What are the procedures for issuing municipal bonds?

In West Virginia, the process for issuing municipal bonds begins with the municipality’s governing body, which is authorized to raise funds through the sale of bonds. The governing body must pass an ordinance authorizing the sale of the bonds and set the amount of bonds to be issued, the interest rate, and the maturity date for the bonds. The municipality must then appoint an Underwriting Syndicate to market and sell the bonds. This syndicate is responsible for advising the municipality on the best course of action and structuring the bond offering. The Underwriting Syndicate is also tasked with setting the sale date and terms of the offering. The municipality must also appoint a Bond Counsel to review and approve the ordinance authorizing the bonds and to provide legal advice. The Bond Counsel will review the bond offering documents, such as the Official Statement and the Continuing Disclosure Statement. Next, the municipality must advertise the bond offering and set a public hearing to allow citizens to comment on the issuance. After the public hearing, the municipality must publish a Notice of Sale in the newspapers. Finally, the municipality may set a competitive sale or a negotiated sale. In a competitive sale, the municipality receives bids from different investors. In a negotiated sale, the municipality negotiates the sale with a lead underwriter, and then other investors can purchase the bonds from the same underwriter. After the bonds are sold and the investors are paid, the municipality has the funds raised through the sale of the bonds.

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What are the procedures for issuing municipal bonds?

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