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NFMA Introduction to Municipal Bond Credit Analysis. SEC Urged to Disapprove Rule on MA Core Conduct. Neighborly Raises $5.5M from Joe Lonsdale’s Formation 8, Ashton Kutcher to Transform the Municipal Debt Market. How Standard & Poor’s Treats Public-Private Partnerships in U.S. State and Local Government Debt Analysis. SIFMA: Alternative Issue Price Method ‘Not Workable’ As
NFMA Releases Final Best Practices for State GO Bond Disclosure After Public Comment. SEC Asks: Should Muni Bond Pricing Change in Wake of Edward Jones? MSRB: Best-Ex Rule Will Not Be Implemented Before Release of Guidance. BDA Submits Letter to SEC on MSRB Proposed Rule G-42 Regarding the Core Duties of Municipal Advisors. Hedge Funds
A New Plan for American Cities To Free Themselves of Wall Street’s Control. GASB to Re-Examine State and Local Financial Reporting Model. Fitch Updates U.S. Water and Sewer Revenue Bond Rating Criteria. Justice’s Antitrust Division Conducting Inquiry Into Muni Bond Pricing. MSRB Links Effective Date for Best-Execution Rule to Publication of Guidance. BDA Submits Letter
Ed. Note: Last week’s issue of the newsletter did not go out as scheduled due to a technical glitch on our end. Consequently, this week’s Frankenissue also includes last week’s content. We apologize for any inconvenience. A quick post-holiday issue will go out next Tuesday. NABL Releases Paper on Disclosure Policies and Procedures. GASB Publishes
New Rule to Lift Veil on Tax Breaks. MSRB Changes MA Conduct Proposal, But Not Principal Transaction Bar. MSRB Enables Issuers to Display Bank Loan Disclosures on Customized EMMA Issuer Homepages. Municipal Bond Underwriter Didn’t Feel Like Underwriting. Edward Jones to Pay $20 Million to Settle SEC Municipal Bond Charges. SEC Members Demand Muni Markup
NFMA White Paper on the Disclosure of Potential Conflicts of Interest in Municipal Finance Transactions. The Bond Lawyer – Summer 2015 Stroock: Protecting Pensions And Contract Rights For Public Sector Employees. California Guards Muni Buyers From Bankruptcy With Dibs on Taxes. IRS Webcast: Voluntary Closing Agreement Program Updates for Tax Exempt Bonds. GFOA 20th Annual
U.S. Municipal Credit Report, Second Quarter 2015. Coalition Creates Guide For Green Muni Bonds. MSRB to Revise Proposed Rule on Disclosing Bond Price Markups. Dealers, Issuers: Fed Proposal Too Strict on Munis, Would Hurt Market. In Post-Detroit Bankruptcy Era, California Protects Investors Before Pensioners. How One Mississippi County Played Wall Street’s Fiddle. Memo Provides Interim
MSRB Announces Regulatory Topics to be Discussed at Upcoming Board Meeting. BDA Submits Comment Letter to Labor Department on Fiduciary Duty Proposal. S&P U.S. State and Local Government Credit Conditions Forecast: Financial Management Stands Out In an Age of Economic Limitations. Pennsylvania May Sue Firms Over Ex-Harrisburg Mayor’s Bond Deals. Fitch: Statutory Liens Do Not
Ratings Value Questioned as More Municipal Borrowers Go Without. MSRB Considers Creating Municipal Market Data Product for Academic Researchers. New California Law Would Secure Local GO Holders in Bankruptcies. IRS Rules Student Loan Bonds Still Tax-Exempt in PLR. CDFA Intro to Public-Private Partnership (P3) Finance Course. CDFA Intro to Tax Increment Finance Course. Borough of
Ed. Note: We occasionally receive requests to resend past issues of the newsletter. Unfortunately, the newsletter does not exist as a discrete document, and is merely a program that pulls together the HTMLs for each item posted to our website during the previous week. We can resend the latest issue. Otherwise, please access past content
Recommended Best Practices in Disclosure for Direct Purchase Bonds, Bank Loans, and Other Bank-Borrower Agreements. MSRB Extends 529 Plan Disclosure Date as Groups Push for More Clarification. GASB Issues Proposed Guidance on External Investment Pools and Component Units. GASB Simplifies GAAP Hierarchy for State and Local Governments. GASB Publishes New Standards for Reporting Health Insurance
NABL Issue Price Teleconference. MCDC: What Comes Next For Muni Underwriters? SEC Makes Point with MCDC Settlements. The Phone Call That Could Help Governments’ Credit Ratings. Proposed Bonds to Encourage Public Private Partnerships and Improve Infrastructure: Butler Snow. Treasury and IRS Re-Propose Issue Price Rules. NABL Presses Treasury to Ease Public Approval Requirement for PABs.
