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SEC Amendments Add New Reporting Requirements for Municipal Bonds
By Jeffrey D. Winitsky on August 20, 2018

On August 20, 2018, the U.S. Securities and Exchange Commission (SEC) adopted certain amendments to Rule 15c2-12 of the Securities and Exchange Act of 1934 and the regulations set forth thereunder.  Such amendments have the effect of adding new required continuing disclosure obligations of municipal bond issuers and certain "obligated parties."  

In particular, the adopted amendments require continuing disclosure agreements executed after the compliance period to include two new reporting events, under which notice must be provided to holders of bonds.  In addition to the other existing listed events set forth under Rule 15c2-12, within 10 days of the following events, notice must be provided to holders of the bonds to which the associated continuing disclosure agreement relates:

(1)        a financial obligation of the issuer or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or obligated person, any of which affect security holders, if material; and

(2)        default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties.

The compliance date for inclusion of the new notice events established by the amendments is 180 days after such amendments are published in the Federal Register.

To the extent you would like any additional information about the impact and practical implications of the amendments upon continuing disclosure obligations for municipal bond issuers and related obligated parties, please contact the attorneys in Parker McCay's Public Finance department at any time. 

The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion.  You should consult a lawyer concerning your specific situation and any specific legal question you may have.

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