Chicago schools took out a 8.5% loan backed by Chicago property taxes

CHICAGO – Battered by negative headlines about its solvency, labor troubles, and a state takeover threat, the Chicago Board of Education returned to the market Wednesday after a one-week delay to price a scaled-down deal that offered a hefty high yield of 8.50%.

The district initially planned last week to offer $875 million of general obligation paper, including $795 million in a tax-exempt tranche and $80 million of taxable securities.

A legal absurdity.  They are required to borrow, by law.  Chicago homeowners are stuck with the interest costs, four points higher than their typical mortgage.