In
1989 the Securities Exchange Commission (SEC) adopted
Rule 15c2-12 (the “Disclosure Rule” )
to improve disclosure practices in the municipal marketplace.
Amendments were subsequently made to increase the amount
of reliable information in the secondary market. The
Disclosure Rule, as amended, now requires issuers
to provide continuing disclosure throughout the life
of
their bond
issues.
According to
the Disclosure Rule, Issuers must:
- Annually: File disclosure and operating information
with national and state repositories
- As significant events occur: Prepare and file announcements
of the events as identified in the Disclosure Rule
(i.e. defeasances and payment defaults)
As your
continuing disclosure agent, Urban Futures Inc.
will assume the lead
and ensure that your bond issues meets all necessary
disclosure obligations and requirements as stipulated in the Official Statement and related Bond documents. We use the latest technology to streamline operations, thereby enabling us to provide expedient and cost effective services. We realize that every client is unique and we customize the reports as needed for each of our clients. In addition to preparing the required reports; we follow the steps outlined in “Best Practices in Disclosure", creating a custom reporting program to best meet the disclosure obligations of the issuer and disseminate information to the investors.
BENEFITS
Continuing
disclosure can be beneficial to issuers and investors.
Making
disclosure information more accessible
helps to improve the efficiency of the municipal market
and can lower borrowing costs by improving liquidity
of an issuer’s bonds.
The liquidity
of a security may be enhanced if it is demonstrated
to potential investors that the issuer is willing to
provide
reliable continuing information on a timely basis.
As a
result, investors are more likely to accept a lower
interest rate at the time of issuance and the issuer
may benefit
from substantial interest cost savings.
SERVICES
Reporting Function: Assume
lead in and prepare all necessary disclosure reports.
Dissemination: Urban Futures Inc. can disseminate
the Annual report to the appropriate State Information
Depository, the Nationally Recognized Municipal
Securities Information Repositories and the Municipal
Securities Rulemaking Board (if applicable).
Significant Event
Notices: Upon discovering the
occurrence of a material or significant event,
Urban Futures Inc. will prepare a preliminary “Report
of Significant Event.” After review and approval
by the issuer, the report will be disseminated
to
disclose the event information.
Online Publication: Urban
Futures Inc. publishes the report on our Internet
site at www.ufidisclosure.com. Bondholders and
investors often visit our website to quickly collect
the latest
disclosure information. Our online publication
system is free, user friendly and open to the public.
Back to Top
|
