A state, Political Subdivision, agency or authority that borrows money through the sale of Bonds or other Securities.  The public entity is called the Issuer even in the context of Conduit Financings.  Note, however, that not all governmental entities may be able to issue Tax-Exempt Bonds, because to do so, they must satisfy certain criteria.  In addition to any statutory or other criteria specifically applying to that entity, generally, to be an Issuer, a governmental unit must have more than an insubstantial amount of one of the Shamberg Powers, or have a sufficiently close connection to such a governmental unit to issue Bonds on behalf of that governmental unit. Bonds may be issued either for the Issuer’s own benefit or for the benefit of the Borrower through a Conduit Financing.

Life’s a Party

Learn more about the various parties involved in a municipal securities transaction and their roles.

See Also

Political Subdivision

A division of any state or local governmental unit which is a municipal corporation or which has been delegated the right to exercise a sufficient part of the sovereign power of the unit.

Shamberg Powers

The powers identified in Commissioner v. Shamberg’s Estate, 144 F.2d 998 (2d Cir. 1944) as the powers used to identify what is a political subdivision of a state or local governmental entity in the United States, specifically, the power of eminent domain, the power to tax, and the police power.


The party, often called a conduit borrower or conduit obligor, borrowing bond proceeds from the issuer and, in such case, is responsible for making interest payments and repaying principal of the bonds as it becomes due.

Issuer’s Counsel

An attorney or firm of attorneys engaged to represent the Issuer to ensure proceedings have been conducted legally and that the issuer has the authority to execute the documents to which it is a party.

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Municipal (Financial) Advisor

A consultant to an issuer (or, in some cases, a borrower) which provides advice with respect to the structure, timing, terms or other similar matters concerning a bond issue.