WASHINGTON — South Carolina this week will competitively sell $324 million of new-money and $336.5 million of refunding general obligation bonds, foregoing Build America Bonds partly because of a growing concern that federal lawmakers or regulators could lower the subsidy rate or actual payments.

South Carolina Treasurer Converse A. Chellis said in an interview that the state declined to price any portion of the deal as BABs partly because “there’s no guarantee” that the 35% direct-pay federal subsidy rate will remain safe from political intrusion during the life of a BAB.

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