WASHINGTON -- The East Baton Rouge Mortgage Finance Authority yesterday shelved its planned $69.6 million re-refunding of escrowed-to-maturity housing bonds after municipal bond dealers charged that the deal might violate securities laws.

"We were very concerned that there would be a perception that something was wrong with this deal," said Robert Gaston, chairman of the authority. However, he said that participants in the deal did not think that anything was the matter with it and that the authority "reserves the right" to go forward with the deal in the future, should it decide to do so.

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