Who does bond counsel primarily represent?

Bond counsel primarily represents the issuers of the bonds. Their role is to provide legal advice to the entities that issue bonds, which can include municipalities, state governments, and other local authorities. Bond counsel is responsible for ensuring that the bond issue complies with federal and state laws, including tax laws, and that all necessary documentation is properly prepared and executed.

The designation of bond counsel is critical, as their expertise helps issuers understand their obligations and rights under the financings they are pursuing. This involves drafting legal opinions that confirm the tax-exempt status of the bonds and affirming that the bonds are legally enforceable obligations.

Although the interests of bondholders and investors are crucial in the overall transaction, bond counsel does not represent them. Instead, their primary loyalty and professional guidance are directed toward the issuers who seek to raise capital through the bond market. This dual representation is essential for maintaining the integrity of the municipal bond market while adhering to the legal framework governing these transactions.