CHICAGO — The Lombard, Ill., Public Facilities Corp. drew $1.8 million from reserves to cover debt-service payments owed this month on $190 million of hotel and conference center debt after the village board refused for the second time this year to honor a pledge that supports a portion of the bonds.

The affluent suburb's financial reputation and credit have suffered for its decisions on the debt tied to the LPFC-owned complex that has struggled to remain solvent. Standard & Poor's hit the village of Lombard with a six-notch downgrade in January after it refused to dip into its own coffers to cover a portion of debt service payments, and last month investors shunned the village's sale of limited-tax general obligation debt certificates that lacked a full faith and credit pledge.

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