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 Missouri, 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 way to raise funds for these projects. Bondholders are typically entitled to receive periodic interest payments and the return of the principal amount on the maturity date. Missouri statutes provide guidelines on how these bonds can be issued, including voter approval requirements for general obligation bonds, and the procedures for issuing revenue bonds, which are repaid from the income generated by the project they finance. Additionally, the state has a legal framework in place to ensure transparency and accountability in the management of public funds. Federal laws, including securities regulations, also apply to the trading of these bonds in secondary markets, ensuring that transactions comply with national standards and protections for investors.