United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2013
or
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 1-9583
MBIA INC.
(Exact name of registrant as specified in its charter)
Connecticut | 06-1185706 | |
(State of incorporation) |
(I.R.S. Employer Identification No.) |
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113 King Street, Armonk, New York | 10504 | |
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (914) 273-4545
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Indicate by check mark whether the Registrant is shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No þ
As of November 7, 2013, 192,247,762 shares of Common Stock, par value $1 per share, were outstanding.
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions except share and per share amounts)
September 30, 2013 | December 31, 2012 | |||||||
Assets |
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Investments: |
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Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $4,516 and $4,347) |
$ | 4,505 | $ | 4,485 | ||||
Fixed-maturity securities at fair value |
249 | 244 | ||||||
Investments pledged as collateral, at fair value (amortized cost $407 and $489) |
347 | 443 | ||||||
Short-term investments held as available-for-sale, at fair value (amortized cost $1,377 and $662) |
1,378 | 669 | ||||||
Other investments (includes investments at fair value of $10 and $12) |
16 | 21 | ||||||
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Total investments |
6,495 | 5,862 | ||||||
Cash and cash equivalents |
1,057 | 814 | ||||||
Premiums receivable |
1,085 | 1,228 | ||||||
Deferred acquisition costs |
270 | 302 | ||||||
Insurance loss recoverable |
742 | 3,648 | ||||||
Property and equipment, at cost (less accumulated depreciation of $87 and $146) |
37 | 69 | ||||||
Deferred income taxes, net |
1,243 | 1,199 | ||||||
Other assets |
247 | 268 | ||||||
Assets of consolidated variable interest entities: |
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Cash |
46 | 176 | ||||||
Investments held-to-maturity, at amortized cost (fair value $2,566 and $2,674) |
2,809 | 2,829 | ||||||
Investments held as available-for-sale, at fair value (amortized cost $156 and $637) |
156 | 625 | ||||||
Fixed-maturity securities at fair value |
626 | 1,735 | ||||||
Loans receivable at fair value |
1,704 | 1,881 | ||||||
Loan repurchase commitments |
1,116 | 1,086 | ||||||
Other assets |
- | 2 | ||||||
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Total assets |
$ | 17,633 | $ | 21,724 | ||||
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Liabilities and Equity |
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Liabilities: |
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Unearned premium revenue |
$ | 2,544 | $ | 2,938 | ||||
Loss and loss adjustment expense reserves |
688 | 853 | ||||||
Investment agreements |
760 | 944 | ||||||
Medium-term notes (includes financial instruments carried at fair value of $204 and $165) |
1,554 | 1,598 | ||||||
Long-term debt |
1,677 | 1,732 | ||||||
Derivative liabilities |
1,370 | 2,934 | ||||||
Other liabilities |
439 | 245 | ||||||
Liabilities of consolidated variable interest entities: |
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Variable interest entity notes (includes financial instruments carried at fair value of $2,426 and $3,659) |
5,385 | 7,124 | ||||||
Derivative liabilities |
15 | 162 | ||||||
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Total liabilities |
14,432 | 18,530 | ||||||
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Commitments and contingencies (See Note 14) |
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Equity: |
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Preferred stock, par value $1 per share; authorized shares10,000,000; issued and outstandingnone |
- | - | ||||||
Common stock, par value $1 per share; authorized shares400,000,000; issued shares277,804,062 and 277,405,039 |
278 | 277 | ||||||
Additional paid-in capital |
3,113 | 3,076 | ||||||
Retained earnings |
2,157 | 2,039 | ||||||
Accumulated other comprehensive income (loss), net of tax of $30 and $21 |
(50) | 56 | ||||||
Treasury stock, at cost85,551,418 and 81,733,530 shares |
(2,318) | (2,275) | ||||||
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Total shareholders equity of MBIA Inc. |
3,180 | 3,173 | ||||||
Preferred stock of subsidiary and noncontrolling interest |
21 | 21 | ||||||
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Total equity |
3,201 | 3,194 | ||||||
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Total liabilities and equity |
$ | 17,633 | $ | 21,724 | ||||
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The accompanying notes are an integral part of the consolidated financial statements.
1
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In millions except share and per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: |
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Premiums earned: |
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Scheduled premiums earned |
$ | 80 | $ | 85 | $ | 236 | $ | 291 | ||||||||
Refunding premiums earned |
24 | 70 | 112 | 173 | ||||||||||||
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Premiums earned (net of ceded premiums of $2, $3, $7 and $12) |
104 | 155 | 348 | 464 | ||||||||||||
Net investment income |
42 | 50 | 118 | 172 | ||||||||||||
Fees and reimbursements |
5 | 20 | 17 | 47 | ||||||||||||
Change in fair value of insured derivatives: |
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Realized gains (losses) and other settlements on insured derivatives |
(28) | 12 | (1,548) | (420) | ||||||||||||
Unrealized gains (losses) on insured derivatives |
285 | (33) | 1,562 | 1,473 | ||||||||||||
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Net change in fair value of insured derivatives |
257 | (21) | 14 | 1,053 | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
5 | 7 | 62 | (18) | ||||||||||||
Investment losses related to other-than-temporary impairments: |
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Investment losses related to other-than-temporary impairments |
- | (3) | - | (58) | ||||||||||||
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) |
- | (5) | - | (47) | ||||||||||||
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Net investment losses related to other-than-temporary impairments |
- | (8) | - | (105) | ||||||||||||
Net gains (losses) on extinguishment of debt |
6 | - | 49 | - | ||||||||||||
Other net realized gains (losses) |
(29) | 1 | (29) | 7 | ||||||||||||
Revenues of consolidated variable interest entities: |
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Net investment income |
13 | 17 | 43 | 51 | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
17 | 44 | 128 | (17) | ||||||||||||
Net gains (losses) on extinguishment of debt |
- | 16 | - | 49 | ||||||||||||
Other net realized gains (losses) |
- | - | 1 | - | ||||||||||||
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Total revenues |
420 | 281 | 751 | 1,703 | ||||||||||||
Expenses: |
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Losses and loss adjustment |
98 | 171 | 92 | 330 | ||||||||||||
Amortization of deferred acquisition costs |
9 | 8 | 36 | 36 | ||||||||||||
Operating |
71 | 72 | 280 | 307 | ||||||||||||
Interest |
59 | 69 | 179 | 214 | ||||||||||||
Expenses of consolidated variable interest entities: |
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Operating |
2 | 5 | 8 | 14 | ||||||||||||
Interest |
10 | 13 | 34 | 43 | ||||||||||||
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Total expenses |
249 | 338 | 629 | 944 | ||||||||||||
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Income (loss) before income taxes |
171 | (57) | 122 | 759 | ||||||||||||
Provision (benefit) for income taxes |
39 | (64) | 4 | 161 | ||||||||||||
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Net income (loss) |
$ | 132 | $ | 7 | $ | 118 | $ | 598 | ||||||||
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Net income (loss) per common share: |
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Basic |
$ | 0.68 | $ | 0.04 | $ | 0.61 | $ | 3.09 | ||||||||
Diluted |
$ | 0.67 | $ | 0.04 | $ | 0.60 | $ | 3.07 | ||||||||
Weighted average number of common shares outstanding: |
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Basic |
192,711,608 | 193,879,994 | 193,440,078 | 193,760,654 | ||||||||||||
Diluted |
196,746,771 | 194,977,642 | 197,762,488 | 194,835,537 |
The accompanying notes are an integral part of the consolidated financial statements.
2
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(In millions)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) |
$ | 132 | $ | 7 | $ | 118 | $ | 598 | ||||||||
Other comprehensive income (loss): |
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Unrealized gains (losses) on available-for-sale securities: |
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Unrealized gains (losses) arising during the period |
(15) | 75 | (155) | 236 | ||||||||||||
Provision (benefit) for income taxes |
(6) | 18 | (55) | 70 | ||||||||||||
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Total |
(9) | 57 | (100) | 166 | ||||||||||||
Reclassification adjustments for (gains) losses included in net income (loss) |
13 | (8) | (6) | 84 | ||||||||||||
Provision (benefit) for income taxes |
5 | (3) | (2) | 29 | ||||||||||||
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Total |
8 | (5) | (4) | 55 | ||||||||||||
Available-for-sale securities with other-than-temporary impairments: |
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Other-than-temporary impairments and unrealized gains (losses) arising during the period |
8 | 2 | 15 | 40 | ||||||||||||
Provision (benefit) for income taxes |
2 | 1 | 6 | 14 | ||||||||||||
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Total |
6 | 1 | 9 | 26 | ||||||||||||
Reclassification adjustments for (gains) losses included in net income (loss) |
(1) | 6 | (5) | 52 | ||||||||||||
Provision (benefit) for income taxes |
(1) | 2 | (2) | 18 | ||||||||||||
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Total |
- | 4 | (3) | 34 | ||||||||||||
Foreign currency translation: |
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Foreign currency translation gains (losses) |
32 | (7) | (7) | (18) | ||||||||||||
Provision (benefit) for income taxes |
1 | (4) | 1 | (3) | ||||||||||||
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Total |
31 | (3) | (8) | (15) | ||||||||||||
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Total other comprehensive income (loss) |
36 | 54 | (106) | 266 | ||||||||||||
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Comprehensive income (loss) |
$ | 168 | $ | 61 | $ | 12 | $ | 864 | ||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
3
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited)
For The Nine Months Ended September 30, 2013
(In millions except share amounts)
Additional
Paid-in Capital |
Accumulated
Other Comprehensive Income (Loss) |
Total
Shareholders Equity of MBIA Inc. |
Preferred Stock
of Subsidiary and |
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Common Stock |
Retained
Earnings |
Treasury Stock | Noncontrolling Interest |
Total
Equity |
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Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 |
277,405,039 | $ | 277 | $ | 3,076 | $ | 2,039 | $ | 56 | (81,733,530) | $ | (2,275) | $ | 3,173 | 1,315 | $ | 21 | $ | 3,194 | |||||||||||||||||||||||||
Net income (loss) |
- | - | - | 118 | - | - | - | 118 | - | - | 118 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
- | - | - | - | (106) | - | - | (106) | - | - | (106) | |||||||||||||||||||||||||||||||||
Share-based compensation net of tax of $4 |
399,023 | 1 | 37 | - | - | (3,817,888) | (43) | (5) | - | - | (5) | |||||||||||||||||||||||||||||||||
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Balance, September 30, 2013 |
277,804,062 | $ | 278 | $ | 3,113 | $ | 2,157 | $ | (50) | (85,551,418) | $ | (2,318) | $ | 3,180 | 1,315 | $ | 21 | $ | 3,201 | |||||||||||||||||||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
4
MBIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities: |
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Premiums, fees and reimbursements received |
$ | 143 | $ | 223 | ||||
Investment income received |
326 | 459 | ||||||
Insured derivative commutations and losses paid |
(453) | (463) | ||||||
Financial guarantee losses and loss adjustment expenses paid |
(382) | (620) | ||||||
Proceeds from recoveries and reinsurance |
1,797 | 131 | ||||||
Operating and employee related expenses paid |
(227) | (300) | ||||||
Interest paid, net of interest converted to principal |
(170) | (377) | ||||||
Income taxes (paid) received |
(1) | (8) | ||||||
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Net cash provided (used) by operating activities |
1,033 | (955) | ||||||
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Cash flows from investing activities: |
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Purchase of fixed-maturity securities |
(2,704) | (2,032) | ||||||
Sale and redemption of fixed-maturity securities |
3,444 | 4,283 | ||||||
Proceeds from paydowns on variable interest entity loans |
211 | 203 | ||||||
Redemptions of held-to-maturity investments |
20 | 828 | ||||||
Sale (purchase) of short-term investments, net |
(665) | 335 | ||||||
Sale (purchase) of other investments, net |
5 | 109 | ||||||
Consolidation (deconsolidation) of variable interest entities, net |
(26) | (51) | ||||||
(Payments) proceeds for derivative settlements |
(51) | (266) | ||||||
Collateral (to) from swap counterparty |
65 | (298) | ||||||
Capital expenditures |
(2) | (5) | ||||||
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Net cash provided (used) by investing activities |
297 | 3,106 | ||||||
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Cash flows from financing activities: |
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Proceeds from investment agreements |
25 | 52 | ||||||
Principal paydowns of investment agreements |
(218) | (629) | ||||||
Proceeds from medium-term notes |
- | 18 | ||||||
Principal paydowns of medium-term notes |
(77) | (74) | ||||||
Principal paydowns of variable interest entity notes |
(1,001) | (1,059) | ||||||
Payments for securities sold under agreements to repurchase |
- | (287) | ||||||
Proceeds from secured loan |
50 | - | ||||||
Payments for retirement of debt |
(3) | (364) | ||||||
Change in noncontrolling interest and redemption of subsidiary preferred stock, net |
- | (1) | ||||||
Restricted stock awards settlements, net |
- | 1 | ||||||
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Net cash provided (used) by financing activities |
(1,224) | (2,343) | ||||||
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Effect of exchange rate changes on cash and cash equivalents |
7 | - | ||||||
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Net increase (decrease) in cash and cash equivalents |
113 | (192) | ||||||
Cash and cash equivalentsbeginning of period |
990 | 633 | ||||||
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Cash and cash equivalentsend of period |
$ | 1,103 | $ | 441 | ||||
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Reconciliation of net income (loss) to net cash provided (used) by operating activities: |
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Net income (loss) |
$ | 118 | $ | 598 | ||||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |
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Change in: |
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Premiums receivable |
138 | 98 | ||||||
Deferred acquisition costs |
32 | 35 | ||||||
Unearned premium revenue |
(392) | (443) | ||||||
Loss and loss adjustment expense reserves |
(169) | 109 | ||||||
Insurance loss recoverable |
2,802 | (270) | ||||||
Accrued interest payable |
82 | - | ||||||
Accrued expenses |
54 | (40) | ||||||
Net investment losses related to other-than-temporary impairments |
- | 105 | ||||||
Unrealized (gains) losses on insured derivatives |
(1,562) | (1,473) | ||||||
Net (gains) losses on financial instruments at fair value and foreign exchange |
(190) | 35 | ||||||
Other net realized (gains) losses |
28 | (7) | ||||||
Deferred income tax provision (benefit) |
2 | 163 | ||||||
(Gains) losses on extinguishment of debt |
(49) | (49) | ||||||
Interest on variable interest entities, net |
65 | 114 | ||||||
Other operating |
74 | 70 | ||||||
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Total adjustments to net income (loss) |
915 | (1,553) | ||||||
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Net cash provided (used) by operating activities |
$ | 1,033 | $ | (955) | ||||
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The accompanying notes are an integral part of the consolidated financial statements.
