what is a bond attorney

Key Takeaways

• A bond attorney is a lawyer who represents municipal bondholders' best interests during a bond offering.
• Bond attorneys prepare legal opinions attesting that the issue is legal, valid, and binding. ...
• To practice as a bond attorney, an individual needs to pass the state bar exam and have a Juris Doctor degree.

Full Answer

What are attorney bonds and how do they work?

Oct 21, 2020 · A bond attorney is a lawyer who represents municipal bondholders' best interests during a bond offering. Bond attorneys prepare legal opinions attesting that the issue is legal, valid, and binding.

What does a bond attorney do?

Bond Attorney. A lawyer hired by a bond issuer to represent the interests of potential bondholders. Before a new issue of a bond, a bond attorney must generally present a legal opinion stating that everything that the issuer says about the bond is true, and that the issuer has adhered to all applicable laws.

What is an attorney bond?

A bond attorney is an individual that plays a vital role in the bond issuing process. Bond attorneys are also used in some criminal cases in order to assist their clients with bond issues. The bond attorney has to go through a substantial amount of education in order to be able to perform their duties in this field.

Who are bond lawyers?

What Is An Attorney Bond? An attorney bond is like a surety bond where you will be released from jail before your trial. With this type of bond, you will pay your attorney a standard non-refundable fee which is usually 10% of your bond amount. This …

What are bond attorneys?

The bond attorney is responsible for registering the bond in the home buyer's name. This part of the process can only occur once a home loan is granted. The bond attorney is appointed by the bank that is granting the home loan.

What does bonding mean in legal terms?

1. In commercial law, a borrower's obligation to pay a stated amount of money after a stated amount of time. 2. In criminal law, an obligation to pay the court if a defendant fails to meet the terms of conditional release from custody.

What is the primary responsibility of the bond counsel?

Today, bond counsel's role remains one in which the primary function is to render an objective legal opinion with respect to the validity and enforceability of the bonds and underlying documents, as well as to opine on the treatment of interest on the bonds.Sep 29, 2017

Who is responsible for the legality of a bond issue?

A bond attorney is a lawyer who represents municipal bondholders' interests during a bond offering and who prepares a legal opinion attesting that the issue is legal, valid, and binding. They also play other roles to ensure value for the bondholders during bond and note offerings.

What is the purpose of a bond?

: the money put up NOTE: The purpose of a bond is to provide an incentive for the fulfillment of an obligation. It also provides reassurance that the obligation will be fulfilled and that compensation is available if it is not fulfilled.

How do you make a bond legal?

A simple money bond must contain the following:Name of the lender and the borrower.Address of the lender and the borrower.The amount being lent/borrowed.The purpose for which the amount is being borrowed.The time period for which the amount is being lent.The interest to be levied on the amount.More items...

What does the bond Counsel review?

An essential member of a governmental issuer's bond financing team is bond counsel. Bond counsel renders an opinion on the validity of the bond offering, the security for the offering, and whether and to what extent interest on the bonds is exempt from income and other taxation.

What does disclosure Counsel do?

Disclosure Counsel means the attorney or law firm retained by the Issuer to provide advice on the Issuer's and/or third-party Obligor's securities law disclosure obligations and to assist in the preparation of the official statement or other offering document.

Is bond a debt or equity?

For example, a stock is an equity security, while a bond is a debt security. When an investor buys a corporate bond, they are essentially loaning the corporation money, and have the right to be repaid the principal and interest on the bond.

Why do bonds require a trustee?

A trustee bond protects the interests of the trust beneficiaries in case the trustee does not adequately perform their duties to the beneficiaries. Trusts are fiduciary arrangements allowing for a third party, the trustee, to manage a trust beneficiary's assets.

What is a bond trust deed?

In many bond issues, the issuer appoints a trustee to represent the bondholders. ... The trust deed is a bilateral deed between the issuer and the trustee(and other obligor entities such as the guarantors or keep-well providers).

How do bonds work legal?

bond, In law, a formal written agreement by which a person undertakes to perform a certain act (e.g., appearing in court or fulfilling the obligations of a contract). Failure to perform the act obligates the person to pay a sum of money or to forfeit money on deposit.

What does the bond counsel review?

An essential member of a governmental issuer's bond financing team is bond counsel. Bond counsel renders an opinion on the validity of the bond offering, the security for the offering, and whether and to what extent interest on the bonds is exempt from income and other taxation.

What is disclosure counsel?

Disclosure counsel is engaged by the issuer to act as the primary draftsperson of official statements and offering memoranda and in such capacity, has an attorney-client relationship with the issuer.

What are the 5 types of bonds?

There are five main types of bonds: Treasury, savings, agency, municipal, and corporate. Each type of bond has its own sellers, purposes, buyers, and levels of risk vs. return. If you want to take advantage of bonds, you can also buy securities that are based on bonds, such as bond mutual funds.

How do you make a bond legal?

A simple money bond must contain the following:Name of the lender and the borrower.Address of the lender and the borrower.The amount being lent/borrowed.The purpose for which the amount is being borrowed.The time period for which the amount is being lent.The interest to be levied on the amount.More items...

What is the primary responsibility of the bond counsel?

Today, bond counsel's role remains one in which the primary function is to render an objective legal opinion with respect to the validity and enforceability of the bonds and underlying documents, as well as to opine on the treatment of interest on the bonds.Sep 29, 2017

Who is responsible for the legality of a bond issue?

A bond attorney is a lawyer who represents municipal bondholders' interests during a bond offering and who prepares a legal opinion attesting that the issue is legal, valid, and binding. They also play other roles to ensure value for the bondholders during bond and note offerings.

Who does bond counsel represent?

Bond Counsel is an important member of the debt issuance team who is retained by the Issuer but represents the interests of the bondholders. Bond Counsel provides a legal opinion that: Issuer is authorized to issue proposed municipal securities and has met all legal and procedural requirements necessary for issuance.

What's the difference between council and counsel?

Council is the word for an advisory group or meeting; counsel is the word for advice, an individual giving advice or guidance, or the verb indicating such action.

What is issuer's counsel?

Issuer Counsel means the legal counsel engaged to provide advice to the City in its capacity as Issuer. Typically, the City Attorney's Office acts as Issuer Counsel for Program Issues.

What is underwriting counsel?

Underwriter''s counsel is employed to represent the underwriter in the offering of bonds. The duties of such counsel include drafting bond purchase agreements, and may include drafting official statements and coordinating disclosure documents.