NABL, GFOA Release Post-Issuance Compliance Checklist for Issuers

WASHINGTON — Two municipal market groups yesterday released a checklist aimed at helping bond counsel, issuers, and conduit borrowers keep track of post-issuance compliance matters. The checklist, which the groups recommended be kept with the bond transcript, was developed by the Government Finance Officers Association and the National Association of Bond Lawyers. Divided into three parts — tax, securities, and state law issues — the checklist “can serve as a framework for discussion” during a bond deal, or as a document furnished to the issuer or conduit borrower by bond counsel after a transaction is completed, according to the two groups.“Issuers are encouraged to retain and distribute the checklist to all 'responsible’ parties and others who may find it useful during the lifetime of a financing,” they said.The checklist covers six tax law topics, such as arbitrage and record retention; four securities law items, including Rule 15c2-12 requirements; and six state law topics. The document provides space for issuers to enter document reference numbers and information about the parties or individuals responsible for monitoring or executing each specific compliance item.For ongoing compliance with derivatives contracts, which the groups called a complex “universe in and of itself,” issuers are urged to use the GFOA’s separate derivatives checklist which was released with a recommended practices document released several years ago.“This list covers a broad spectrum of financing purposes, of which only some will apply to your financing,” they told issuers. “Instances where each line will be completed are unlikely. However, you are encouraged to review the entire document and complete the lines that are applicable to your financing.”