BRADENTON, Fla. — Bankrupt Jefferson County, Ala., has notified the bond market that it intends to enter a settlement with Depfa Bank PLC to reduce the interest rate on $162.5 million of variable-rate school warrants.

The concession doesn't bode well for other school warrant holders who believed their investments were secure because the warrants are backed by a dedicated special sales tax, according to Municipal Market Advisors managing director Matt Fabian.

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