Since 1995, the SEC’s Rule 15c-12 has, subject to a few exceptions, required the “post issuance” delivery of certain annual financial and operating information from parties that are obligated to provide for the repayment of tax-exempt bonds (the “Obligated Persons”). Obligated Persons also must provide notices of certain “notice events” within a short period of time alter their occurrence. The particular requirements, including the content and timing of reporting and types of notice events, are specifically described in the Obligated Person’s continuing disclosure undertaking (“CDU”), which is contained either within a separate document, or within one of the bond documents.

The MCDC is an offer to Obligated Persons and their underwriters to self-report possible violations of the antifraud provisions of the securities laws arising from materially inaccurate statements in offering documents (“Official Statements”) relating to compliance with their continuing disclosure obligations and receive lighter penalties.