36 Underwriters to Pay $9.3M to Settle Under SEC MCDC Program. Voluntary Reporting of Bank Loans – Best Practice or Sword of Damocles? New Resource Available for Municipal Advisors Developing Supervisory and Compliance Systems. GFOA Seeks MA Conduct Rule Changes to Reduce Issuer Costs, Burdens. The Dirty Business of Paying for Ratings. Behind Chicago’s Rift
Regulators Close In On Bond-Markup Rules. MSRB Provides Access to the Full Universe of Disclosures for a Municipal Security. GASB Proposes Enhanced Guidance on Irrevocable Split-Interest Agreements. Moody’s Seminar: Financial Analysis of Local Governments. CDFA Webcast: Financing the World Trade Center. Investing in Detroit: Automobiles, Bankruptcy, and the Future of Municipal Bonds. And finally, we
GFOA Survey Reveals Cost of SEC’s Municipalities Continuing Disclosure Cooperation Initiative (MCDC). Hawkins Advisory (Disclosure by Municipal Issuers). GFOA’s Watkins: MCDC Cost Issuers; SEC Initiative ‘An Abuse of Power’. GASB Improves Reporting for Health Insurance and Other Retiree Benefits. Deals Gone Bad Push Muni Borrowers to Dump Interest-Rate Hedges. GFOA: GASB Makes Significant Adjustments to
BDA Submits Comment Letter on Proposed Rule G-42 to Establish Core Standards of Conduct for MAs. MSRB Makes Moody’s Public Finance Ratings Available on EMMA Today. SEC Approves Additional Post-Trade Data Collection. GASB: What You Need to Know about Local Government Investment Pools. GASB On the Horizon: Business-Type Activity Governments. Move America Bonds – Close
Ed. Note: The BCB team was firmly committed to barely going through the motions of assembling this week’s Memorial Day edition, so it came as quite the surprise to discover that we’d actually compiled a substantive product. We sincerely apologize for any inconvenience. To Disclose or not to Disclose – That is the Bank Loan
NASACT Releases Plain-English Educational Resources for GASB’s New Pension Standards. US Municipal Credit Report, First Quarter 2015. Feds Push to Make All Public Financial Data Open. Moody’s Public Finance Ratings Coming to MSRB’s EMMA Website on June 1, 2015. Cities, Towns See Historic Savings on Bond Refinancings. BAML Economist Tells Muni Analysts: Don’t Fear the
S&P 2014 Annual U.S. Public Finance Default Study and Rating Transitions. MSRB Report Shows Delayed Disclosures, MCDC Impact. Muni Default History Poses a Ratings Riddle. S&P Issuer Credit Ratings for Community Development Finance Institutions (CDFIs). Municipal Issuer Brief: Update On Bank Municipal Investment Rules. ABA Section Submits Letter to IRS on Definition of Political Subdivision.
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The Bond Lawyer – Spring 2015 Federal Securities Laws of Municipal Bonds Deskbook, Sixth Edition. Katten: Municipal Advisors and “Bank Purchase” Bonds: What’s All the Commotion About? MSRB Releases Content Outline for First Municipal Advisor Professional Qualification Exam. Opportunities and Risks in Municipal Underwritings and Derivatives: WilmerHale PA Treasury Successfully Completes Commonwealth’s First-Ever Competitive Bidding
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CDFI Fund Opens Application Period for FY 2015 CDFI Bond Guarantee Program. NASACT-NAST LGIP Workgroup Responds to GASB’s Questions on Fees and Gates. SIFMA Unveils Model Document for Sophisticated Investors. The Muni Advisor Business: A Story of Explosive Growth and Change. Small Banks Finally Get Real Shot at Municipal Finance. BDA Submits Comment Letter: FINRA
SIFMA Develops Model Sophisticated Municipal Market Professional Affirmation for Institutional Customers. Bond Insurance Penetration Climbs to 5.8% in Q1. A Tale of Two Cities: How Municipal M&A Saves Taxpayers, Prevents Budget Shortfalls. Green-Bond Guidelines Show ‘Incremental Progress’ 2015 Municipal Finance Conference – Call for Papers. Protect Our Benefits v. City and County of San Francisco
Program Note: It has come to our attention that the typographical errors issue has unexpectedly returned with the proverbial vengeance. This problem does not appear when we internally view and test the newsletter on various platforms. The issue arises only when the publication is sent out and then opened in Microsoft Outlook, an increasingly outdated
SIFMA to SEC: No Exemptions for Non-Dealer MAs. MSRB Seeks Approval to Enhance Post-Trade Data Available on EMMA. Key Regulator Shows No Sign on Budging on Muni Bank Rule. Why Some Public Pensions Could Soon Look Much Worse. Moody’s: Modest Credit Impact for GASB Pension Changes, but Contribution Weaknesses Now Highlighted. SLGS Sales Halt May
Cities Paying Millions to Get Out of Bad Bank Deals. NASACT Responds to GASB’s PVs on Leases. NASACT Responds to GASB’s PVs on Financial Reporting for Fiduciary Responsibilities. Dealer Donations to Mayor’s Fund in LA Legal, But Raise Eyebrows. Supremacy’s Claws: How Two Judges are Changing the Pension Debate. City of Topeka v. Imming –
GASB Issues Final Statement on Fair Value Measurement and Application. Recommended Best Practices in Disclosure for Direct Purchase Bonds, Bank Loans, and Other Bank-Borrower Agreements. SEC Gives Dealers 2 Week Window on MCDC Settlements. Lawyers Question Rating Disclosure Requirements. MSRB: Financial Disclosures Way Up, Bank Loans Not so Much. MSRB Seen Requiring ATS Pre-Trade Price
MSRB Publishes New Fact Book of Municipal Market Data and Invites User Feedback. MSRB Creates Professional Qualification Standards for Municipal Advisors. Best-Ex Rule Presents Liquidity, Compliance Challenges. Conduit Issuers, Dealers Face Some MA Challenges. Orrick Advises Goldman on Unique Bridge Financing to Propel Transbay Transit Center Project Down the Track. S&P: Proposed Criteria Changes Will
Municipal Legal News – February 2015 – Volume 1, Number 1: Dickinson Wright SEC Officials Pushing Harsher Penalties, Streamlined Disclosure. Municipal Advisors Concerned About IRMA Exemption. March 6 is the Comment Deadline on the GASB’S Proposals on Fiduciary Responsibilities and Lease Accounting. Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bonds. Draft
