DALLAS - The Louisiana State Bond Commission yesterday extended the term of a swap agreement on a planned issue of $485 million of gasoline and fuel-tax bonds from Dec. 1 until May 1, 2009, in an effort to avoid a swap termination payment of more than $100 million.

The commissioners gave the staff authority to enter into negotiations with the swap counterparties and approved a cooperative agreement that calls for the state to make the swap termination payment if gasoline and fuel tax revenues still are not sufficient to support the bonds. However, the state hopes to issue the bonds by May 1 to avoid the payment entirely.

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