Legal Definitions - long-term debt

Long-term debt refers to a type of debt that is not due for payment within the next year. It is a liability on a claim, which means a specific sum of money that is owed by agreement or otherwise.

Examples of long-term debt include:

• Bonds or debentures
• Mortgages
• Bank loans with a repayment period of more than one year

These examples illustrate long-term debt because they are all debts that are not due for payment within the next year. For instance, a bond is a type of long-term debt that is issued by a company or government and has a maturity date of more than one year. This means that the bondholder will receive their principal investment plus interest after a certain period of time, usually several years.