Bonds sold in 1996 to help finance an assisted-living facility in Cherry Hill, N.J., are in default after U.S. Bank NA, the trustee for the debt, dipped into reserve funds to meet July 1 interest and principal payments owed to investors.

The New Jersey Health Care Facilities Financing Authority, as conduit issuer, sold $15.8 million of tax-exempt Series 1996 bonds on behalf of Care Institute Inc., a nonprofit provider of nursing-home services and elderly residential living based in Indiana. The bonds are not rated. The notice of default indicated $13.74 million of the uninsured Series 1996 bonds due in 2027 remain outstanding.

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.