What is the difference between an issuer and an underwriter?
An issuer creates the bond and is ultimately obligated for repayment on the bonds. In the municipal securities market, an issuer is a state, county, city or agency, authority, district or other public-purpose entity of such unit of government. An underwriter is the broker-dealer or bank (individually or in a group) that agrees to purchase the bonds from the issuer and to resell the bonds to the investing public. Municipal securities are not issued by a broker-dealer or bank, and any investment instrument issued by a broker-dealer or bank is not a municipal security.
Related Questions
- May a distribution participant (e.g., an underwriter) that is an affiliate of an issuer or selling security holder conduct passive market making in a covered security pursuant to Rule 103?
- As bond counsel (or financial advisor, underwriter, etc.) for the issuer, what TIN do I provide for the subscription - the TIN for the issuer or the conduit borrower?
- As bond counsel (or financial advisor, underwriter, etc.) for the issuer, what TIN do I provide on the SLGSafe application?
