To keep our clients informed, this is a reminder that the compliance date of the Securities and Exchange Commission amendments to Rule 15c2-12 is fast approaching. Unanimously approved this past May and requiring compliance on December 1, the amendments affect event notice requirements and eliminate the exemption for certain variable rate demand obligations (VRDOs).

As we noted in our June 2010 Public Finance Alert regarding the amendments (the full text of which is included below), the amendments apply to continuing disclosure agreements entered into on or after December 1, 2010. The amendments do, however, "grandfather" VRDOs outstanding on November 30 for so long as they continuously remain in authorized denominations of $100,000 or more and may be tendered at the option of the holder for redemption or purchase at par value or more at least as frequently as every nine months.

Because there are significant changes in the timing of event notifications and the required events that must be disclosed, it is important to consider what additional internal procedures should be established for compliance.