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John T. Clawson <br />District i9A <br />Chisago-Anoka-lsanti.Counties <br />Commlllees: <br />Governmental Operations <br />Health and Welfare <br />Local and Urban Affairs <br /> <br /> · <br /> ]nnesota} <br />House <br /> Representa iv <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />Mayor Tom Ga 'c~ <br />Representative Jo <br /> <br />May 14, 1980 <br /> <br />During the Session you contacted me wi-th your concerns.~egarding-a <br />proposal to have the State act as bond-seller for local units of <br />government. <br /> <br />While, with the possible exception of cities of the first.class and <br />their school districts, I agree with you that the proposal was inappro- <br />priate for the remainder of the state. I thought you might find interesting <br />this article about another aspect of the bonding problem. It points, <br />I think, to why legislators and others are getting a little nervous <br />about the amount and number of high-interest bonds.that are being sold <br />today. And especially so with the explosion in sales of tax-free <br />industrial revenue bonds. <br /> <br />Prudent persons will, I think,°be interested in discussi.ng the questions <br />being raised about the role of bond counsel in public finance. This <br />article illustrates some of. the ethical problems that may affect the <br />relationship between counsel and their clients, as well as some of the <br />problems that may exist in defining exactly who bond counsel's client is, <br />in view of the stated SEC attitude. <br /> <br />JC:sd <br /> <br />Replylo: [] 227 State Office Building, ~;.~::~::~1, Mfnnesola 55155 <br /> n I ~ednr P~3mt. CentecC~tv~p,~esota 5~12 <br /> <br />(612) 296-4358 <br /> <br />(612] 257-5385 <br /> <br /> <br />