VRDO Reporting and Disclosure Requirements
VRDO remarketing agents must report the following information to the MSRB at the time of any interest rate reset:
- • CUSIP number
- • Identity of the remarketing agent
- • Date and time of the interest rate reset
- • Effective date and length of time, in days, that the interest rate is applicable
- • Minimum denomination
- • Interest rate and whether it is a maximum rate set by formula or by the remarketing agent
- • Length of notification period
- • Identity of the liquidity provider, type, and expiration date of each liquidity facility
- • Identity of the issuer’s tender agent
Interest rate reset information must be provided to the SHORT system by no later than 6:30 PM ET on the date on which an interest rate reset occurs. If the reset occurs on a non-RTRS Business Day, the information must be reported by 6:30 PM ET on the next RTRS Business Day.
Remarketing agents must also use best efforts to obtain and submit electronically to the SHORT System the current versions of the letter of credit agreement and standby bond purchase agreement no later than five business days after receiving them.
A remarketing agent may designate an agent to report the information on its behalf, but the failure of a designated agent to comply with these reporting obligations will be considered a failure by the remarketing agent.
Exercise: Fill in the blank.
- 1. If a municipal offering is oversubscribed, pick the correct order in which syndicate orders will be honored. ____________
- A. Presale, designated, group, member
- B. Designated, member, presale, group
- C. Group, designated, member, presale
- D. Presale, group, designated, member
- 2. When a municipal offering is undersold, in a(n) ____________ (undivided or divided) account, the unsold bonds will be redistributed to every underwriter accordin