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city bankruptcy

Submitted by Mona on March 19, 2008 - 08:38.

The small town of McCall, Idaho stopped just short of filing for bankruptcy after a judge allowed the municipality to issue 20 year bonds to raise money to pay the contractor for building a new sewer plant. The job was completed more than seven years ago. If they had paid the contract when the job was complete there would have been no problems, but they refused to pay, lost in court and continued to refuse to pay. Now there is interest on the debt, fines, and legal fees on top of the original contract.

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