Obama’s Proposed 2016 Budget Seeks to Address Infrastructure Needs: Ballard Spahr Judge Says $178 Million Detroit Bankruptcy Fee Tab ‘Reasonable’ Bank Loan Disclosure Fraught With Uncertainty. Eight Things we Learned From the Detroit Bankruptcy. MSRB Rule G-45 on 529 Plan Data Collection: Upcoming Effective Date and New Manual. U.S. District Court Holds that Puerto Rico’s
US Municipal Credit Report, Fourth Quarter and Full Year 2014. The Bond Lawyer – Winter 2015 GFOA GAAFR Supplement. Lawyers Recommend Disclosure Strategies in Wake of MCDC. What Obama’s 2016 Budget Means for States and Localities. Best Bonds Seen Due Beyond 22 Years as U.S. Expands: Muni Credit. GFOA Executive Board Approves 10 Best Practices,
Obama Budget Adds Muni Programs, Contains 28% Cap. MSRB To Seek SEC Approval of MA Gifts Restriction, Test Outline. New Best Execution Requirement For Municipal Securities Transactions: Morgan Lewis Volcker Delay a Plus for Munis. Muni Investors Need More Information on Issuers’ Other Debts: Regulator. S&P U.S. Municipal Water and Sewer Utilities 2015 Sector Outlook:
Program Note: This week’s issue includes links to articles published by Tax Analysts, which is a subscription service. It’s a deservedly popular service, so please check with your librarian or tax folks to determine if your firm is already a subscriber. We’re working on obtaining permission to publish full articles. MSRB to Discuss MA Exams,
Bond Dealers of America – 2014 Year in Review. Att. Gen’s Brief Supports Town in Prism-Bonds Case. Obama Proposes New Muni Bonds for Public-Private Investments. Indy Justice Center Draws Big Guns to U.S. P3 Market. Cash-Flow Crunch Wanes as Note Sales Set Record Low: Muni Credit. Muni Market Participants Applaud QPIB, Water Proposals. Webinar on
Government Accountability Office Study on Long-Term Liabilities. FINRA Lays Out Exam Priorities. SIFMA, ICI Urge SEC Not to Approve MSRB Test Proposal. Moody’s Request for Comment – Tax Increment Debt. Bondholder Sues Bankrupt San Bernardino for Favoring Calpers. Dynamic Scoring Could Make Tax Reform Easier. Continuing Disclosure After MCDC: Complimentary Webinar Ex parte Bronner –
Outlook 2015: Another Year of the Muni Advisor? MSRB to Begin Accepting Municipal Asset-backed Securities Disclosures on EMMA. Do Credit Ratings Matter Anymore? Municipal Bond Maturities to Decline 38% After Market Contracts. Municipal Defaulters Decline Amid Improving Economy: Muni Credit. Expect More Tax Guidance in 2015. Bond Tax-Break Threat Recedes With Federal Deficit: Muni Credit.
MSRB Reminds Dealers of the January 1, 2015 Effective Date of Amendments to MSRB Rule G-3 on Firm Element Continuing Education. A New Prosecutorial Frontier – SEC Seeks Bans on Municipal Officials: Burr & Forman. Environmental Risks Becoming Part of Bond Assessments. Public Finance Predictions for 2015. Expect More Tax Guidance in 2015. IRS Chief
Program Note: We’ll be taking next week off to spend some much-dreaded time with our families. We’ll be back on the 30th to wrap up the year. S&P: U.S. Local Government Rating Review Shows Varied Economic Conditions Being Met With Sound Financial Underpinnings. S&P: U.S. State and Local Government Credit Conditions Forecast: For 2015, the
S&P’s 2014 U.S. Muni Roundup: The Changing Landscape of the Municipal Market. SIFMA Issues 2015 Municipal Bond Issuance Survey. MSRB Municipal Advisor Review – Winter 2014. MassDirect Notes Win Deal of the Year. U.S. Municipal Bond Issuance to Flatline in 2015 – SIFMA. CDFA Fundamentals of Economic Finance WebCourse. And finally, the Township of Lansing
SEC Raises Pressure on Borrowers as Leniency Ends: Muni Credit. SEC Seeking Comments on Disclosure Rule. MSRB to Accept Disclosures about Municipal Asset-Backed Securities. Proskauer: Firms Have Roadmap for Expanding Litigation of Customer Disputes After Second Circuit Holds Forum Selection Clauses Trump FINRA’s Mandatory Arbitration Rule. MSRB and FINRA to Host Webinar on Proposals to
Quick Request: For those of you who receive the newsletter in Outlook, please select the View As Web Page option prior to reading the publication. In keeping with our form-over-substance policy, we put considerable effort into creating a nicely-formatted publication, which Microsoft has utterly defaced. In keeping with our penchant for grandiosity and paranoia, we
IRS Publishes Final Regs on Arbitrage Rebate Overpayments. NABL Comments in Response to MSRB Regulatory Notice 2014-16. Ballard Spahr: SEC Charges City Mayor as a Control Person in Allen Park, Michigan, Enforcement Action. Mintz Levin: SEC Introduces “Control Person” Liability as Enforcement Action Weapon in Claim Against Municipal Officer for Misleading Bond Offering Document. MSRB,
NFMA Draft Recommended Best Practices in Disclosure for State Government General Obligation and Appropriation Debt. SIFMA US Municipal Credit Report, Third Quarter 2014. CDFA Intro to Tax Increment Finance WebCourse. Moody’s Seminar: Financial Analysis of Local Governments. Webcast: GASB Proposes New Tax Abatement Disclosure Rule. GFOA 19th Annual Governmental GAAP Update (Rebroadcast). And finally, your
Mea Culpa: The Bond Case Briefs website was down for a few days last week due to a thoroughly preventable problem with our domain registration. Consequently, all emails sent our way during that period were also lost and remain unrecoverable. We sincerely apologize, both for the outage and for our inability to respond to any
Sixth Edition of Federal Securities Laws of Municipal Bonds Now Available. NABL Summary of Viewpoints on MCDC Now Available. BDA Sends Letter to SEC & MSRB: Urges Closer Look at Non-Dealer Placement Activities. SEC Proposal to Remove Rating References From MMF Rule Sparks Concerns. MSRB Creates Supervision and Compliance Requirements for Municipal Advisors. SEC’s Cross
- Quick Note: We are fully aware that the one category in which BCB exceeds its mandate as a municipal finance publication is our coverage of case law, where we include cases more relevant to city attorneys (e.g. zoning, municipal ordinances) than to those of you representing large issuers and underwriters. If you've been scanning through the case briefs and asking yourself, "What the hell does this have to do with me?" please note that all cases relevant to municipal issuance and finance will be featured in the Highlights section.
