5.7. Assigning CUSIP Numbers in the Secondary Market

We have seen that some municipal securities are issued in series, where portions of the issue will be assigned different maturities. Each maturity for that issue will receive a distinct CUSIP number. In fact, whenever part of an issue has any characteristic that differs from the rest of the issue, which is transferrable from one investor to another, it must be assigned a separate CUSIP number.

To be specific, a bond with a single CUSIP number must be identical in all of the following respects:

• Complete name of issue and series designation, if any

• Interest rate(s) and maturity date(s)

• Dated date (the date at which interest begins accruing on a bond)

• Type of issue (e.g., general obligation, limited tax, or revenue)

• Type of revenue, if the issue is a revenue bond

• Details of all redemption provisions

• The name of any obligated person with respect to the debt service

Any part of an issue that differs in any of these respects from the rest of the bond issue must be assigned a separate CUSIP number.

This also holds true in the secondary market. Suppose a dealer chooses to enhance the credit for a municipal bond it has acquired and buys secondary market insurance. The new insurance makes that dealer’s portion of the bond distinct from the rest of the issue. The dealer that enhances the credit of the security must document that difference by applying in writing to the MSRB for a new CUSIP number.

Likewise, when a bond is tendered, partially refunded, or otherwise remarketed, key fea