Law and legal issues

The Internal Revenue Service's adverse ruling about the Village Center Community Development District will not impact other Village CDD bonds that Fitch rates.

Detroit's controversial debt restructuring proposal illustrates the need for clarity in a shifting municipal market, the director of municipal research at Breckinridge Capital Advisors said Wednesday.

Jefferson County, Ala.'s bankruptcy judge is being asked to reconsider postponing a case by sewer system ratepayers who say they will be unfairly impacted by a deal with major creditors.

New York Comptroller Thomas DiNapoli released a list of 24 fiscally stressed counties, cities and towns in the state Tuesday.

One day after Moody's threatened to downgrade Rhode Island, a House finance panel approved an $8.2 billion budget that includes $2.5 million for 38 Studios bonds.

A threat of a GO downgrade from Moody's shadowed Rhode Island's debate over the payment of moral obligation debt related to the failed 38 Studios.

Detroit emergency manager Kevyn Orr knows the muni market is rattled that the city would cut GO debt in a restructuring, but says investors had plenty of warning signs.

The Court of Appeals in Kansas City will hear oral arguments next month as several Kansas City, Mo., business owners try to keep alive their lawsuit challenging the legality of the funding mechanism for the city's downtown streetcar line.

The Michigan Court of Appeals Friday blocked an Ingham County judge's order that an aide to Gov. Rick Snyder turn over the names of all candidates for the Detroit emergency manager position.

Fitch Ratings downgraded to D from C the rating on $1.5 billion of pension obligation certificates of participation issued by Detroit in 2005 and 2006. The downgrade comes after Detroit missed a $39.7 million pay due on the COPs last Friday.

Michigan attorney general Bill Schuette issued a formal opinion arguing that the Detroit Institute of Art's prized art collection is off limits to creditors or Detroit officials struggling to cover the city's debt because it is held in a charitable trust.

Moody's late Monday lowered 38 Studios bonds to Baa1 from A2 and placed Rhode Island's Aa2 general obligation rating under review for downgrade.

The South Carolina Supreme Court has upheld the governance of the state's Transportation Infrastructure Bank.

Detroit's plan to treat all $11.4 billion of unsecured debt the same is aggressive and would set a precedent in the market, analysts said.

Detroit's decision to default on its unsecured debt could be an opportunity for the city's bond insurers to prove their importance in the market.

Detroit’s announcement Friday that it will default on some of its bonds, including a $39.7 million pension certificate payment due Friday, could have major repercussions for the municipal market, analysts and bond attorneys said.

A hearing is set for June 27 on Jefferson County, Ala.'s motion to delay sewer system-related litigation. The county is also asking for postponement of appeals before the 11th Circuit Court.

The University of Pittsburgh Medical Center accused Pittsburgh Mayor Luke Ravenstahl of suing it over its nonprofit status to cover a scandal in his administration, according to a court filing.

A day after Standard & Poor's downgraded Detroit four notches, with the city's emergency manager set to meet with creditors, Moody's lowered its rating on all the city's outstanding bonds, pushing water and sewer debt to speculative grade.

Stockton City Manager Bob Deis will retire Nov. 1 after three years on the job that included guiding the city into bankruptcy, officials announced Wednesday.