Law and legal issues

Bankruptcy Judge Steven Rhodes, who oversees Detroit’s bankruptcy case, will hear arguments over the legality of the state’s emergency management law as well as other issues Wednesday.

Detroit emergency manager Kevyn Orr said last week he wants to freeze the city's two pension funds by the end of the year and shift employees into a 401(k)-style plan.

Mississippi Insurance Commissioner Mike Chaney has filed a federal lawsuit in an attempt to stop what he called "draconian" federal flood insurance rate increases.

For the first time in four years, Miami has a budget without declaring a fiscal emergency but the city faces legal hurdles, including a federal lawsuit filed by the SEC.

White House officials announced they are freeing up $300 million of federal funds for Detroit to tell the rest of the country the Obama administration believes in the city's future.

The disclosure that Harrisburg, Pa., must repay bond insurer Ambac about $30 million of additional interest "more than confirms the need" for recovery-plan scrutiny, city Controller Dan Miller said.

A Cook County, Ill. Circuit Court judge sided with lawmakers Thursday in ruling that Gov. Pat Quinn violated the state constitution when he stripped legislative pay from the fiscal 2014 budget in an attempt to pressure them to act on pension reforms.

Oklahoma's state lease revenue bond program for higher education projects will proceed after validation by Oklahoma Supreme Court.

Moody's Investors Service revised the general obligation rating of Providence, R.I., to stable from negative, citing the city's structural balance and a pension overhaul agreement.

St. Augustine, Fla.'s Glenmoor continuing care retirement community in World Golf Village filed for bankruptcy owing municipal bondholders more than $57.1 million.

Detroit will default on its October 1 general obligation bond payments, making it one of the largest cities to default on such a payment since the Great Depression.

CHICAGO — A key bankruptcy hearing on Detroit’s proposed settlement with interest-rate swap counterparties set for this week was delayed Monday to allow negotiations with bond insurers and other creditors to continue.

Jefferson County, Ala., commissioners Monday narrowly adopted new sewer rate increases that underpin resolution of the nation's second-largest municipal bankruptcy.

Detroit is expected to ask the judge overseeing its bankruptcy to safeguard a revenue source it wants to use to back debt for repairs to its notoriously broken down public lighting system.

Michigan needs to play a bigger role in Detroit's recovery, and help the city access the capital markets, experts told the Michigan Municipal League's annual meeting.

Detroit's attorneys renewed arguments about the need for speed in its Chapter 9 case Thursday, telling the judge the city needs to know soon if it will officially be afforded bankruptcy protection.

A Financial Industry Regulatory Authority arbitration panel has ruled against The Police and Fire Retirement System of the City of Detroit, which was seeking at least $39.9 million from Citigroup Global Markets, Morgan Stanley Dean Witter and other firms over risky investments.

The Commonwealth Court of Pennsylvania on Thursday approved Harrisburg's financial recovery plan. Receiver William Lynch's team wants to price bonds related to the deal while market conditions are still favorable.

As one of the few major museums owned by a municipality, the Detroit Institute of Arts is in the crossfire of the largest municipal bankruptcy, says director Graham Beal.

Harrisburg's outgoing mayor, Linda Thompson, implored her successor stay out of the bond market, even as Pennsylvania's capital begins to regain credibility in the capital markets.