WASHINGTON — The National Association of Bond Lawyers issued an alert Friday to its members about the potential impact the $1.2 trillion in across-the-board federal budget cuts would have on Build America Bonds and other direct-pay bonds.

“NABL members whose clients have issued, underwritten or purchased such “direct-pay” bonds should be aware the effect the so-called “sequester” may have on them,” the two-page release said. “In addition to a reduction in the subsidy payments, depending on the documents under which the bonds were issued, certain extraordinary call provisions, may be triggered.”

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