The National Association of Bond Lawyers yesterday released a long-awaited advisory on the federal securities law issues that arise when stripping tax credits from underlying taxable municipal bonds.

The seven-page analysis was written in a question-and-answer format after consultation between NABL members and Securities and Exchange Commission staff. It concludes that while the stripped credits are “most likely” securities, they are probably municipal securities, which means they are exempt from having to register with the SEC under the Securities Act of 1933 or from having to meet corporate-style continuing disclosure requirements under the Securities Exchange Act of 1934.

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