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.

BREAKING DOWN '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. The City

    The main financial district of London, and one of the world's ...
  2. Reserve City Bank

    A bank that is found in any city that also has a Federal Reserve ...
  3. 18-Hour City

    A second-tier city with above-average urban population growth ...
  4. New York Dollar

    The buying power of a U.S. dollar in the city of New York. The ...
  5. Cost of Living

    The amount of money needed to sustain a certain level of living, ...
  6. Double Barreled

    A municipal general obligation bond in which the cash flows are ...
Related Articles
  1. Personal Finance

    How Much Money Do You Need to Live in NYC?

    Learn how much money you need to meet basic expenses in New York City as a student, as a professional and as an unemployed job seeker.
  2. Insights

    Atlantic City is Running Out of Money

    The town with the worst credit rating in America is due to default on a bond payment Sunday.
  3. Personal Finance

    Top 10 Most Expensive Cities in the U.S.

    New York City tops the list of most expensive cities in the US, and five of them are located in California.
  4. Investing

    How Citigroup Ensured That It's Too Big to Fail

    As a business, Citi has everything going for it. Scale, operational breadth...and the ear of key policymakers.
  5. Financial Advisor

    5 Cities the Ultra-Rich Are Moving to

    Learn the top five cities worldwide that are attracting the most high-net-worth individuals, and discover factors that make a city appealing to the ultra-rich.
  6. Investing

    Municipalities Free Up Cash With Chapter 9

    Find out what happens to municipalities when they need money, but have no other option than bankruptcy.
  7. Personal Finance

    The Top 5 Under-the-Radar Cities for Job Seekers

    Don't be misled by 'Top 10' lists that rank cities purely on job growth. These cities get top marks for income growth and other key factors.
  8. Retirement

    The Cities Where the Ultra-Rich Retire in New York

    Discover why wealthy and active adults retire in New York, the cities they favor and key information about each city that makes it attractive to retirees.
  9. Investing

    Best Ways to Tap Into New York City Real Estate

    New York is known for its real estate investment opportunities. Here are three ways you can invest in the city's real estate market to grow your wealth.
  10. Managing Wealth

    ‘18-Hour Cities’: The Next Big Thing for Real Estate Investors

    The rise of the ‘18-hour city’ is the latest trend to hit real estate – with high growth potential for investors.
RELATED FAQS
  1. What is the cost of living difference between Boston and New York City?

    Discover MIT and Numbeo statistics that show that the cost of living in Boston, except for rental prices, is basically equal ... Read Answer >>
  2. What's the most expensive city in the world to live in?

    Find out which cities are the world's most expensive to live in, and learn how the Economist's yearly cost of living index ... Read Answer >>
  3. What is the Big Mac index?

    The Big Mac index, also known as Big Mac PPP, is a survey done by The Economist magazine that is used to measure the purchasing ... Read Answer >>
  4. Which US cities have the highest number of high-income households?

    Learn which U.S. cities have the highest number of high-income households and why they were able to attract such a large ... Read Answer >>
  5. What forms of debt security are available for the average investor?

    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
  6. What is a triple tax-free municipal bond?

    At its core, a triple tax-free municipal bond is just like any corporate bond: it is a debt instrument, a loan given to a ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center