WASHINGTON - The District of Columbia Tuesday will begin converting $524.7 million of auction-rate securities that are insured to variable-rate demand obligations backed by letters of credit.

All of the auction rate securities are multimodal general obligation debt. About $373.8 million of them are insured by MBIA Insurance Corp. and $147.2 million are insured by XL Capital Assurance Inc., according to district Treasurer Lasana Mack.

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