Bond counsel is the attorney or law firm retained by a bond issuer to give an independent legal opinion that the bonds are validly issued and, where applicable, that their interest is exempt from federal income tax.
Investors and underwriters rely on that opinion, so a public parking project financed with municipal bonds cannot close without it. Bond counsel also usually drafts or reviews the core financing documents, such as the bond resolution or trust indenture.
What bond counsel does
- Confirms the issuer has legal authority to issue the bonds and that the proper approvals were taken.
- Gives the tax opinion, which depends on how the financed facility is used.
- Drafts or reviews the resolution, indenture and closing documents.
- Advises on continuing compliance after closing.
Why it matters for parking
- Private use of a bond-financed garage, such as long-term leases to a private operator or reserved spaces for a private developer, can affect tax-exempt status. These terms belong in the conversation early. See owner-operator agreement.
- Revenue bonds backed by parking income depend on pledges and covenants that bond counsel helps structure. See debt service coverage ratio.
The Parkonomics view
In a public parking deal, bond counsel decides what is possible before anyone decides what is preferable. Bring operating and leasing plans to them early, before the structure is designed around a deal that cannot close.
Related terms: Municipal Bonds, Debt Service Coverage Ratio, Financial Feasibility Study, Owner-Operator Agreement, Equity Financing, Net Operating Income