What is a bond official statement?
An official statement describes the essential terms of the bonds. It typically provides the most detailed description of the terms and features of the bonds through maturity, unless and until these terms have been modified.
Are municipal securities exempt from regulation by the SEC?
Municipal securities are subject to the federal securities laws administered by the SEC. Unlike corporate securities, municipal securities generally are exempt from the registration requirements of the Securities Act of 1933.
What are the disclosure requirements for a new issue of municipal securities?
Issuers must disclose any default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties. A failure to comply with the undertaking would be a breach of contract.
What is included on a official statement?
Who is exempt from Securities Act 1933?
Exempt securities, under Section 4 of the Securities Act of 1933, are financial instruments that carry government backing and typically have a government or tax-exempt status. Let’s take a look at a few examples to better explain this type of security: Government securities. Foreign government securities.
Which of the following are exempt issues under the Securities Act of 1933?
Which of the following are exempt securities under Securities Act of 1933? Government bonds, municipal bonds, and Small Business Investment Company issues are all exempt securities under the 1933 Act.
What kinds of securities are exempt from SEC registration and regulation?
The most common exemptions from the registration requirements include:
- Private offerings to a limited number of persons or institutions;
- Offerings of limited size;
- Intrastate offerings; and.
- Securities of municipal, state, and federal governments.
What is the SEC Rule 15c2-12?
U.S. Securities and Exchange Commission (SEC) Rule 15c2-12 requires dealers, when underwriting certain types of municipal securities, to ensure that the state or local government issuing the bonds enters into an agreement to provide certain information to the Municipal Securities Rulemaking Board (MSRB) about the …
What is a 15c2-12?
Specifically, SEC Rule 15c2-12 requires that underwriters of municipal securities, before bidding, purchasing, or selling a municipal security in the primary market, must obtain and review the issuer’s preliminary and final official statements and reasonably determine that the issuer has committed to provide continuing …
What is preliminary official statement?
PRELIMINARY OFFICIAL STATEMENT (POS) A version of the official statement prepared by or for an issuer of municipal securities for potential customers prior to the availability of the final official statement.
How do you write an official statement?
Identify yourself at the beginning of the written statement. List your name, position and company that you represent (if applicable). Briefly explain your reason for drawing up this statement. For example, if you’re creating a written statement about an event you witnessed, list the date, time and nature of the event.
Are bond indentures public?
Congress passed the Trust Indenture Act of 1939 to protect bond investors. It prohibits the sale of any debt securities in a public offering unless they are issued under a qualified indenture.
What types of restrictions should appear in a bond indenture?
Protective covenants usually provide at least the following provisions:
- pay the interest and principal of its bonds.
- specify when bonds can be presented for payment.
- maintain the collateral in good condition.
- insure the collateral against loss.
- defend the legal title to the property.
What makes a security exempt?
An exempt transaction is a type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared to the scope of the issuer’s operations and that no new securities are being issued.
What is an example of an exempt security?
Examples of exempt securities include small issues, agency securities, most other debt instruments issued by the federal or a local government, and issues made only in a single state. Private placements are also usually exempt from registration.
What is the latest on Rule 15c2-11?
Statement on Staff No-Action Letter Regarding Amended Rule 15c2-11 in Relation to Fixed Income Securities Commissioner Hester M. Peirce Sept. 24, 2021 The Commission’s amendments to Exchange Act Rule 15c2-11 that were finalized last fall will take effect next week.
Can an OTC shell company be compliant with Rule 15c2-11?
It seems to us it ought to mean that an OTC shell company would, like a SPAC, be able to qualify as compliant with Rule 15c2-11 only if it was new to the market. It would then have 18 months in which to find a buyer.
Can idqs make determinations about compliance with Rule 15c2-11?
While FINRA approves of the idea of a qualified IDQS making determinations about an issuer’s compliance with Rule 15c2-11’s current information requirement, it points out that:
What is title 17 of the commodity and Securities Exchanges Act?
Title 17 – Commodity and Securities Exchanges CHAPTER II – SECURITIES AND EXCHANGE COMMISSION PART 240 – GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934 Rules Relating to Over-the-Counter Markets § 240.15c2-11 Publication or submission of quotations without specified information.