Failed Grady County jail could affect other bond projects

Sunday, December 26th 2004, 5:09 pm
By: News On 6

OKLAHOMA CITY (AP) _ A failed jail project in Grady County that could mean a significant loss to a major bond insurer could affect other bond projects in Oklahoma.

MBIA, which insured bonds on the Grady County jail, could suffer an eight-figure loss if default is declared on the $17.5-million in revenue bonds used to fund the four-story jail and nearby minimum-security annex.

The company, which has insured nearly $2.7-billion in bond projects in Oklahoma has stopped insuring Oklahoma-government backed projects earlier this year.

Senior vice president of Oppenheim John Waldo says with just three major bond insurers in the state in could be high rates for other government agencies.