BRADENTON, Fla. - Uncertainty in the municipal market is rising as Jefferson County tries to overturn an interpretation of the municipal bankruptcy code that has so far protected those who invested in revenue bonds sold to finance essential infrastructure.

Alabama’s largest county is pursuing what is believed to be the first appeal ever of a federal judge’s decision upholding the long-held interpretation of bankruptcy code section 922(d) in which “pledged special revenues” are protected during a Chapter 9 bankruptcy.

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