Under MSRB rules, if a Final Official Statement is not yet ready, at the time of settlement of a new municipal securities purchase:

• A. the transaction becomes void
• B. settlement is delayed until the Final Official Statement is prepared
• C. the customer will be sent a copy of the Preliminary Official Statement
• D. the customer will be sent an abstract of the Official Statement

Answer: (C)

The main idea here is that investors must receive the official offering document for a new issue, even if the final version isn’t ready at settlement. When the Final Official Statement isn’t yet available, the underwriter provides the Preliminary Official Statement to the customer at or around settlement. This POS contains the essential information about the issue and terms, with the understanding that some figures may change in the Final Official Statement. The Final OS will be delivered later when it’s prepared, but the POS fulfills the disclosure obligation at the time of purchase.

This approach makes sense because it gives the investor timely access to the key details needed to evaluate the security, rather than delaying settlement or withholding information. An abstract wouldn’t meet the disclosure requirement, and voiding the trade or delaying settlement until the Final OS is ready would not align with the standardized practice of providing the POS (or POS) at settlement.