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The article reports on the concern about the provisions of variable rate demand obligation (VRDO) in the U.S. Money market fund officials warn that the inclusion of new terms in variable-rate debt transaction of some banks and issuers is difficult to monitor and limits bondholder's rights. They are also concerned about the negative effect of the changes in bond indentures for some deals on bondholders.

The article reports that the Investment Co. Institute (ICI) is seeking improvements to municipal disclosure. The ICI believes the improvements are needed since few bonds are being insured and it would even seem to see lawmakers repeal the so-called Tower Amendment. ICI General Counsel Karrie McMillan cited a reason for the importance of the disclosure. ICI wants the U.S. Securities and Exchange Commission (SEC) to use its power to update its rule on disclosure in a way that will ensure more timely or more frequent filings from municipal bond issuers.

The article discusses the increase in private-activity bond caps in the U.S. to $28.48 billion in 2008 from $28.19 in 2007. The increase comes as the Census Bureau released its new population estimates for 2007 and after the U.S. Internal Revenue Service issued a revenue procedure. The private-activity bonds, which are tax-exempt bonds issued by or on behalf of local or state government for the purpose of providing special financing, was also triggered by inflation and cost-of-living adjustment for states with smaller populations.

The article reports that several justices of the U.S. Supreme Court are planning to overturn the appellate court ruling for the 2006 case of Kentucky versus Davis, which found the state's favorable tax treatment of its bonds unconstitutional. Based on the oral arguments presented on November 5, 2007, the policy of the state of Kentucky for taxing interest on out-of-state bonds has violated the dormant commerce clause of the U.S. Constitution.

The article reports on the move of bond issuers and their attorneys to have the proposed rules of the U.S. Securities and Exchange Commission (SEC) rejected. It notes that the rules enable the municipal advisers to demand appointed board members of municipal entities who attempt for an issuance of securities to register with the SEC and the Municipal Securities Rulemaking Board (MSRB). Issuers and their advisers are alleged to have warned for a chilling effect on finding volunteers if approved.

The article focuses on the increase of the bond transaction fees faced by Depository Trust Co. (DTC) in Washington. It mentions the negative reactions of the municipal issuers to DTC's overcollection of fees for bond transactions. Meanwhile, it also cites the move of the Government Finance Officers Association (GFOA) by requesting the Securities and Exchange Commission (SEC) to revise the said increase.

The article reports on the increase of the expenses of Municipal Securities Rulemaking Board (MSRB) in the U.S. due to the expansion of its information systems. It states that the expenses of MSRB have increased to 21.3 million dollars which are expected to increase in 2011 and 2012. It also mentions that MSRB is seeking permission to increase the value of bonds.

The article reports on the debate among financial market participants over the Municipal Securities Rulemaking Board's (MSRB) proposal to ban dealers from underwriting new negotiated or competitive bond deals if they acted as the issuer's financial adviser (FA) in the U.S. It says that some FAs claimed the proposal would reduce competition among dealers vying for small and often-unrated issuers' bonds. The statement of Jim Jones of Crews & Associates Inc. concerning the issue is offered.

The article reports on the call of the industry groups for the Municipal Securities Rulemaking Board (MSRB) to reject the proposal to change the Rule G-37 for municipal securities dealers in the U.S. The proposed changes require municipal securities dealers to disclose the names of political action committees handled by holding companies or other affiliates. It also mentions the view of the Securities Industry and Financial Markets Association on the implications of the proposed changes.

The article reports on the statement of U.S. Securities and Exchange Commission (SEC) enforcement attorney, during their meeting. He states that several municipal market participants have questioned the SEC about bringing municipal bond abuses to its attention under a new congressionally mandated program that provides incentives for whistle-blowers. According to SEC commissioner Elisse Walter, they need a better and more prompt disclosure.

The article reports on the reactions of market participants to the draft proposal of Municipal Securities Rulemaking Board to prohibit dealers from underwriting new negotiated or competitive bond issues in Washington. It explains that dealers are prohibited when they act as financial adviser on the transaction in the state. It states that the board receives 70 comment letters in response to the proposal altering the Rule G-23.

The article reports on the comments of Ed Harrington, issuer official and former head of a governmental group, on the claims of the U.S. Securities and Exchange Commission (SEC) that the municipal bond market lacks disclosure and accounting standards. Harrington said that SEC's concerns on municipal issuers came from a grossly simplified view of the market. He recommends that SEC does not need to take legislative authority to regulate the market and that it should focus on the private sector.