5
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties
Summary
MBIA Inc., together with its consolidated subsidiaries, (collectively, MBIA or the Company) operates one of the largest financial guarantee insurance businesses in the industry and is a provider of asset management and advisory services. These activities are managed through three business segments: United States (U.S.) public finance insurance; structured finance and international insurance; and advisory services. The Companys U.S. public finance insurance business is primarily operated through National Public Finance Guarantee Corporation and its subsidiaries (National), its structured finance and international insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (MBIA Corp.), and its asset management and advisory services business is primarily operated through Cutwater Holdings, LLC and its subsidiaries (Cutwater). The holding company, MBIA, and certain of its subsidiaries also manage certain other business activities, the results of which are reported in its corporate, asset/liability products, and conduit segments. The corporate segment includes revenues and expenses that arise from general corporate activities. While the asset/liability products and conduit businesses represent separate business segments, they may be referred to collectively as wind-down operations as the funding programs managed through those businesses are in wind-down. Refer to Note 11: Business Segments for further information about the Companys reporting segments.
Business Developments
Operating Cost Reductions
In order to better position the Company for future business opportunities, in the third quarter of 2013, the Company initiated cost reduction measures focused on its legal, consulting, staffing and head office occupancy costs. As a result, expenses for net compensation costs related to staff reductions totaled $18 million and were recorded primarily during the third quarter of 2013. These expenses are included in Operating expenses on the Companys consolidated statements of operations. These staff reductions reduced its worldwide June 30, 2013 headcount by approximately 21%. As a result of the potential sale of the office used in its operations, the Company recorded an impairment charge of $29 million on its Armonk, New York facility. The carrying value of the facility was adjusted to its fair market value, which was determined based on an independent third-party appraisal of the facility. This impairment charge is reflected in the results of the Companys U.S. public finance insurance segment and is reported within Other net realized gains (losses) on the Companys consolidated statements of operations.
In addition, during the nine months ended September 30, 2013, the Company incurred operating expenses of approximately $89 million related to settlement, consulting and legal expenses associated with the resolution of the litigation matters with Bank of America Corporation, Societe Generale, and Flagstar Bank. Refer below for discussions related to these settlements.
Bank of America Settlement
In May of 2013, MBIA Inc., together with its subsidiaries MBIA Corp. and National, entered into a comprehensive settlement agreement and related agreements (the BofA Settlement Agreement) with Bank of America Corporation and certain of its subsidiaries (collectively, Bank of America). As a result of the BofA Settlement Agreement, the repayment of MBIA Insurance Corporations secured loan from National (the National Secured Loan) and recent credit ratings upgrades, the Company is currently evaluating strategies for re-entry into the U.S. public finance market. As of September 30, 2013, National was rated A with a stable outlook by Standard & Poors Financial Services LLC (S&P) and Baa1 with a positive outlook by Moodys Investors Service, Inc. (Moodys). As of September 30, 2013, MBIA Insurance Corporation was rated B with a stable outlook by S&P and B3 with a positive outlook by Moodys. The Company is considering obtaining ratings for National from additional rating agencies.
Under the terms of the BofA Settlement Agreement, MBIA Corp. received a payment of approximately $1.7 billion, consisting of $1.6 billion of cash and $136 million principal amount of MBIA Inc.s 5.70% Senior Notes due 2034. In exchange for such payment, MBIA Corp. agreed to dismiss the litigation commenced in September 2008 against Countrywide Home Loans, Inc. (Countrywide), among other parties, and later amended to include claims against Bank of America, relating to breaches of representations and warranties on certain MBIA-insured securitizations sponsored by Countrywide. Bank of America and MBIA also agreed to the commutation of all of the MBIA Corp. policies held by Bank of America, which had a notional insured amount of approximately $7.4 billion, of which $6.1 billion were policies insuring credit default swaps (CDS) held by Bank of America referencing commercial real estate (CRE) exposures. MBIA Corp. has no further payment obligations under the commuted policies. The New York State Department of Financial Services (NYSDFS) advised MBIA Corp. that the NYSDFS did not object to the BofA Settlement Agreement. The $1.6 billion of cash received in connection with the BofA Settlement Agreement is included in Proceeds from recoveries and reinsurance presented under the heading Cash flows from operating activities on the Companys consolidated statements of cash flows.
6
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
Under the terms of the BofA Settlement Agreement, Blue Ridge Investments, L.L.C. (Blue Ridge), an affiliate of Bank of America, received a five-year warrant to purchase 9.94 million shares of MBIA common stock at a price of $9.59 per share. Bank of America has also agreed to dismiss the pending litigation between the parties concerning the restructuring transactions announced by MBIA on February 18, 2009 (the Transformation) and the pending litigation between the parties concerning the senior debt consent solicitation completed by MBIA in the fourth quarter of 2012. In addition, Bank of America agreed to withdraw the purported notice of default it sent in connection with such consent solicitation.
Under the terms of the BofA Settlement Agreement, the dismissals of the litigations referenced above are initially being filed on a without prejudice basis. The parties will refile such dismissals on a with prejudice basis provided that, within the one-year period following execution of the BofA Settlement Agreement, none of the claims released pursuant to the BofA Settlement Agreement are reinstated and neither party is required to make a payment on any such released claims. The Company views the likelihood of such an event as remote, and thus expects that the litigation dismissals will be filed on a with prejudice basis at the expiration of such one-year period.
MBIA Corp.s policies insuring the residential mortgage-backed securities (RMBS) securitizations originated by Countrywide will continue to be in full force and effect, and MBIA Corp. will continue to make timely payments of principal and interest if there are shortfalls when due under such policies. Bank of America will have no further representation and warranty liability with respect to the origination of the mortgage loans in the MBIA-insured Countrywide and certain other securitizations.
In addition, MBIA Insurance Corporation has entered into a $500 million three-year secured revolving credit agreement with Blue Ridge (the Blue Ridge Secured Loan). During the third quarter of 2013, MBIA Insurance Corporation borrowed $50 million under this agreement. Refer to Note 9: Debt for a discussion of the Blue Ridge Secured Loan.
The payment from Bank of America, including the MBIA Inc. notes, was used by MBIA Corp. to repay the outstanding balance and accrued interest on the National Secured Loan. The National Secured Loan balance of $1.7 billion as of March 31, 2013 was reduced to approximately $1.6 billion prior to the Bank of America settlement as a result of the receipt of $110 million in settlement of Flagstar Banks put-back obligation.
The value of the settlement is consistent with amounts recorded on MBIA Corp.s statutory balance sheet as of December 31, 2012. MBIA Corp.s liquidity and capital risk profile has substantially improved as a result of the settlement.
Pursuant to the anti-dilution provisions of warrants that were issued by MBIA to Warburg Pincus Private Equity X, L.P. and certain of its affiliates (Warburg Pincus) pursuant to an Investment Agreement, dated as of December 10, 2007, as amended and restated as of February 6, 2008, by and between MBIA and Warburg Pincus, the exercise price under such warrants was decreased and the aggregate number of shares of MBIA common stock to be issued upon exercise of such warrants was increased, in each case as a result of the issuance of the warrant to Blue Ridge. The adjustments to the exercise price and number of such underlying shares did not have a material dilutive effect on the MBIA common stock. In addition, under the Investment Agreement, Warburg Pincus has certain gross up rights that are triggered in connection with the offering by the Company of any equity securities. As such, in August of 2013, MBIA issued Warburg Pincus a five-year warrant to purchase 1.91 million shares of MBIA common stock at an exercise price of $9.59 per share.
Societe Generale Settlement
In May of 2013, the Company entered into an agreement with Societe Generale pursuant to which the Company commuted $4.2 billion of gross insured exposure comprising asset-backed securities (ABS) collateralized debt obligations (CDOs), structured commercial mortgage-backed securities (CMBS) pools and CRE CDOs. The amount MBIA paid to Societe Generale in consideration of commuting its insured exposure is consistent with MBIA Corp.s December 31, 2012 aggregate statutory loss reserves for the exposures commuted. Also, pursuant to the agreement, Societe Generale agreed to dismiss the pending litigation between the parties concerning the Transformation, which includes any appeals of the decision denying the Article 78 petition and the plenary case.
7
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
Residential Capital LLC Agreement
In May of 2013, the Company and the other Consenting Claimants, Residential Capital LLC (ResCap) and Ally Financial Inc. (Ally), agreed to the terms of a comprehensive plan agreement to support ResCaps Chapter 11 plan. The confirmation of ResCaps Chapter 11 plan would resolve MBIA Corp.s claims against the Residential Funding Company, LLC (RFC), GMAC Mortgage LLC (GMAC) and ResCap estates, and Ally. In June of 2013, the bankruptcy court issued a Memorandum Opinion approving the Plan Support Agreement (the Plan). The Plan is now subject to voting by creditors as well as a confirmation hearing by the bankruptcy court. All creditor ballots were due back by October 21, 2013 and as of the date of this report, the results had not been tallied. There can be no assurance that the Plan will be confirmed. Refer to Note 5: Loss and Loss Adjustment Expense Reserves for a discussion of the ResCap agreement.
Transformation Litigation
Subsequent to the BofA Settlement Agreement and the Societe Generale settlement, all litigation brought originally by the group of eighteen domestic and international financial institutions relating to the establishment of National has been resolved.
Other
As of September 30, 2013, the liquidity position of MBIA Inc., which consists of the liquidity positions of the Companys corporate segment and asset/liability products segment, was $282 million compared with $239 million as of December 31, 2012. Subsequent to September 30, 2013, National declared and paid a dividend of $214 million to its ultimate parent, MBIA Inc. During the nine months ended September 30, 2013, $115 million was released from an escrow account under the MBIA groups tax sharing agreement (the Tax Escrow Account), which resulted in an increase to MBIAs liquidity position. Management believes that MBIA can support its operating needs for the foreseeable future primarily from its existing liquidity position, expected subsidiary dividends and additional anticipated releases of assets from the Tax Escrow Account, which releases are subject to the risks of National incurring net tax losses in the future and/or declines in the value of the assets held in the Tax Escrow Account. As of September 30, 2013 and December 31, 2012, MBIA Corp.s cash and liquid assets, that were immediately available, totaled $97 million and $345 million, respectively. The Company believes MBIA Corp.s current liquidity position, together with future cash inflows and amounts available under the Blue Ridge Secured Loan, is adequate to make expected future claim payments.
The combination of commutation payments to reduce liabilities and claim payments have placed liquidity pressure on MBIA Corp. MBIA Corp. continues to seek to reduce both the absolute amount and the volatility of its obligations and potential future claim payments through the execution of commutations of insurance policies. During the nine months ended September 30, 2013, MBIA Corp. commuted $19.9 billion of gross insured exposure, primarily comprising structured CMBS pools, investment grade CDOs, ABS CDOs, first-lien subprime RMBS, high yield corporate CDOs, CRE CDOs, structured insurance securities, and first-lien alternative A-paper (Alt-A) RMBS.
