XL Capital Assurance Inc. yesterday made a payment of $10.6 million to the liquidity banks that provide the standby bond purchase agreements on Jefferson County, Ala.'s sewer warrants, sending a portion of the funds owed to the banks under the accelerated repayment of the county's variable-rate debt.

On Friday, the Jefferson County Commissioners agreed to make a separate $10.6 million payment to the banks under the latest 60-day forbearance agreement negotiated between the county, the bond insurers that guarantee its debt, the liquidity providers, and the banks that serve as counterparties to the county's $3.2 billion of debt.

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.