Public finance law includes state and federal laws and regulations governing the financing of public organizations and projects. For example, public finance laws and regulations govern the sale and purchase of bonds to build or improve schools, parks, roads, airports, cultural facilities, recreational facilities, entertainment venues (sports arenas), and other public works projects.

Bonds are debts issued by governments (the debtor), for example, to purchasers of the bonds (the creditors), with a promise to pay the bondholder interest (a coupon) and repay the principal amount upon a certain date (maturity date)—similar to an IOU or loan agreement. Bonds are securities that can often be traded (bought and sold) to and from others on the secondary market.

In Arkansas, public finance law is governed by both state statutes and federal regulations. These laws oversee the issuance and management of public debt, including the sale and purchase of bonds for financing various public projects such as schools, parks, roads, and cultural facilities. The state government, counties, cities, and other public entities can issue bonds as a form of borrowing money from investors. These bonds are essentially promises to repay the borrowed amount with interest by a specific maturity date. Arkansas has specific legal frameworks that detail how these bonds can be issued, including voter approval for certain types of bonds, disclosure requirements, and limitations on the amounts and purposes for which the bonds can be issued. Additionally, federal laws, including tax laws and securities regulations, also apply to the issuance and trading of these bonds. The bonds issued by public entities in Arkansas are subject to these regulations to ensure transparency, fiscal responsibility, and the protection of investors. The trading of bonds on the secondary market is also regulated to ensure fair practices and to prevent fraud.