- MSRB Strengthens Continuing Education Requirements for Municipal Securities Dealers.
- BDA Submits Comment Letter to MSRB on Rule G-37.
- IRS LTR: Income Exempt as Exercise of Essential Government Function.
- MCDC III Podcast is Now Available Online.
- City of San Bernardino, Cal. - Bankruptcy Court holds that city acted in “good faith” when, in response to financial crisis, it filed for Chapter 9 relief although city did not engage in meaningful prepetition negotiations with its creditors and did not seriously consider alternatives to filing for Chapter 9 relief.
- Kohl’s Illinois, Inc. v. Marion Cty. Bd. of Revision - Supreme Court of Ohio holds that Tax Increment Financing agreement's no-contest covenant, which precluded developer and property owners from contesting assessed valuations of improvements for real property tax purposes, did not impose jurisdictional limitation on county Board of Revision regarding property owner's valuation complaint and that, as a result, the beneficiaries of the covenant had the burden to come forward and prove their entitlement to a dismissal of the complaint.
- Couple of big public utilities cases below, if you're into that kind of thing.
- And finally, this week's Interesting Conflict, Your Honor is brought to you by Ray v. Judicial Corrections Services, Inc., in which a certain Alabama gent served as a part-time judge for a number of municipalities. Oh, did I mention that his full-time job was muni bond salesman? What could possibly go wrong?
Intro to Tax Increment Finance WebCourse. GFOA’s 19th Annual Governmental GAAP Update. S&P 2014 U.S. State Debt Review: New Issuance Remains A Lower Priority. SEC Concerned About MA Registration and Misuse of IRMA Designation. S&P Defends Higher Municipal Credit Ratings. Monoline Insurers ‘Could Reach 10%’ of Muni Market Again – Citi. IRS Requests Comments on
Federal Accounting Board Releases P3 Disclosure Requirements for Comment. SEC, FINRA and the MSRB to Hold Compliance Outreach Program for Municipal Advisors. S&P: The Updated General Obligation Criteria Reflect the U.S. Local Government Sector’s Strength and the Importance of Qualitative Analysis. Insurers Build Market Share as Detroit Shows Value: Muni Credit. Judge Says Cities in
Ballard Spahr: SEC Enforcement Round-Up, 2014 to Date. SCOTUS May Weigh In On Right To Arbitration. A New Breed of Muni Bond Is Financing Climate Change Adaptation. MSRB Makes Kroll Bond Ratings Available to the Public through its EMMA Website. Real Estate Munis Coveted in Riskless Return Chase. GASB User Survey on the Effectiveness of
Post-Implementation Review Completed on GASB Standard Addressing Capital Asset Impairment, Insurance Recoveries. Future MCDC Settlements May Be More Detailed. MSRB Provides New Resources on Disclosures Made to Municipal Bondholders. SEC Could Halt Muni Bond Sales. Mintz Levin: Court Rules on Applicability of Make-Whole Premiums Upon Debt Acceleration. NABL Urges Aggregate Treatment of Partnerships. S&P: U.S.
Advisor Groups Push For Clarity In Municipal Market Rules. Judge Mulls SEC Limits on Political Donations. Many Underwriters Reported Deals by MCDC Deadline. Chicago at Brink of Swaps Fee as Bond Ratings Fall: Muni Credit. BofA Sees Limited Harm To Munis From New Bank Liquidity Rule. Chamber of Commerce Argues Court Erred in Work Product
MSRB Webinar: Request for Comment on Extending MSRB Rule G-37 to Municipal Advisors. SIFMA Advanced Muni Bond School. NAST, NASACT Make 11th Hour Appeal on Munis to Regulators. Fed: Some Munis May Become HQLA in Liquidity Rule. Lawmakers Threaten SEC with Ultimatum on MCDC. Muni Managers Unearth Secondary Market for Price Discovery. Driving Muni Bond
Bank Liquidity Rules Seen Cooling Demand for Bonds: Muni Credit. WSJ: Fed to Consider Including Municipal Bonds in New Bank Safeguards. SEC Rating Agency Reforms Positive for Munis. Bond Buyer Webinar: The Changing Landscape of Municipal Bankruptcy. Post-Implementation Review Completed on GASB Standard Addressing Capital Asset Impairment, Insurance Recoveries. BDA Submits Comment Letter to MSRB:
NABL Releases Paper on 501(c)(3) Bonds. MSRB Pay-to-Play Proposal Would Impact Dealer, Non-Dealer MAs. Dealers Warn New Best-Ex Provisions on SMMPs Costly, Burdensome. GFOA Releases More MCDC Guidance. MMA Research Seems to Counter Some Concerns About S&P Ratings. WSJ: Regulators to Complete Bank ‘Liquidity’ Rules. SIFMA Makes Changes to Muni Swap Index. IRS Webcast: Maintaining
MSRB Publishes Second Quarter 2014 Municipal Market Statistics. Best Execution’s Role Unclear. MSRB Proposes Transparency Changes. MSRB Requests Comment on Extending its Pay-To-Play Rule to Municipal Advisors. “MCDC – Should the Issuer Self-Report?” Podcast is now Available. Land of Lincoln Goodwill Industries, Inc. v. PNC Financial Services Group, Inc. – Court of Appeals holds that
- NABL Releases Paper on GO Bonds.
