Final drafts of the documents and the Issuer's bond resolution are prepared. The Issuer adopts the bond resolution, in which it agrees to sell the bonds to the Underwriter, approves the documents and authorizes execution of the bonds. The Purchase Agreement is signed. The Final Official Statement is printed. Bond Counsel circulates drafts of closing documents.
All parties complete and assemble the remaining documents for the closing.
Step 7 About two to three weeks later, the preclosing and closing occur, which are the final meetings of all parties. At this time, all of the documents are executed and delivered. Bond Counsel delivers its opinion that the bonds are valid and the interest on them is exempt from federal income taxes. The Issuer delivers the bonds to the Underwriter, and the Underwriter transfers money to the Trustee to pay for the project and various costs.