* SEC to take action against JPMorgan over county loans

* Jefferson County commissioner welcomes SEC decision (Adds comment from Republican party)

By Melinda Dickinson

BIRMINGHAM, Ala., May 8 (Reuters) - Jefferson County, Alabama on Friday hailed a U.S. Securities and Exchange Commission decision to file an enforcement action against JPMorgan Chase (JPM.N: Quote, Profile, Research) over bond swap sales to the county.

The SEC decision was disclosed by JPMorgan on Thursday.

County commissioners Jim Carns and Sheila Smoot, part of a five-person body, welcomed the decision as did Republican U.S. Representative Spencer Bachus of Alabama, the ranking member of the House Financial Services Committee.

"I am extraordinarily encouraged by the SEC approval of an enforcement action against JPMorgan Chase & Co for securities law violations over bond and swap sales for Jefferson County," said Carns.

Smoot said the precise impact of the move was hard to gauge, adding: "I do hope it brings us some relief."

Jefferson County has spent more than a year fighting to stave off what would be the largest municipal bankruptcy in U.S. history over its $3.2 billion sewer debt.