The article reports on the decision of the Regional Bond Dealers Association (RBDA) to change its name into Bond Dealers of America (BDA) to reflect its addition of members from other parts of the U.S.

The article discusses the impact of the new financial regulatory reform law provision on municipal bond transactions in the U.S. It explains that the provision will require issuers of asset-backed securities to retain at least 5 percent of the debt they issue. Richard Sigal of Hawkins Delafield & Wood LLP states that the provision would not be consistent to the municipality issuer's functions and suggests the exemption of municipal asset-backed securities (ABS) from the 5 percent provision.

The article reports that the U.S. Municipal Securities Rulemaking Board (MSRB) has filed changes with the U.S. Securities and Exchange Commission on a controversial proposal which aims to increase the distribution of new-issue bonds. It is reported that the proposal would dictate the priority of retail and other customer orders in primary offerings.

The article reports on the accusation made by a group of 11 California bond issuers against J. Aron & Co., an affiliate of Goldman Sachs & Co., charging that J. Aron has halted its commodity trading business with the Sacramento Municipal Utility District (SMUD) at the direction of Goldman senior legal people. The group have cited evidence that the order not to do business with SMUD was intented to place pressure on the district to abandon its claim in the civil suit against Goldman.

The article reports on the reform amendment to financial regulatory legislation in Washington sponsored by California Senator Barbara Boxer. It states that the proposal was praised by financial advisers as it will bring the needed protection to issuers who have trust and confidence with dealers. Moreover, the dealer community warns that the amendment will result in ending the process of selling bonds on a negotiated basis.

The article reports on the introduction of a bank-qualified bond bill by Senators Jeff Bingaman of New Mexico and Mike Crapo of Idaho. It mentions that the bill is aimed to encourage banks to buy municipal debt from small issuers. It adds that the bill aims to permanently extend a popular provision in American Recovery & Reinvestment Act of 2009 (ARRA).

The article reports on the move of Southwest Securities Inc. to pay 470,147 dollars to the U.S. Securities and Exchange Commission (SEC). It states that the payment will settle charges of violating an anti-pay-to-play rule by co-underwriting Massachusetts bond deals after its former vice president gave political contributions to Timothy Cahill, who is the State Treasurer. It cites Southwest's violation to the Municipal Securities Rulemaking Board's Rule G-37 on political contributions.

The article reports on the launch of the temporary bond purchase and liquidity program by the administration of U.S. President Barack Obama. It mentions that the program aims to assist state and local financing agencies that were affected by the global financial crisis. It states that the move was announced by the Department of Housing and Urban Development, the Federal Housing Finance Agency, and the Treasury Department.

The article reports on the plan of Michael Decker, former chief of the Regional Bond Dealers Association (RBDA), to rejoin the Securities and Industry Financial Markets Association (SIFMA) in November 2009. It states that Decker will return to co-head its municipal securities division together with SIFMA co-head Leslie Norwood. It also notes that Decker and Norwood will report to SIFMA executive vice president Randy Snook.

The article reports on a legislative hearing over a proposed municipal bond rating legislation to be held by a U.S. House Financial Services Committee. The bill would ensure municipal bonds are rated the same way as other securities. It would also expose the rating agencies to significant liability for issuing faulty ratings.

The article reports that the Financial Industry Regulatory Authority (FINRA) is conducting an inquiry about flipping, a strategy of institutional investors in which they purchase bonds and then resell them to retail investors at a higher price, in the U.S. It discusses several issues involving flipping, including the large bond sale in California in early 2009 which prompted FINRA to conduct the inquiry. Moreover, the process of the inquiry and its initial findings are discussed.

The article reports on the move of the Municipal Securities Rulemaking Board (MSRB) to seek for public comments on its release of draft rule changes in the U.S. The MSRB is cited to clarify the priority of record-keeping responsibilities for dealers, as well as retail and other customer orders in primary bond offerings. It states that the MSRB will also clarify that dealers consider the priority of orders outlined by issuers for their bonds.

