Series 53: 4.2.1.3. Negotiated Sale Authorization

4.2.1.3. Negotiated Sale Authorization

Revenue bonds generally do not require a public vote of approval, so it is often unnecessary 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 preparations on behalf of the issuer. The underwriter may serve as an issuer’s unofficial financial advisor, a