Overlapping Debt 

On a municipal issuer?s financial statement, ?overlapping debt? is the debt of other issuers which is payable in whole or in part by taxpayers of the subject issuer. As an example, a county usually includes several smaller governmental units and its debt is apportioned to them for payment based on the ratio of the assessed value of each smaller unit to the assessed value of the county. Another example is when a school district includes two or more municipalities within its bounds. In each example, ?overlapping debt? is the proportionate share of the county and/or of the school district borne by the included subject issuer.