BofA Sues NorthStar Unit Over Interest Rate Swap

Law360, New York (November 8, 2011, 6:32 PM EST) -- Bank of America NA on Monday asked a New York federal court to hold a NorthStar Realty Finance Corp. subsidiary to an interest rate swap agreement tied to a $550 million collateralized debt obligation transaction.

In a complaint filed in the Southern District of New York, BofA said N-Star Real Estate CDO VII Ltd. has unlawfully tried to terminate the interest rate swap agreement by claiming that the bank failed to take the required steps under the contract to protect the ratings of N-Star's notes when...
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