CHICAGO -- Illinois Development Finance Authority Board members took Chapman & Cutler officials to task yesterday for not fully disclosing to them potential tax law problems with a transaction for Chicago that resembled a call waiver and interest rate swap.

Officials from the bond counsel firm had been asked to appear at yesterday's meeting of the board after panel members demanded an explanation of why Chapman declined to give a legal opinion for the deal. Although Chapman sent a written statement explaining its reasons to the board in March, Ron Bean, the authority's executive director, said board members wanted an opportunity to ask "follow-up questions."

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