Burr & Forman

04.2.2020   |   Blog Articles, Securities Litigation

MSRB Collects COVID-19 Continuing Disclosures

The Municipal Securities Rulemaking Board (“MSRB”) on April 2 published its statistical analysis and list of COVID-19 continuing disclosures filed by municipal issuers during the first quarter of 2020.  Of 43,667 disclosures, 506 were related to the Coronavirus pandemic.

Securities and Exchange Commission Rule 15c2-12 requires all underwriters of municipal securities to require municipal issuers to enter an agreement that issuers will file continuing disclosures of events that may have a material effect upon bond repayment.  Although the COVID pandemic itself is not among the 16 categories of disclosure events listed in the regulation (see the MSRB’s Guidance, here), municipal issuers and their counsel should determine whether observed shortfalls in revenues or other effects of the pandemic may trigger a disclosure obligation under the indenture terms of the issuance.

The MSRB’s press release is here.

And its COVID Disclosures Summary is here:

Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee, Texas, and Louisiana. He has over 34 years of experience representing financial institutions in litigation, regulatory and compliance matters. See attorney profile.

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