Law and legal issues

CHICAGO — Investors who hold $23 million of defaulted steam-plant bond anticipation notes, which the city of Menasha put its appropriation pledge behind, warned in their latest court filing that the municipal world is following their federal lawsuit and their claims the Wisconsin city misled potential investors.

The North Shore Long Island Jewish Health System Inc. has agreed to pay $3 million to settle a civil fraud lawsuit in a deal the U.S. attorney’s office announced Tuesday.

WASHINGTON — The Securities and Exchange Commission will kick off its much-awaited series of hearings on the municipal market this month, holding the first on Tuesday, Sept. 21, in San Francisco.

Harrisburg’s debt woes are exacerbated by the political impasse between Mayor Linda Thompson and the City Council, which could hinder its ability to utilize the capital market in the future, according to a Moody’s Investors Service analysis of Pennsylvania’s capital city.

BRADENTON, Fla. — Alabama Circuit Court Judge Albert Johnson ruled Tuesday that he would appoint a receiver to take over Jefferson County’s sewer system, which is saddled with nearly $3.2 billion of variable- and auction-rate warrants.

Michigan Democratic gubernatorial candidate and Lansing Mayor Virg Bernero said last week that he would stop doing business with Wall Street banks that won’t participate in the state’s foreclosure program.

CHICAGO — A local dispute over a $150 million performing arts center prompted the Indiana attorney general last week to issue an opinion ruling that redevelopment commissions can issue some types of debt without the approval of a city’s legislative body.

BRADENTON, Fla. — The Fraternal Order of Police has filed a suit against Miami asking a judge to invoke a process that would essentially place the city’s finances under state control once again.

WASHINGTON — The Securities and Exchange Commission Thursday announced that it has adopted a temporary rule requiring municipal advisers to register with it by Oct. 1 to comply with the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act.

The California Redevelopment Association Monday submitted its opening brief for its appeal of a trial court decision upholding the state’s shift of more than $2 billion from local redevelopment agencies to help balance the budget.

Dauphin County Wednesday authorized TD Bank to pursue legal action against Harrisburg, as Pennsylvania’s capital city said it will not meet payments due Dec. 15 on $35 million of incinerator bonds.

ALAMEDA, Calif. — A bill to limit the ability of California local governments to file for bankruptcy expired Tuesday in the last-minute frenzy that marked the end of the regular 2010 session for the state’s stalemated Legislature.

WASHINGTON — Bowing to growing concerns from muni issuers, Moody’s Investors Service announced Wednesday that it will stop trying to get state and local issuers to agree to indemnify and hold it and its officers harmless for any mistakes they might make as a precondition to assigning ratings to municipal bond transactions.

WASHINGTON — More than 90% of municipal analysts surveyed believe they are more likely to hear about material events from the news than from issuers’ continuing disclosure notices, according to a new study.

The Treasury Department announced several changes Wednesday to its new issue bond purchase program for housing finance agencies, most notably that it is extending by one year through 2011 its deadline for converting short-term taxable bonds to long-term, tax-exempt bonds.

Policyholders contesting bond insurer MBIA Inc.’s February 2009 restructuring will soon have their chance in court to try and overturn the decision that allowed the transformation to take place.

Florida Chief Financial Officer Alex Sink has ordered a comprehensive audit of funds spent by the state to build a new $40 million courthouse for the First District Court of Appeals.

MENLO PARK, Calif. — The Reno City Council meets next week to discuss how the Nevada city can avoid defaulting on bonds backed by a lease with a defunct casino.

Public finance attorney Kenneth Lind was made partner at Nixon Peabody LLP, the firm announced Tuesday. Lind has served as bond counsel at the firm’s New York City office since leaving the state Metropolitan Transportation Authority in January 2008, where he had been acting finance director.

CHICAGO — The St. Paul Port Authority and lawyers for a group of 876 fund bondholders squared off in Ramsey County district court Monday over whether the agency has misused revenue generated from assets pledged to bondholders.