All of the following statements are true regarding the Official Statement EXCEPT that the Official Statement is:

• A. not required by the Securities Act of 1933 because municipal issues are exempt securities
• B. required to be delivered to all purchasers of a new municipal issue at or prior to settlement, if available
• C. required to be prepared by issuers by the Municipal Securities Rulemaking Board for all new issue municipal bonds
• D. requested by underwriters to satisfy the disclosure requirements of new issue purchasers

Answer: (D)

The Official Statement is a disclosure document required for all new issue municipal securities, prepared by the issuer (often with help from professionals) and delivered to purchasers. It exists under MSRB rules, not because the Securities Act requires it; municipal issues are exempt from registration under the Act, but the OS obligation comes from MSRB disclosure rules.

The statement that is not accurate is that the Official Statement is “requested by underwriters to satisfy the disclosure requirements of new issue purchasers.” Underwriters don’t request the OS to satisfy those requirements—the obligation lies with the issuer under MSRB rules, and the OS is prepared by the issuer (with assistance) and delivered to buyers.