[count-your-change]

A bond is just a loan. You buy a bond, get interest payments, and at maturity get the principle back. Unlike regular loans you receive only interest payments until maturity date. City goes bankrupt-get in line with your tin cup out. Who goes to the head of the line depends on court and law.

[goldstategop]

Creditors are not going to demand repayment in a situation where at best, they would get only pennies on the dollar. They would want the town back on its feet so they can finally start getting real money.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus