WASHINGTON - The Municipal Securities Rulemaking Board issued a reminder to broker-dealers yesterday about the application of its Rule G-37 on political contributions to the federal election campaigns of issuer officials, two weeks after presidential hopeful Arizona Sen. John McCain tapped Alaska Gov. Sarah Palin as his vice presidential running mate.

The rule bars a broker-dealer from engaging in negotiated municipal securities business with an issuer for two years if it or any of its muni securities professionals make large contributions to issuer officials who can influence the award of bond business. Municipal finance professionals can contribute up to $250 per election to any issuer official for whom they can vote without triggering the ban, which also restricts indirect contributions to non-dealer political action committees and payments to political parties.

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