Question

The bond counsel examines new municipal issues to render an opinion on the validity, legality, and tax exempt status of the issue. To make its determination, the counsel will examine the "enabling legislation" - that is, the statutes that allow the issuer to sell debt and any restrictions placed by these statutes on the issuer. The counsel also examines the Internal Revenue Code and Revenue Rulings that interpret the Code, to determine the true tax status of the issue. The counsel will also examine relevant court cases that pertain to both the legality and tax status of the issue.

The Bond Counsel will not examine the Feasibility Study. This is an economic forecast for the project, comparing projected revenues against projected costs. Bond attorneys make legal evaluations, not economic evaluations.

Answer 1

A bond counsel examines new municipal bond issues to determine their validity, legality, and tax exempt status. They analyze enabling legislation, the Internal Revenue Code, Revenue Rulings, and relevant court cases. Bond counsel does not evaluate the feasibility study.

Step-by-step explanation:

A bond counsel is a legal professional who examines new municipal bond issues to determine the validity, legality, and tax exempt status of the bonds. They do this by analyzing a variety of factors:

1. Enabling legislation: The counsel reviews the statutes that allow the issuer to sell debt and any restrictions imposed by these statutes on the issuer.
2. Internal Revenue Code and Revenue Rulings: The counsel examines the applicable sections of the Internal Revenue Code and the interpretations provided by Revenue Rulings to determine the tax status of the bonds.
3. Court cases: The counsel also reviews relevant court cases that pertain to the legality and tax status of the bonds.

It is important to note that bond counsel does not examine the feasibility study, which is an economic forecast of projected revenues and costs for the project. Bond counsel focuses on legal evaluations rather than economic evaluations.