Common use of Municipal Bonds Clause in Contracts

Municipal Bonds. Municipal bonds are debt obligations is- sued by states, cities, counties, and other public entities, which use the loans to fund public projects, such as the construction of schools, hospitals, highways, sewers, and universities. Generally, municipal bond interest is exempt from being taxed by the federal government. In addition, state and local governments often exempt their own citizens from taxes on their bonds. However, municipal bonds often have a lower coupon rate because of the tax break. Please note that income from tax-free municipal bonds may still have Alternative Minimum Tax implications, so be sure to consult with your tax professional before making any investment decisions that can have tax consequences. There are risks associated with municipal bonds, such as interest rate risk and credit risk. You should read the official statement and other disclosure materials made available by the issuer through your Financial Adviser or Stifel as well as the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System (“EMMA”). In addition, there is information on the risks of investing in mu- nicipal bonds available on the Municipal Securities Rulemak- ing Board website in the MSRB Investor Brochure located at: xxx.xxxx.xxx/xxxx0/xxxx/XXXXXxxxxxxxXxxxxxxx.xxx.

Municipal Bonds. Municipal bonds are debt obligations is- sued issued by states, cities, counties, and other public entities, which use the loans to fund public projects, such as the construction of schools, hospitals, highways, sewers, and universities. Generally, municipal Municipal bond interest is exempt from being taxed by the federal government. In addition, state and local governments often exempt their own citizens from taxes on their bonds. However, municipal bonds often have a lower coupon rate because of the tax break. Please note that income from tax-tax- free municipal bonds may still have Alternative Minimum Tax implications, so be sure to consult with your tax professional before making any investment decisions that can have tax consequences. There are risks associated with municipal bonds, such as interest rate risk and credit risk. You should read the official statement and other disclosure materials made available by the issuer through your Financial Adviser or Stifel as well as the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System (“EMMA”). In addition, there is information on the risks of investing in mu- nicipal bonds available on the Municipal Securities Rulemak- ing Board website in the MSRB Investor Brochure located at: xxx.xxxx.xxx/xxxx0/xxxx/XXXXXxxxxxxxXxxxxxxx.xxx.