CHICAGO — Depfa Bank Plc has formally demanded repayment of its $165 million loan to five Wisconsin school districts, calling on them to make good on their moral obligation pledge to repay the funds used to establish trusts to help pay other post-employment benefit liabilities.

The bank also seized the meager $5.3 million that remained in the trusts yesterday. The actions mark the latest development in the ongoing saga of the districts’ $200 million gamble in a complex investment scheme that involved collateralized debt obligations and a credit default swap.

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