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Jefferson County bankruptcy could hinge on Alabama Supreme Court decision

Staff Report

Jefferson County’s bankruptcy filing could come down to a distinction between a bond and a warrant, and maybe even the grammar of the Alabama Legislature.

While Jefferson County’s debt has been casually referred to as “bond” debt, all of the debt is, in fact, in warrants, not bonds. In Alabama bond debt requires approval in a public referendum and the bonds must be put out of bid. Warrants carry neither requirement.

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