(Reuters) - New Jersey's fiscally distressed gambling hub Atlantic City has made its scheduled $3.475 million debt service payments, Mayor Don Guardian said on Tuesday, avoiding what could have been the first default in the state since the Great Depression.


The payments were made on their Monday due date, Guardian said in a statement, even though the city has not yet received money from a $73 million bridge loan agreement with the state.


Moody's Investors Service warned last week that the city would likely default unless it received the loan. The loan, which had not yet been finalized, is part of a bailout package that will also allow the state move to take over operations if the city fails to craft an acceptable financial recovery plan by early November.


Roughly $3 million of insured 2012 general obligation refunding bonds came due on Monday, along with interest on some of those bonds and other general obligation bonds issued in 2011, according to Municipal Securities Rulemaking Board records.


The city also nearly defaulted in May after almost running out of cash and just before lawmakers passed the bailout package.


(Reporting by Hilary Russ in New York; editing by Diane Craft)