Assured Must Honor CIFG Reinsurance Deal, Judge Rules

Law360, New York (June 16, 2011, 5:21 PM EDT) -- A New York state judge ruled Thursday that Assured Guaranty Corp. must live up to its agreement to reinsure a policy for bondholders of an Iowa water company issued by CIFG Assurance North America Inc.

The language of the agreement, which transferred responsibility for about 92 percent of the bond insurance policy book to Assured, including the water company bond policies, was clear, and Assured had missed its opportunity to challenge the bonds' ratings, according to Judge Barbara Kapnick.

Because the agreement's language "is unambiguous, resort...
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