For the most part, however, because enforcing debts against state governments is so difficult, transactions are structured as much as possible to prevent the need to enforce debts in that way through (1) legal limitations on
governmental liability, (2) legislative budget rules requiring interest on debt and currently due principal payments to be made first, (3) third - party
bonding of state and local
governmental construction projects, (4) the creation of publicly owned corporations whose debts can only be collected out of the corporation's assets and revenues, and (5) avoidance of
trade credit obligations by paying bills in cash.