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Continuing Disclosure

Continuing Disclosure (CD) is an SEC rule requiring units of government who issue debt to promise to provide ongoing financial and/or operating information for the life of the bond issue.  If you have any questions about CD or your requirements, please feel free to send us an e-mail and our experts will get back to you as quickly as possible.

If your community has issued bonds in the last decade, it is extremely likely that you are required to provide some level of information to the MSRB via their website so that investors can easily review it.

In addition, any "Significant Event" must be reported within 10 days of its occurrence.   There are currently 14 of them.
So...what is a Significant Event?

Most common Significant Events:

  1. You were late in making a scheduled bond payment

  2. You defaulted on a bond convenant (such as maintaining revenue coverage, if required)

  3. You took funds from a debt service reserve because of financial difficulties

  4. You called bonds (paid them off early)

  5. You defeased bonds or funded an escrow account as part of a refunding

  6. A rating agency (such as Moody's or Standard & Poor's) changed your rating - up or down

Less common Significant Events:

  1. Unscheduled draws on credit enhancements which reflect financial difficulties

  2. Substitution of credit or liquidity providers, or their failure to perform

  3. Adverse tax opinions, the issuance by the IRS of proposed for financial determinations of taxability; Notices of Proposed Issue (IRS Form 57-1-TEB) or other material determinations with respect to the tax-exempt status of the Obligations or other events affecting the tax-exempt status of the Obligations

  4. Modification of rights of bond holders

  5. Release, substitution or sale of property securing repayment of the bonds

  6. Bankruptcy, insolvency, receivership or similar event of the Issuer

  7. The consummation of a merger, consolidation or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms

  8. Appointment of a successor or additional trustee or the change of name of a trustee

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