8
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
Risks and Uncertainties
The Companys financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause the Company to revise its estimates and assumptions or could cause actual results to differ from the Companys estimates. While the Company believes it continues to have sufficient capital and liquidity to meet all of its expected obligations, if one or more possible adverse outcomes were to be realized, its statutory capital, financial position, results of operations and cash flows could be materially and adversely affected. Significant risks and uncertainties that could affect amounts reported in the Companys financial statements in future periods include, but are not limited to, the following:
|
The amount and timing of potential claims from the Companys second-lien RMBS and remaining insured CMBS pools are potentially volatile, as are the projected collections of excess spread and the remaining put-back recoverables. However, managements expected liquidity and capital forecasts for MBIA Corp., which include expected availability of draws under the Blue Ridge Secured Loan and expected recoveries from the ResCap agreement, reflect adequate resources to pay expected claims. Further, the remaining insured portfolio, aside from these exposures, could deteriorate and result in loss reserves and claim payments. While management believes MBIA Corp. will have adequate resources to pay expected claims, if MBIA Corp. experiences higher than expected claim payments or is unable to commute the remaining exposures that represent substantial risk to the Company, MBIA Corp. may ultimately have insufficient resources to continue to pay claims, which could cause the NYSDFS to put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding. Refer to Note 5: Loss and Loss Adjustment Expense Reserves for information about MBIA Corp.s reserves and recoveries. |
|
The Companys ability to commute insured transactions is limited by available liquidity, including the availability of the Blue Ridge Secured Loan, recoveries from the ResCap agreement and the use of other available financing structures and liquidity, some of which could be subject to regulatory approval by the NYSDFS and/or the United Kingdoms (U.K.) Prudential Regulation Authority. The Companys primary strategy for managing its CMBS pool and ABS CDO exposures has been commutations. There can be no assurance that the Company will be able to fund further commutations through borrowings or otherwise. Refer to Note 5: Loss and Loss Adjustment Expense Reserves for information about the Companys estimate of losses on its exposures. |
|
As of September 30, 2013, MBIA Insurance Corporation was not in compliance with a requirement under the New York Insurance Law (NYIL) to hold qualifying assets in an amount necessary to satisfy its contingency reserves. MBIA Insurance Corporation has reported the deficit to the NYSDFS. In addition, as of September 30, 2013, MBIA Insurance Corporation exceeded its aggregate risk limits and reported an overage related to its single risk limits under NYIL. MBIA Insurance Corporation plans to notify the NYSDFS of these overages and submit a plan to achieve compliance with its limits. While the NYSDFS has not taken action against MBIA Insurance Corporation, the NYSDFS may impose remedial actions for failing to meet these requirements. |
|
MBIA Inc. continues to have liquidity risk. If invested asset performance deteriorates, or the flow of dividends from subsidiaries is interrupted, its liquidity position would be eroded over time. However, management believes that MBIA Inc. has sufficient liquidity resources to meet all of its obligations for the foreseeable future. In order to meet its liquidity requirements, MBIA Inc. may use free cash or other assets or use its ability to finance through intercompany or third-party facilities, although there can be no assurance that these strategies will be available or adequate. A failure by MBIA Inc. to settle liabilities that are also insured by MBIA Corp. could result in claims on MBIA Corp. |
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Changes in fair value of insured credit derivatives can be caused by general market conditions, volatility in MBIA Corp.s credit spreads and volatility on the underlying collateral assets on insured credit derivatives. This may result in significant unrealized gains and losses in the Companys reported results of operations. Refer to Note 6: Fair Value of Financial Instruments for information about the Companys valuation of insured credit derivatives. |
Note 2: Significant Accounting Policies
The Company has disclosed its significant accounting policies in Note 2: Significant Accounting Policies in the Notes to Consolidated Financial Statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2012. The following significant accounting policies provide an update to those included in the Companys Annual Report on Form 10-K.
9
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 2: Significant Accounting Policies (continued)
Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and, accordingly, do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual periods. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Companys consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results.
The results of operations for the three and nine months ended September 30, 2013 may not be indicative of the results that may be expected for the year ending December 31, 2013. The December 31, 2012 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. Certain amounts have been reclassified in the prior years financial statements to conform to the current presentation. This includes the reclassification of accrued interest on surplus notes and senior notes from Other liabilities to Long-term debt on the Companys consolidated balance sheets. Refer to Note 9: Debt for information about the amounts of this reclassification. These reclassifications had no impact on total revenues, expenses, assets, liabilities, shareholders equity, operating cash flows, investing cash flows, or financing cash flows for all periods presented.
Note 3: Recent Accounting Pronouncements
Recently Adopted Accounting Standards
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02)
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02, Comprehensive Income (Topic 220)Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income that requires an entity to present information about the amounts reclassified out of accumulated other comprehensive income (AOCI) by component and to present significant amounts reclassified out of AOCI by the respective line items of net income. The amendment only affects the Companys disclosures and does not affect the Companys consolidated balance sheets, results of operations, or cash flows. The Company adopted this standard in the first quarter of 2013.
Disclosures about Offsetting Assets and Liabilities (ASU 2011-11)
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210)Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 creates new disclosure requirements about the nature of the Companys rights of setoff and related arrangements associated with its financial instruments and derivative instruments. This amendment does not change the existing offsetting eligibility criteria or the permitted balance sheet presentation for those instruments that meet the eligibility criteria. The disclosure requirement was effective for the Company beginning in the first quarter of 2013. In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210)Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that ASU 2011-11 applies only to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. These standards only affect the Companys disclosures and do not affect the Companys consolidated balance sheets, results of operations, or cash flows. The Company adopted this standard in the first quarter of 2013.
10
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 3: Recent Accounting Pronouncements (continued)
Recent Accounting Developments
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11)
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740)Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires presentation of an unrecognized tax benefit (UTB) as a reduction to a deferred tax asset when a net operating loss (NOL) carryforward, a similar tax loss, or a tax credit carryforward exists in the same tax year and jurisdiction as the UTB. ASU 2013-11 does not affect the recognition or measurement of uncertain tax positions under Income Taxes (Topic 740) and does not affect any related tax disclosures. ASU 2013-11 is effective for interim and annual periods beginning January 1, 2014 with early adoption permitted. The Company currently presents any UTBs as a reduction to a deferred tax asset in accordance with ASU 2013-11 as all of its UTBs relate to the same tax years and jurisdictions in which NOLs exist, therefore, this standard will not affect the Companys consolidated balance sheets, results of operations, or cash flows.
Note 4: Variable Interest Entities
Structured Finance and International Insurance
Through MBIAs structured finance and international insurance segment, the Company provides credit protection to issuers of obligations that may involve issuer-sponsored special purpose entities (SPEs). An SPE may be considered a variable interest entity (VIE) to the extent the SPEs total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entitys economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entitys economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests.
The Company evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides the Company with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, the Company determines whether a VIE is required to be consolidated or deconsolidated.
The Company makes its determination for consolidation based on a qualitative assessment of the purpose and design of a VIE, the terms and characteristics of variable interests of an entity, and the risks a VIE is designed to create and pass through to holders of variable interests. The Company generally provides credit protection on obligations issued by VIEs, and holds certain contractual rights according to the purpose and design of a VIE. The Company may have the ability to direct certain activities of a VIE depending on facts and circumstances, including the occurrence of certain contingent events, and these activities may be considered the activities of a VIE that most significantly impact the entitys economic performance. The Company generally considers its guarantee of principal and interest payments of insured obligations, given nonperformance by a VIE, to be an obligation to absorb losses of the entity that could potentially be significant to the VIE. At the time the Company determines it has the ability to direct the activities of a VIE that most significantly impact the economic performance of the entity based on facts and circumstances, MBIA is deemed to have a controlling financial interest in the VIE and is required to consolidate the entity as primary beneficiary. The Company performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE.
Wind-down Operations
In its asset/liability products segment, the Company invests in obligations issued by issuer-sponsored SPEs which are included in fixed-maturity securities held as available-for-sale (AFS). The Company evaluates issuer-sponsored SPEs to determine if the entity is a VIE. For all entities determined to be VIEs, the Company evaluates whether its investment is determined to have both of the characteristics of a controlling financial interest in the VIE. The Company performs an ongoing reassessment of controlling financial interests in issuer-sponsored VIEs based on investments held. MBIAs wind-down operations do not have a controlling financial interest in any issuer-sponsored VIEs and are not the primary beneficiary of any issuer-sponsored VIEs.
11
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Variable Interest Entities (continued)
In the conduit segment, the Company has managed and administered two conduits that invested primarily in debt securities and were funded through the issuance of VIE notes and long-term debt. MBIA Corp. insures the debt obligations of the conduits, and provides credit protection on certain assets held by the conduits. The conduits are VIEs and are consolidated by the Company as primary beneficiary. In 2012, all debt securities held by one of the conduits were entirely repaid, and the proceeds were used to repay all outstanding long-term debt of this conduit. The Company subsequently dissolved this conduit, and no longer provides any related credit protection.
Nonconsolidated VIEs
Insurance
The following tables present the total assets of nonconsolidated VIEs in which the Company holds a variable interest as of September 30, 2013 and December 31, 2012, through its insurance operations. The following tables also present the Companys maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs as of September 30, 2013 and December 31, 2012. The Company has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of the Companys variable interests in nonconsolidated VIEs is related to financial guarantees, insured CDS contracts and any investments in obligations issued by nonconsolidated VIEs.
September 30, 2013 | ||||||||||||||||||||||||||||||||
Carrying Value of Assets | Carrying Value of Liabilities | |||||||||||||||||||||||||||||||
In millions |
VIE
Assets |
Maximum
Exposure to Loss |
Investments (1) |
Premiums
Receivable (2) |
Insurance
Loss Recoverable (3) |
Unearned
Premium Revenue (4) |
Loss and
Loss Adjustment Expense Reserves (5) |
Derivative
Liabilities (6) |
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Insurance: |
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Global structured finance: |
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Collateralized debt obligations |
$ | 13,564 | $ | 7,972 | $ | 118 | $ | 45 | $ | 5 | $ | 38 | $ | 26 | $ | 94 | ||||||||||||||||
Mortgage-backed residential |
22,400 | 9,915 | 11 | 57 | 696 | 56 | 374 | 5 | ||||||||||||||||||||||||
Mortgage-backed commercial |
2,010 | 1,102 | - | 1 | - | 1 | - | - | ||||||||||||||||||||||||
Consumer asset-backed |
6,788 | 2,888 | 9 | 21 | - | 20 | 17 | - | ||||||||||||||||||||||||
Corporate asset-backed |
14,258 | 7,817 | - | 87 | 19 | 103 | - | - | ||||||||||||||||||||||||
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Total global structured finance |
59,020 | 29,694 | 138 | 211 | 720 | 218 | 417 | 99 | ||||||||||||||||||||||||
Global public finance |
51,060 | 20,258 | - | 205 | - | 250 | 5 | - | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
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Total insurance |
$ | 110,080 | $ | 49,952 | $ | 138 | $ | 416 | $ | 720 | $ | 468 | $ | 422 | $ | 99 | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) - | Reported within Investments on MBIAs consolidated balance sheets. |
(2) - | Reported within Premiums receivable on MBIAs consolidated balance sheets. |
(3) - | Reported within Insurance loss recoverable on MBIAs consolidated balance sheets. |
(4) - | Reported within Unearned premium revenue on MBIAs consolidated balance sheets. |
(5) - | Reported within Loss and loss adjustment expense reserves on MBIAs consolidated balance sheets. |
(6) - | Reported within Derivative liabilities on MBIAs consolidated balance sheets. |
12
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Variable Interest Entities (continued)
December 31, 2012 | ||||||||||||||||||||||||||||||||
Carrying Value of Assets | Carrying Value of Liabilities | |||||||||||||||||||||||||||||||
In millions |
VIE
Assets |
Maximum
Exposure to Loss |
Investments (1) |
Premiums
Receivable (2) |
Insurance
Loss Recoverable (3) |
Unearned
Premium Revenue (4) |
Loss and
Loss Adjustment Expense Reserves (5) |
Derivative
Liabilities (6) |
||||||||||||||||||||||||
Insurance: |
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Global structured finance: |
||||||||||||||||||||||||||||||||
Collateralized debt obligations |
$ | 16,925 | $ | 10,873 | $ | - | $ | 62 | $ | 5 | $ | 55 | $ | 37 | $ | 74 | ||||||||||||||||
Mortgage-backed residential |
34,061 | 13,075 | 11 | 77 | 3,278 | 75 | 440 | 4 | ||||||||||||||||||||||||
Mortgage-backed commercial |
4,801 | 2,432 | - | 2 | - | 2 | - | - | ||||||||||||||||||||||||
Consumer asset-backed |
5,820 | 3,086 | 10 | 19 | - | 19 | 21 | - | ||||||||||||||||||||||||
Corporate asset-backed |
19,980 | 9,981 | - | 123 | 13 | 140 | - | - | ||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
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Total global structured finance |
81,587 | 39,447 | 21 | 283 | 3,296 | 291 | 498 | 78 | ||||||||||||||||||||||||
Global public finance |
39,259 | 21,346 | - | 220 | - | 267 | 4 | - | ||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
|
|
|
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Total insurance |
$ | 120,846 | $ | 60,793 | $ | 21 | $ | 503 | $ | 3,296 | $ | 558 | $ | 502 | $ | 78 | ||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
|
(1) - | Reported within Investments on MBIAs consolidated balance sheets. |
(2) - | Reported within Premiums receivable on MBIAs consolidated balance sheets. |
(3) - | Reported within Insurance loss recoverable on MBIAs consolidated balance sheets. |
(4) - | Reported within Unearned premium revenue on MBIAs consolidated balance sheets. |
(5) - | Reported within Loss and loss adjustment expense reserves on MBIAs consolidated balance sheets. |
(6) - | Reported within Derivative liabilities on MBIAs consolidated balance sheets. |
The maximum exposure to loss as a result of MBIAs variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest, net of cessions to reinsurers, which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs.