- SEC Charges Kansas for Understating Municipal Bond Exposure to Unfunded Pension Liability.
- MSRB to Propose New Price Transparency Rule.
- NABL Paper on MCDC Materiality.
- S&P Widens Lead Over Moody’s as Bond Upgrades Surge: Muni Credit.
- Congress Introduces Modernizing American Manufacturing Bonds Act.
- SIFMA US Municipal Credit Report, Second Quarter 2014.
- Fitch Rates First Nonbank-Sponsored Volcker Compliant TOB.
- Wells Fargo Bank, National Association v. Leafs Hockey Club, Inc. - In case brought by bond trustee against bond guarantor following default, District Court grants trustee's motion to dismiss guarantor's conspiracy to defraud counterclaim, but declines to dismiss guarantor's breach of contract and equitable accounting counterclaims.
- And finally, Charlton Heston takes the Lord's name in vain and prepares to break the Sixth Commandment after learning that the court in Felix v. City of Bloomfield had held that the Ten Commandments monument erected (hee, hee) by city violated the Establishment Clause.
Ballard Spahr: Industry Concerns Prompt SEC to Modify MCDC Initiative. U.S. SEC’s Piwowar Calls for More Price Transparency for Munibonds. Lawyers: MCDC Changes Foster More Tension. U.S. Treasury to Put Public Pensions Under Scrutiny. California High-Speed Rail Bonds Revived by Appeals Court. Register for MSRB’s Webinar on Revised Draft Rule G-42. California ex rel. California
CDFA Releases Annual Volume Cap Report — An Analysis of 2013 Private Activity Bond & Volume Cap Trends. MMA Municipal Issuer Brief – Bond Insurance Update. MSRB Seeks Approval of First MA Rule. MSRB Proposes Revised MA Conduct Rule. S&P: Not All Loans Are Equal – Some Terms and Conditions That Make Disclosure Critical In
MSRB Publishes Report on Secondary Market Trading in the Municipal Securities Market. Investors Pay More for Munis than Dealers, MSRB Report Shows. Bond Fee Disclosures Sought by SEC to End 38-Year Debate. MSRB Rule Changes Draw Support from SIFMA. Has S&P Been Exaggerating Local Governments’ Stability? S&P Credit FAQ: Bond Insurers and the Recent Downgrades
The Not-So-Sunny Side of Pension Obligation Bonds. Intermediate Bond Math: California Debt and Investment Advisory Commission Webinar. S&P: U.S. State And Local Government Credit Conditions Forecast: Ramping Up After A Slower-Than-Expected Start. SEC Charges California School District with Misleading Investors. GFOA Offers New Guidance on SEC Self-Reporting Program. NASACT GASB Review: 2014 Expedia, Inc. v.
BDA Releases Nixon Peabody Paper on Municipal Advisor Rule: Receiving Advice from your Broker-Dealer Regarding Investments. Firms Withdraw as MAs Ahead of Final Rule. SEC’s Harvey Action Illustrates MCDC Vulnerability for Issuers. WSJ: Creditors Win Bid to Challenge Detroit Bankruptcy. Moody’s: New Pension Disclosures Under GASB 67/68 Will Have Limited Impact on US State and
NFMA Releases White Paper on Best Municipal Bond Issuance Practices. Ballard Spahr: SEC Announces First Investment Adviser ‘Pay-to-Play’ Enforcement Action. GASB Webinars on Fair Value Measurement & Application Proposals. IRS Webcast: Basic Arbitrage Concepts. Wells Fargo Bank, Nat. Ass’n As Indenture Trustee v. Parking Authority of City of Scranton – Appeals court holds that, although
MSRB Reminds Dealers of July 5, 2014 Effective Date for Fair-Dealing Rule Changes. SIFMA Plugs New TOB Structure. MSRB Publishes Report on Municipal Variable Rate Demand Obligations. S&P: Rating Methodology and Assumptions for Affordable Multifamily Housing Bonds. Fitch: First Volcker-Compliant TOB Helps Muni Market Liquidity. LaGrange Park Public Library Dist. ex rel. Cronin v. J.P.
Moody’s Rates First TOB that Passes Volcker Rule. IRS LTR: Advance Refunding Bonds Won’t Become Transferred Proceeds. S&P: What Should the Market Expect from the Rating Process for Catastrophe Bonds? Tax Increment Financing: Tweaking TIF for the 21st Century. 39th Annual Bond Attorneys’ Workshop – September 17-19, 2014 Pay for Success and Social Impact Bonds:
Orrick’s Annual Financial Services Roundtable, June 11. Regulatory Requirements and Technology Webinar. Pair of U.S. Senators Urges Disclosure on Bond Markups. Complete New MSRB Registration Form by August 10. Web Tool Offers Pricing Information for Municipal Bonds. MSRB to Unveil EMMA Price Discovery Tool. GFOA Releases GAAFR Supplement. SIFMA US Research Quarterly, First Quarter 2014.
