What are the procedures for issuing municipal bonds?

Municipal bonds are a type of debt issued by state and local governments to fund various projects and programs. In Illinois, the process for issuing municipal bonds is outlined in the Illinois Municipal Code, which is administered by the Office of the Illinois Secretary of State. When issuing municipal bonds, local governments must first create a bond ordinance. The ordinance sets out the specific details of the bond issue, including the project or program to be funded, the amount of money to be borrowed, and the repayment terms. The ordinance must then be approved by a majority of the voting members of the municipal governing body. Once the ordinance is approved, the local government must then develop and issue documents outlining the bond issue and its terms, including the amount of the bond, the interest rate, the tax status, and the repayment schedule. These documents must also be approved by the Illinois Secretary of State. Once approved, the documents must then be registered with the Securities and Exchange Commission (SEC). If the bond is issued on the open market, it must also be registered with the appropriate stock exchange. Finally, the bonds must be distributed. This is generally done by an underwriter, who purchases the bonds from the issuer and resells them to investors. After the bonds are sold, the proceeds are given to the issuer, who uses the funds to fund the project or program.

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What are the procedures for issuing municipal bonds?

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