Legal Question in Business Law in California

Re: Corporation Law regarding Non-profits, if able to issue Municipal Bonds

Only a municipality can issue such bonds. That's why they are called "municipal".

Re: Corporation Law regarding Non-profits, if able to issue Municipal Bonds

Only a municipality can issue municipal bonds. There is a related concept called "revenue bonds" or "industrial revenue bonds" in which a municipality issues bonds, the interest and principal on which are to come not from the municipality's general fund or from tax proceeds, etc., but from revenue from some industrial project such as a harbor, factory, lease of air-pollution control equipment, tourist attraction or the like. Recent tax-law changes have reduced the use of industrial revenue bonds, but they remain useful for some projects. Certain non-profit organizations could engage with a municipality for a bond issue and revenue-producing investment. Such deals always require the services of specialized counsel by each of the parties -- the user, the issuer, the underwriter, and perhaps the institutional or other purchaser of the bonds.