CHICAGO — Michigan will allow local governments struggling with debt to refinance it at a net present-value loss under a new law passed by legislators and signed by outgoing Gov. Jennifer Granholm last week.

The law is one of a handful of bills affecting bond issuance for local governments across the state passed by lame-duck lawmakers. It is aimed at relieving local governments facing high debt payments issued for projects that have failed to generate projected revenue streams — a growing problem for many Michigan municipalities.

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