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 York, public finance law is governed by both state statutes and federal regulations. The state laws include the Local Finance Law, which provides the framework for local governments to issue bonds and other obligations for funding public projects such as schools, parks, and infrastructure improvements. These bonds are essentially loans that the government entity agrees to repay with interest by a specified maturity date. The sale and trading of these bonds must comply with both state law and federal securities regulations, including the Securities Act of 1933 and the Securities Exchange Act of 1934, which are enforced by the Securities and Exchange Commission (SEC). The SEC oversees the bond market to ensure transparency and protect investors. Additionally, the New York State Comptroller's office plays a key role in overseeing public finances, including the issuance of bonds by state and local entities. The Comptroller's office ensures that these financial activities adhere to the law and are conducted in a fiscally responsible manner.