United States

Amendments to municipal securities disclosure

FINANCIAL REPORTING INSIGHTS  | 

State and local governments that have issued municipal bonds are reminded of the continuing disclosure requirements in SEC Rule 15c2-12 to provide to the Municipal Securities Rulemaking Board certain information about the bonds on an ongoing basis after the initial issuance. This information generally reflects the financial health of the state or local government, or the occurrence of specific events that can have an impact on key features of the bonds. Effective February 27, 2019, the SEC amended the continuing disclosure requirements to include disclosure of two new events:

  • 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
  • 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