See Also: ability(2)(dictionary)
Ability(medicine)
Ability to pay(finance)
ability(dictionary)
Ability to Pay(money)
Ability(money)
Present Ability(law)
mixed ability(dictionary)
kidney concentrating ability(medicine)
FINANCE(finance)

Ability to pay (finance)


1) The borrower's ability to make interest and principal payments on debts. 2) In context of municipal bonds, refers to the issuer's present and future ability to create sufficient tax revenue to fulfill its contractual obligations, accounting for municipal income and property values. 3) In context of taxation, notion that tax rates should be determined according to income or wealth.