WASHINGTON - The Municipal Securities Rulemaking Board reminded dealers yesterday that its Rule G-37 ban on political contributions applies to dealers soliciting business involving Build America Bonds, as well as other types of taxable tax-credit bonds.

Despite their taxable status, BABs are considered municipal securities because they are sold by states and localities and are therefore subject to MSRB rules, including those on fair practices, conflicts of interest, and restrictions on political contributions meant to prohibit dealers from engaging in pay-to-play practices.

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