Agenda - 09-20-1994 - Laserfiche WebLink

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Memorandtun #801 Page 2 Should prohibited contributions be made -by an underwriting or banking institution, the institution would not be able to do business with the affected governmental unit for two years after the contribution was made. The contribution prohibition does -not apply to contributions to issuers or officials made by public finance professionals who are entitled to vote for such officials , provided such contributions, in total, are not in excess of $250 by each such municipal finance professional to each official of such issuer, per election. The effect of a prohibited contribution could be to reduce significantly the number of underwriters or banks available in the market place to participate in the offering of the unit' s municipal securities which could affect the unit' s 'ability to have a wide choice of municipal finance professionals . In many instances this could lead to an increased cost of financing. As with most new rules, the complete interpretation and full impact of the new approach is yet to be determined. Specific concerns will not be determined until the MSRB confronts actual or apparent violations . Consequently, only the most cautious approach can responsibly be taken by a candidate or office holder to an offer of a contribution from a municipal finance professional who might be subject to the jurisdiction of Rule G- 37 . Each office holder or candidate should be aware of the potential risks to the holder' s or candidate' s governmental unit if campaign contributions are accepted from municipal finance professionals . Should you have questions about Rule G-37 , or if we may be of assistance in facilitating an understanding of the rule, please do not hesitate to call me at 919/733-3064 .