We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Chicago Tax Revenue Scheme May Not Be Bankruptcy-Proof

Law360 (April 10, 2018, 1:49 PM EDT) -- The city of Chicago has recently taken advantage of bankruptcy-remote securitization and its attendant lower interest rates. Just last fall, Chicago formed the Sales Tax Securitization Corp., the STSC, a nonprofit corporation, which issued hundreds of millions of dollars in debt in December 2017 and February 2018. Chicago conveyed its tax revenues to the STSC. The STSC issues its own bonds and creditors lend money directly to the STSC. The creditors also receive a statutory lien on the STSC’s assets (the tax revenues). STSC then remits...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.