Bond Counsel

A lawyer or law firm that delivers a legal opinion which deals with the issuer?s authorization to issue bonds and the tax-exempt nature of the bond. Bond counsel is retained by the issuer.

REMARKS: A bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity. A bond is simply a loan in the form of a security with different terminology. The issuer is equivalent to the borrower, the bond holder to the lender, and the coupon to the interest. Bonds enable the issuer to finance long-term investments with external funds.