Lockyer Wants to Ban CABs

California Treasurer Bill Lockyer will push for limits on bonds that have saddled school districts with debt payments as much as 10 times the principal and seek to ban those maturing more than 25 years in the future, a spokesman said.

Lockyer, a 71-year-old Democrat, will work with lawmakers next year on a bill to ban such capital-appreciation bonds, Tom Dresslar said yesterday.

Fifty-five California school districts issued such bonds last year, data compiled by Bloomberg show. The Poway Unified School District in San Diego County deferred all payments on $105 million in bonds until 2033.

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