What Does a Bond Attorney Do?

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. 

Municipal Bonds

One of the areas in which they bond attorney typically works is in the issuing of municipal bonds. A municipal bond is a type of bond that is issued by a municipality such as a school system, an airport, or a local government. The municipality issues this type of bond in order to raise money for some type of project. Private investors can invest in this type of bond and receive regular interest payments. In most cases, the investor has to put in as much is $5,000 to get involved. 

Once the investor puts in their money, the interest payments that they receive will be on a tax-free basis. At the end of the investment term, they will also be able to get their initial investment back.

Role of the Bond Attorney

When these municipal bonds are issued, the attorney plays a vital role in the process. The municipality will contract with the attorney in order to have them look over the entire process. The attorney will read the documents that are associated with the municipal bond issue. The attorney will make sure that everything appears to be correct in the documents and that they can be issued.

At some point, the attorney will provide a formal opinion on the legality of the municipal bond issuance. They will make sure that everything in the documents is legally binding and that both parties will be satisfied.

Bond attorneys will also consult when the municipality decides to purchase bond insurance. Sometimes, municipalities like to purchase bond insurance as a way to guarantee the bond payments even if the municipality goes out of business. While they may not necessarily be afraid of actually going out of business, they know that this is a good way to attract investors to the bonds. This basically guarantees the investment for the investors of the bonds. The attorney will review the insurance contract and associated documents in order to make sure that the insurance coverage is what is needed. 

Other Roles

In some cases, the term "bond attorney" can be used in other contexts. For example, a bond attorney can play a role in a criminal case when an individual is given a bail bond. The client can hire a bond attorney in order to help lower the amount of money that the bond costs. This will help the individual afford the bond easier and this will allow them to get out of jail while they are awaiting their trial. The bond attorney has to be familiar with the court system and the bond process in order to make this work.

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