A U.S. District Court order issued late last month placing three of the high-yield municipal bond funds of the Heartland Group of Milwaukee in receivership probably will lead to liquidation of the funds. But it may also be a prelude to new guidance and regulation on fund valuation procedures, according to industry analysts and lawyers.

The Heartland funds' demise highlights the need for more guidance from the Securities and Exchange Commission on valuation procedures, said Richard Phillips, a lawyer in the Washington office of Kirkpatrick & Lockhart.

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