WASHINGTON -- California's Richmond School District has notified the trustee of its $8.35 million certificates of participation issue that it does not have enough money to make a scheduled $1 million lease payment on July 15, leaving the fate of the issue in the hands of a federal bankruptcy court.

David Garcia, a spokesman for the trustee, Security Pacific National Bank, said the band is consulting with bankruptcy lawyers and bond counsel and has not yet determined whether it can use reserve and other available funds to make the scheduled Aug. 1 payment to investors.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.