Glossary of Municipal Securities Terms

LEGAL OPINION

The written conclusions of bond counsel that the issuance of municipal securities and the proceedings comply with applicable laws, that the municipal securities are legal, valid and enforceable obligations of the issuer and that, in the case of tax-exempt bondsinterest on the bonds is excluded from gross income of the bondholders for federal income tax purposes and, where applicable, from state and local taxation. Bond counsel’s legal opinion is often referred to as the “approving opinion” or “bond counsel opinion.” See: BOND COUNSEL; QUALIFIED LEGAL OPINION; SPECIAL TAX COUNSEL; UNQUALIFIED LEGAL OPINION. Compare: 10b-5 OPINION.

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