Insurer Must Back Bonds Of Bankrupt SC Toll Road Operator

Law360, New York (September 3, 2013, 3:23 PM EDT) -- Bond insurer ACA Financial Guaranty Corp. must honor insurance policies it issued on $37 million worth of toll road bonds owned by a Massachusetts Mutual Life Insurance Co. affiliate, a New York state appeals court ruled Tuesday, even though the road's operator went bankrupt.

The insurer had argued that the intervening bankruptcy and restructuring of a public-private entity called Connector 2000 Association Inc., which had floated $200 million worth of bonds to finance the construction of a Greenville, S.C., turnpike, had voided the insurance policies since...
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