California capped the total interest costs on capital-appreciation bonds issued by school districts at four times the amount borrowed to rein in the financing method that Treasurer Bill Lockyer called “abusive.”
California’s Assembly passed limits on long-term bonds that have saddled school districts with debt of as much as 10 times the principal after financing new classrooms in years of slumping property values.
Jefferson County, Alabama, is meeting with JPMorgan Chase & Co. and bond insurers in New York today and tomorrow to try to renegotiate a $1.84 billion debt- reduction settlement tied to the county’s bankruptcy-exit plan, a person familiar with the discussions said.
Bonds issued by California school districts that defer billions of dollars in interest payments for decades are rallying to a five-month high as Governor Jerry Brown prepares to sign a bill limiting their use.
Taiwan insurers have the financial capacity to invest at least $10 billion in overseas properties after the island’s government relaxed rules in April on real estate investments abroad, according to an industry group.
California Treasurer Bill Lockyer will push for limits on bonds that have saddled school districts with debt payments as much as 10 times the principal and seek to ban those maturing more than 25 years in the future, a spokesman said.