The article reports on the views of bond issuers regarding the high rates imposed on them for variable-rate obligations that were converted to bank bonds and the low rates on loans received by banks in 2009 in the U.S. It states that issuers are on their way in making products to solve the variable rate demand obligations (VRDO) issues. It cites that with the bank bonds, issuers have to pay with high rates as penalty and pay the debt to banks in a quicker manner.

The article reports on a hearing plans to hold by U.S. House Financial Services Committee Chairman Barney Frank on May 21, 2009 concerning an omnibus municipal bond bill. The bill will include a provision to impose a fiduciary standard on financial advisers in the municipal market. The provision will focus mostly on the losses suffered by state and local governments that invested in debt issued by Lehman Brothers Holdings Inc.

The article reports that the Municipal Securities Rulemaking Board (MSRB) in the U.S. has issued guidance that applies to Build America Bonds (BAB) that authorized the $787 billion stimulus package. As the BAB is issued by the state and local government, it is considered as municipal securities. The MSRB guidance include rules on fair practices, political contributions, and conflicts of interest. It notes that the rules have nothing to do with the tax-exempt status of the municipal securities.

Information on the Government Finance Officers Association's winter meeting held in Washington is presented. During the event, Virginia Representative Gerald Connolly told his plan to fight for municipal issuers in the U.S. by being an advocate on behalf of them. He shares his plan of working with other lawmakers to create a new draft of legislation and urge federal agencies to provide assistance to municipal market in order to re-attract investors.

The article reports on the potential increase of the amount of private-activity bonds (PAB) that is likely to be issued across the U.S. in 2009. Given the new population estimates released by the Census Bureau for 50 states as well as the inflation adjustment for the 20 smallest states and the district, it is predicted that the amount of PAB will reach to $30.607 billion. The amount is allegedly $1.795 higher than that the year 2008, which has issued $28.8125 billion only.

The article reports on the proposal of non-profit student loan lenders for the U.S. Treasury Department to offer liquidity facilities on student loan-backed debt. These include insurance for student loan auction rate securities (ARS), standby bond purchase agreements and refunding bonds for ARS and variable rate demand obligations (VRDO). The student lenders include the Montana Student Assistance Foundation, Regional Bond Dealers Association, and the Education Finance Council.

The article reports on the $50 million short-term debt placed by nonprofit student lenders in Kentucky and New Mexico with their respective states to find short-term liquidity, allowing them to participate in financing student loans. The bonds serve as bridge loans for the purposes of the Department of Education (DOE) program. The lenders expect that the bond will guarantee their continued participation in the Federal Family Education Loan (FFEL) program.

The article reports on the proposition of Fidelity Investments and Charles Schwab & Co. Inc. in the U.S. that the state and federal securities regulators focus their auction-rate securities (ARS) probe on large banks and broker dealers that underwrote ARS rather than smaller brokerage that had no advance knowledge that the ARS market was going to collapse.

The article reports on the approval made by the House Financial Services Committee to the "Municipal Bond Fairness Act" in Washington. The approved bill empowers the Securities and Exchange Commission to require the credit rating agencies to rate municipal bond based on repayment just like corporate and other debt. The primary purpose of the bill is to require credit rating agencies to rate municipal bonds by the same standard in rating corporate and other public debt.

The article reports on the plan of U.S. Representative Barney Frank to issue a universal rating scale bill which aims to ease strictures in municipal securities. The plan requires credit agencies to rate the securities on the same scale as other types of bonds and to encourage banks and corporations to purchase more munis. The bill will loosen restrictions in the 1986 Tax Reform Act, propose an increase in the law's deductibility limits and allow corporations to legally invest in bonds.

The article reports that the Municipal Securities Rulemaking Board (MSRB) has proposed a new system for variable-rate demand obligations (VRDO) in the U.S. The centralized system for the collection of market data about VRDOs will increase its amount set for market participants. Remarketing agents must submit the information on VRDOs to the board through the Real-Time Transaction Reporting System (RTRS) which will be displayed at the Electronic Municipal Market Access (EMMA).

The article reports on the warning given by Mary Simpkins, senior special counsel of the U.S. Securities and Exchange Commission (SEC), against below-market auction-rate security (ARS) bids from issuers in New York City. During the conference of the journal "The Bond Buyer" on the municipal credit crunch, Simpkins warned the market participants on the effect of ARS bids. A guideline has been developed with general framework that gives issuers the chance to bid on their own securities.

