CHICAGO — A federal court ruling that lets the Lac du Flambeau tribe off the hook for repayment of $46.6 million of tribal gaming revenue bonds could harm the municipal market as a whole because the ruling undercuts investor rights in bond indentures and confidence in disclosure, the National Federation of Municipal Analysts warns.

The organization announced Thursday that its board of governors voted to take the rare action of submitting a friend of the court brief with the Seventh Circuit Court of Appeals in Chicago, which will review the case of Wells Fargo Bank NA against Wisconsin-based Lake of the Torches Economic Development Corp. The corporation is the tribe’s corporate entity.

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