Clients that have issued, underwritten or purchased certain Build America Bonds, Qualified School Construction Bonds, Qualified Energy Conservation Bonds, Qualified Zone Academy Bonds and Clean Renewal Energy Bonds should be aware that federal budget cuts required under the Budget Control Act of 2011 (the "BCA") may:

  • Cause a reduction in the subsidy payments for such bonds;
  • Require certain conduit borrowers to make payments to supplement subsidy reductions; and
  • Trigger certain extraordinary call provisions.