What document must underwriters receive from issuers to ensure compliance with continuing disclosure?

Underwriters require Continuing Disclosure Agreements (CDAs) from issuers to ensure compliance with the continuing disclosure requirements established by the Securities and Exchange Commission (SEC). CDAs are critical as they outline the responsibilities of the issuer regarding the ongoing disclosure of relevant financial and operational information after a bond issue. These agreements ensure that investors are kept informed about the financial health of the issuer and other relevant information that may affect the value of the bonds over time.

Continuing Disclosure Agreements help maintain transparency and protect investors by specifying the types of information that need to be reported, the timeline for reporting, and the channels through which the information will be disseminated. This compliance is particularly important in maintaining investor confidence in the municipal bond market. Issuers who fail to uphold their CDA commitments may face penalties and decreased marketability of their bonds.

In contrast, grant proposals, statutory limitations, and investment policy statements do not pertain to the continuing disclosure requirements. Grant proposals are related to funding requests, statutory limitations refer to legal restrictions or boundaries, and investment policy statements guide investment decisions but do not address the disclosure obligations owed to investors after a bond is issued. Thus, the CDA is specifically designed to meet the necessary compliance aspects of continuing disclosure in the debt management process.