Intended for local municipal officials and their advisors on public finance issues, this publication describes the legal environment surrounding bonds and examines some of the factors affecting the political feasibility of bond issues. Four categories of state controls of municipal bonds are discussed: limits on the amount of debt municipalities may incur; restrictions on the amount of revenue that may be committed to service debt; requirements for voter approval; and constraints on the characteristics of the bond itself. The publication reports the results of a survey in which 215 mayors (78 responded) of Washington cities and towns with a population under 10,000 were asked to rank factors which influenced the council and the population to approve or not approve a bond proposal in the last 5 years. Research results suggest several concrete actions that proponents (or opponents) of bond issues might take, e.g., stress the project's necessity for community well-being; anticipate and counter the tendency to fiscal conservatism among voters and officials; seek times of economic prosperity or low bond interest rates to attempt capital projects; and be sure that the appropriate officials are informed about the procedures for issuing bonds. A glossary of nine terms concludes the publication. (NQA)