Cities and counties across the country are eyeing New York City’s experiment with securitizing its share of the $206 billion nationwide tobacco settlement as a potential model for their own settlement proceeds.

The $625 million in bonds New York will sell over the next four years will be backed by tobacco money it otherwise would be receiving over the next 25 years. Securitizing the money — borrowing against future cash flows — allows the city to use the proceeds much sooner.

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