What is sec Rule 15c2-12?

05/09/2019 Off By admin

What is sec Rule 15c2-12?

Specifically, SEC Rule 15c2-12 requires that underwriters of municipal securities, before bidding, purchasing, or selling a municipal security in the primary market, must obtain and review the issuer’s preliminary and final official statements and reasonably determine that the issuer has committed to provide continuing …

What is a Continuing Disclosure agreement?

A continuing disclosure agreement must require a Governmental Issuer or other Obligated Person to give timely notice of the following events with respect to the Bonds being offered, if material: Bond calls; Defeasances; Release, substitution or sale of property securing repayment of the Bonds; Rating changes.

What are the disclosure requirements for a new issue of municipal securities?

Issuers must disclose any 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. A failure to comply with the undertaking would be a breach of contract.

Does SEC require an official statement?

SEC Rule 15c2-12 requires the Preliminary Official Statement to be “final” except for pricing and information dependent upon or determined as part of the pricing. The Preliminary Official Statement is used by the underwriters to solicit interest in the securities.

What are corporate bonds SEC?

What is a corporate bond? A bond is a debt obligation, like an Iou. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures.

What is the EMMA website?

Electronic Municipal Market Access
The Electronic Municipal Market Access (EMMA®) website is the municipal market’s free source of data and information on virtually all municipal bonds. The Municipal Securities Rulemaking Board (MSRB) operates the EMMA website to promote a transparent, fair and efficient market.

How many municipal bond issuers are there?

50,000 issuers
There are approximately 50,000 issuers of municipal securities, including states, their political subdivisions (such as cities, towns, counties, and school districts), their agencies and instrumentalities (such as housing, health care, airport, port, and economic development authorities and agencies), as well as a …

Does the SEC regulate municipal bonds?

The SEC oversees the MSRB. The MSRB is a self-regulatory organization whose mission is to protect investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market.