What role does the municipal bond counsel play?

Municipal bond counsel plays a crucial role in the issuance of municipal bonds by providing legal advice and ensuring compliance with legal requirements. They guide municipalities through the process of issuing bonds, including drafting legal documents and opinions required for the issuance. This is essential because the issuance of bonds must adhere to various state and federal laws, and bond counsel ensures that all legal obligations are met, thereby helping to protect the interests of the municipality and its bondholders.

The tasks undertaken by bond counsel include reviewing the terms of the bond issue, providing opinions on tax-exempt status, and advising on regulatory compliance matters. This legal framework is critical for the successful issuance and sale of the bonds in the capital markets. Their expertise helps to mitigate legal risks and instills confidence in investors about the validity of the bonds being issued.

In contrast, underwriting municipal bonds, managing investment portfolios, and assessing credit ratings are roles typically held by investment banks, financial advisors, and rating agencies, respectively. These functions are separate from the legal background that bond counsel provides, demonstrating the specialized nature of their role in the municipal finance landscape.