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Article: TRENDS IN THE REGION: Districts in Distress.(Southeast)
- Article from:
- The Bond Buyer
- Article date:
- November 12, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Shelly Sigo
BRADENTON, Fla. a Stressed community development districts in Florida this month have told bondholders that they continue to rely on reserves to make debt A-payments. Some have filed notices of default and analysts expect their number to increase.
The state currently has 571 active CDDs, according to state records. Since the early 1980s, the districts issued more than $11 billion of debt. Most are structured with payments due the first of May and November, and using reserves is not considered a adefaulta in their bond covenants.
However, because of Floridaas prolonged real estate crisis some CDDs have used reserves for as ...