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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.