DALLAS -- The Texas Education Agency has adopted a rule change that makes more local school bond issues eligible for backing by the low-cost state Permanent School Fund -- a move expected to greatly reduce the demand for private bond insurance.

The change, adopted by the state's Board of Education over the weekend, allows districts to restructure their debt with the st3ate guarantee. While that is expected to help small issuers, it means less opportunity for companies selling private credit enhancement.

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