Other
During the first quarter of 2013, Trifinium Advisors (UK) Limited (Trifinium) began managing a VIE that issues notes for the purpose of funding loans to the U.K. social housing sector. Assets of the VIE totaled approximately $144 million as of September 30, 2013. Trifinium holds de minimis variable interests in the VIE, has no obligation or commitment to provide the financial support or liquidity to the VIE, and is not the primary beneficiary.
Consolidated VIEs
The carrying amounts of assets and liabilities of consolidated VIEs were $6.4 billion and $5.4 billion, respectively, as of September 30, 2013, and $8.3 billion and $7.3 billion, respectively, as of December 31, 2012. The carrying amounts of assets and liabilities are presented separately in Assets of consolidated variable interest entities and Liabilities of consolidated variable interest entities on the Companys consolidated balance sheets. Additional VIEs are consolidated or deconsolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitute power to direct activities of any VIEs are present according to the design and characteristics of these entities. No additional VIEs were consolidated during the nine months ended September 30, 2013 and 2012. There were no net realized gains or losses recorded in the three months ended September 30, 2013 and 2012. During the nine months ended September 30, 2013, the Company recorded a net realized gain of $1 million related to the deconsolidation of VIEs. There were no net realized gains or losses recorded in the nine months ended September 30, 2012.
Holders of insured obligations of issuer-sponsored VIEs related to the Companys structured finance and international insurance segment do not have recourse to the general assets of MBIA. In the event of nonpayment of an insured obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on the respective insured obligation only. The Companys exposure to consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by MBIA. Creditors of the conduits do not have recourse to the general assets of MBIA apart from the financial guarantee insurance policies provided by MBIA Corp. on insured obligations issued by the conduits.
13
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves
Loss and Loss Adjustment Expense Process
U.S. Public Finance
U.S. public finance insured transactions consist of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. The Company estimates future losses by utilizing probability-weighted scenarios that are customized to each insured transaction. Future loss estimates consider debt service due for each insured transaction, which includes par outstanding and interest due.
The Company has established loss and loss adjustment expense (LAE) reserves and an insurance loss recoverable of $94 million and $17 million, respectively, as of September 30, 2013. During the nine months ended September 30, 2013, losses and LAE was $105 million, primarily related to certain general obligation bonds and the loss related to the difference in the value of the salvage receivable previously recorded and the fair market value of the marketable securities received in connection with the restructuring of a gaming revenue transaction.
Certain local governments remain under extreme financial and budgetary stress and several have filed for protection under the United States Bankruptcy Code, or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of the Companys insured transactions. The Company monitors and analyzes these situations closely, however, the overall extent and duration of such events are uncertain. As of September 30, 2013, the Company had $131.5 billion of gross par outstanding on general obligations, of which $251 million was reflected on the Companys Classified List. Capital appreciation bonds are reported at the par amount at the time of issuance of the insurance policy.
Structured Finance and International
As of September 30, 2013, the majority of the structured finance and international insurance segments case basis reserves and insurance loss recoveries recorded in accordance with GAAP were related to insured second-lien and first-lien RMBS transactions. These reserves and recoveries do not include estimates for policies insuring credit derivatives and do not include losses and recoveries on financial guarantee VIEs that are eliminated in consolidation. Policies insuring credit derivative contracts are accounted for as derivatives and carried at fair value under GAAP. The fair values of insured derivative contracts are influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments under the Companys insurance policies. In the absence of credit impairments on insured derivative contracts or the early termination of such contracts at a loss, the cumulative unrealized losses recorded from fair valuing these contracts should reverse before or at the maturity of the contracts.
Notwithstanding the difference in accounting under GAAP for financial guarantee policies and the Companys insured derivatives, insured derivatives have similar terms, conditions, risks, and economic profiles to financial guarantee insurance policies, and therefore, are evaluated by the Company for loss (referred to as credit impairment herein) and LAE periodically in a manner similar to the way that loss and LAE reserves are estimated for financial guarantee insurance policies. Credit impairments represent actual payments and collections plus the present value of estimated expected future claim payments, net of recoveries. MBIA Insurance Corporations expected future claim payments for insured derivatives were discounted using a rate of 5.72%, the same rate it used to calculate its statutory loss reserves as of September 30, 2013. These credit impairments, calculated in accordance with statutory accounting principles (U.S. STAT), differ from the fair values recorded in the Companys consolidated financial statements. The Company considers its credit impairment estimates as critical information for investors as it provides information about loss payments the Company expects to make on insured derivative contracts. As a result, the following loss and LAE process discussion includes information about loss and LAE activity recorded in accordance with GAAP for financial guarantee insurance policies and credit impairments estimated in accordance with U.S. STAT for insured derivative contracts. Refer to Note 6: Fair Value of Financial Instruments included herein for additional information about the Companys insured credit derivative contracts.
To date, the Company has resolved or agreed to resolve substantially all of its contract claims (referred to as put-back claims) related to those mortgage loans whose inclusion in insured securitizations failed to comply with representations and warranties (ineligible loans), with the exception of those ineligible loans securitized by Credit Suisse 2007-2 in the home equity mortgage trust (HEMT) securitization. Credit Suisse has challenged the Companys assessment of the ineligibility of individual mortgage loans and the dispute is the subject of litigation for which there is no assurance that the Company will prevail.
14
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
RMBS Case Basis Reserves and Recoveries (Financial Guarantees)
The Companys RMBS reserves and recoveries relate to financial guarantee insurance policies. The Company calculated RMBS case basis reserves as of September 30, 2013 for both second-lien and first-lien RMBS transactions using a process called the Roll Rate Methodology. The Roll Rate Methodology is a multi-step process using a database of loan level information, a proprietary internal cash flow model, and a commercially available model to estimate expected ultimate cumulative losses on insured bonds. Roll Rate is defined as the probability that current loans become delinquent and that loans in the delinquent pipeline are charged-off or liquidated. Generally, Roll Rates are calculated for the previous three months and averaged. The loss reserve estimates are based on a probability-weighted average of three scenarios of loan losses (base case, stress case, and an additional stress case).
In calculating ultimate cumulative losses for RMBS, the Company estimates the amount of loans that are expected to be charged-off (deemed uncollectible by servicers of the transactions) or liquidated in the future. The Company assumes that charged-off loans have zero recovery values.
Second-lien RMBS Reserves
The Companys second-lien RMBS case basis reserves as of September 30, 2013 relate to RMBS backed by home equity lines of credit (HELOC) and closed-end second mortgages (CES).
The Roll Rates for 30-59 day delinquent loans and 60-89 day delinquent loans are calculated on a transaction-specific basis. The Company assumes that the Roll Rate for 90+ day delinquent loans, excluding foreclosures and Real Estate Owned (REO) is 95%. The Roll Rates are applied to the amounts in the respective delinquency buckets based on delinquencies as of August 31, 2013 to estimate future losses from loans that are delinquent as of the current reporting period.
Roll Rates for loans that are current as of August 31, 2013 (Current Roll to Loss) are also calculated on a transaction-specific basis. A proportion of loans reported current as of August 31, 2013 is assumed to become delinquent every month, at a Current Roll to Loss rate that persists at a high level for a time and subsequently starts to decline. A key assumption in the model is the period of time in which the Company projects high levels of Current Roll to Loss to persist. The Company runs multiple scenarios, each with varying periods of time, for which the high levels of Current Roll to Loss rates persist. Loss reserves are calculated by using a weighted average of these scenarios, with the majority of the probability assigned to stressful scenarios where the high levels of Current Roll to Loss rates persist for six or twenty four months before reverting to historic levels. In the base case scenario, the Company assumes that the Current Roll to Loss begins to decline immediately and continues to decline over the next six months to 25% of their levels as of August 31, 2013. For example, in the base case, as of August 31, 2013, if the amount of current loans which become 30-59 days delinquent is 10%, and recent performance suggests that 30% of those loans will be charged-off, the Current Roll to Loss for the transaction is 3%. In the base case, it is then assumed that the Current Roll to Loss will reduce linearly to 25% of its original value over the next six months (i.e., 3% will linearly reduce to 0.75% over the six months from September 2013 to February 2014). After that six-month period, the Company further reduces the Current Roll to Loss to 0% by early to mid-2014 with the expectation that the performing seasoned loans will eventually result in loan performance reverting to lower levels of default consistent with history.
In addition, in the Companys loss reserve models for transactions secured by HELOCs, the Company considers borrower draw and prepayment rates and factors that could affect the excess spread generated by current loans, which offsets losses and reduces payments. For HELOCs, the current three-month average draw rate is generally used to project future draws on the line. For HELOCs and transactions secured by fixed-rate CES, the three-month average conditional prepayment rate is generally used to start the projection for trends in voluntary principal prepayments. Due to the current volatility in mortgage prepayment rates, which influence mortgage refinancing and voluntary principal prepayment rates, the Company used historical average mortgage rates to model its loss reserves in the third quarter of 2013. Projected cash flows are also based on an assumed constant basis spread between floating rate assets and floating rate insured debt obligations (the difference between prime and London Interbank Offered Rate (LIBOR) interest rates, minus any applicable fees). For all transactions, cash flow models consider allocations and other structural aspects of the transactions, including managed amortization periods, rapid amortization periods and claims against MBIA Corp.s insurance policy consistent with such policys terms and conditions. In developing multiple loss scenarios, stress is applied by elongating the Current Roll to Loss rate for various periods, simulating a slower improvement in the transaction performance. The estimated net claims from the procedure above are then discounted using a risk-free rate to a net present value reflecting MBIAs general obligation to pay claims over time and not on an accelerated basis. The above assumptions represent MBIAs probability-weighted estimates of how transactions will perform over time.
15
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The Company monitors portfolio performance on a monthly basis against projected performance, reviewing delinquencies, Roll Rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, the Company would increase or decrease the case basis reserves accordingly. If actual performance were to remain at the peak levels for six additional months compared to the probability-weighted outcome currently used by the Company, the addition to the case basis reserves would be approximately $85 million.
Second-lien RMBS Recoveries
The Company primarily records two types of recoveries related to insured second-lien RMBS exposures; recoveries related to put-back claims on ineligible mortgages and excess spread that is generated from performing loans in the insured transactions.
Ineligible Mortgage Loans
As of September 30, 2013, the Company recorded estimated recoveries of $1.1 billion, gross of income taxes, related to second-lien RMBS put-back claims on ineligible mortgage loans, consisting of $18 million included in Insurance loss recoverable and $1.1 billion included in Loan repurchase commitments presented under the heading Assets of consolidated variable interest entities on the Companys consolidated balance sheets. As of September 30, 2013 and December 31, 2012, the Companys estimated recoveries after income taxes calculated at the federal statutory rate of 35%, were $737 million and $2.3 billion, respectively, which was 23% and 73% of the consolidated total shareholders equity of MBIA, excluding preferred stock of subsidiaries and noncontrolling interests, respectively. As of September 30, 2013, the remaining estimated recoveries relate to the Companys claims based on ineligible mortgage loans asserted against Credit Suisse and the agreed to claims and recoveries against the bankruptcy estates of RFC, GMAC and ResCap as reflected in a disclosure statement filed in August of 2013.
