McCarter attorney Sarah Smith, as part of her involvement with the National Association of Bond Lawyers (NABL), has co-authored a paper titled “Charter School Bond Financing.” The paper, the result of a project undertaken by a special subcommittee of NABL, is a comprehensive resource that identifies many of the common legal issues and considerations in charter school financings.
Financings of charter school facilities through the issuance of municipal debt obligations have become increasingly prevalent since the first charter school financings were completed in the late 1980s. As more jurisdictions adopt legislation authorizing the creation of and financial support for charter schools, it is likely that these financings will continue and increase in prevalence. Charter school financings raise many unique issues under local, state, and federal law. It is expected that charter school bond financings will continue to occupy a significant portion of the K-12 bond finance space because charter schools continue to grow in both size and quantity, consequently requiring additional and expanded capital facilities. Each charter school and charter school financing is somewhat unique from others in the category.