Is bond counsel a legal opinion?Asked by: Vada Larson | Last update: August 28, 2023
Score: 4.2/5 (14 votes)
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. If applicable, interest on the proposed securities will be excluded from gross income of the bondholders (Federal and/or State and/or local)
What is a bond counsel qualified legal opinion?
If a bond is given with a qualified opinion by the bond counsel, it means that the bond has issues with the tax status, among other things. It merely implies everything is not okay with the issuance of the municipality bond. Most are the times it becomes expensive to acquire legal opinions for the municipal bonds.
Would a bond counsel render a qualified legal opinion?
Bond Counsel is traditionally engaged to provide an objective legal opinion as to validity and enforceability (i.e., whether the Bonds are valid obligations of the Issuer and whether the holder of the Bonds could sue in court to enforce the Issuer's promise to timely pay the Principal and Interest on the Bonds), which ...
What is a bond legal opinion?
The bond opinion usually confirms: that the bonds have been duly authorized and executed by and are valid and binding obligations of the issuer. the source of payment or security for the bonds.
What does the municipal bond counsel opine on?
The bond counsel examines new municipal issues for legal or tax problems and renders an opinion on the validity, legality and tax exempt status of the issue. Bond counsels do not render market or economic opinions, which is the same as rendering an opinion on the marketability of an issue.
Update and Discussion on Legal and Practical Issues: NY Public Entities Must Post Meeting Minutes
What does the legal opinion about a municipal bond issue attest to?
The unqualified legal opinion on a municipal bond states that: Bond counsel attests that, to the best of its knowledge, the issuer has the legal right to issue the securities in question.
What is the legal opinion about a municipal bond issue attached to the?
Explanation: The legal opinion is a statement of bond counsel that a municipal bond issue is legal under the laws of the issuing jurisdiction and that the interest on the bonds is exempt from federal income taxation. Such an opinion is part of the "official statement" (like a prospectus) and is included with the bond.
What is a legal opinion of counsel?
A legal opinion is a formal letter from your company's corporate counsel to the investors containing counsel's conclusions about various legal matters relevant to the company and the transaction, based on counsel's review of a defined body of documents and information.
What is in a legal opinion?
An opinion from lawyers issued in letter form expressing legal conclusions about a transaction. It may also include legal analysis relating to the transaction. The statements in it are able to be relied on by the addressee of the opinion.
What is a legal opinion for a borrower?
The most common Legal Opinion Letters provide assurance to the lender that the borrower (if an entity) is an organization in good standing with the power and authority to execute the loan agreements.
What is an unqualified legal opinion on a municipal bond state?
An unqualified legal opinion states that the lawyer has no reservations, that the issuance is a legally binding obligation of the municipality, and that interest payments received from investors are exempt from federal tax.
What all will the bond counsel examine in order to render an opinion on a new municipal bond issue?
See Answer. Rationale: The bond counsel renders an opinion as to the legality, validity, and tax exempt status of a new municipal issue. To do this, he examines municipal statutes, state laws, judicial edicts, and tax regulations.
What is the purpose of opinion of counsel?
The purpose of a legal opinion in a transaction is to provide an additional layer of assurance to the party receiving the opinion. In loan transactions in the United States, it is customary for the borrower's counsel to provide an opinion to the lender (but not vice versa).
What is the difference between a qualified and non qualified legal opinion?
Unqualified opinion: The bond counsel has no reservations about the issuer's authority to borrow, the nature of the bond, and the tax exemption. This is usually called an “approving” opinion of counsel. Qualified opinion: The bond counsel expresses concerns about some or many aspects of the bond.
What is the difference between counsel and council legal?
Counsel and council are pronounced the same, but they have different (though related) meanings. Counsel is a verb meaning “advise” and a noun meaning “advice” or “instruction.” It can also be used as a noun to refer to a lawyer. Council is a noun referring to an advisory or legislative body of people.
What is the difference between associate counsel and counsel?
Someone who is "of counsel" in a legal office is generally someone who has been around a while and will also stay around. In contrast, the shelf life of most associates is quite limited. Clients and legal office partners know that the associate is likely to be gone at any time.
What is the difference between a legal opinion and a legal decision?
A decision is a loose term for the set of opinions that accompany an order, combined with that order. There may be more than one case associated with a particular decision. An opinion is a general term describing the written views of a judge or judges with respect to a particular order.
Is legal opinion the same as judicial opinion?
Judicial opinions (also known as legal opinions, legal decisions, or cases) are written decisions authored by judges explaining how they resolved a particular legal dispute and explaining their reasoning. An opinion tells the story of the case: what the case is about, how the court is resolving the case, and why.
What is the difference between a legal opinion and fact?
In general, facts are statements that can be proven true or false; by contrast, opinions are matters of belief or ideas that cannot be proven one way or the other. For example, "Chris is a thief" can be proven false by showing that throughout his entire life Chris never stole anything.
How do you brief a legal opinion?
- Select a useful case brief format. ...
- Use the right caption when naming the brief. ...
- Identify the case facts. ...
- Outline the procedural history. ...
- State the issues in question. ...
- State the holding in your words. ...
- Describe the court's rationale for each holding. ...
- Explain the final disposition.
What does the legal term of counsel mean?
Of counsel is the title of an attorney in the legal profession of the United States who often has a relationship with a law firm or an organization but is neither an associate nor partner.
What is a conflict of interest in a legal opinion?
The Restatement states that a conflict of interest arises when: . . . there is a substantial risk that the lawyer's representation of the client would be materially and adversely affected by the lawyer's own interests or by the lawyer's duties to another current client, a former client, or a third person.
What is a bond who can issue them and why do they issue them?
Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.
What does bond issue mean in law?
A bond issue is when a company or government sells a bunch of bonds at the same time. Bonds are like loans that people can buy and the company or government pays them back with interest. It's a way for them to get money to fund projects or pay off debts.
What is a bond issue for?
A bond issue as it applies to ballots is when a state government, or a local unit of government (city, county, school district), places a question before the voters as a ballot measure, asking them to approve or deny additional proposed spending.