WASHINGTON -- The Virginia Supreme Court Decision that invalidated leasing has prompted GE Capital Finance Corp. to suspend the state's line of credit for its master equipment leasing program, while at least two counties in Virginia have canceled plans to issue over $300 million of lease-backed securities.

GE notified Virginia Treasurer Eddie N. Moore Jr. on May 7 that it could no longer continue the line of credit in light of the April 19 decision in Dykes vs. Northern Virginia Transportation District Commission, which found lease-backed debt issued without voter approval to be unconstitutional, Mr. Moore said in a recent letter to Virginia agencies and colleges.

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