Bond Counsel May NOT be Underwriters Counsel. Historically, when
an issuewas to be sold on a negotiated basis and was too small to
aford several attorneys,with the consent o the issuer and the
underwriter, bond counsel occasionally alsoacted as underwriters
counsel. In 1985, ection 5!59! was added to the "overnment#ode.
$his new code section %rohibited bond counsel &in the case o a
bond issue' romalso being counsel to the underwriter or other
initial %urchaser o the bonds. (ondcounsel may render o%inions to
the underwriter or %urchaser, but only as bond counseland not as
counsel to the underwriter or %urchaser. )s described later in this
cha%ter inUnderwriters Counsel , a recent develo%ment is the
increasing use o disclosurecounsel, or counsel to the issuer with
res%ect to disclosure and bond sale matters. $histy%e o
relationshi% is not %rohibited by "overnment #ode ection 5!59!
