F. George McDuffee wrote:
On Fri, 16 Apr 2010 02:42:58 -0500, F. George McDuffee
wrote:

On Thu, 15 Apr 2010 17:16:26 -0800, "John R. Carroll"
wrote:

Sometimes that's exactly what happens and sometimes not.
There was an interesting piece recently about some podunk town and
their new waste treatment plant.
I can't remember where I saw it but it had to do with the scams
(all legal) that were run on local governments.
In the instance I viewed, several city council members might end up
in jail.
==========
Among others see Harrisburg PA.


http://www.businessweek.com/news/201...-correct-.html
snip
========
Update on the Harrisburg soap opera.
http://www.bloomberg.com/apps/news?p...d=ab6OQc35weDI
snip
Harrisburg, Pennsylvania, which has missed $6 million in
debt payments since Jan. 1, should consider seeking Chapter
9 bankruptcy protection, City Controller Dan Miller told a
three-hour special committee hearing.

Miller, the first of four people to testify last night in an
"informational session" on insolvency convened by Gloria
Martin-Roberts, council president, said bankruptcy may offer
Harrisburg relief from $68 million in debt-service payments
this year tied to a waste-to-energy incinerator project.
snip
Harrisburg, the capital of Pennsylvania, the sixth-most
populous U.S. state, has guaranteed payments on $282 million
in bonds on the incinerator, run by the Harrisburg
Authority. The payments on the bonds and on a
working-capital loan this year add up to four times the
amount the city collects in property taxes each year, budget
documents show.
snip
The city this month skipped a $637,500 payment due on a loan
to Fairfield, New Jersey-based Covanta Holding Corp.,
operator of the incinerator.

Missed Payment

On April 23, the Harrisburg Authority told the city that it
won't make a $425,282 payment due May 1 on a $17 million
bond issue the city has guaranteed, said Robert Kroboth,
interim finance manager. Kroboth said it isn't likely that
the city will honor its guarantee, meaning the payment will
fall to the bond's insurer, Hamilton, Bermuda-based Assured
Guaranty Municipal Corp.
snip
"It's difficult to get into Chapter 9," Miller said. He said
Harrisburg would have to present a proposed debt relief plan
to its creditors and get an endorsement from the state
before it could seek bankruptcy.

"You have to meet with the state Department of Economic and
Community Development and convince them you are deserving of
Chapter 9 protection," Miller said.
snip

They can also just stop paying their bills and let the creditors and the
Courts force the issue.
I think if it were me I'd just go ahead and file, daring the Court and the
State to invoke any statutory bar.
Screw them I say. It would be the equivalent of an underwater home owner
sending jingle mail.
LOL


--
John R. Carroll