A bond counsel is a legal expert who ensures that municipal or corporate bonds comply with all applicable laws and regulations.

Their responsibilities include…

Legal Opinion on Bonds

• Provides a formal legal opinion on whether the bond is legally issued and enforceable.
• Ensures the bond meets all statutory and constitutional requirements.

Tax-Exempt Status

• Determines if the bond qualifies for tax-exempt status under federal and state laws.
• Advises on tax implications and compliance with IRS regulations to maintain exemption.

Regulatory Compliance

• Ensures the bond issuance follows Securities and Exchange Commission (SEC) rules, state laws, and other financial regulations.
• Advises issuers on legal risks and compliance measures.

Document Preparation

• Drafts key legal documents such as bond resolutions, trust indentures, and offering statements.
• Reviews disclosure documents to ensure accuracy and transparency for investors.

Role in Public vs. Private Bonds

• For municipal bonds, bond counsel ensures compliance with public finance laws and local government regulations.
• For corporate bonds, they assist companies in structuring bond deals that comply with corporate finance laws.