On May 14, 2012, ResCap and its wholly-owned subsidiary companies, RFC and GMAC, each filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. MBIA asserted claims based on the inclusion of ineligible loans against RFC, GMAC and ResCap, based upon the direct contractual relationship between the Company, RFC and GMAC.
As of May 23, 2013, Ally, ResCap, RFC, GMAC and the Consenting Claimants (which includes MBIA), among other parties, executed a term sheet and supplemental term sheet agreeing to, among other things, a settlement amount of $796 million to be paid to MBIA as part of a proposed plan to resolve claims against Ally and RFC, GMAC and ResCap. In August of 2013, a disclosure statement filed indicated an increased expected recovery for MBIA of approximately $828 million. The increased recovery was primarily due to the favorable disposition of assets and settlements of claims. The settlement and anticipated recoveries are consistent with the put-back recoveries recorded by the Company. The agreement will be implemented through a plan of reorganization in ResCaps Chapter 11 cases, subject to bankruptcy court approval. In June of 2013, the bankruptcy court issued a Memorandum Opinion approving the Plan. The Plan is subject to confirmation by the bankruptcy court, with confirmation hearings currently scheduled in November 2013. MBIA anticipates an initial distribution of funds to the Company and other claimants in late 2013 or early 2014. This anticipated timeline may change due to developments related to the Junior Secured Note litigation, which occurred in October of 2013, or other matters that develop in the course of events in the bankruptcy court plan confirmation process.
The Company continues to refine the indicative scenarios used to calculate put-back recoveries for ResCap based upon information received during the bankruptcy process. The Company has made additional adjustments to its recovery calculations related to ResCap in consideration of the agreed upon recovery amount as described in the executed term sheet, supplemental term sheet and plan support agreement submitted in motions filed in May of 2013. During the third quarter of 2013, MBIA made additional refinements to the probability assumptions utilized to calculate the Companys expected recoveries. The revisions were based upon the submission of documents related to the Plan.
In addition, the Company believes that it will prevail in enforcing its contractual put-back rights against Credit Suisse. Based on the Companys assessment of the strength of these claims, the Company believes it is entitled to collect the full amount of its incurred losses, and interest on amounts paid. However, uncertainty remains with respect to the ultimate outcome of the litigation with Credit Suisse, which is contemplated in the scenario based-modeling the Company utilizes. The Credit Suisse recovery scenarios are based on the amount of incurred losses measured against certain probabilities of ultimate resolution of the dispute with Credit Suisse over the inclusion of ineligible mortgage loans in the HEMT securitization. Most of the probability weight is assigned to partial recovery scenarios.
Expected cash inflows from put-back recoveries are discounted using the current risk-free discount rates associated with the underlying transactions cash flows which ranged from 1.4% to 2.7%, depending upon the transactions expected average life, which ranged from 5.0 years to 10.4 years.
16
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The Company consistently reviews the approach and assumptions it applies to calculate put-back recoveries. The same transactional documents that provide the Company with its put-back rights against Credit Suisse also provide that the Company is entitled to reimbursement of interest on paid claims at a prescribed interest rate. Following Judge Jed Rakoffs decision on February 7, 2013 in the Assured Guaranty v. Flagstar case (Assured Guaranty Municipal Corp. v. Flagstar Bank, 11-cv-02375, U.S. District Court, Southern District of New York (Manhattan)), in which he confirmed Assured Guarantys analogous right to recover contractual interest in addition to claims paid, the Company has refined its put-back recovery assumptions against Credit Suisse to increase the probability that it will be reimbursed for contractual interest owed on paid claims. Consistent with the Companys probability based put-back recovery calculations, it has determined the interest owed contemplating litigation risk and repayment risk, as well as the potential value in the context of a settlement. The Company continues to maintain that in the context of its put-back litigation, the Company is entitled to receive interest at the New York State statutory rate. However, the Company currently calculates its put-back recoveries using the contractual interest rate, which is lower than the New York State statutory rate.
To date, MBIA has either settled or agreed to settle the majority of the Companys put-back claims, with only Credit Suisse remaining as an outstanding dispute. The settlement amounts have been consistent with the put-back recoveries previously included in the Companys financial statements. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the BofA Settlement Agreement. Additional information on the status of the litigation against Credit Suisse can be found in the Recovery Litigation discussion within Note 14: Commitments and Contingencies.
The Companys assessment of the remaining unsettled recoveries related to insured Credit Suisse second-lien RMBS is principally based on the following factors:
1. | the settlement of the majority of the Companys put-back claims with sellers/servicers, including those with Bank of America and Flagstar Bank in May of 2013; |
2. | Assured Guarantys favorable court ruling in its put-back litigation against Flagstar Bank, awarding it the vast majority of the claims paid on the relevant transactions plus interest, fees and expenses, as well as their subsequent settlement with Flagstar Bank, which resolved Assured Guarantys put-back claims; and |
3. | the court rulings in MBIAs put-back litigations. |
The Company continues to consider all relevant facts and circumstances, including the factors described above, in developing its assumptions on expected cash inflows, probability of potential recoveries (including the outcome of litigation) and recovery period. The estimated amount and likelihood of potential recoveries are expected to be revised and supplemented to the extent there are developments in the pending litigation and/or changes to the financial condition of Credit Suisse. While the Company believes it will be successful in realizing recoveries from contractual claims, the ultimate amounts recovered may be materially different from those recorded by the Company given the inherent uncertainty of the manner of resolving the claims (e.g., litigation) and the assumptions used in the required estimation process for accounting purposes which are based, in part, on judgments and other information that are not easily corroborated by historical data or other relevant benchmarks.
All of the Companys policies insuring second-lien RMBS for which litigation has been initiated against sellers/servicers are in the form of financial guarantee insurance contracts. In accordance with GAAP, the Company has not recorded a gain contingency with respect to pending litigation.
Excess Spread
As of September 30, 2013, the Company recorded estimated recoveries of $756 million in reimbursement of past and future expected claims through excess spread in insured second-lien RMBS transactions. Of the expected reimbursement from excess spread, $669 million is included in Insurance loss recoverable and $87 million is included in Loss and loss adjustment expense reserves on the Companys consolidated balance sheets. Excess spread is generated by performing loans within insured RMBS securitizations and is the difference between interest inflows on mortgage loan collateral and interest outflows on insured beneficial interests. The amount of excess spread depends on the future delinquency and loss trends, future prime and LIBOR interest rates and borrower refinancing behavior, which results in voluntary prepayments.
First-lien RMBS Reserves
The Companys first-lien RMBS case basis reserves as of September 30, 2013, which primarily relate to RMBS backed by Alt-A and subprime mortgage loans, were determined using the Roll Rate Methodology. The Company assumes that the Roll Rate for loans in foreclosure, REO and bankruptcy are 90%, 90% and 75%, respectively. Roll Rates for current, 30-59 day delinquent loans, 60-89 day delinquent loans and 90+ day delinquent loans are calculated on a transaction-specific basis. The Current Roll to Loss rates stay at the August 31, 2013 level for one month before declining to 25% of this level over a 24-month period.
17
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The Company estimates future losses by utilizing three different probability-weighted scenarios: base; stress; and additional stress. The three scenarios differ in the roll rates to loss of 90+ day delinquent loans. In the base scenario, the Company uses deal-specific roll rates obtained from historic loan level roll rate data. In the stress scenario, the Company assumes a 90% roll rate for all 90+ day delinquent loans. In the additional stress scenario, the roll rates for each deal are an average of the deal-specific roll rate used in the base scenario and the 90% rate. The Roll Rates are applied to the amounts in each deals respective 90+ delinquency bucket based on delinquencies as of August 31, 2013 in order to estimate future losses from loans that are delinquent as of September 30, 2013.
In calculating ultimate cumulative losses for first-lien RMBS, the Company estimates the amount of loans that are expected to be liquidated through foreclosure or short sale. The time to liquidation for a defaulted loan is specific to the loans delinquency bucket with the latest three-month average loss severities generally used to start the projection for trends in loss severities at loan liquidation. The loss severities are reduced over time to account for reduction in the amount of foreclosure inventory, anticipated future increases in home prices, principal amortization of the loan and government foreclosure moratoriums.
ABS CDOs (Financial Guarantees and Insured Derivatives)
MBIAs insured ABS CDOs are transactions that include a variety of collateral ranging from corporate bonds to structured finance assets (which includes but are not limited to RMBS related collateral, ABS CDOs, corporate CDOs and collateralized loan obligations). These transactions were insured as either financial guarantee insurance policies or credit derivatives with the majority currently insured in the form of financial guarantees. Since the fourth quarter of 2007, MBIAs insured par exposure within the ABS CDO portfolio has been substantially reduced through a combination of terminations and commutations. Accordingly, as of September 30, 2013, the insured par exposure of the ABS CDO financial guarantee insurance policies and credit derivatives portfolio has declined by approximately 96% of the insured amount as of December 31, 2007.
The Companys ABS CDOs originally benefited from two sources of credit enhancement. First, the subordination in the underlying securities collateralizing the transaction must be fully eroded and second, the subordination below the insured tranche in the CDO transaction must be fully eroded before the insured tranche is subject to a claim. The Companys payment obligations after a default are timely interest and ultimate principal.
The primary factor in estimating reserves on insured ABS CDO policies written as financial guarantee insurance policies and in estimating impairments on insured ABS CDO credit derivatives is the losses associated with the underlying collateral in the transactions. MBIAs approach to establishing reserves or impairments in this portfolio employs a methodology which is similar to other structured finance asset classes insured by MBIA. The Company utilizes up to a total of four probability-weighted scenarios in order to estimate its reserves or impairments for ABS CDOs.
As of September 30, 2013, the Company established loss and LAE reserves totaling $87 million related to ABS CDO financial guarantee insurance policies after the elimination of $196 million as a result of consolidating VIEs. For the nine months ended September 30, 2013, the Company had a benefit of $47 million of losses and LAE recorded in earnings related to ABS CDO financial guarantee insurance policies after the elimination of a $39 million benefit as a result of consolidating VIEs. In the event of further deteriorating performance of the collateral referenced or held in ABS CDO transactions, the amount of losses estimated by the Company could increase substantially.
Credit Impairments Related to Structured CMBS Pools, CRE CDOs and CRE Loan Pools (Financial Guarantees and Insured Derivatives)
Most of the structured CMBS pools, CRE CDOs and CRE loan pools insured by MBIA are accounted for as insured credit derivatives and are carried at fair value in the Companys consolidated financial statements. Since the Companys insured credit derivatives have similar terms, conditions, risks, and economic profiles to its financial guarantee insurance policies, the Company evaluates them for impairment in the same way that it estimates loss and LAE for its financial guarantee policies. The following discussion provides information about the Companys process for estimating credit impairments on these contracts using its statutory loss reserve methodology, determined as the present value of the probability-weighted potential future losses, net of estimated recoveries, across multiple scenarios, plus actual payments and collections.
The Company has developed multiple scenarios to consider the range of potential outcomes in the CRE market and their impact on MBIA. The approaches require substantial judgments about the future performance of the underlying loans, and include the following:
|
The first approach considers the range of commutation agreements achieved over the past several years with multiple counterparties and results in an estimated price to commute the remaining policies. It is customized by counterparty and is dependent upon the level of dialogue with the counterparty and the credit quality and payment profile of the underlying exposure. |
18
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
|
The second approach considers current delinquency rates and uses current and projected net operating income (NOI) and capitalization rates (Cap Rates) to project losses under two scenarios. These scenarios assume that property performance remains flat for the near term and then improves gradually. Additionally, certain large loans are reviewed individually so that performance and loss severity can be more accurately determined. Other loans are reviewed for factors that may mitigate potential performance. This approach utilizes two scenarios which vary in the levels of expected future defaults. |
|
The last approach is based on a proprietary model developed by reviewing performance data on over 80,000 securitized CRE loans originated between 1992 and 2011. The time period covered during the performance review includes the years 2006 through 2011 because they encompass a period of extreme stress in the economy and the CRE markets. The Company found property type and the debt service coverage ratio to be the most significant determinants of a loans average annual default probability, and developed a model based on these factors. The Company then ran Monte Carlo simulations to estimate the timing of defaults and losses at the property level by applying property type-based Cap Rates to estimate the propertys NOI. |
The loss severities projected by these scenarios vary widely, from moderate to substantial losses. Actual losses will be a function of the proportion of loans in the pools that are foreclosed and liquidated and the loss severities associated with those liquidations. If the deductibles in the Companys insured transactions and underlying referenced CMBS transactions are fully eroded, additional property level losses upon foreclosures and liquidations could result in substantial losses for MBIA. Ultimate loss rates remain uncertain because many loans are still delinquent and have not yet been resolved, others have been modified and others do not mature for another three to four years at which time they will face the need to refinance. The Company assigns a wide range of probabilities to these scenarios and incorporates views that liquidations will continue to be mitigated by loan extensions and modifications, and that property values and NOIs have bottomed for many sectors and markets in the U.S. The weightings are customized for each counterparty. If macroeconomic stress were to increase or the U.S. enters into a recession, higher delinquencies, liquidations and/or higher severities of loss upon liquidation may result and the Company may incur substantial additional losses. The foreclosure and REO pipelines are still relatively robust, with several restructurings and liquidations yet to occur, so the range of possible outcomes is wider than those for the Companys exposures to ABS CDOs and second-lien RMBS. Prior to June 30, 2013, the Company incorporated an additional approach based on recent Roll Rates experienced within each of the commercial mortgage-backed index series. This actuarial approach was eliminated as a result of more emphasis being placed on loan-specific scenarios.
