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Atlantic City Undecided on Making Bond Payment, Mayor Says

  • Missed payment would be first in state since Great Depression
  • New Jersey, city leaders divided over state assistance
Updated on

Atlantic City Mayor Don Guardian said he hasn’t decided yet whether to make interest payments on municipal bonds due May 1 with New Jersey lawmakers locked in a stalemate over providing state assistance to the troubled gambling hub.

The city owes $1.8 million for tax-exempt bonds sold in 2012 to fund settlements with casinos over their taxes. The securities are insured by Assured Guaranty, which would be obligated to pay holders interest on the bonds. Guardian had said in March that he would make the payment.