What type of opinion is issued by bond counsel to confirm the legality of bonds?

The type of opinion issued by bond counsel to confirm the legality of bonds is referred to as a Legal Opinion. This opinion is a formal document provided by legal experts specializing in municipal finance, affirming that the bonds comply with relevant laws and regulations.

The significance of a Legal Opinion lies in its role in providing assurance to investors regarding the legitimacy of the bond issuance. It covers various aspects, including the issuer’s ability to levy taxes or revenues to pay bond obligations and the compliance of the bond resolution with statutory requirements. This assurance is crucial for maintaining investor confidence and ensuring the bonds can be sold in the market.

The other types of opinions, such as Financial Opinion, Compliance Opinion, or Advisory Opinion, do not specifically address the legality of the bonds in the same manner. A Financial Opinion relates more to the fiscal aspects, assessing whether the financial structure is sound. A Compliance Opinion generally deals with adherence to regulatory requirements beyond the legal framework of bond issuance. An Advisory Opinion typically provides guidance or opinion without having the force of a legal ruling. Thus, for clarifying the legality of bonds, the Legal Opinion is the appropriate categorization.