Rule A-13 Interpretations

Interpretive Notice on Underwriting Assessment

April 7, 1976

        The Municipal Securities Rulemaking Board (the "Board") has received several requests for interpretation of rule A-13, which requires each municipal securities broker and municipal securities dealer to pay the Board a fee equal to .001% or $.01 per $1000 of the face amount of municipal securities purchased from an issuer as part of a new issue. These requests concern the applicability of the fee to securities which have a stated maturity of less than two years, but are part of a new issue having a final stated maturity of two years or more.

        Rule A-13 is intended to impose the .001% underwriting assessment on the face amount of all securities purchased from an issuer that are part of a new issue of municipal securities if any part of the issue has a final stated maturity securities which are part of such a new issue, including securities having a stated maturity of less than two years. The assessment is not intended to apply, however, to short-term issues having a final maturity of less than two years, such as bond anticipation or tax anticipation notes.

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