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 Kansas, 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 Kansas Development Finance Authority (KDFA) is a key state agency involved in issuing bonds for public projects. Bonds are essentially loans made by investors to public entities, with the promise that the government will pay back the principal with interest by a specified maturity date. These bonds can be general obligation bonds, which are backed by the full faith and credit of the issuing government entity, or revenue bonds, which are repaid from a specific revenue source. Federal laws, including tax regulations and securities laws administered by the Securities and Exchange Commission (SEC), also play a significant role in the regulation of public bonds, particularly in terms of disclosure and trading in the secondary market. It is important for entities involved in the issuance and trading of municipal bonds to comply with both state and federal regulations to ensure the legality and fiscal responsibility of public finance activities.