bailout

Massachusetts Turnpike chief executive Alan LeBovidge said today the Turnpike has not been bailed out by the state. The term "bailout" has been widely used in reports there to characterize moves to have the state stand behind about $800m of Turnpike debt. LeBovidge told us today: "There hasn't been any bailout." He called the guarantees of Turnpike debt "assistance" by the state to reduce the Turnpike's financing costs. 809 words  read more »

Massachusetts Governor Deval Patrick has quietly sponsored legislation to allow the Massachusetts Turnpike Authority to refinance on the state's security, making the state liable for the Turnpike's debt if it defaults. Normally the Turnpike Authority's borrowing is secured only by the net toll revenues of the Turnpike. They are called "non-recourse" loans because the bondholders have no recourse to the state if revenues are insufficient.
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