Law and legal issues

Detroit announced plans to pay for higher contributions to its public safety pension fund by hiring fewer firefighters.

The National Federation of Municipal Analysts wants issuers to improve their disclosures about statutory liens and how they could affect general obligation bonds following a slew of recent municipal bankruptcies where this was a key issue.

S&P Global Ratings said it has lowered its long-term rating and underlying rating on the Puerto Rico Highway and Transportation Authority's subordinated transportation revenue bonds, series 1998, state infrastructure bank, to D (default) from CC, following a default on scheduled debt service due July 1, 2016.

A dispute over parking payments continues amid S&P Global Services' downgrade to junk bond status of bonds that funded a long-term parking lease.

Federal Chapter 9 policy is ill-defined and fluid, a bankruptcy expert said at a municipal finance conference at the Brookings Institution in Washington.

Negotiations continue on a proposed restructuring of $190 million of debt Lombard, Illinois issued for a hotel and conference center, amid a fresh default.

Former Alabama House of Representatives speaker Mike Hubbard was sentenced Friday to four years in prison on 12 felony corruption charges stemming from his role as a legislator

A judge is expected to rule this month on Chicago's latest effort to quash a lawsuit filed by retired city employees who want to preserve their healthcare subsidies.

Four senators urged President Obama and congressional leaders on Thursday to only nominate and appoint qualified individuals from Puerto Rico to serve on the oversight board to be created under recently passed legislation designed to help the commonwealth with its fiscal crisis.

S&P Global Ratings said it has downgraded the commonwealth of Puerto Rico's general obligation secured debt to D (default) from CC following the commonwealth's default on debt service due July 1.

The two California cities that have done the most to challenge public employee pensions say court challenges have not daunted their efforts to shrink employee benefits to match revenues.

The Puerto Rico Aqueduct and Sewer Authority will delay payments on loans and renegotiate loan agreement terms under U.S. state revolving fund and rural development programs, according to two forbearance agreements detailed in an event notice posted on EMMA on Wednesday.

The federal judge presiding over a Securities and Exchange Commission case charging the city of Miami and its former budget director with securities fraud concluded in a July 5 order that the bulk of the case could not be decided before trial

The plaintiffs want the court to declare Puerto Rico’s Moratorium Act to be illegal and unconstitutional.

Three state Republican parties challenging the constitutionality of a revised Municipal Securities Rulemaking Board anti-pay-to-play rule are asking a federal circuit court to streamline the legal process by consolidating their two pending cases.

A South Carolina judge has indicated that he plans to side with Richland County in its fight over the release of 1-cent sales tax revenues frozen by the state Department of Revenue amid a probe into irregular spending.

Legislation to rescue Puerto Rico from its debt crisis is moving to President Obama’s desk for a signature after the Senate approved it 68 to 30 Wednesday, just two days before the commonwealth is expected to default on a $2 billion debt payment.

The Senate is poised to begin debate on the House’s Puerto Rico rescue bill Wednesday morning with a possible final vote taking place later in the day.

Detroit got the all clear from the city's Financial Review Commission to move ahead with a refunding of $660 million of general obligation debt.

Treasury Secretary Jack Lew added to the pressure for quick passage of a Puerto Rico rescue bill in a letter to the Senate leadership on Monday, even as some public finance professionals maintain the bill is unnecessary and could be harmful for the commonwealth.