Paying agents help securities issuers manage their debt payment obligations. When you engage a registered paying agent, they will:

• Serve as the physical custodian of your bonds.
• Maintain records of the debt obligations for which they are contracted.
• Notify you well in advance of payment due dates.
• Collect amount due and submit payment to the DTC on your behalf.
• Troubleshoot directly with the DTC whenever needed.
• Coordinate with your auditors to ensure accuracy of audit verifications.
• Complete Internal Revenue Service filings for direct-pay programs, as needed.

Your paying agent also handles administrative tasks, such as processing required redemption notices for term bonds and optional redemption notices for full or partial bond calls.

Yes! Engaging a qualified paying agent, such as Ehlers, is a cost-effective way to ensure:

• Accurate & timely payments: Missed or late debt payments are reportable events under SEC Rule 15c2-12 and must be publicly disclosed via EMMA and future official statements. Any lapse can negatively impact your rating and increase your future cost of borrowing.
• Continuity: Staff departures or loss of institutional knowledge can put you at risk for missed or late payments.
• Advocacy & Representation: When discrepancies or other problems arise, Ehlers will advocate on your behalf, working directly with the DTC to resolve any issues quickly.