In the CRE CDO portfolio, transaction-specific structures require certain reporting and management protocols and often require the Company to incorporate these structural distinctions into its models. None of the CRE CDOs insured by the Company allow for reinvesting at this time, and many of the senior bonds have begun to amortize.
For the nine months ended September 30, 2013, the Company had a benefit of $28 million of losses and LAE recorded in earnings related to CRE CDO financial guarantee insurance policies. For the nine months ended September 30, 2013, additional credit impairments and LAE for insured derivatives on structured CMBS pools, CRE CDOs and CRE loan pools were estimated to be $487 million as a result of additional delinquencies and loan level liquidations, as well as continued refinements of MBIAs assessment of various commutation possibilities. The cumulative credit impairments and LAE on structured CMBS pools, CRE CDOs and CRE loan pools were estimated to be $4.1 billion through September 30, 2013. Though the pace of increases in the delinquency rate has slowed, many loans are being modified and liquidations continue to take place. Loan level losses have ranged from 1% to 2%, to near complete losses, and in a few cases severities exceeded 100%. These liquidations have led to bond level losses which have reduced the level of enhancement to the individual CMBS bonds referenced by the insured structured CMBS pools and in certain cases have resulted in deductible erosion. Bond level enhancement and pool level deductibles are structural features intended to mitigate losses to the Company, however, some of the transactions reference similar rated subordinate tranches of CMBS bonds. When there are broad-based declines in property performance, this leverage can result in rapid deterioration in pool performance. Beginning in the second quarter of 2013, the Company paid claims on a CMBS pool transaction that experienced deterioration such that all remaining deductible was eliminated.
19
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
Loss and LAE Activity
Financial Guarantee Insurance Losses (Non-Derivative)
The Companys financial guarantee insurance losses and LAE for the nine months ended September 30, 2013 are presented in the following table:
Losses and LAE | ||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
In millions |
Second-lien
RMBS |
First-lien
RMBS |
Other (1) | Total | ||||||||||||
Losses and LAE related to actual and expected payments |
$ | 85 | $ | 12 | $ | 108 | $ | 205 | ||||||||
Recoveries of actual and expected payments |
(177) | (11) | 76 | (112) | ||||||||||||
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|
|
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Gross losses incurred |
(92) | 1 | 184 | 93 | ||||||||||||
Reinsurance |
- | - | (1) | (1) | ||||||||||||
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|
|
|
|
|
|
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Losses and LAE |
$ | (92) | $ | 1 | $ | 183 | $ | 92 | ||||||||
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|
|
|
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(1) - | Includes ABS CDOs, CMBS, U.S. public finance and other issues. |
The losses and LAE related to actual and expected payments included in the preceding table primarily related to $108 million in other exposures, including $86 million of losses related to U.S. public finance transactions primarily related to certain general obligation issues. The second-lien RMBS losses and LAE related to actual and expected payments comprise net increases of previously established reserves. The recoveries of actual and expected payments were primarily related to second-lien RMBS recoveries of $177 million, including $316 million in recoveries primarily resulting from ineligible mortgage loans included in insured exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgages, partially offset by a $139 million reduction in excess spread. Partially offsetting increases in second-lien RMBS recoveries of actual and expected payments were decreases of $76 million related to other issues primarily resulting from a reversal of recoveries related to high yield corporate CDOs.
The following table provides information about the financial guarantees and related claim liability included in each of MBIAs surveillance categories as of September 30, 2013:
Surveillance Categories | ||||||||||||||||||||
$ in millions |
Caution
List Low |
Caution
List Medium |
Caution
List High |
Classified
List |
Total | |||||||||||||||
Number of policies |
89 | 20 | 6 | 192 | 307 | |||||||||||||||
Number of issues (1) |
31 | 15 | 5 | 135 | 186 | |||||||||||||||
Remaining weighted average contract period (in years) |
10.8 | 5.3 | 9.6 | 9.6 | 9.8 | |||||||||||||||
Gross insured contractual payments outstanding: (2) |
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Principal |
$ | 5,686 | $ | 1,099 | $ | 65 | $ | 8,332 | $ | 15,182 | ||||||||||
Interest |
3,998 | 279 | 32 | 4,819 | 9,128 | |||||||||||||||
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|
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|
|
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Total |
$ | 9,684 | $ | 1,378 | $ | 97 | $ | 13,151 | $ | 24,310 | ||||||||||
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|
|
|
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Gross claim liability |
$ | - | $ | - | $ | - | $ | 1,504 | $ | 1,504 | ||||||||||
Less: |
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Gross potential recoveries |
- | - | - | 1,264 | 1,264 | |||||||||||||||
Discount, net |
- | - | - | 272 | 272 | |||||||||||||||
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|
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Net claim liability (recoverable) |
$ | - | $ | - | $ | - | $ | (32) | $ | (32) | ||||||||||
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|
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Unearned premium revenue |
$ | 129 | $ | 20 | $ | 1 | $ | 101 | $ | 251 |
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. |
20
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The following table provides information about the financial guarantees and related claim liability included in each of MBIAs surveillance categories as of December 31, 2012:
Surveillance Categories | ||||||||||||||||||||
$ in millions |
Caution
List Low |
Caution
List Medium |
Caution
List High |
Classified
List |
Total | |||||||||||||||
Number of policies |
54 | 25 | 10 | 206 | 295 | |||||||||||||||
Number of issues (1) |
29 | 15 | 10 | 136 | 190 | |||||||||||||||
Remaining weighted average contract period (in years) |
8.1 | 4.0 | 7.6 | 9.5 | 8.7 | |||||||||||||||
Gross insured contractual payments outstanding: (2) |
||||||||||||||||||||
Principal |
$ | 4,250 | $ | 1,176 | $ | 373 | $ | 9,458 | $ | 15,257 | ||||||||||
Interest |
2,721 | 256 | 120 | 5,264 | 8,361 | |||||||||||||||
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|
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Total |
$ | 6,971 | $ | 1,432 | $ | 493 | $ | 14,722 | $ | 23,618 | ||||||||||
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Gross claim liability |
$ | - | $ | - | $ | - | $ | 1,589 | $ | 1,589 | ||||||||||
Less: |
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Gross potential recoveries |
- | - | - | 4,109 | 4,109 | |||||||||||||||
Discount, net |
- | - | - | 229 | 229 | |||||||||||||||
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Net claim liability (recoverable) |
$ | - | $ | - | $ | - | $ | (2,749) | $ | (2,749) | ||||||||||
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Unearned premium revenue |
$ | 142 | $ | 11 | $ | 3 | $ | 122 | $ | 278 |
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA. |
The gross claim liability as of September 30, 2013 and December 31, 2012 in the preceding tables represents the Companys estimate of undiscounted probability-weighted future claim payments, which principally relate to insured first and second-lien RMBS transactions and U.S. public finance transactions. The gross potential recoveries represent the Companys estimate of undiscounted probability-weighted recoveries of actual claim payments and recoveries of estimated future claim payments, and principally relate to insured second-lien RMBS transactions and U.S. public finance transactions. The Companys recoveries have been, and remain based on either salvage rights, the rights conferred to MBIA through the transactional documents (inclusive of the insurance agreement), or subrogation rights embedded within financial guarantee insurance policies. Expected salvage and subrogation recoveries, as well as recoveries from other remediation efforts, reduce the Companys claim liability. Once a claim payment has been made, the claim liability has been satisfied and MBIAs right to recovery is no longer considered an offset to future expected claim payments, it is recorded as a salvage asset. The amount of recoveries recorded by the Company is limited to paid claims plus the present value of projected future claim payments. As claim payments are made, the recorded amount of potential recoveries may exceed the remaining amount of the claim liability for a given policy. The gross claim liability and gross potential recoveries reflect the elimination of claim liabilities and potential recoveries related to VIEs consolidated by the Company.
21
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The following table presents the components of the Companys loss and LAE reserves and insurance loss recoverable as reported on the Companys consolidated balance sheets as of September 30, 2013 and December 31, 2012 for insured obligations within MBIAs Classified List. The loss reserves (claim liability) and insurance claim loss recoverable included in the following table represent the present value of the probability-weighted future claim payments and recoveries reported in the preceding tables.
In millions |
As of
September 30, 2013 |
As of
December 31, 2012 |
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Loss reserves (claim liability) |
$ | 635 | $ | 790 | ||||
LAE reserves |
53 | 63 | ||||||
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Loss and LAE reserves |
$ | 688 | $ | 853 | ||||
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Insurance claim loss recoverable |
$ | (737) | $ | (3,610) | ||||
LAE insurance loss recoverable |
(5) | (38) | ||||||
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Insurance loss recoverable |
$ | (742) | $ | (3,648) | ||||
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Reinsurance recoverable on unpaid losses |
$ | 7 | $ | 14 | ||||
Reinsurance recoverable on paid losses |
- | 1 | ||||||
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Reinsurance recoverable on paid and unpaid losses |
$ | 7 | $ | 15 | ||||
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As of September 30, 2013, loss and LAE reserves include $1.0 billion of reserves for expected future payments offset by expected recoveries of such future payments of $326 million. As of December 31, 2012, loss and LAE reserves included $1.2 billion of reserves for expected future payments offset by expected recoveries of such future payments of $332 million. As of September 30, 2013, the insurance loss recoverable principally related to expected future recoveries on second-lien RMBS transactions resulting from expected excess spread generated by performing loans in such transactions. As of December 31, 2012, the insurance loss recoverable principally related to estimated recoveries of payments made by the Company resulting from ineligible mortgage loans in certain insured second-lien residential mortgage loan securitizations that are subject to a contractual obligation by the sellers/servicers to repurchase or replace the ineligible mortgage loans and expected future recoveries on second-lien RMBS transactions resulting from expected excess spread generated by performing loans in such transactions.
To date, as a result of the Bank of America and Flagstar Bank settlements, as well as the agreement between Consenting Claimants, ResCap and Ally, in the ResCap bankruptcy proceeding discussed above, the Company expects to be reimbursed for the majority of its potential recoveries related to ineligible mortgage loans by the end of 2013 or early 2014, which are primarily included in Loan repurchase commitments presented under the heading Assets of consolidated variable interest entities on the Companys consolidated balance sheets.
For the nine months ended September 30, 2013, the Company collected approximately $2.9 billion, net of reinsurance, of which $2.8 billion, net of reinsurance, related to insured second-lien RMBS transactions. The Company made payments of $372 million, of which $166 million related to insured second-lien RMBS transactions and $134 million related to U.S. public finance issues.
For the nine months ended September 30, 2013, the decrease in insurance loss recoverable related to paid losses totaled $2.9 billion, and primarily resulted from the collections of previously established recoveries related to the settlement with Bank of America on the ineligible mortgage loans related to insured second-lien RMBS transactions.
The following table presents the amounts of the Companys second-lien RMBS exposure, gross undiscounted claim liability and potential recoveries related to non-consolidated VIEs and consolidated VIEs, included in the Companys Classified List, as of September 30, 2013.
Second-lien RMBS Exposure | Outstanding | Gross Undiscounted | ||||||||||||||||||
$ in billions |
Issues |
Gross
Principal |
Gross
Interest |
Claim
Liability |
Potential
Recoveries |
|||||||||||||||
Non-consolidated VIEs |
23 | $ | 3.6 | $ | 1.3 | $ | 0.2 | $ | 0.9 | |||||||||||
Consolidated VIEs |
11 | $ | 1.8 | $ | 0.7 | $ | 0.1 | $ | 1.4 |
22
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The following table presents changes in the Companys loss and LAE reserves for the nine months ended September 30, 2013. Changes in the loss and LAE reserves attributable to the accretion of the claim liability discount, changes in discount rates, changes in the timing and amounts of estimated payments and recoveries, changes in assumptions and changes in LAE reserves are recorded in Losses and loss adjustment expenses in the Companys consolidated statements of operations. As of September 30, 2013, the weighted average risk-free rate used to discount the Companys loss reserves (claim liability) was 2.11%. LAE reserves are expected to be settled within a one-year period and are not discounted.