SEC Muni Advisor Rules: Overview and Practice Tips Teleconference. MSRB Webinar: Consolidated Fair-Dealing Obligations for Municipal Securities Dealers. US Muni Treasurers Warn LCR Could Crimp Spending. Lawmakers Urge Bank Regulators to Rethink Muni Liquidity Proposal. Report: Keys to Successful Public-Private Partnerships. GASB Proposes Major Improvements for Reporting Health Insurance and Other Retiree Benefits. California Public
Bond Case Briefs 2.0 GFOA, SIFMA to Push for MA Rule Tweak. SEC Issues More Muni Advisor FAQs. SIFMA Leader Blasts SEC’s MA Rule and MCDC Initiative. Waller: Municipal Debtors: “Cram Down” of Special Revenue Debt. Why Insured Municipal Bonds are Staging a Comeback. IRS’ TEB Office: Village Center CDD Ruling Should Be Retroactive. S&P
Welcome to the New and Only Marginally-Improved Bond Case Briefs! Please see the first entry in Publications for an explanation of the new features and functionalities. There are indeed many weeks in which this Highlights section manages to capture each of the week’s important news. This is not such a week. Please be sure to
SIFMA Finalizes Model Documents for Compliance with Municipal Advisor Rule; Will Host “Muni Advisor Regulation – Implementation and Registration” May 9. MSRB to Consolidate Fair-Pricing Rules for Municipal Securities Dealers. MSRB Provides Guidance to Municipal Advisors on Changes to its Registration Process. MSRB: New Fairness and Pricing Efforts. ABA Meeting: IRS Standardizing Exempt Bond Closing
Assessing State and Local Government Debt Refinancing Measures. Non-Dealer MAs: Supervision Rule Could Hurt Market. Bracewell & Giuliani: SEC Municipalities Continuing Disclosure Cooperation Initiative Targets Issuers and Underwriters with a “Prisoner’s Dilemma” Bond Firm’s Gifts to California School Officials Draw Scrutiny. BDA Submits Comment Letter on MSRB Draft Rule G-44. Nossaman Posts Draft Model P3
Webinar: The SEC & Continuing Disclosure. S&P: U.S. Bond Insurers and the Financial Guarantee Sector Stand at a Crossroads. Wash Sales Asymmetrically Affect Premium and Discount for Debt. The Smart Way to Decide What to Issue and When to Refund: Webinar. Municipal Issuer Brief – April 21, 2014. MSRB to Discuss Trade, Best Execution, MA
S&P: U.S. State And Local Government Credit Conditions Forecast. BondView Releases Free Historical Municipal Bond Pricing Data. SIFMA US Municipal Credit Report, First Quarter 2014. Orrick: Update on Municipalities Continuing Disclosure Cooperation Initiative. WSJ: Treasury Turns Its Gaze to Municipal-Bond Market. Municipal Bond Mark-Ups: Measuring ‘Reasonable’ Mintz Levin: SEC Steps Up Scrutiny of Municipal Bonds:
SIFMA Releases Model MA Documents. Citi Analyst: Two Options to Save Tender Option Bonds. Citi Analysis Shows Bank Regulators That Most Munis Are Liquid. WSJ: Finra Scrutinizes Banks’ Role in Bond Market. City Should Have Turned to TIFs Instead of Property Tax Hikes: Study. Pension Obligation Bonds – Beware of Quick Fixes. Local Governments’ Role
Bond Issuers Encouraged to Request Refunding Guidance. Bond Provisions in Camp Draft Warrant Attention. Gross Joins Bond Investors in North Las Vegas Crosshairs. US CFTC Pledges Swaps Relief for Public Utilities. SIFMA Compliance and Legal Society Annual Seminar. Goldman, Sachs & Co. v. City of Reno – Court enjoins FINRA arbitration initiated by city against
SEC Examining Hidden Prices in Bond Trading. WSJ: SEC Reviewing Municipalities’ Disclosures. SEC Explains Self-Reporting Muni Enforcement Program. IRS LTR: Management Contract Will Not Result in Private Business Use. Puerto Rico to Detroit Buoyed by Insurance Comeback: Muni Credit. S&P: Alternative Financing: Disclosure Is Critical To Credit Analysis In Public Finance. GASB Declines to Delay
SIFMA Conference: Understanding the SEC’s Municipal Advisor Registration Rule (Note Webinar Option). Municipal Time of Trade Disclosure & Suitability: A Paper Prepared by Lumesis Inc. MSRB Proposes Professional Qualification Requirements for Municipal Advisors. NABL Submits Comments on MSRB Draft Rule G-42. Wisconsin Utilizes Delayed Draw Term Loan. Comments Requested on Bond Tax Credit Form. US
Municipal Advisors Seek Changes, Clarifications on MSRB’s MA Rule. MSRB to Consolidate Key Fair-Dealing Obligations for Municipal Securities Dealers. SIFMA to SEC: Don’t Approve MSRB Fair-Pricing Rule. Dealers Want More Best-Ex Guidance. Chicago Credits Outreach for Strong Showing on GO Issue. GASB Toolkit Helps State and Local Governments Implement New Pension Standards. WSJ: Massachusetts Streamlines
