WASHINGTON - California Gov. Pete Wilson at midnight Wednesday vetoed a bill designed to put the beleaguered Richmond Unified School District back on firm financial ground and resolve the lawsuit over its defaulted certificates of participation.

The veto, which came at the last minute possible by law, means that no settlement of the lawsuit is possible for the foreseeable future, according to attorneys defending the district in the case. The suit's first hearing, focusing on the constitutionality of the $9.8 million Richmond financing and others structured like it in California, is scheduled for Oct. 9.

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