3.2.1.2. Continuing Disclosure Agreement
Underwriters are also obligated by SEC Rule 15c2-12 to receive a continuing disclosure agreement from the issuer prior to making a bid or accepting a sale. This is an agreement to provide continuing disclosure of information relevant to the market value of the bonds throughout their life. The agreement is signed by the issuer and any other entity that is committed contractually to support payment of the bond obligation.
In the continuing disclosure agreement, the issuer commits to provide financial and operating information annually on a specified date and audited annual financial statements to the MSRB. The issuer must also notify the MSRB within 10 business days if certain significant events occur, such as:
• Principal and interest payment delinquencies
• Defaults
• Adverse tax opinions affecting the tax-exempt status of the bonds
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