Excerpt from Current Issues and Rulemaking Projects Outline (November 14, 2000)

Section VIII.B.3.iii. Current Disclosure, Legal and Processing Issues – Industry Specific Issues – Structured Financings - Municipal Securities

The offering of asset-backed securities supported by pools of municipal bonds where asset concentration exists, in general, requires that financial statements and other information relating to the underlying municipal issuer be provided. This information must be included directly in the prospectus, must be current, and must otherwise satisfy fully the disclosure requirements under the federal securities regulations.

While there may be instances where financial statements of the municipal issuer are not material to the investor in the asset-backed security, such instances would appear to be rare and the staff will require appropriate legal opinions and other documentation necessary to support the conclusion that financial and other information relating to the municipal issuer is not material to investors.

http://www.sec.gov/divisions/corpfin/guidance/ci111400ex_regab.htm