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Category Archives: Municipal Finance and Bonds

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SEC Approves Rule Defining Municipal Advisors

Posted in Municipal Finance and Bonds
By Angela Adolph After considerable delay and much anticipation by the municipal finance community, the Securities and Exchange Commission (the “SEC”) recently approved a final rule defining municipal advisors for purposes of the Dodd-Frank Act (the “Act”). The SEC had previously noted that, in the wake of the last financial crisis, a number of municipalities … Continue Reading

New Definition of Sophisticated Municipal Market Professionals

Posted in Municipal Finance and Bonds
By Angela W. Adolph The Municipal Securities Rulemaking Board (“MSRB”) requires a dealer to disclose to its customers all material information about a proposed transaction that is known to the dealer as well as material information about the security that is available to the market from established industry sources. Since 2002, dealers have distinguished their … Continue Reading

MSRB Strengthens Regulation of Broker’s Brokers

Posted in Municipal Finance and Bonds
By Angela W. Adolph “Broker’s brokers” are intermediaries between selling dealers and bidding dealers of municipal securities.  They provide secondary market liquidity in the municipal securities market, which helps ensure that retail investors receive fair and reasonable pricing of municipal securities. One way that broker’s brokers bring buyers and sellers together is through a “bid-wanted,” … Continue Reading

MSRB Extends Focus on Conflicts of Interest

Posted in Municipal Finance and Bonds
By Angela W. Adolph The Municipal Securities Rulemaking Board (“MSRB”) is seeking comments on a possible proposal to require underwriters and municipal advisors to disclose whether they have made or received certain payments in connection with new issues of municipal securities. The MSRB is concerned about conflicts of interest that impede the ability of municipal … Continue Reading

Underwriters Under the Gun on New Disclosures

Posted in Municipal Finance and Bonds
By Angela W. Adolph Last week, the Securities and Exchange Commission (SEC) approved new rules regarding the disclosure duties of underwriters to municipal issuers of securities that were proposed last summer by the Municipal Securities Rulemaking Board (MSRB).  The new rules include explicit and expanded requirements for underwriters aimed at protecting municipal issuers. Current rules … Continue Reading

Updated Eligibility Criteria for New Markets Tax Credits Released

Posted in Business and Corporate, Municipal Finance and Bonds
By Angela W. Adolph Last week, the Community Development Financial Institutions Fund (CDFI) began using updated census tract eligibility data  that is based on the 2006-2010 American Community Survey (ACS).  In 2005, the Census Bureau launched the ACS to replace the long-form census survey.  ACS collects socioeconomic and housing information continuously from a national sample  … Continue Reading

Recent Municipal Securities Rulemaking Board Notices

Posted in Municipal Finance and Bonds
By Angela W. Adolph The Municipal Securities Rulemaking Board (“MSRB”) has been quite active lately. On April 3, 2012, the MSRB issued a notice encouraging voluntary disclosure of bank loans by state and local governments on the MSRB’s Electronic Municipal Market Access (“EMMA”) website. EMMA is an information facility of the MSRB for receiving electronic … Continue Reading

Standard & Poor’s Proposes New Methodology for Rating Local Governments’ General Obligation Debt

Posted in Municipal Finance and Bonds
By Angela W. Adolph Last week, Standard & Poor’s (“S&P”) proposed a new methodology for rating local governments’ general obligation debt. It would not apply to special purpose districts, such as school districts, or revenue bonds. The new methodology uses the same general factors currently used to rate local government debt, but provides increased transparency … Continue Reading

Non-profits: Opportunity to Finance Acquisition or Renovation of Property Using Qualified 501(c)(3) Bonds

Posted in Business and Corporate, Louisiana In General, Municipal Finance and Bonds, New Orleans/Louisiana Recovery, State and Local Taxation
By Angela W. Adolph Non-profit organizations have the opportunity to finance the acquisition or renovation of property where they do their good works using qualified 501(c)(3) bonds, which often provide better financing terms and rates than those available from traditional lenders. The proceeds of qualified 501(c)(3) bonds may also be used by the non-profit organization … Continue Reading

Final Targeted Populations Rule Released

Posted in Business and Corporate, Louisiana In General, Municipal Finance and Bonds, Real Estate
By Angela W. Adolph The American Jobs Creation Act of 2004 amended the New Markets Tax Credit program (“NMTC”) to provide that certain targeted populations may be treated as low-income communities. The Internal Revenue Service provided some guidance on the topic in Notice 2006-60 and in proposed regulations that were issued in 2008. Following a … Continue Reading

GO Zone Bonds Approved for Current Refundings

Posted in Business and Corporate, Construction Law, Hurricane Katrina, Louisiana In General, Municipal Finance and Bonds, New Orleans/Louisiana Recovery, State and Local Taxation
By Angela W. Adolph The Gulf Opportunity Zone Act of 2005 (the “Act”) added several new sections to the Internal Revenue Code that provide certain tax benefits for affected hurricane disaster areas. Section 1400N(a) authorized the issuance of Qualified Private Activity Bonds (“Qualified Bonds”) to finance the construction and rehabilitation of residential and nonresidential property … Continue Reading

IRS Releases Private Letter Ruling Addressing Mixed-use Output Facility and Tax-exempt Bonds

Posted in Municipal Finance and Bonds, Utilities Regulation
By Angela W. Adolph The Internal Revenue Service (the “Service”) released a Private Letter Ruling (“PLR”) earlier this year addressing private business use of a mixed-use output facility and whether tax-exempt bonds could be used to finance improvements to the facility.  The Issuer, which is a political subdivision of a state, owns electric generation, transmission … Continue Reading

Revisions to IRS Form 8038-G

Posted in Municipal Finance and Bonds
By Angela W. Adolph In September 2011, the IRS revised Form 8038-G, which is the information return that issuers must file in connection with issuance of tax-exempt governmental obligations. The revised form includes two new questions regarding whether the issuer has effected written procedures to verify compliance with certain rules. First, on line 43, the … Continue Reading

Final Regulations Issued for Financing Solid Waste Disposal Facilities

Posted in Business and Corporate, Environmental Litigation and Regulation, Louisiana In General, Municipal Finance and Bonds
By Angela W. Adolph The Internal Revenue Code restricts the amount of private business use that can occur in facilities financed with tax-exempt bond proceeds, but there are a number of exceptions to this general rule. Certain facilities (“exempt facilities”) that are privately used are eligible for tax-exempt bond financing if they benefit the general … Continue Reading

Louisiana Approved for SSBCI Funding

Posted in Business and Corporate, Louisiana In General, Municipal Finance and Bonds, New Orleans/Louisiana Recovery, Real Estate
By Angela W. Adolph Last week, the United States Department of the Treasury announced the approval of applications from Louisiana and a handful of other states for State Small Business Credit Initiative (“SSBCI”) funding. The SSBCI is an important component of the Small Business Jobs Act (“the Act”) that was signed into law last fall. … Continue Reading

A Primer on Public-Private Partnerships

Posted in Business and Corporate, Construction Law, Louisiana In General, Municipal Finance and Bonds, New Orleans/Louisiana Recovery
By Angela W. Adolph In today’s political and economic environment, in which public resources available for infrastructure development and maintenance are increasingly scarce, Public-Private Partnerships (PPPs) offer a welcome alternative to traditional financing and operation models. A PPP is a contractual agreement between a public agency (federal, state or local) entity and a private sector … Continue Reading
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