Legal Definitions - agency security

Agency security is a type of government security that is used to guarantee the fulfillment of an obligation. This means that if a government agency owes money to someone, they can offer agency security as collateral to ensure that the creditor will be repaid with interest.

For example, let's say that a government agency needs to borrow money to fund a new project. They might issue agency securities to investors, promising to repay the money with interest at a later date. These securities would serve as collateral, giving investors some assurance that they will be repaid.

Overall, agency security is an important tool that governments can use to raise funds and manage their finances. By offering these securities, they can attract investors and ensure that they have the resources they need to carry out their work.