New York Bond Insurers Sue Jefferson County over Debt
Associated Press
2008-09-16 17:00:00.0
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New York bond insurers have sued Jefferson County over an outstanding debt for its sewer system.
The complaint was filed in Birmingham federal court Tuesday by attorneys for Financial Guaranty Insurance Company and Syncora Guarantee, Inc.
Those two firms have insured most of Jefferson County's sewer bonds.
The insurers asked a judge to appoint a receiver to manage the sewer system, consider rate increases and take a number of other steps to make the county raise money to pay the $3.2 billion debt.
They say the county has defaulted on its obligation to pay the principal under the warrants.
Staff at Governor Bob Riley's office said he had no immediate comment on the latest development in the ongoing matter.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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