BDA Members Meet with MSRB & SEC: Discuss SEC’s Muni Advisor Rule and MSRB’s Regulatory Regime for Municipal Advisors. BDA: Chairman Camp’s Tax Reform Draft – Analysis of Bond Provisions and Politics. GFOA Board-Approved Best Practices – February 28, 2014. BDA Analysis of White House Budget Proposal. Piwowar Wants to Improve Muni Price Transparency. Obama
Join an MSRB Webinar on Upcoming Changes to Primary Offering Practices. GASB Proposes New GAAP Hierarchy for State and Local Governments and Exposes Entire Implementation Guide for Public Comment. Camp Draft Would End State and Local Income Tax Deduction, Bond Exclusion. Camp Would Repeal Tax-Exemption for New PABs, Advance Refunding Bonds. Camp’s Plan Spells Trouble
Municipal-Debt Rules Proposed to Ensure Brokers Seek Best Prices: Bloomberg. MSRB Webinar: Best-Execution Rule for Municipal Securities Transactions. Dealer Groups Unsure About Best Ex Rule Proposal. WSJ: S&P Calls for More Disclosure of Municipal Bank Loans. Muni Market Blasts Detroit Debt Plan. Moody’s: Detroit’s Attempted COPS Repudiation an Extreme Act. Get Your Municipal Advisor Questions
The Municipal Advisor Rule: Complimentary Bond Buyer Web Seminar. As Simple as It Can Be but Not Simpler: Science, Taxes, and Bonds. Fed Rule May Curb Bank Buying After Holdings Double: Bloomberg Muni Credit. Fitch Expects Unwinding, Restructuring of TOB Programs. Former Bank of America Executive Pleads Guilty for Role in Conspiracy and Fraud Involving
Moody’s Revises Local Government GO Methodology: Webinar. Issue Price Definition in Proposed Exempt Bond Regs Must Go, Witnesses Say. Groups Urge Bank Regulators To Make Munis High Quality Liquidity Assets. Moody’s: Enterprise Risk, Contingent Liabilities Remain Major Credit Risk for some Local Governments. Financial Illiteracy: One of Government’s Biggest and Least-Discussed Problems. MSRB to Propose
ABA Tax Section Seeks Withdrawal of Proposed Issue Price Definition for Tax-Exempt Bonds. ABA Tax Section Suggests Changes to Proposed Arbitrage Restriction Regs. U.S. Cities Criticize Treatment of Munis in Bank Liquidity Plan. Fitch: Proposed HQLA Rules May Affect Muni Market Liquidity. Reuters: U.S. Municipal Bond Trade Markups Face New Regulatory Scrutiny. GASB Issues Guidance
Bond Lawyers Comment on Proposed Bond Arbitrage Regs. Bond Lawyers Suggest Withdrawal of Proposed Issue Price Definition. Bond Dealers Seek Substantial Changes to Proposed Issue Price Rules for Tax-Exempt Bonds. Butler v. U.S. – District court holds that criminal defendant’s securities-fraud scheme involved domestic securities transactions, although ARS at issue were not listed on United
National Federation of Municipal Analysts White Paper on Best Municipal Bond Issuance and Disclosure Practices. Moody’s Places 256 US Local Government General Obligation Ratings under Review in Conjunction with Updated Methodology. Baucus Accounting Method Proposal Would Cause Problems, ABA Says. ABA Says Camp Business Accounting Proposal Would Have Unintended Consequences. Bond Premium Carryforward Final Regs
MSRB’s First Draft Municipal Advisor Rule Alarms Dealers. MSRB Educational Webinar on Draft Rule G-42. U.S. Local Governments Credit Scenario Builder for iPad available on S&P Ratings App. Wall Street Muni-Bond Fees Shrink Fourth Straight Year. Detroit’s Orr Asked SEC To Probe Swaps. Standard & Poor’s New Criteria for U.S. Local Governments: Methodology and Assumptions.
Davis Polk: Explaining the Volcker Rule in 27 Pages. Expect a Lot of Enforcement in 2014, Experts Say. FT: BlackRock Steps into Detroit Bonds Fight. NYT: ‘Safe Harbor’ in Bankruptcy Is Upended in Detroit Case. Miami Loses Bid to Dismiss SEC Fraud Lawsuit. WSJ: Wells Fargo Unit Ordered to Buy Back Auction-Rate Securities. Welch v.
What the Volcker Rule Means for the Municipal Market. 12th Annual Tax & Securities Law Institute. Getting Creative on Public Workers’ Health-Care Costs. District Court Rebukes IRS Church Plan Rulings. Market Groups Agree: Proposed Issue Price Rules Unworkable. NAIPFA Issues MA Rule Guide; GFOA to Offer Training. Banks to Revamp Leveraged Muni Funds After Volcker
Quick Program Note: We’ll be taking next week off, but will wrap up the year with a double issue on 12/31. For you last-minute shoppers, please bear in mind that a subscription to Bond Case Briefs would make …. a truly terrible gift. MSRB Enhances Protections for Investors Against Unexpected Changes to Bond Authorizing Documents.
