“Reconciling Muni Direct Loans With Securities Laws” by Brian Fraser and Paul Devlin published by Law360

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June 13, 2012

A memorandum by Richards Kibbe & Orbe LLP attorneys Brian S. Fraser and Paul J. Devlin, along with Rebecca S. Lawrence of Piper Jaffray & Co., was featured as a Law360 Expert Analysis piece under the title “Reconciling Muni Direct Loans With Securities Laws.”

Over the last nine months, the Municipal Securities Rulemaking Board (“MSRB”) has issued a series of notices that addresses the regulatory uncertainty caused by the increasing popularity of bank loan financing over traditional public municipal bond offerings. The MSRB has warned market participants that municipal financings structured as loans may in certain circumstances be recharacterized as securities, with significant adverse effects for the parties to such transactions.

In the memorandum, Messrs. Fraser and Devlin and Ms. Lawrence discuss these issues and suggest that the large secondary market for commercial loans – which are not considered securities – provides a model for the emergence of a robust municipal loan market outside of the framework of the federal securities laws.

Click here to read “Reconciling Muni Direct Loans With Securities Laws.”