In millions | Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Gross Loss
|
Loss Payments
for Cases with Reserves |
Accretion of
Claim Liability Discount |
Changes in
Discount Rates |
Changes in
Assumptions |
Changes in
Unearned Premium Revenue |
Changes in
LAE Reserves |
Other (1) |
Gross Loss
and LAE Reserves as of September 30, 2013 |
||||||||||||||||||||||||||
$ | 853 | $ | (293) | $ | 10 | $ | (71) | $ | 116 | $ | 2 | $ | (10) | $ | 81 | $ | 688 | |||||||||||||||||
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(1) - | Primarily changes in amount and timing of payments. |
The decrease in the Companys gross loss and LAE reserves reflected in the preceding table was primarily due to a decrease in reserves related to loss payments on insured first and second-lien RMBS securitizations and U.S. public finance issues, partially offset by changes in assumptions.
Current period changes in the Companys estimate of potential recoveries may be recorded as an insurance loss recoverable asset, netted against the gross loss and LAE reserve liability, or both. The following table presents changes in the Companys insurance loss recoverable and changes in recoveries on unpaid losses reported within the Companys claim liability for the nine months ended September 30, 2013. Changes in insurance loss recoverable attributable to the accretion of the discount on the recoverable, changes in discount rates, changes in the timing and amounts of estimated collections, changes in assumptions and changes in LAE recoveries are recorded in Losses and loss adjustment expenses in the Companys consolidated statements of operations.
Changes in Insurance Loss Recoverable and Recoveries on Unpaid
Losses
for the Nine Months Ended September 30, 2013 |
||||||||||||||||||||||||||||||||
In millions |
Gross
Reserve as of December 31, 2012 |
Collections
for Cases with Recoveries |
Accretion
of Recoveries |
Changes
in Discount Rates |
Changes
in Assumptions |
Changes
in LAE Recoveries |
Other (1) |
Gross
Reserve as of September 30, 2013 |
||||||||||||||||||||||||
Insurance loss recoverable |
$ | 3,648 | $ | (2,981) | $ | 16 | $ | (25) | $ | 129 | $ | (33) | $ | (12) | $ | 742 | ||||||||||||||||
Recoveries on unpaid losses |
332 | - | 4 | (27) | 15 | 2 | - | 326 | ||||||||||||||||||||||||
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|
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Total |
$ | 3,980 | $ | (2,981) | $ | 20 | $ | (52) | $ | 144 | $ | (31) | $ | (12) | $ | 1,068 | ||||||||||||||||
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(1) | Primarily changes in amount and timing of collections. |
The Companys insurance loss recoverable decreased during 2013 primarily due to recoveries associated with issues outstanding as of December 31, 2012, which related to the settlement with Bank of America on the ineligible mortgage loans included in insured second-lien residential mortgage securitization exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgages. Recoveries on unpaid losses decreased primarily due to changes in discount rates, partially offset by changes in assumptions.
The following table presents the Companys total estimated recoveries from ineligible mortgage loans included in certain insured second-lien mortgage loan securitizations as of September 30, 2013. The total estimated recoveries from ineligible mortgage loans of $1.1 billion include $18 million recorded as Insurance loss recoverable and $1.1 billion recorded as Loan repurchase commitments presented under the heading Assets of consolidated variable interest entities on the Companys consolidated balance sheets.
23
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
In millions | ||||||||||||||||||||||||||
Total Estimated
2012 |
Accretion
of Future Collections |
Changes in
Discount Rates |
Recoveries
(Collections) |
Changes in
Assumptions |
Other (1) |
Total Estimated
Recoveries from Ineligible Mortgage Loans as of September 30, 2013 |
||||||||||||||||||||
$ | 3,583 | $ | 20 | $ | (7) | $ | (2,897) | $ | 433 | $ | 1 | $ | 1,133 | |||||||||||||
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|
(1) | Primarily changes in amount and timing of collections. |
The decrease in the Companys total estimated recoveries from ineligible mortgage loans in the preceding table primarily resulted from the collections of previously established recoveries related to the settlement with Bank of America and Flagstar Bank on the ineligible mortgage loans related to insured second-lien RMBS securitizations.
Remediation actions may involve, among other things, waivers or renegotiations of financial covenants or triggers, waivers of contractual provisions, the granting of consents, transfer of servicing, consideration of restructuring plans, acceleration, security or collateral enforcement, actions in bankruptcy or receivership, litigation and similar actions. The types of remedial actions pursued are based on the insured obligations risk type and the nature and scope of the event giving rise to the remediation. As part of any such remedial actions, MBIA seeks to improve its security position and to obtain concessions from the issuer of the insured obligation. From time to time, the issuer of an MBIA-insured obligation may, with the consent of MBIA, restructure the insured obligation by extending the term, increasing or decreasing the par amount or decreasing the related interest rate, with MBIA insuring the restructured obligation.
Costs associated with remediating insured obligations assigned to the Companys Caution ListLow, Caution ListMedium, Caution ListHigh and Classified List are recorded as LAE. LAE is primarily recorded as part of the Companys provision for its loss reserves and included in Losses and loss adjustment expenses on the Companys consolidated statements of operations. The following table presents the gross expenses related to remedial actions for insured obligations:
Nine Months Ended September 30, | ||||||||
In millions |
2013 | 2012 | ||||||
Loss adjustment expense incurred, gross |
$ | 31 | $ | 113 |
Note 6: Fair Value of Financial Instruments
Fair Value Measurement
Fair value is a market-based measure considered from the perspective of a market participant. Therefore, even when market assumptions are not readily available, the Companys own assumptions are set to reflect those which it believes market participants would use in pricing an asset or liability at the measurement date. The fair value measurements of financial instruments held or issued by the Company are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, the Company uses alternate valuation methods, including either dealer quotes for similar instruments or modeling using market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions and changes to such estimates and assumptions may produce materially different fair values.
The accounting guidance for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those the Company believes that market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect the Companys beliefs about the assumptions market participants would use in pricing an asset or liability based on the best information available. The fair value hierarchy is broken down into three levels based on the observability and reliability of inputs, as follows:
|
Level 1Valuations based on quoted prices in active markets for identical assets or liabilities that the Company can access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail any degree of judgment. |
24
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
|
Level 2Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. |
|
Level 3Valuations based on inputs that are unobservable and supported by little or no market activity and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
The availability of observable inputs can vary from product to product and period to period and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the product. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the Company assigns the level in the fair value hierarchy for which the fair value measurement in its entirety falls, based on the least observable input that is significant to the fair value measurement.
Financial Assets (excluding derivative assets)
Financial assets, excluding derivative assets, held by the Company primarily consist of investments in debt securities. Substantially all of the Companys investments are priced by independent third parties, including pricing services and brokers. Typically the Company receives one pricing service value or broker quote for each instrument, which represents a non-binding indication of value. The Company reviews the assumptions, inputs and methodologies used by pricing services and brokers to obtain reasonable assurance that the prices used in its valuations reflect fair value. When the Company believes a third-party quotation differs significantly from its internally developed expectation of fair value, whether higher or lower, the Company reviews its data or assumptions with the provider. This review includes comparing significant assumptions such as prepayment speeds, default ratios, forward yield curves, credit spreads and other significant quantitative inputs to internal assumptions, and working with the price provider to reconcile the differences. The price provider may subsequently provide an updated price. In the event that the price provider does not update its price, and the Company still does not agree with the price provided, the Company will try to obtain a price from another third-party provider, such as a broker, or use an internally developed price which it believes represents the fair value of the investment. The fair values of investments for which internal prices were used were not significant to the aggregate fair value of the Companys investment portfolio as of September 30, 2013 or December 31, 2012. All challenges to third-party prices are reviewed by staff of the Company with relevant expertise to ensure reasonableness of assumptions.
In addition to challenging pricing assumptions, the Company obtains reports from the independent accountants for significant third-party pricing services attesting to the effectiveness of the controls over data provided to the Company. These reports are obtained annually and are reviewed by the Company to ensure key controls are applied by the pricing services, and that appropriate user controls are in place at the third-party pricing services organization to ensure proper measurement of the fair values of its investments. In the event that any controls in these reports are deemed as ineffective by independent accountants, the Company will take the necessary actions to ensure that internal user controls are in place to mitigate the control risks. No deficiencies were noted for significant third-party pricing services used.
Financial Liabilities (excluding derivative liabilities)
Financial liabilities, excluding derivative liabilities, issued by the Company primarily consist of investment agreements and medium-term notes (MTNs) within its wind-down operations, debt issued for general corporate purposes and debt in VIEs. Investment agreements, MTNs, and corporate debt are typically recorded at face value adjusted for premiums or discounts. Financial liabilities that the Company has elected to fair value or that require fair value reporting or disclosures are valued based on the estimated value of the underlying collateral, the Companys or a third-partys estimate of discounted cash flow model estimates, or quoted market values for similar products. These valuations include adjustments for expected nonperformance risk of the Company.
25
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Derivative Liabilities
The Companys derivative liabilities are primarily insured credit derivatives that reference structured pools of cash securities and CDSs. The Company generally insured the most senior liabilities of such transactions, and at the inception of transactions its exposure generally had more subordination than needed to achieve triple-A ratings from credit rating agencies. The types of collateral underlying its insured derivatives consist of cash securities and CDSs referencing primarily corporate, asset-backed, residential mortgage-backed, commercial mortgage-backed, CRE loans, and CDO securities.
The Companys insured credit derivative contracts are non-traded structured credit derivative transactions. Since insured derivatives are highly customized and there is generally no observable market for these derivatives, the Company estimates their fair values in a hypothetical market based on internal and third-party models simulating what a similar company would charge to assume the Companys position in the transaction at the measurement date. This pricing would be based on the expected loss of the exposure. The Company reviews its valuation model results on a quarterly basis to assess the appropriateness of the assumptions and results in light of current market activity and conditions. This review is performed by internal staff with relevant expertise. If live market spreads or securities prices are observable for similar transactions, those spreads are an integral part of the analysis. New insured transactions that resemble existing (previously insured) transactions, if any, would be considered, as well as negotiated settlements of existing transactions.
The Company may from time to time make changes in its valuation techniques if the change results in a measurement that it believes is equally or more representative of fair value under current circumstances.
Internal Review Process
All significant financial assets and liabilities, including derivative assets and liabilities, are reviewed by committees created by the Company to ensure compliance with the Companys policies and risk procedures in the development of fair values of financial assets and liabilities. These valuation committees review, among other things, key assumptions used for internally developed prices, significant changes in sources and uses of inputs, including changes in model approaches, and any adjustments from third-party inputs or prices to internally developed inputs or prices. The committees also review any significant impairment or improvements in fair values of the financial instruments from prior periods. From time to time, these committees will reach out to the Companys valuation experts to better understand key methods and assumptions used for the determination of fair value, including understanding significant changes in fair values. These committees are comprised of senior finance team members with the relevant experience in the financial instruments their committee is responsible for. For each quarter, these committees document their agreement with the fair values developed by management of the Company as reported in the quarterly and annual financial statements.
Valuation Techniques
Valuation techniques for financial instruments measured at fair value or disclosed at fair value are described below.
Fixed-Maturity Securities (including short-term investments) Held as Available-For-Sale, Fixed-Maturity Securities at Fair Value, Investments Pledged as Collateral, Investments Held-to-Maturity, and Other Investments
Fixed-maturity securities (including short-term investments) held as AFS, fixed-maturity securities at fair value, investments pledged as collateral, and other investments include investments in U.S. Treasury and government agencies, foreign governments, corporate obligations, mortgage-backed securities (MBS) and ABS (including CMBS and CDOs), state and municipal bonds and perpetual debt and equity securities (including money market mutual funds).
These investments are generally valued based on recently executed transaction prices or quoted market prices. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, CDS spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections and the value of any credit enhancement.
The fair value of the held-to-maturity (HTM) investments is determined using discounted cash flow models. Key inputs include unobservable cash flows projected over the expected term of the investment discounted using observable interest rate yield curves of similar securities.
26
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and foreign government and agency investments. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3.
Cash and Cash Equivalents, Receivable for Investments Sold, Net Cash Collateral Pledged to Swap Counterparties, Payable for Investments Purchased, Secured Loan and Accrued Investment Income
The carrying amounts of cash and cash equivalents, receivable for investments sold, net cash collateral pledged to swap counterparties, payable for investments purchased, secured loan and accrued investment income approximate fair values due to the short-term nature and credit worthiness of these instruments.
