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Governments Rethink Their 'Moral Obligation' to Municipal Bondholders
Governing: When a government defaults on debt, it’s usually because it can’t afford the payment -- not because it doesn’t want to make the payment.
But that’s changing.
In Missouri, a judge ruled last week that Platte County, home to the Kansas City area, was completely within its rights when it opted six months ago to not pay a $765,000 bond payment due for a long-struggling shopping development.
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