Law and legal issues

SAN FRANCISCO - Some California redevelopment agency bonds with poor backstops will face credit stress if legislation to disband the agencies or force large payouts is upheld in court, according to Standard & Poor's.

CHICAGO - A recent ruling by the Nebraska Department of Revenue effectively removes the use of lease-purchase agreements as a tool to finance municipal projects, and the impact is reverberating throughout the state.

DALLAS - School districts across Texas are lining up to join one of three filed or anticipated lawsuits that contend the state's system for funding public education is unconstitutional.

Pennsylvania Gov. Tom Corbett late Monday declared a fiscal emergency in Harrisburg, calling the move necessary to ensure maintenance of vital municipal services.

SAN FRANCISCO - Stockton, Calif., is facing the rising specter of a technical default on its redevelopment agency debt, as it will likely have to dip into reserves to pay debt service for $87 million of outstanding bonds.

Moody’s Investors Service said it is taking no immediate rating action after the Oklahoma Supreme Court reversed a $7.1 million settlement between Tulsa and the Bank of Oklahoma on a loan default.

LOS ANGELES - The San Diego Unified School District, despite double-A ratings, has put California lawmakers on notice that if proposed trigger cuts are implemented, it could be facing insolvency in the next two years.

Standard & Poor’s lowered its long-term rating on the Philadelphia Hospitals and Higher Education Facilities Authority’s revenue bonds, issued for Temple University Health System, to BBB-minus from BBB.

Moody’s Investors Service has placed the Ba3 rating on the Harrisburg Parking Authority’s $18 million of outstanding guaranteed Series 2007T revenue bonds on review for possible downgrade.

BRADENTON, Fla. - Memphis is exploring its legal options, including a lawsuit, against the National Basketball Association's Memphis Grizzlies if the NBA's lockout develops into a full-season loss.

SAN FRANCISCO - A California health care district is swaying once again on the edge of bankruptcy after emerging from Chapter 9 protection only three years ago.

The California Supreme Court said it will hear arguments Nov. 10 in San Francisco in a case that will likely decide the future of redevelopment agencies in the state.

BRADENTON, Fla. - The Jefferson County sewer default saga isn't over, even after county commissioners announced a settlement agreement last month with creditors who hold more than $3 billion in defaulted sewer warrants.

The mayor of Santa Ana, Calif., dismissed reports that the city - facing a $24 million deficit in 2012 - is on the verge of bankruptcy.

Pennsylvania's House Wednesday passed a bill that would allow Gov. Tom Corbett to declare a state of fiscal emergency in the capital, Harrisburg, and appoint a receiver to run its finances.

Pennsylvania's Senate on Tuesday afternoon approved a bill to put its capital, Harrisburg, into receivership.

BRADENTON, Fla. - The Florida auditor general's office called for the Legislature to consider placing limits on how much debt a community development district can issue and to improve oversight for CDD issuance.

Connecticut will receive a credit of about $900,000 from the three major rating agencies as part of a settlement from a lawsuit it initiated, accusing the three of unfairly lowering ratings.

Assured Guaranty has followed in the footsteps of bond insurers MBIA Inc. and Ambac Financial Group in suing Credit Suisse over soured mortgage-backed securities.

A judge on Monday placed the Chapter 9 bankruptcy filing by Harrisburg's City Council on hold for a month, while a few blocks away in Pennsylvania's capital, lawmakers continued their push for a state takeover of the struggling city.