This is the second of two installments of excerpts from a talk given by J. Chester Johnson on the risks that governments can face in municipal interest swaps. Mr. Johnson, president of Government Finance Associates Inc. spoke before the Institute for International Research in New York City.

Government B has sold a series of bonds issues over the years, some of which could be advance refunded at very attractive economic gains, except for a prohibition against advance refunding of private-activity debt.

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