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 Idaho, public finance law is governed by both state statutes and federal regulations. These laws oversee the issuance and management of bonds by public entities such as state and local governments to fund various public projects like schools, parks, and infrastructure improvements. When the state or a local government in Idaho needs to raise funds for such projects, they may issue bonds, which are essentially loans from the bond purchasers to the government entity. The government promises to pay back the principal amount on a specified maturity date, along with periodic interest payments. These bonds can be general obligation bonds, which are backed by the full faith and credit of the issuing government, or revenue bonds, which are repaid from a specific revenue source. The sale and trading of these bonds are regulated to ensure transparency and fairness in the market. Federal laws, including securities regulations overseen by the Securities and Exchange Commission (SEC), also apply to the trading of these bonds to protect investors and maintain market integrity. It is important for entities involved in the issuance and trading of municipal bonds in Idaho to comply with both state and federal regulations to ensure the legality and success of their financing activities.