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A tale that has been passed down.
An urban legend could be a false event designed to keep children out of trouble or something that is (or was) honestly believed to be true or just some sort of superstition.
In some cases there is a mix of truth and fiction.
Many of these involve a ghost of some sort.
Are there any urban legends specific to where you live?
Edit: This site is a good place to look for American guild members.
Feel free to link any helpful sites you find.