Judge Blocks Auction-Rate Arbitration against Goldman. WSJ: Borrowing Maneuver Catches Flak. State Treasurer Cites Potential Adverse Effects of Proposed Regs on Arbitrage Restrictions. Bank of America Settles Municipal Bond Rigging Lawsuit. NYT: Pension Ruling in Detroit Echoes West to California. Fitch & Moody’s U.S. Public Finance Teleconferences. NYT: Playing Pension Games. WSJ: Volcker Rule Could
Expedia, Inc. v. City of New York Dept. of Finance – Court upholds constitutionality of expansion of city’s tax on hotel occupants to include fees earned by online travel companies. Internatl. Bhd. of Elec. Workers Local Union No. 8 v. Bd. of Defiance Cty. Commrs. – Appeals court concludes that federal funds were used in
IRS LTR: Nonprofit’s Income Is Exempt as Exercise of Essential Government Function. NABL Says IRS Ruling Having Chilling Effect on Bonds. IRS LTR: Lease Arrangement in Bond-Financed Project Doesn’t Give Rise to Security Interest. MSRB Provides Education for Issuers on Disclosure of Bond Ballot Campaign Contributions. SIFMA: US Municipal Bond Credit Report, 2013 Q3. L.A.
Washoe-Mill Apartments v. U.S. Bank Nat. Ass’n – Pursuant to the Trust Indenture, and Section 11(b) of the United States Housing Act of 1937, court finds that HUD was entitled to funds remaining in trust account after bonds issued to fund a HUD-subsidized facility were redeemed. City of College Station, Tex. v. Star Ins. Co.
O’Brien v. New York State Com’r of Educ., in which the appeals court concluded that – for the purpose of calculating a school district’s constitutional and statutory debt limit – indebtedness is not incurred until the authorized bonds are actually sold, i.e., issued, rather than on the date the bonds are authorized. Elizabeth River Crossings
Stifel, Nicolaus & Co., Inc. v. Lac du Flambeau Band of Lake Superior Chippewa Indians, in which the District Court juggled complex jurisdictional issues in litigation following Indian tribe’s repudiation of a bond issuance; District Court concludes that it has jurisdiction and schedules hearing to determine if tribe would be enjoined from continuing to pursue
Willow Bend Estates, LLC v. Humphreys County Bd. of Sup’rs, in which the Supreme Court of Mississippi held that Mississippi Code Section 27–35–50(4)(d) – requiring local tax assessors to use the “actual net income” methodology rather than the “cost” methodology – prohibits local governments from including the value of federal tax credits in their valuation
The good folks at Baker Donelson have kindly provided us with the entire Order Granting Indenture’s MSJ from their win in In re Memorial Corrections, LLC, which we covered last week. The pdf is appended to the case brief. Should you encounter items that may be of interest to the BCB community, please feel free
In re Municipal Corrections, LLC, in which the District Court concluded that an unrecorded Indenture gave the Bond Trustee a mortgage on the real property pledged as security and that the mortgage was enforceable against a bona fide purchaser under principles of constructive and inquiry notice that apply under Georgia law. Turner County v. City
IRS Lists Factors for Determining if Entity Is an Instrumentality of State or Local Government. Shutdown Halts Rebates on Build America Bonds, Dents Appeal. California City Prevails Against Investor Lawsuit. NABL Teleconference: Ethical Lessons for Bond Counsel of the GIC Bid-Rigging Trials and Settlement. GASB Fact Sheet on Statement 34. MSRB Publishes First Report on
In re Allstate Life Ins. Co. Litigation, in which bond counsel was granted summary judgment on most claims brought against it in complex litigation following failed bond issuance; although it may ultimately be liable for failing to harmonize development agreement and indenture, resulting in inconsistency regarding which party was to hold an escrow account, thus
It’s been a busy week, folks, so pay attention. On the regulatory side, the SEC adopted final Muni Advisor Rules and the MSRB filed proposed rule changes to MSRB Rule G-11 on Bondholder Consents. We highly recommend that you take a look at each of the articles contained in the Regulatory section of this week’s
IRS Issues Proposed Regs on Arbitrage Restrictions on Tax-Exempt Bonds. IRS Issues Proposed Regs on Arbitrage Rebate Overpayments on Tax-Exempt Bonds. IRS Releases Proposed Issue Price Rules, Draws Concerns. SIFMA and GFOA Submit Comments to SEC Regarding Proposal to Amend MSRB Rules G-8, G-11 and G-32 in regards to Retail Order Periods. WSJ: Bond Lawyers
Oppenheimer AMT-Free Municipals v. ACA Financial Guar. Corp., in which the appeals court held that the cancellation and replacement of bonds in connection with an issuer’s bankruptcy proceedings did not relieve bond insurer of its obligation to make payments in any subsequent default. MSRB Files Revised Amendments to MSRB Rules on Retail Order Periods with
People ex rel. Cuomo v. Charles Schwab & Co., Inc., in which the court held that the AG had a) sufficiently stated a claim under the Martin Act, and b) sufficiently pled a nexus with New York, in an enforcement action against registered securities broker-dealer, alleging that broker-dealer engaged in fraudulent and deceptive conduct in
MSRB Provides Guidance for State and Local Governments When Hiring Municipal Advisors. SIFMA US Research Quarterly, 2013 Q2. FINRA Fines Morgan Stanley $1M for Unfair Pricing. FINRA Fines Four Firms, Two Individuals $270,000 For Muni Violations. IRS: Comments Sought on Regs on Standards for State, Local Bond Opinions. Help Your Clients Avoid the Next Detroit:
IRS: Community Development District Doesn’t Qualify as Political Subdivision. MSRB Publishes Updated and Enhanced Online Glossary of Municipal Securities Terms. Bond Dealers of America Bankruptcy Paper: Detroit May Be “Game Changer.” TEB Phone Forum: Monitoring Post-Issuance Compliance. Moody’s Proposes More Focus on Public Pension Obligations in Bond Ratings. Borough of Seaside Park v. Commissioner of