BRADENTON, Fla. — Lloyds TSB sold its defaulted Jefferson County, Ala., sewer warrants, and is the second creditor to opt out of legal action in the nation’s largest municipal bankruptcy.

The bank transferred all of its $67.9 million of Series 2003B-7 refunding warrants, and in court documents said it is no longer interested in pursuing the appeal of a ruling by Federal Judge Thomas Bennett removing a state court-appointed receiver from overseeing the county’s sewer system. The bank’s warrants were purchased pursuant to standby purchase agreements with the county.

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