page_title: Municipal bond
section_title: Traditional issuance process
hierarchical_section_title: Municipal bond / Traditional issuance process
caption_attribution_description: Municipal bond (10 złotys) issued by town Kraków, 1929
context_page_description: A municipal bond, commonly known as a muni bond, is a bond issued by a local government or territory, or one of their agencies. It is generally used to finance public projects such as roads, schools, airports and seaports, and infrastructure-related repairs. The term municipal bond is commonly used in the United States, which has the largest market of such trade-able securities in the world. As of 2011, the municipal bond market was valued at $3.7 trillion. Potential issuers of municipal bonds include states, cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and other governmental entities at or below the state level having more than a de minimis amount of one of the three sovereign powers: the power of taxation, the power of eminent domain or the police power.
  Municipal bonds may be general obligations of the issuer or secured by specified revenues.
context_section_description: Municipal bonds are securities that are issued for the purpose of financing the infrastructure needs of the issuing municipality.  The financed infrastructure needs vary greatly but can include schools, streets and highways, bridges, hospitals, public housing, sewer, water systems, power utilities, and various public projects. Traditionally, municipal bonds are issued and sold to bond holders through a complex network of financial and legal professionals.
caption: Municipal bond issued in 1929 by city of Kraków (Poland)
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