BRADENTON, Fla. — Bond insurer Syncora Guarantee Inc. warned prospective buyers of some of Jefferson County, Ala.’s defaulted auction-rate sewer warrants that the insurer may seek to subordinate that debt to its own claims if the warrants are sold to investors by JPMorgan.

If subordination occurs, it would place the claims of JPMorgan, and any subsequent buyers of the auction-rate warrants owned by the bank, last to be paid in the county’s bankruptcy case. There is not enough sewer revenue to pay all the outstanding debt as currently structured.

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