CHICAGO --In 2010, with Detroit struggling to access the bond market, Michigan amended a law to allow the city to sell debt enhanced by certain protections aimed at assuring bondholders that they would be repaid even if the city went bankrupt.

The move secured a chunk of the city’s limited-tax general obligation debt backed by state aid payments with a statutory lien and intercept feature that attorneys argued would likely protect the bonds in the case of a Chapter 9.

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