WASHINGTON — Underwriters may need to withdraw from a competitive transaction if they uncover inaccurate disclosure and the issuer cannot resolve their concerns, a dealer group said in guidance released last week.

The Bond Dealers of America’s two-page document, entitled “Guidance for Municipal Underwriters in Understanding Due Diligence Responsibilities in Competitively Bid Transactions,” was prepared by Elizabeth Columbo, a partner at Nixon Peabody LLP in New York and Daniel Deaton, a partner in the firm’s Los Angeles office.

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