Sample Material Event Notice Regarding Reduction of Credit Payments for Direct Payment Obligations
Public Finance Law Update 04/02/13
As you know, Quarles & Brady recently sent an update to issuers of Build America Bonds ("BABs"), Recovery Zone Economic Development Bonds ("RZEDBs"), Qualified School Construction Bonds ("QSCBs"), Qualified Zone Academy Bonds ("QZABs"), New Clean Renewable Energy Bonds ("CREBs") and Qualified Energy Conservation Bonds ("QECBs") (collectively, "Direct Pay Obligations") regarding the reduction of credit payments from the federal government.
We wanted to alert issuers of the advisability of filing a material event notice if their Direct Pay Obligations contain an extraordinary redemption provision which is triggered by the reduction of the credit payment.
Unless engaged to do so, we cannot give specific advice as to how to proceed with respect to material event notice(s). However, we are attaching a sample form of a material event notice with several options for your convenience. Please note that the form will have to be modified to fit the issuer's particular situation.
If you have any questions, please don't hesitate to contact any of the attorneys in the Quarles & Brady Public Finance Group.