Calif. City Sold Bonds Doomed To Fail, 9th Circ. Hears

Law360, San Francisco (May 13, 2013, 5:43 PM EDT) -- The city of Alameda, Calif., knew when it sold municipal bonds to fund a city-run telecom system that it wouldn't be able to repay investors, a business trust told the Ninth Circuit on Monday, arguing Alameda is liable for the $20.5 million the trust chipped in.

Nuveen Municipal Trust's attorneys argued that a California federal court was wrong to find Alameda immune under California law and to require Nuveen to prove that the city's actions caused the securities to lose value by the same methods required...
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