LOS ANGELES - The federal agency responsible for cleaning up problems in the savings and loan industry appears to have retreated from a hard-line policy that threw doubt on its willingness to pay special taxes and assessment bond levies in California.

The agency now says it will pay any taxes and assessments that were placed on a property before the property went into receivership. That statement will "close the book on this issue, for now," said Steve Juarez, executive director of the California Debt Advisory Commission.

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