WASHINGTON - The Municipal Securities Rulemaking Board issued guidance Friday reminding dealers that its rules apply to Build America Bonds authorized in the $787 billion stimulus package, even though BABs are taxable and may be sold through dealers' corporate bond desks.

BABs, as well as other tax-credit bonds, are considered municipal securities because they are issued by state and local governments, so the MSRB rules apply, including rules on fair practices, political contributions, and conflicts of interest, among others.

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