MSRB gives reminder to Build America Bonds dealers to note political contribution rules

By Angela McDaniels

Tacoma, Wash., June 9 - The Municipal Securities Rulemaking Board published a reminder that personnel from the taxable desk of dealers who participate in presentations to potential issuers of Build America Bonds or other tax credit bonds are generally considered municipal finance professionals under the board's rules and are, therefore, subject to rules concerning political contributions.

If such an individual has made a political contribution to an official of the issuer that was solicited during the preceding two years, the dealer would be banned from engaging in municipal securities business with that issuer for two years.

A ban would be not effected if the individual's contributions totaled $250 per election or less, the board noted.

Because of their taxable structure, Build America Bonds have been attracting attention from the investment-grade market in addition to the municipal market.

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