DALLAS -- When Houston sold $107 million of airport revenue bonds recently, the city discussed Continental Airlines at such great length that one investment banker joked that the official statement might be mistaken for the bankrupt carrier's annual report.

Despite the amount of information provided on Continental, investors found no mention that three tax-exempt issues around the nation, totaling $127.5 million and supported by payments from the carrier, had defaulted as result of the bankruptcy -- including debt issued by Harris County, Tex. Houston is located in Harris County.

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