Municipal Bond Offering Key Parties

Summary

This practice note identifies the parties and institutions that play a key role in the process of issuing municipal bonds. It also describes the respective roles of those actors in this intricate, and sometimes complicated process. A decision to borrow money by issuing public debt is a significant and serious action for elected officials. The statement it makes to voters, investors, and the public has important consequences and, potentially, a vast impact on future community options. The need for the proposed project that may be financed through borrowing should thus be carefully examined and evaluated. Elected public officials will need to make independent decisions as to what is best for their community. They will be called upon to exercise sound business judgment and to act as a fiduciary of their community's assets. Moreover, once a decision to issue public debt is made, professional advice will be required to assure the success of the transaction.