5.4.1 Direct Costs of Issuance
An issuer’s COI are typically paid from a COI fund or account established by an indenture or bond resolution and may be held by a bond trustee, a paying agent, or the issuer. In general, authorized COI should be paid after the receipt of invoices and within 120 days after the closing date of a debt issuance. COI are in addition to any internal costs incurred by the public agency for staff work directly related to the debt issuance or applicable fees to other government departments. The internal control and practices used to authorize COI should be consistent with procedural requirements specified in bond documents and applicable public agency administrative policies. Direct COI may include the following:
- Municipal advisor fees
- Legal counsel (bond counsel, issuer counsel, disclosure counsel) fees
- Bond trustee fees
- Credit rating fees
- Printing/distribution costs
- Bond insurance premium
- Auditor fees
- Fees payable to conduit issuers
Refunding transactions may also include the following:
- Escrow agent fees
- Escrow securities bidding costs
- Pricing/escrow verification agent fees