SIFMA issues best practices guidelines

Apr 4, 2007 @ 10:47 am

By Dina Hampton

The Securities Industry and Financial Markets Association has announced that it has developed model auction procedures and standard disclosure language regarding special considerations for auction rate securities.

The model auction procedures may be used as an exhibit to standard deal documents for auction rate securities such as the auction agent agreement or the broker-dealer agreement, or for other auction rate securities documents such as the bond resolution or indenture, according to a statement by SIFMA released yesterday.

These model procedures embody certain principles in SIFMA’s Best Practices for Auction Rate Securities, which were previously issued as an exposure draft and have been finalized in conjunction with the model procedures.

SIFMA has also created sample disclosure language regarding the role of the broker-dealer in auctions and a note to bond counsel regarding certain other auction procedures for auction rate securities.


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