What Are Material Event Notices?
/Rule 15c2-12 of the Securities Exchange Act of 1934 requires ongoing disclosures to investors after the issuance of municipal debt. California school and community college districts that have issued bonds and other types of financings are therefore required to file annual reports and material event notices. Material events may include rating changes, defeasances, bond calls, and incurrences of financial obligations. A full list of what is considered to be a material event can be found in the Continuing Disclosure Certificate found in most financings’ Official Statements. California school and community college districts are required to file material event notices within 10 business days of the event occurrence. If a district fails to file a notice, they are required to disclosure the failure to file in future Official Statements for a period of five years.
Some California school and community college districts hire dissemination agents to assist them with their ongoing reporting needs.
Keygent LLC provides municipal advisory services and dissemination agent services to California school districts. For more information about our dissemination agent services, please contact us.