4. Treasury Note

    A marketable U.S. government debt security with a fixed interest ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
  6. NEXUS

    A Trusted Traveler Program that allows pre-screened U.S. and ...
Related Articles
  1. Bonds & Fixed Income

    The Treasury And The Federal Reserve

    Find out how these two agencies create policies to stimulate the economy in tough economic times.
  2. Investing

    The Advantages Of Bonds

    Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment.
  3. Bonds & Fixed Income

    3 Bonds You May Have Never Heard Of

    These lesser-known bonds may give your portfolio a boost when other investments products fall short.
  4. Mutual Funds & ETFs

    8 Fund Types To Use In A Recession

    When the economy blows up, these funds offer some protection from major losses.
  5. Active Trading

    Modern Portfolio Theory: Why It's Still Hip

    See why investors today still follow this old set of principles that reduce risk and increase returns through diversification.
  6. Active Trading

    Buy Treasuries Directly From The Fed

    If you want government securities, go straight to the source. We'll show you how.
  7. Investing News

    An Emerging Relationship: Tech Startups & Marijuana

    An increasing number of funding platforms are emerging to support marijuana start-ups, although the marijuana industry is still controversial.
  8. Stock Analysis

    Will Ride Sharing Crush Medallion Financial?

    Driving a taxi cab is far from a glamorous business, but in many areas of the country, it's a business that involves a lot of money.
  9. Economics

    Analysing Risks On The Upcoming UK General Elections

    Rising UK political risk keeps investors funds on the sideline.
  10. Economics

    Vladimir Putin: Rise to Power and Fortune

    An article about Vladimir Putin, where he studied, how he came into power, his net worth, and the current leverage he has on world politics.

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center