What are the procedures for issuing municipal bonds?

Municipal bonds are issued by municipal governments in Oklahoma as a way to finance large projects such as roads, parks, schools, hospitals, and more. In order to issue municipal bonds, the municipality must first prepare a formal resolution authorizing the issuance. This resolution should include the amount of the bond, the purpose of the bond, the rate of interest, the timeline for repayment, and other important details. Once the resolution is approved, the municipality can proceed with the bond sale. A bond sale typically involves hiring a financial advisor to help with the process. The advisor will determine the amount of bonds to be sold, the interest rate, and other important factors related to the sale. The financial advisor will also be responsible for finding potential buyers and ensuring that the bond sale is conducted in a fair manner. The municipality must then advertise the bond sale in order to attract potential buyers. This often includes sending out press releases, holding public hearings, and other methods of promotion. After potential buyers are identified, the process of issuing the bonds can begin. At this time, the bond buyers will submit bids to purchase the bonds. The municipality will then select the highest bidding buyer and issue the bonds. Finally, after the bonds are issued, the municipality is responsible for tracking and selling the bonds on a regular basis in order to ensure that the repayment of the debt is met. This includes ensuring that interest payments are made on time and the bonds are not defaulted on.

What are the procedures for issuing municipal bonds?

Related FAQs

Related Blog Posts