BRADENTON, Fla. - Jefferson County, Ala., Wednesday filed a seven-page disclosure notice discussing its two failed auctions, rating downgrades that have placed variable-rate demand warrants in technical default, and impacts on its massive $5.59 billion swap program.

The county has $4.6 billion of outstanding debt, of which $2 billion is in auction-rate securities. Most of the outstanding debt and swaps covering a notional amount of $5.59 billion are related to the county's controversial sewer system. As of July 31, the swap portfolio had a negative mark-to-market value of $71.4 million, according the material event filing the county made.

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