A municipal bond offered without a law firm's legal opinion. A majority of bonds are issued with legal opinions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A municipal bond that does not have the written endorsement of a bond law firm. An ex-legal bond has not been checked to ensure that it has followed all applicable laws in the course of issue (or, worse, it has been checked and a firm refused to endorse it). As a result, ex-legals are more highly exposed to legal risk than other bonds.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Of or relating to a municipal bond that is traded without the benefit of the legal opinion of a bond counsel. The trading of ex-legal municipal bonds is permitted as long as the buyers are informed about the lack of legal opinion.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.