Dictionary of Banking Terms: legalopinion
legalopinion
written opinion by an attorney stating that a proposed bond issue complies with applicable securities laws. In a municipal bond offering, the opinion also states that the issuer has a legal right to issue the securities proposed for sale, and also whether the bonds are exempt from state and local taxes. The issuer must obtain this statement before a new issue can be floated. Municipal bond issuers usually print the legal opinion on the back of each certificate.
