BRADENTON, Fla. — Alabama Gov. Bob Riley said yesterday that he could not legally declare an emergency in Jefferson County as requested by officials there who say they need the state’s help to cope with an increasingly dire financial situation created by the loss of a major source of revenue for the county’s general fund.

At the same time insurers of the county’s troubled sewer debt have threatened to sue the county for more than $700 million in past and future muni insurance claim payments they expect to make to investors. The insurers have alleged in a legal notice that Jefferson County fraudulently obtained bond insurance for its 2003 sewer refunding deals by failing to disclose critical financial information.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.