a. Variable rate demand obligations. A description of the basis on which periodic interest rate resets are determined and the role of the remarketing agent.
b. Auction rate securities. Features of the auction process that likely would be considered significant by a reasonable investor and the basis on which periodic interest rate resets are determined. Additional facts that may also be considered material are the duration of the interest rate reset period, information on how the “all hold” and maximum rates are determined, any recent auction failures, and other features of the security found in the official documents of the issue.
c. Credit risks and ratings. The credit rating or lack thereof, credit rating changes, credit risk of the municipal security, and any underlying credit rating or lack thereof.
d. Credit or liquidity enhanced securities. The identity of any credit enhancer or liquidity provider, terms of the credit facility or liquidity facility, and the credit rating of the credit provider or liquidity provider, including potential rating actions (e.g., downgrade).
e. Insured securities. The fact that a security has been insured or arrangements for insurance have been initiated, the credit rating of the insurance company, and information about potential rating actions with respect to the bond insurance company.
f. Original issue discount bonds. The fact that a security bears an original issue discount since it may affect the tax treatment of a municipal security.
g. Securities sold below the minimum denomination. The fact that a sale of a quantity of municipal securities is below the minimum denomination authorized by the bond documents and the potential adverse effect on liquidity of a customer position below the minimum denomination. See also Rule G-15(f).
h. Securities with non-standard features. Any non-standard feature of a municipal security. Additionally, if price/yield calculations are affected by anomalies due to a non-standard feature, this also may be material information about the transaction that must be disclosed to the customer.
i. Bonds that prepay principal. The fact that the security prepays principal and the amount of unpaid principal that will be delivered on the transaction.
j. Callable securities. The fact that a municipal security may be redeemed prior to maturity in-whole, in-part, or in extraordinary circumstances, including sinking fund calls and bonds subject to detachable call features.
k. Put option and tender option bonds. Information concerning the put option or tender option features.
l. Stripped coupon securities. Facts concerning the underlying securities which materially affect the stripped coupon instruments. The unusual nature of these securities and their tax treatment warrants special efforts to provide written disclosures.
m. The investment of bond proceeds. Information on the investment of bond proceeds.
n. Issuer’s Intent to Prerefund. An issuer’s intent to prerefund an issue.
o. Failure to make continuing disclosure filings. Discovery that an issuer has failed to make filings required under its continuing disclosure agreements.