Have You Issued Bonds in the Last Five Years? You Need to Know This...
If you have issued bonds in the last five years and marketed those bonds with an official statement, you may be a candidate for the SEC's Municipalities Continuing Disclosure Cooperation (MCDC) Initiative. The SEC says they are offering this "carrot" to issuers whose Official Statement may have contained an inaccurate statement regarding the obligor's continuing disclosure compliance in the previous five years.
Since 1995, for an Underwriter to purchase bonds, an issuer or, in some cases, an obligor, had to enter into a Continuing Disclosure Undertaking, which required filing of certain annual and other information. To help you determine whether you should participate, please follow the steps outlined in this Decision Tree
for a quick summary of what filing pursuant to this MCDC Initiative might mean to you as an issuer. Here
is a link to the MCDC Initiative release from the SEC. Please contact your Financial Advisor, Underwriter and/or Bond Counsel to discuss.
Please contact Jane Herndon
, Kristin McClellan
or Erik Long
with questions or for more information.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.