A federal judge issued a $3 million judgment against Madison County Wednesday.
On Wednesday, U.S. District Judge Carlton Reeves ordered Madison County to reimburse Assured Guaranty Corp. for $3.16 million in bond payments, plus interest.
The bond payments are related to the Parkway East Public Improvement District in Madison County. The PID financed the Parkway East construction through $27.77 million in bonds, and the PID and county entered into a contract that if Parkway East were to fail, the county would make bond payments, court records show.
In 2008, the PID began to face financial woes.
The county's contract regarding the bonds doesn’t say the payments were to be temporary, and it doesn’t include a time limit or a cap that would apply to the payments, meaning the county has to pay them off completely, the judge ruled.