On August 20, 2018 the SEC approved amendments to Rule 15c2-12 of the Securities Exchange Act to add two additional disclosure events to written continuing disclosure undertakings required to be obtained by underwriters in primary securities offerings. A copy of the final rule approving the amendments can be accessed here.
Continue Reading SEC Approves Amendments to Rule 15c2-12 to Address Bank Loan Disclosure Concerns
municipal bonds
Podcast: Complying with Continuing Disclosure
We’ve previously discussed on this blog the importance of continuing disclosure in the municipal bond industry, and the steps municipal issuers should take to ensure they remain in compliance with their obligations in this area. I recently recorded a video podcast on this topic. You can watch it below – or at the following link:…
Pennsylvania Legislature Approves New Municipal Alternative Energy Program
On May 23, the Pennsylvania House of Representatives approved Senate Bill 234, which creates the Property Assessed Clean Energy (PACE) Program. SB 234, which was approved by the Senate in January of this year, would help owners of agricultural, commercial and industrial properties obtain low-cost, long-term financing for energy efficiency, water conservation and renewable energy projects. The program would not include multifamily housing or other residential property.
Continue Reading Pennsylvania Legislature Approves New Municipal Alternative Energy Program
Continuing Disclosure in the Municipal Bond Market: Importance of Compliance
When Congress passed the Tax Cuts and Jobs Act (TCJA) late last year, a much-heralded provision of TCJA was the reduction in the federal corporate income tax rate, from 35% to 21%. However, that reduction has had unforeseen consequences for the municipal bond industry. The reduction in the tax rate is expected to result in efforts by banks to increase the interest rates charged by banks for current outstanding loans to municipalities and 501(c)(3) tax-exempt organizations. Whether a bank may increase the interest rate on a loan will depend on the language of the loan documents. Even if the loan documents permit the bank to unilaterally increase the interest rate, some banks may be hesitant to do so, as the request is may be received poorly, potentially jeopardizing the bank’s ongoing relationship with the borrower.
Continue Reading Continuing Disclosure in the Municipal Bond Market: Importance of Compliance
IRS Issues Guidance on Remedial Actions for Tax-Advantaged Bonds
On April 11, 2018, the Internal Revenue Service published Revenue Procedure 2018-26, a copy of which can be accessed here, which provides new guidance to issuers on the availability of remedial actions to preserve the tax-advantaged status of their bonds in the face of a violation of the tax rules. Rev. Proc. 2018-26 applies to tax-advantaged bonds generally, i.e. traditional tax-exempt bonds under section 103 of the Code, as well as federally taxable bonds that carry with them tax credit or direct pay subsidy benefits.
Continue Reading IRS Issues Guidance on Remedial Actions for Tax-Advantaged Bonds
NABL Requests IRS Guidance on Tax-Exempt Advance Refundings of Taxable Bonds
On March 29, 2018, the National Association of Bond Lawyers (NABL) formally requested guidance from the IRS regarding the ability of municipal issuers to issue tax-exempt advance refunding bonds to refund taxable bonds after the enactment of the Tax Cuts and Jobs Act (TCJA). The request comes on the heels of public statements by Treasury and IRS representatives regarding their belief that notwithstanding the passage of TCJA, municipal issuers may continue to issue tax-exempt advance refunding bonds to refund taxable bonds, so long as the taxable bonds to be refunded are not tax-advantaged bonds such as Build America Bonds, and the refunding otherwise complies with the requirements of section 149 of the Code and the regulations thereto.
Continue Reading NABL Requests IRS Guidance on Tax-Exempt Advance Refundings of Taxable Bonds
Trump Infrastructure Plan Would Expand Use of Private Activity Bonds
On February 12, 2018 the Trump Administration released its long-awaited Infrastructure Plan. A copy of the legislative outline for the Plan can be accessed here. The Plan calls for $1.5 Trillion in new infrastructure investment over the next ten years – although only $200 Billion of that will be in the form of new…
Review and Analysis of Tax-Exempt Loan Documents Following Tax Cuts and Jobs Act
On December 20, 2017 Congress passed the Tax Cuts and Jobs Act (TCJA). The legislation was signed by President Trump on December 22, 2017 and many key provisions of the law became effective on December 31, 2017.
The purpose of the TCJA was to stimulate economic growth through a major overhaul of the Internal Revenue Code. One of the signature elements of the TCJA is the reduction of the federal corporate tax rate from 35% to 21%. While this may be good news to the business community generally, the rate reduction presents potential unique problems for conduit borrowers, such as 501(c)(3) organizations, and lenders under tax-exempt bank loan structures.
Continue Reading Review and Analysis of Tax-Exempt Loan Documents Following Tax Cuts and Jobs Act
Penny Pollick joins McNees as a Continuing Disclosure Specialist
The Financial Services and Public Finance Group of McNees Wallace & Nurick LLC is pleased to announce that we are now able to assist issuers and obligated person clients in complying with their continuing disclosure requirements under SEC Rule 15c2-12.
Effective January 2, 2018, Penny Pollick has joined our team as a Continuing Disclosure Specialist. …
A Look Back at 2017
As we prepare to say goodbye to 2017 and welcome a new year, we thought we’d take a moment and revisit some of our favorite stories from the last twelve months that we’ve followed on the McNees Public Sector Blog.
- A kinder, gentler Internal Revenue Service? Perhaps in response to the Trump Administration’s “less is
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