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California Curbs School Bonds With ‘Abusive’ Debt Costs

California capped the total interest costs on capital-appreciation bonds issued by school districts at four times the amount borrowed to rein in the financing method that Treasurer Bill Lockyer called “abusive.”

A bill signed into law today by Governor Jerry Brown restricts industry practices that saddled taxpayers with debt that cost as much as 10 times the amount borrowed by putting off repayment for as long as 40 years.