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 Ohio, 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 Ohio Revised Code contains provisions that detail the powers and limitations of state and local governments in issuing bonds. These bonds are essentially loans made by investors to the government, with the promise that the government will pay back the principal amount with interest by a specified maturity date. Bonds issued by the state of Ohio and its municipalities are considered securities and are subject to federal securities laws and regulations enforced by the Securities and Exchange Commission (SEC). These regulations ensure transparency and protect investors by requiring disclosures and regulating the trading of these securities on the secondary market. Additionally, the Ohio Treasurer's office plays a key role in managing the state's debt and ensuring compliance with relevant laws and regulations.