Background
On May 26, 2010, the SEC approved amendments to its Rule
15c2-12. The amendments will become effective on December 1, 2010
for bonds that are issued, or for existing variable rate demand
bonds that are converted from an "exempted mode" to a
mode not so exempted, on and after that date. The amendments are
limited to the continuing disclosure requirements of Rule 15c2-12,
and were adopted in essentially the form proposed by the SEC on
July 17, 2009.
The amendments will not require that existing continuing
disclosure agreements be amended. The amendments apply to bonds
issued on and after December 1, 2010, and thus new continuing
disclosure agreements that become effective on that date. To the
extent that an issuer or borrower (referred to in Rule 15c2-12 as
an obligated person) has in place a "voluntary"
continuing disclosure agreement with respect to variable rate
demand bonds currently exempted from Rule 15c2-12, those agreements
will most likely need
