4.2. Summary of the Underwriting Process

Because the federal government is largely removed from the regulation of municipal bonds, the issuance of municipals differs procedurally from state to state. General obligation bonds, for example, require voter approval in most states but not all. A vote might require a two-thirds majority, a 60% plurality, or a simple majority. Some states only need the approval of the governing body of the issuer. Revenue bonds do not generally need voter approval, but in some places they do.

In many states, municipal bonds must be approved by one or more state agencies (such as the Attorney General’s