Members of the National Association of Bond Lawyers yesterday repeated numerous market concerns about the tax and securities law implications of the turmoil in the auction-rate securities market, but noted that they cannot answer many of the questions unless the Securities and Exchange Commission provides some guidance.

The discussion took place during a teleconference call that NABL sponsored following the release of a notice issued last week that was written by NABL members John McNally of Hawkins Delafield & Wood LLP and Ed Oswald of Orrick, Herrington & Sutcliffe LLP that outlined the existing tax and securities legal framework in a question-and-answer format. Among other issues discussed, the notice said that issuers may be able to bid on their own securities under certain circumstances to avoid high interest costs, but it remains unclear if such moves will violate the securities laws.

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