As we have seen in our series of articles on Blue
Subtle differences exist between states that can sometimes lead to confusion and worse: a potentially costly enforcement action. To help provide clarity, we've been carefully analyzing the laws in each state. Last month we looked at
There are a few unique aspects to
More interestingly, another exception is whether the payments on the securities being issued are insured or guaranteed by a person who, within the 12 months next preceding the date of issuance, has received a rating in one of the top four rating categories of
Additionally, there are several unique elements to
Based solely upon review of several denials by the Nevada Securities Division of no action requests, one could conclude that this means that governmental "enterprises," such as municipally owned and operated airports, water and sewer systems and single family mortgage loan programs, are also excluded from the municipal bond exemption, unless one of the requirements set forth in the law are satisfied.
The reasoning used by the Securities Division to reach its conclusion was that since the bonds were paid out of the revenues of the "governmental enterprise" and not supported by the sponsoring municipality or taxes, the bonds were riskier investments and therefore if no other requirements were satisfied, registration was required in order to protect investors. Accordingly, out-of-state issuers should be aware that they may face a notice filing requirement.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Pittsford
NY 14534
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