DALLAS — With its ability to issue debt limited by the recent discovery that a phony audit was used in an official statement for bonds it issued, the New Mexico Finance Authority is proceeding with an investigation to try and clear up the debacle.

Local governments in New Mexico are facing new limits on their access to credit due to the uncertainty created by the audit news. The NMFA issues debt to make low-cost loans to local governments and it is now limited to making loans from its $37 million of cash reserves.

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