SAN FRANCISCO - A federal appeals court late last week unanimously upheld a lower court ruling that Vallejo, Calif., is eligible for bankruptcy protection.

The ruling, published by the U.S. Bankruptcy Appellate Panel of the Ninth Circuit Friday afternoon, said the city was insolvent when it declared bankruptcy. The panel also certified the case for appeal to the Ninth Circuit Court of Appeals, saying the law on municipal bankruptcy remains unsettled.

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