In addition to the project costs that are intended to be financed with the bond proceeds, costs/fees are also incurred during the bond sale process. Some of these costs may include:



Bond Counsel

An attorney or law firm, typically retained by the issuer, to give a legal opinion that the issuer is authorized to issue municipal securities.

Disclosure Counsel

An attorney or law firm retained by the issuer to prepare the official statement and continuing disclosure agreement, provide advice on issuer disclosure obligations, and report any changes which would materially affect bondholders.

Financial Advisor (with respect to municipal securities)

A consultant who advises the issuer on matters, such as: structure, timing, marketing, fairness of pricing, terms, and bond ratings. A financial advisor may also provide advice on cash flow and investment matters.

Underwriter’s Counsel

An attorney or law firm retained to represent the interests of an underwriter in connection with the purchase of a new issue of municipal securities.


Trustee fees

A financial institution that acts in a fiduciary capacity to enforce the terms of the trust indenture for the benefit of the bondholders.

Paying Agent fees

The entity responsible for transmitting interest and principal payments from an issuer to the bondholders. The paying agent is usually a bank or trust company, but may be the treasurer or some other officer of the issuer.

Escrow Agent fees

The financial institution that holds the government securities and makes payments to the paying agent for the outstanding bonds.

Printing fees

A company that prints and distributes the official statement and other legal documents.

Rating fees

A company that provides ratings to indicate the relative credit quality or liquidity characteristics of an issuer or specific bond issue. For more information on bond ratings, see Measuring Bond Risk.

Issuers have two options for accessing funding, a public offering or a private placement. Each of these options has distinct advantages or disadvantages that may affect funding costs and/or the timing of a bond issue.

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