Repurchase Is Ambac's Only Out In $856M MBS Case: Merrill

Law360, New York (May 6, 2013, 7:17 PM EDT) -- Ambac Financial Group Inc.'s bond insurance unit can't force Bank of America Corp.'s Merrill Lynch & Co. Inc. affiliate to pay for $856 million in mortgage-backed securities because a loan repurchase is its only remedy, Merrill Lynch told a New York state judge Monday.

Joseph J. Ybarra of Munger Tolles & Olson LLP, who represents Merrill Lynch, told Judge Melvin L. Schweitzer during a hearing that the contract language mirrored that in other cases where repurchase was found to be the only remedy for the troubled...
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