Factbox: Timeline on debt crisis in Alabama's Jefferson County

(Reuters) - Alabama's Jefferson County is moving toward a resolution of a $3.2 billion debt crisis that could have triggered the largest municipal bankruptcy in U.S. history.

Following is a timeline of major events related to the county's debt:

April 7 - Former Jefferson County Commission president Larry Langford reported to federal prison to begin a 15-year sentence for corruption in the accumulation of the county's debt. Talks to resolve the debt are ongoing.

February 26 - A federal judge sentenced investment banker William Blount and lobbyist Al LaPierre to four-year prison terms for corrupt bond deals related to the debt.

January 19, 2010 - William Bell elected Birmingham mayor after previous mayor Langford was convicted of corruption.

November 13, 2009 - Jefferson County sues JPMorgan Securities and JPMorgan Chase (JPM.N) for fraud over its debt, as well as Langford and other officials.

November 4 - The bank reaches agreement with the U.S. Securities and Exchange Commission over a $720 million settlement in an unlawful payment scheme in the county's sewer bond financing.

October 28 - A federal jury finds Langford guilty of 60 counts of corruption relating to his term as president of the county commission and the bonds swaps that led to its debt.

September 8 - The county votes to extend a forbearance agreement with creditors on a $105 million portion of its debt. It is the latest in a series of such agreements.

August 18 - Blount, co-accused with Langford, pleads guilty. Al LaPierre pleads guilty in July.

August 14 - Alabama legislators approve an occupational tax for the county.

August 3 - County lays off 1,000 workers temporarily because of a separate, short-term financing crisis.

May 15 - State legislators fail to pass a county sales and occupational tax, heaping pressure on its finances.

February 2009 - Two "special masters" appointed by a district judge produce a report saying that, barring government intervention, sewer rates must rise dramatically to cover debt repayments.

August 2008 - Alabama Governor Bob Riley takes a lead in debt negotiations on the county's behalf.

2008 - Talks begin with creditors to restructure the debt and reduce service repayments. One focus is whether to raise water rates.

April 2008 - Moody's Investor Service downgrades a rating on part of the county's debt to seven notches into "junk" status.

February 2008 - Ratings agencies downgrade county debt to junk, causing a crisis as interest rates on the debt spiral.

2007 - Interest rates soar on the county's variable-rate and auction-rate debt, in part due to a national crisis in the mortgage lending sector. County cannot cover its debt service payments.

2002-07 - The county commission under its president, Langford, refinances debt on the advice of consultants with variable-rate and auction-rate debt and interest rate swaps.

Late 1990s - The county incurs huge debt as it upgrades the system and water rates soar as a result.

1996 - The county is required to start upgrading its sewer system to comply with the federal Clean Water Act.