Series 51: Continuing Disclosure Agreement

Continuing Disclosure Agreement

Underwriters are also obligated to receive a continuing disclosure agreement from the issuer prior to making a bid or accepting a sale. The continuing disclosure agreement commits the issuer to provide the MSRB with:

• • Financial and operating information annually
• • Audited annual financial statements throughout the life of the issue

This is an agreement to publicly disclose information relevant to the market value of the securities throughout their lives. The agreement is signed by the issuer and any other entity that is committed contractually to support payment of the issue obligation.

Timely notice is also promised in the event of:

• • Principal and interest payment delinquencies
• • Unscheduled draw on debt service reserves reflecting financial difficulties
• • Substitution of credit or liquidity providers
• • Defaults
• • Adverse tax opinions affecting the tax-exempt status of the securities
• • Tender offer
• • Defeasances
• • Rating changes
• • Bankruptcy, insolvency, or receivership
• • Material modifications to investors’ rights
• • Other related occurrences
• • Con