A state authority (which is an independently legal entity) issues bonds back with a moral obligation of the state. This debt

a.is probably backed by the full faith and credit of the state

b.is probably subject to the same debt limitations as if it had been issued by the state itself

c.probably bears a lower interest rate than if there were no moral obligation associated with it

d.imposes greater pressure on the agency to repay the debt than if there were no moral obligation associated with it