Law and legal issues

DALLAS — Bond dealers who claim the role of market maker in the pricing of municipal securities can run afoul of regulators unless they qualify with the Securities and Exchange Commission, warned Malcolm Northam, director of fixed-income ­securities at the Financial Industry ­Regulatory Authority.

CHICAGO — A federal bankruptcy court judge on Tuesday approved Senior Care Development LLC’s $40 million bid to purchase two Chicago area bond-financed continuing care retirement communities although the size of a final payout for bondholders remains unclear.

WASHINGTON — Independent municipal advisers are strongly opposed to the Municipal Securities Rulemaking Board’s draft proposal that would temporarily expand the board’s membership to 21 while reserving just three, or 14%, of those slots for advisers that will fall under its oversight Friday for the first time.

BRADENTON, Fla. — A Florida grand jury will consider whether to investigate a court building costing $47 million that was financed largely with tax-exempt bonds.

The Victor Valley Community Hospital filed for Chapter 11 bankruptcy protection earlier this month.

BRADENTON, Fla. — An Alabama judge said Wednesday that bankruptcy is not a feasible alternative for Jefferson County and appointed a receiver with rate-setting powers to take over the county’s sewer system.

WASHINGTON — An issuer official and former head of a governmental group strongly refuted the Securities and Exchange Commission’s claims that disclosure and accounting standards for the municipal bond market are lacking and said the SEC simply doesn’t understand the market.

SAN FRANCISCO — The municipal bond market does a poor job providing retail buyers with necessary information, a worse job providing them with continuing disclosure about their investments, and is an awful place to sell those investments.

ALAMEDA, Calif. — The city of Bell mismanaged general obligation bond funds, illegally increased taxes and fees, and engaged in numerous practices that suggest possible intentional abuse and misuse of city funds, according to an audit the California controller’s office released Wednesday.

Atlanta Mayor Kasim Reed appointed Cathy Hampton as the new city attorney on Friday.

WASHINGTON — James T. Kelly, a Securities and Exchange Commission administrative law judge who presided over several municipal bond enforcement cases, plans to retire later this month after 42 years of public service, with more than 11 spent at the SEC, the commission announced Tuesday.

SAN FRANCISCO — An analyst painted a grim picture of the state of disclosure in the municipal bond market, after Securities and Exchange Commissioner Elisse Walter Tuesday kicked off the SEC’s first regional municipal securities field hearing here.

SAN FRANCISCO — Bell, Calif.’s mayor, former city manager, and current and former City Council members have been arrested on charges of misappropriating more than $5.5 million from city coffers, according to the Los Angeles district attorney.

ALAMEDA, Calif. — Fitch Ratings washed its hands of the troubled Bell, Calif, on Monday, withdrawing its ratings after issuing a final downgrade to the city’s already junk-rated debt.

Pennsylvania’s last-minute plan to help its capital city meet a $3.3 million general obligation payment to bondholders last week is a “credit positive,” but Harrisburg needs “external support” to achieve long-term fiscal stability, according to Moody’s Investors Service.

SAN FRANCISCO — On the eve of its first field hearing on the municipal securities market here, the Securities and Exchange Commission issued an “investor bulletin” highlighting the key characteristics and risks of munis, while two self-regulators jointly released a notice reminding dealers of their obligations to investors while selling them munis in the secondary market.

BRADENTON, Fla. — ACA Financial Guaranty Corp. is asking Santa Rosa Bay Bridge Authority bondholders if they are interested in creating a committee to investigate potential resolutions to the northwest Florida issuer’s looming payment default.

ALAMEDA, Calif. — The Securities and Exchange Commission is investigating bonds issued by Victorville, Calif., and its enterprises, a city official has confirmed.

CHICAGO — A Minnesota judge this week kept alive a lawsuit filed by retirees against the state’s public pension funds that challenges legislation enacted earlier this year curbing benefit increases for current retirees.

CHICAGO — Detroit-based law firm Lewis & Munday PC has been on a small hiring spree since last year and has opened an office in New York with an eye on Connecticut.