U.S. Trust Co. of New York, the trustee of the Richmond, Calif., Unified School District's defaulted certificates of participation, informed holders last week that they will have two choices under a settlement signed by all parties to the investor lawsuit.

Certificate holders can cash out their investments in February, when the district is expected to refinance the $9.8 million issue under the settlement and make about $4 million of payments in arrears. Or they can continue receiving the rest of their scheduled payments on the 10-year issue, which was sold in 1988.

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