Series 53: 4.2.2.1.2.1. Continuing Disclosure Agreement

Taken from our Series 53 Online Guide

4.2.2.1.2.1. Continuing Disclosure Agreement

Underwriters are also obligated by SEC Rule 15c2-12 to receive a continuing disclosure agreement from the issuer prior to making a bid or accepting a sale. This is an agreement to publicly disclose information relevant to the market value of the bonds throughout their lives. The agreement is signed by the issuer and any other entity that is committed contractually to support payment of the bond obligation.

In the continuing disclosure agreement, the issuer commits to provide financial and operating information annually on a specified date and audited annual financial statements to the MSRB.

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

Tender offers

Defeasances

Rating changes

Bankruptcy or insolvency

Adverse ta

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