Special Tax Counsel

An attorney or firm of attorneys engaged to render opinions on the federal and/or state tax exemption for Tax-Exempt Bonds and those aspects of the transaction relating to whether the Tax-Exempt Bonds qualify for federal tax exemption and, in some cases, state tax exemption. In addition, Special Tax Counsel may be engaged to assist the Issuer on certain discrete questions relating to these income tax exemptions, including questions regarding Yield restrictions on investments of unspent Tax-Exempt Bond proceeds and the Rebate requirements under federal income tax law.

Life’s a Party

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

See Also

Tax-Exempt Bonds

A bond, the interest on which is excludable from gross income for federal income tax purposes.

Bond Counsel

An attorney or firm of attorneys, frequently retained by the Issuer but sometimes by another party to the transaction, to render an opinion in a bond financing as to the validity and enforceability of the bonds and the treatment of the interest on the bonds under the code and applicable state law.

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Sinking Fund

A fund to which the issuer or the conduit borrower periodically makes payments or in which revenues from a project are periodically deposited for purposes of paying the debt service on a bond issue.