Suffolk County misses interest payment, technically defaults

The Hamptons in Suffolk County
The Hamptons in Suffolk County

Suffolk County, home to the Hamptons and some of the country’s poshest homes, accidentally missed an interest payment on its debt, CNBC reported. The gaffe, which includes a missed payment on $76.1 million of public improvement bonds, leaves the county technically in default.

Though per-capita income in Suffolk County is well above the national average, it has been mired in recent financial difficulties, declaring a fiscal emergency last year after an independent task force predicted a three-year deficit of $530 million, according to CNBC. Local officials said last month that the county could see a $250 million deficit by the end of 2014. 

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

The missed payment was for the paltry sum of $722.65 and appears to have been purely an oversight on the part of M&T, the county’s escrow agent.

“The county informed M&T of its error, and the escrow agent immediately wired the $722.65 payment to DTC,” a regulatory filing said. [CNBC] –Hiten Samtani