Joe, it may seem as though this is not advertising, but unfortunately the government looks at it the other way. Since Moody's rates municipalities strictly as far as investment risk, it can be inferred that any discussion of a rating from Moodys by a municipal spokesperson is considered offering material, therefore subject to the Act of 1933. This is why the period before a muni offering is known as the "cooling off period" and the only information available is the Official Statement (red herring).
Here's an interesting parallel complaint to the SEC: http://www.sec.gov/litigation/complaints/comp18315.htm A sewer district in Washington state that issued municipal bonds which later failed. The government leaders "represented that the Project had been fully leased to a large corporation that enjoyed a "AAA" credit rating, but which they were contractually prevented from naming, and that Signal Mortgage had arranged financing to fund backup and construction financing for the Project, but that Signal Mortgage could not disclose the source of this financing." The fallout from these actions? http://seattlepi.nwsource.com/local/35904_bond21.shtml "This summer, though, home sales have ground to a virtual halt while homeowners and potential buyers try to figure out how much the bond deal will cost them in future mandatory sewer fees, said Erl Bangston, a Coldwell Banker Tara Properties owner and broker." Not saying this scheme is doomed to the same fate, but just pointing out what the downside could potentially be to Asbury residents, if the City Manager is just making statements about insurance without said insurance being in place. --- In AsburyPark@yahoogroups.com, Joe D'Andrea <[EMAIL PROTECTED]> wrote: > > Come on John... I'm no attorney.. not even a financial planner like you are... But I believe that the sections of the Securities Act you cite above specifically refer to the actual advertisement of the bond. In fact you say as much when you cite "the Advertising provisions." I don't believe those advertising provisions apply to a municipal official sharing with city residents the information about a plan of finance -- especially considering that the plan is still in the preliminary structuring stages. I'm certain that when the city goes to officially market the transaction that the official statements of advertising will disclose the fact that any insurance they may be considering has been applied for. > > ~joe Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/AsburyPark/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
