Relief Coming For Tax-Exempt Borrowers With Outstanding Auction Rate Bonds

March 12, 2008
1 minutes
Anne Phillips Ogilby
Today the Securities and Exchange Commission (SEC) provided testimony before the House Financial Services Committee indicating that by the end of the week, the SEC expects to provide guidance that would clarify the right of conduit borrowers to purchase their own bonds in an auction under specific circumstances. The SEC's statement indicates that the guidance would require bidders to disclose the amount and rates of their bids. If forthcoming, the guidance should provide some relief for tax-exempt organizations that have outstanding auction rate debt and that are attempting to reduce the cost of that debt. A copy of the SEC's testimony may be viewed by clicking here.


Anne Phillips Ogilby
Anne Phillips Ogilby
Retired Partner