The article reports on the notice issued by the National Association of Bond Lawyers in the U.S. According to the article, the notice stressed that municipal issuers are allowed to bid on their auction-rate securities without incurring any violations in the securities laws as well as addresses the problems faced by the auction-rate market. Moreover, the author added that the notice also tackles the special rules on qualified hedges and allows minor modifications in the offerings.

The article reports on the issuance of a clarification from the Securities and Exchange Commission (SEC) to the National Association of Bond Lawyers on February 6, 2008 which aims to clear up issues on bond issuance in the U.S. The clarification stressed that bond issuers may have to file material event notices if their bonds were downgraded, resulting from changes in ratings to bond insurers.

The article forecasts the amount of private-activity bonds (PAB) that can be issued in 2008 in the U.S. It is estimated that PAB issuance will accelerate to $28.48 billion compared to $28.19 billion allowed in 2007. Reasons for the increase are U.S. population surge and cost-of-living adjustment. Meanwhile, six large-population states received volume cap decreases after populations declined in 2007 estimates. They include Connecticut, Michigan, New Jersey, New York, Ohio, and Pennsylvania.

The article reports that Depository Trust and Clearing Corp. (DTCC) in the U.S. has spent the last several months redoubling its development work on the New Issue Information Dissemination System to meet concerns voiced by market participants. In respond to concerns published in "The Bond Buyer" newspaper, DTCC director Denise Russo declares that dealers or their representatives would have a full five months to test the system.

The article reports on the statement of executive director Sheryl D. Bailey that Virginia Resources Authority has been gearing up to conduct a negotiated sale of about $274 million of clean water revenue bonds. The proceeds of the bond will be spent for the 10 major wastewater upgrades for nine local governments and authorities, most of which are developed to decrease elevated nutrient levels in the Chesapeake Bay Watershed that threaten marine life.

The article reports on the proposed $5.57 billion budget plan for fiscal 2008 initiated by District of Columbia Mayor Adrian M. Fenty. The budget includes the issuance of $909.6 million of bonds, in which most of it would be general obligation debt. The budget amount refers to locally generated revenue and constitutes a $450 million or 8.8%, increase from the enacted $5.12 billion fiscal 2007 plan.

The article reports on the plans of West Virginia to sell at least $800 million of tobacco settlement bonds to support its underfunded teachers pension plan. According to Joe Martin, deputy chief of staff of Governor Joe Manchin, the tobacco deal would only proceed if the state received a minimum of $800 million from the sale.

The article reports that Virginia Governor Timothy M. Kaine has opposed to the idea of using general fund revenues to back bonds for long-term transportation projects. He further stresses that he would use his line-item veto power to amend a $2.5 billion bond package that the Republican-controlled General Assembly approved.

The article reports that the Northeast was the country's most active region for issuance in 2006, accounting for 24.5 percent of the $383.4 billion of municipal bonds sold nationally in the U.S. A 38 percent drop in transportation issuance contributed to the overall decline in volume in the region, with Northeast issuers selling $8 billion less in transportation debt compared to 2005. Information about the bond sales in some states is also presented.

The article reports on the deals offered by state-level agencies in Virginia. The remarketing of a $150 million portion of a $650 million deal issued by the Virginia Housing Development Authority is included in the offerings. The $150 million remarketing by the housing authority is the largest of the deals expected. The Transportation Board plans to competitively sell $125 million of bonds at the end of the month.

The article reports on the passage of a package of bills by the House of Delegates committee that could lead to the issuance of at least $1.62 billion in tax-exempt transportation revenue bonds over five years in Virginia. The bill was aimed to address the growing transportation needs through financing road projects around the state, including northern Virginia and U.S. Route 58 Corridor along the state's southern boundary. It is expected that the full House will then vote on the bills.

The article focuses on the financing proposals of several counties in northern Virginia to fund various transportation projects in the state. The counties will ask voters to approve more than $1 billion in general obligation bonds for transportation projects and various needs to cope with economic growth. However, Democratic Governor Timothy M. Kaine and the Republican-controlled General Assembly continue to disagree over finding new money for the projects.

The article reports on the plan to use tax increment financing and revenue bonds in the redevelopment projects in Washington D.C. These projects include the most expensive convention center hotel, renovation of the 25-acre McMillan reservoir filtration site and Poplar Point on the Anacostia River, and the construction of new stadium for the district's baseball team.