CHICAGO — All five southeastern Wisconsin school districts involved in a failed investment scheme tied to funding their non-pension retiree health care trusts are reneging on their moral obligation pledge to repay asset-backed notes issued by the trusts and sold to Depfa Bank Plc.

The schools want to wait until their litigation — alleging fraud against the firms that put together the now-worthless investment in collateralized debt obligations in 2006 — is resolved before repaying Depfa as the bank has demanded under its loan agreements. The Securities and Exchange Commission over the spring launched a probe into the investments, which included credit default swaps.

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