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The SEC adopted amendments to Exchange Rule 15c2-12 that require municipal securities issuers to disclose material financial obligations that could impact an issuer's liquidity and overall creditworthiness.
As previously covered, the SEC proposed requiring disclosure by issuers of municipal securities of two additional types of event notices to the MSRB following primary offerings. The new required event notices pertain to: (i) an "incurrence of a financial obligation of the issuer or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or obligated person, any of which affect security holders, if material;" and (ii) a "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."
The amendments, according to the SEC, are intended to add transparency to the municipal securities market by increasing the amount of publicly disclosed information about financial obligations incurred by issuers and obligated persons.
The compliance date for the amendments will be 180 days after publication in the Federal Register.
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