The expiration of the law that allowed New York industrial development agencies to sell bonds to finance civic facilities on behalf of nonprofit institutions has put some of those borrowers with outstanding bonds in auction-rate mode in a difficult position.

"They are stuck," said Brian McMahon, executive director of the New York State Economic Development Council, a trade group representing IDAs. "In some cases they can patch together some short-term solutions but it's still costly, and much more costly than had they had the option to refinance projects through an IDA."

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