The cap could also be lifted to pay for debt service on bonds for capital projects, like building a school.
The insurers do not want to pay on bonds guaranteeing a deal involving Enron and two tax-haven companies.
Investors would receive a federal tax credit in place of the interest normally paid on such bonds.
He also favored initiatives to help railroads struggling to pay interest on state-issued bonds.
A credit rating is one factor that determines the interest rate paid on bonds.
Thus the city administration stayed independent of creditors and did not have to pay interest on bonds.
Negotiations are said to have stalled over the interest rate Greece must pay on new bonds it offers.
It has also encouraged companies to use debt, rather than new stock, for financing because they can deduct interest paid on bonds.
The company is paying interest on first- and second-mortgage bonds.
The rest will be used to pay interest and principal on other current bonds, something the state has never done.
