The Virginia Supreme Court, on a narrow 4-to-3 vote Friday, reversed its controversial April decision that invalidated lease- and appropriation-backed bonds, lifting a pall that had hung for months over $2.3 billion of financings within the state.

In an opinion written by Justice Elizabeth Lacy, who changed her vote since the April 19 decision, the court ruled that a lease financing does not create debts as defined under the state constitution, as long as the lease contains a clause giving the issuer the right to terminate the lease and not appropriate lease payments.

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