Overview

The US Municipal Securities Rulemaking Board recently published a notice to alert municipal securities market participants that under existing legal principles, certain financings that are called bank loans may in fact be municipal securities. The MSRB's notice goes on to caution parties who play a role in such ambiguous financings by explaining how they may be violating MSRB rules, as well as other federal securities laws. This briefing from Bingham McCutchen summarises the notice and outlines the four-part test used to differentiate loans and securities. Click 'View Briefing' to read on.