Municipal Bond Offering Key Documents

Summary

This practice note discusses key documents in a municipal bond offering. The key documents of a publicly offered bond issue differ from those of a commercial debt transaction in two important respects. First, the lien of bondholders in the security for the bonds may be created much more simply than the security for a lender in a commercial debt transaction. Second, a public offering of bonds will include a number of documents not present in a commercial debt transaction, which usually relies one or more of the exemptions afforded under the securities laws for the placements of debt with a small number of holders.