Negotiated Sale Authorization
Revenue bonds do not require a public vote of approval, and therefore, they do not need to demonstrate through a competitive bidding process that they are being sold at the lowest possible cost. The issuer of a revenue bond, therefore, may select an underwriter earlier in the process through a negotiated bid. With a negotiated sale, an underwriter may even be selected before the bond issue has been structured. Part of the underwriter’s role will be to lead the structuring and other origination tasks on behalf of the issuer. The underwriter may serve as an issuer’s de facto financial advisor, as long as its primary role as underwriter is clearly understood. Sometimes, an independent financial advisor will also be selected solely to assess the work of the underwriter. The issuer will choose an underwriter based o