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 New Jersey, 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 other infrastructure. The New Jersey statutes provide the framework for how state and local governments can issue bonds, the types of bonds that can be issued, and the procedures for sale and redemption. These bonds are essentially loans made by investors to the government, with the promise that the government will pay back the principal with interest by a specified maturity date. Bonds issued by New Jersey entities are subject to the rules and regulations of the Municipal Securities Rulemaking Board (MSRB) and the Securities and Exchange Commission (SEC) at the federal level, which ensure transparency and protect investors by regulating the municipal securities market. Additionally, New Jersey has its own set of regulations and oversight bodies to ensure that public finance is conducted in a responsible and lawful manner.