Lynn Hume

Banks often demand key terms of private placement documents be redacted when issuers want to disclose them and questions of materiality arise.

The Senate’s vote to approve its tax bill means advance refundings are all but dead. The future of private-activity bonds hangs in the balance as the differences with the House’s version are resolved.

Muni issuers rushing to get advance refundings done in December before Congress passes a tax bill that terminates them may face a halt in sales of state and local government securities because of the debt limit.

A tribal government specialist has replaced Allyson Belsome as head of the group responsible for muni bond audits.

With roughly two weeks to negotiate a final tax bill, using the amendments would avoid a formal conference and could save private activity bonds.

Halting tax-exempt advance refundings at the end of the year, as proposed by both pending tax bills, would increase issuers’ costs, deprive them of savings for new projects, and push some to enter into swaps that could increase their risk.

Even though tax bills would have a PAYGO problem, Republicans may have the upper hand.

It may take 60 votes in the Senate to decide if the tax bill is subject to the PAYGO Act.

If Congress passes the pending tax bills, BABs and more than $85B of mandatory federal programs would be jeopardized.

The SEC's Office of Compliance Inspections and Examinations found municipal advisors had trouble meeting registration, books and records and supervisory requirements.