Video Series
Welcome to BLXonCOMPLIANCE, a new monthly video series from BLX
Each month, we discuss a compliance topic relevant to public finance and tax-exempt bonds. Host, Alan Bond, is joined by a rotating cast of BLX and Orrick colleagues for short, insightful, and curated conversations.
Tune in to BLXonCompliance now!
Continuing Disclosure – 5 Tips for Your Annual Filing (Christine Reynolds, Orrick) - NEW! - 12/18/2024
Issuers and conduit borrowers of municipal bonds have an ongoing obligation to provide certain information to the market after the initial issuance of the bonds, known as continuing disclosure or secondary market disclosure. The continuing disclosure agreement that obligated persons enter as part of a public offering ensures that investors receive annual updates to material financial and operating information relevant to the municipal bonds in which they have invested. Listen today for 5 tips for you annual continuing disclosure filing. (December 18, 2024)
Tax-Exempt Escrow Funds – To OMS or Not to OMS (Amy Kron, BLX) - NEW! - 11/07/2024
Issuers and conduit borrowers refunding or defeasing outstanding tax-exempt debt generally have two funding options, State and Local Government Series securities (“SLGS”) or open market securities (“OMS”). While SLGS are widely used, in many instances OMS can provide savings to the issuer or borrower. Listen today for tips to consider when thinking about your escrow fund investment options. (November 7, 2024)
Spending Exceptions - Take the Money and Run (Sandee Stallings, BLX) - 07/10/2024
As interest rates remain elevated, the potential for making rebate payments is at its highest level in over 10 years. In a positive arbitrage environment, taking advantage of spending exceptions can be a very powerful tool. Listen today for basics on the 18-month and 2-year spending exceptions that, if met, allow issuers and borrowers to keep their positive arbitrage. (July 10, 2024)
Sponsored Basic Research – Where to Begin (Aviva Roth, Orrick) - 05/21/2024
Sponsored basic research occurring in tax-exempt bond financed facilities is one of the most common places where private business use is likely to be generated. Navigating compliance can be difficult due to the nature of the IRS regulations and the potential volume of agreements. Listen today for tips to help manage the basic research process when there is a nexus to tax-exempt bonds. (May 21, 2024)
3 Tips for Schedule K Filing for 501(c)(3) Organizations (Caleb Lansky, BLX) - 04/09/2024
Each year when nonprofit organizations file their 990, they provide the IRS with very detailed information about their tax-exempt bonds on Schedule K. This can be a tricky form and organizations should work to ensure they are providing accurate information. Listen today for tips for your next Schedule K filing. (April 9, 2024)
IRS Enforcement Update – Are You Ready (Ed Oswald, Orrick) - 02/28/2024
IRS enforcement has long been part of the game for issuers and borrowers when utilizing tax-exempt financing. After a period of fewer agents and fewer audits, the IRS has received additional funding and is staffing up, with a goal of 60 Tax-Exempt Bond agents by the end of the year. Listen today for an update on what the IRS will expect you to provide during an audit and tips for responding to their request. (February 28, 2024)
FDTA – This Is Not A Test (Emily Brock, GFOA) - 01/18/2024
The Financial Data Transparency Act (“FDTA”), passed into law in December 2022, will make financial reporting more difficult for issuers and borrowers. As regulators and governing bodies work on establishing data standards to be applied across various industries by December 2026, tune in to this episode to learn what you can be doing today to be prepared. (January 18, 2024)
Yield Restriction - The Other Arbitrage Requirement (Sandee Stallings, BLX) - 12/05/2023
Arbitrage rebate compliance remains a focus for issuers and borrowers of tax-exempt debt due to rising interest rates over the past year and a half. Another related requirement, yield restriction, is often overlooked but equally as important as arbitrage rebate. Listen today for highlights on yield restriction, also applicable to your tax-exempt bonds. (December 5, 2023)
Management Contracts - I'm All In (Barbara Jane League, Orrick) - 10/03/2023
Management and service contracts can be a tricky area to navigate for issuers and borrowers when they occur in tax-exempt bond financed space. Contracts not meeting certain requirements are considered non-compliant and will generate private business use. A management contract structure – the “all-in” contract, has generated particular interest from the IRS recently. Listen today to get our take on this complicated contract structure. (October 3, 2023)
ESG Bonds, How Do I Comply? (Nancy Kummer, BLX) - 08/29/2023
Issuers and borrowers of taxable and tax-exempt debt are considering ESG labeling more and more frequently. In some cases, an ESG label can mean additional ongoing monitoring to comply with the framework under which the bonds were designated. Learn about what additional compliance requirements exist for ESG bonds and be ready when, and if, you utilize this labeling on a future bond issue. (August 29, 2023)
Show Me The Money (Amy Kron, BLX) - 07/27/2023
In the current interest rate environment, issuers and borrowers of tax-exempt debt are seeing reinvestment rates higher than they have in over 10 years…what we like to call the happier side of rising interest rates. In this video, we discuss items to consider in order to maximize your interest earnings on your tax-exempt debt proceeds. (July 27, 2023)
Good Bonds Gone Bad? (Ed Oswald, Orrick) - 06/28/2023
The pandemic changed a lot of things…including how higher education and healthcare organizations and state and local governments use their facilities. The tax rules have strict requirements limiting how tax-exempt bond financed facilities are used, but there are options with respect to change in use. Be prepared and make sure your good bonds don’t go bad. (June 28, 2023)
Rising Interest Rates - 5 Tips for Managing Arbitrage Rebate Compliance (Sandee Stallings, BLX) - 05/31/2023
With rising interest rates comes the potential for positive arbitrage. After more than 10 years of negative arbitrage, positive arbitrage is once again a reality. We offer 5 tips for managing your arbitrage rebate compliance to make sure your organization is prepared in this new environment. (May 31, 2023)
SLGS, Here We Go Again (Amy Kron, BLX) - 05/12/2023
On May 2, 2023, Treasury suspended the sale of SLGS (State and Local Government Series) securities. We discuss what that means for the municipal market and what other options are available to issuers of tax-exempt debt while the SLGS window is closed. (May 12, 2023)
Coming soon, look for additional videos related to private business use (PBU), arbitrage rebate, continuing disclosure, and ESG Bonds.
As you navigate the compliance challenges related to issuing and borrowing on a tax-exempt basis, make BLXonCOMPLIANCE a regular part of your routine and join us each month for a fresh new discussion.
Check back again next month for monthly updated content.
FEEDBACK
If you have questions or would like more information on the topics discussed in the videos, please feel free to reach out to us. In addition, if you have a topic you would like for us to cover in a future BLXonCOMPLIANCE video, please let us know at [email protected]
