An opportunity that investors have recently been exploring is the acquisition of defaulted CFD bonds which may present special advantages to the investor.

Opportunities include:

*foreclosing out lenders and fee owners, or

*holding the bonds and enjoying the higher yield resulting from the purchase of the bonds at less than their par value.

Community Facilities Districts ("CFDs") are often formed to finance the infrastructure for master planned communities. The lien securing the repayment of the special taxes which are pledged to pay debt service on the bonds issued by the CFD is senior to all liens securing private loans encumbering the property within the CFD.

Please see full alert for more information.