DALLAS -- Fayetteville, Ark., officials are strongly considering accelerating payment on $33 million in defaulted bonds because a traditional defeasance could require the city to use over $1 million of nonbond funds.

"We have enough money in existing funds to do the acceleration," said Mary Ella Earle, a spokeswoman for Arvest Trust Co., the trustee for the deal. "We think we would have a shortfall if we did a defeasance."

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