Bond counsel is a recognized expert in the state and federal law relating to governmental borrowing. Bond counsel is designated by the issuer and has a duty to give an impartial opinion on the effectiveness of the bonds and the taxability of the bonds. In addition, it is the bond counsel that drafts and assembles most of the documentation and coordinates the deal. The Solicitor of the issuer also plays an important role. In addition to reviewing documents on behalf of the issuer, the Solicitor will give an opinion as to state law matters.
Bond issues have a paying agent or sometimes a trustee.
In its simplest form, the paying agent is charged with the duty of paying the required interest and principal to the bond owners. Where the Money Is All costs of borrowing are minor when compared to the cost of interest, unless the maturity of the debt is very short term. An issuer that is truly cost-conscious needs to look first for the best interest rates. When dealing with an underwriter, interest rates are affected by original issue discount. An original issue discount is a small decrease in the amount received by the issuer compared to the amount borrowed.