American International Group Inc. used federal money to pay $770 million it owed to municipal governments in Hawaii, according to a report in USA Today.

The local municipal governments were on a list of banks and entities that AIG said received a total of $105 billion in payments made from September through December.

Most of the payments went to banks, but about $12 billion went to municipalities of several different U.S. states, including Hawaii. The funds were used to cover guaranteed investment contracts AIG sold to the municipalities. The contracts guarantee a fixed rate of return.

Hawaiii municipalities were the third-largest recipients of the funds, behind California at $1.02 billion and Virginia at $1.01 billion.