WASHINGTON -- Barnett Banks Trust Co. is warning new holders of the Duval County, Fla., Housing Finance Authority's $4.5 million Marsh Oaks housing bond issue that the bonds are in technical default because the developer failed to make full payments under a loan agreement.

But the trustee bank for the issue cautioned the new bondholders that it is still bound by a directive from the prior bondholders not to taken any action to recover the money owed by the developer unless the new bondholders issue some other directive.

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