Loans Receivable at Fair Value
Loans receivable at fair value are comprised of loans held by consolidated VIEs consisting of residential mortgage loans, commercial mortgage loans and other whole business loans. Fair values of residential mortgage loans are determined using quoted prices for MBS issued by the respective VIE and adjustments for the fair values of the financial guarantees provided by MBIA Corp. on the related MBS. Fair values of commercial mortgage loans and other whole business loans are valued based on quoted prices of similar collateralized MBS. Loans receivable at fair value are categorized in Level 3 of the fair value hierarchy.
Loan Repurchase Commitments
Loan repurchase commitments are obligations owed by the sellers/servicers of mortgage loans to either MBIA as reimbursement of paid claims or to the RMBS trusts as defined in the transaction documents. Loan repurchase commitments are assets of the consolidated VIEs. This asset represents the rights of MBIA against the sellers/servicers for breaches of representations and warranties that the securitized residential mortgage loans sold to the trust to comply with stated underwriting guidelines and for the sellers/servicers to cure, replace, or repurchase mortgage loans. Fair value measurements of loan repurchase commitments represent the amounts owed by the sellers/servicers to MBIA as reimbursement of paid claims. Loan repurchase commitments are not securities and no quoted prices or comparable market transaction information are observable or available. Loan repurchase commitments at fair value are categorized in Level 3 of the fair value hierarchy. Fair values of loan repurchase commitments are determined using discounted cash flow techniques based on inputs including:
|
breach rates representing the rate at which the sellers/servicers failed to comply with stated representations and warranties; |
|
recovery rates representing the estimates of future cash flows for the asset, including estimates about possible variations in the amount of cash flows expected to be collected; |
|
expectations about possible variations in the timing of collections of the cash flows; and |
|
time value of money, represented by the rate on risk-free monetary assets. |
Investment Agreements
The fair values of investment agreements are determined using discounted cash flow techniques based on contractual cash flows and observable interest rates currently being offered for similar agreements with comparable maturity dates. Investment agreements contain collateralization and termination agreements that substantially mitigate the nonperformance risk of the Company. As the terms of the notes are private, and the contract cash flows are not observable, these investment agreements are categorized as Level 3 of the fair value hierarchy.
Medium-Term Notes
The fair values of certain MTNs are based on quoted market prices provided by third-party sources, where available. When quoted market prices are not available, the Company applies a matrix pricing grid based on the quoted market prices received and the MTNs stated maturity and interest rate to determine fair value. Nonperformance risk is included in the quoted market prices and the matrix pricing grid.
The Company has elected to record these MTNs at fair value as they contain embedded derivatives which cannot accurately be separated from the host debt instrument and fair valued separately, therefore, these MTNs are carried at fair value with changes in fair value reflected in earnings. The remaining MTNs, which are not carried at fair value, do not contain embedded derivatives.
27
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
As these MTNs are illiquid and the prices reflect significant unobservable inputs, they are categorized as Level 3 of the fair value hierarchy.
Variable Interest Entity Notes
The fair values of VIE notes are determined based on recently executed transaction prices or quoted prices where observable. When position-specific quoted prices are not observable, fair values are based on quoted prices of similar securities. Fair values based on quoted prices of similar securities may be adjusted for factors unique to the securities, including any credit enhancement. When observable quoted prices are not available, fair value is determined based on discounted cash flow techniques of the underlying collateral using observable and unobservable inputs. Observable inputs include interest rate yield curves and bond spreads of similar securities. Unobservable inputs include the value of any credit enhancement. VIE notes are categorized in Level 2 or Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety.
Long-term Debt
Long-term debt consists of notes, debentures, surplus notes and accrued interest on this debt. The fair value of long-term notes, debentures and surplus notes are estimated based on quoted prices for the identical or similar securities. The fair value of the accrued interest expense on the surplus notes due 2033 is determined based on the scheduled interest payments discounted by the markets perception of the credit risk related to the repayment of the surplus notes. The credit risk related to the repayment of the surplus notes is based on recent trades of the surplus notes. The deferred interest payment will be due on the first business day on or after which the Company obtains approval to make such payment.
The carrying amounts of accrued interest expense on all other long-term debt approximate fair value due to the short-term nature of these instruments.
DerivativesAsset/Liability Products
The asset/liability products business has entered into derivative transactions primarily consisting of interest rate swaps, cross currency swaps, and CDS contracts. Fair values of over-the-counter derivatives are determined using valuation models based on observable inputs, nonperformance risk of the Companys own credit and nonperformance risk of the counterparties. Observable and market-based inputs include interest rate yields, credit spreads and volatilities. These derivatives are categorized in Level 2 or Level 3 of the fair value hierarchy based on the input that is significant to the fair value measurement in its entirety.
The Company has policies and procedures in place regarding counterparties, including review and approval of the counterparty and the Companys exposure limit, collateral posting requirements, collateral monitoring and margin calls on collateral. The Company manages counterparty credit risk on an individual counterparty basis through master netting arrangements covering derivative transactions in the asset/liability products and corporate segments. These agreements allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either the Company or the counterparty is downgraded below a specified credit rating. The netting agreements minimize the potential for losses related to credit exposure and thus serve to mitigate the Companys nonperformance risk under these derivatives.
In certain cases, the Company also manages credit risk through collateral agreements that give the Company the right to hold or the obligation to provide collateral when the current market value of derivative contracts exceeds an exposure threshold. Under these arrangements, the Company may provide U.S. Treasury and other highly rated securities or cash to secure the derivative. The delivery of high-quality collateral can minimize credit exposure and mitigate the potential for nonperformance risk impacting the fair values of the derivatives.
DerivativesInsurance
The derivative contracts insured by the Company cannot be legally traded and generally do not have observable market prices. The Company determines the fair values of insured credit derivatives using valuation models. The fair valuation models are consistently applied from period to period, with refinements to the fair value estimation approach being applied as and when the information becomes available. Negotiated settlements are also considered when determining fair value to provide the best estimate of how another market participant would evaluate fair value.
28
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Approximately 98% of the balance sheet fair value of insured credit derivatives as of September 30, 2013 was valued based on the Binomial Expansion Technique (BET) Model. Approximately 2% of the balance sheet fair value of insured credit derivatives as of September 30, 2013 was valued based on the internally developed Direct Price Model and the dual-default model. The valuation of insured derivatives includes the impact of its credit standing. All of these derivatives are categorized as Level 3 of the fair value hierarchy as their fair value is derived using significant unobservable inputs.
Description of the BET Model
1. Valuation Model Overview
The BET Model estimates what a bond insurer would charge to guarantee a transaction at the measurement date, based on the market-implied default risk of the underlying collateral and the remaining structural protection in a deductible or subordination.
Inputs to the process of determining fair value for structured transactions using the BET Model include estimates of collateral loss, allocation of loss to separate tranches of the capital structure, and calculation of the change in value.
|
Estimates of aggregated collateral losses are calculated by reference to the following (described in further detail under BET Model Inputs below): |
|
credit spreads of underlying collateral based on actual spreads or spreads on similar collateral with similar ratings, or in some cases, are benchmarked; for collateral pools where the spread distribution is characterized by extremes, each segment of the pool is modeled separately instead of using an overall pool average; |
|
diversity score of the collateral pool as an indication of correlation of collateral defaults; and |
|
recovery rate for all defaulted collateral. |
|
Allocation of losses to separate tranches of the capital structure according to priority of payments in a transaction. |
|
The inception-to-date unrealized gain or loss on a transaction is the difference between the original price of the risk (the original market-implied expected loss) and the current price of the risk based on the assumed market-implied expected losses derived from the model. |
Additional structural assumptions of the BET Model are:
|
Default probabilities are determined by three factors: MBIA Corp.s credit spread, MBIA Corp.s recovery rate after default, and the time period under risk; |
|
Frequencies of defaults are modeled evenly over time; |
|
Collateral assets are generally considered on an average basis rather than being modeled on an individual basis; and |
|
Collateral asset correlation is modeled using a diversity score which is calculated based on industry or sector concentrations. Recovery rates are based on historical averages and updated based on market evidence. |
2. BET Model Inputs
a. Credit spreads
The average spread of collateral is a key input as the Company assumes credit spreads reflect the markets assessment of default probability for each piece of collateral. Spreads are obtained from market data sources published by third parties (e.g., dealer spread tables for assets most closely resembling collateral within the Companys transactions) as well as collateral-specific spreads on the underlying reference obligations provided by trustees or market sources. Also, when these sources are not available, the Company benchmarks spreads for collateral against market spreads or prices. This data is reviewed on an ongoing basis for reasonableness and applicability to the Companys derivative portfolio. The Company also calculates spreads based on quoted prices and on internal assumptions about expected life, when pricing information is available and spread information is not.
The Company uses the spread hierarchy listed below in determining which source of spread information to use, with the rule being to use CDS spreads where available and cash security spreads as the next alternative.
Spread Hierarchy:
|
Collateral-specific credit spreads when observable; |
|
Sector-specific spread tables by asset class and rating; |
29
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
|
Corporate spreads, including Bloomberg spread tables based on rating; and |
|
Benchmark from most relevant market source when corporate spreads are not directly relevant. |
There were some transactions where the Company incorporated multiple levels within the hierarchy, including using actual collateral-specific credit spreads in combination with a calculated spread based on an assumed relationship. In those cases, MBIA classified the transaction as being benchmarked from the most relevant spread source even though the majority of the average spread was from actual collateral-specific spreads. As of September 30, 2013, sector-specific spreads were used in 8% of the transactions valued using the BET Model. Corporate spreads were used in 50% of the transactions and spreads benchmarked from the most relevant spread source were used for 42% of the transactions. The spread source can also be identified by whether or not it is based on collateral weighted average rating factor (WARF). No collateral-specific spreads are based on WARF. Sector-specific spreads, corporate spreads and some benchmarked spreads are based on WARF. WARF-sourced and/or ratings-sourced credit spreads were used for 76% of the transactions.
Over time, the data inputs change as new sources become available, existing sources are discontinued or are no longer considered to be reliable or the most appropriate. It is always the Companys objective to use more observable spread hierarchies defined above. However, the Company may on occasion move to less observable spread inputs due to the discontinuation of data sources or due to the Company considering certain spread inputs no longer representative of market spreads.
b. Diversity Scores
Diversity scores are a means of estimating the diversification in a portfolio. The diversity score estimates the number of uncorrelated assets that are assumed to have the same loss distribution as the actual portfolio of correlated assets. While diversity score is a required input into the BET model, due to current high levels of default within the collateral of the structures, diversity score does not have a significant impact on valuation.
c. Recovery Rate
The recovery rate represents the percentage of par expected to be recovered after an asset defaults, indicating the severity of a potential loss. MBIA generally uses rating agency recovery assumptions which may be adjusted to account for differences between the characteristics and performance of the collateral used by the rating agencies and the actual collateral in MBIA-insured transactions. The Company may also adjust rating agency assumptions based on the performance of the collateral manager and on empirical market data.
d. Nonperformance Risk
The Companys valuation methodology for insured credit derivative liabilities incorporates MBIA Corp.s own nonperformance risk. The Company calculates the fair value by discounting the market value loss estimated through the BET Model at discount rates which include MBIA Corp.s CDS spreads as of September 30, 2013. The CDS spreads assigned to each deal are based on the weighted average life of the deal. The Company limits the nonperformance impact so that the derivative liability could not be lower than MBIA Corp.s recovery derivative price multiplied by the unadjusted derivative liability.
Overall Model Results
As of September 30, 2013 and December 31, 2012, the Companys net insured derivative liability was $1.4 billion and $2.9 billion, respectively, and was primarily related to the fair values of insured credit derivatives, based on the results of the aforementioned pricing models. In the current environment, the most significant driver of changes in fair value is MBIA Corp.s nonperformance risk. In aggregate, the nonperformance calculation resulted in a pre-tax net insured derivative liability that was $548 million and $4.4 billion lower than the net liability that would have been estimated if MBIA Corp. excluded nonperformance risk in its valuation as of September 30, 2013 and December 31, 2012, respectively. Nonperformance risk is a fair value concept and does not contradict MBIA Corp.s internal view, based on fundamental credit analysis of MBIA Corp.s economic condition, that MBIA Corp. will be able to pay all claims when due.
Warrants
Stock warrants issued by the Company are recorded at fair value based on a modified Black-Scholes model. Inputs into the warrant valuation include interest rates, stock volatilities and dividend data. As all significant inputs are market-based and observable, warrants are categorized in Level 2 of the fair value hierarchy.
30
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Financial Guarantees
Gross Financial Guarantees The fair value of gross financial guarantees is determined using discounted cash flow techniques based on inputs that include (i) assumptions of expected losses on financial guarantee policies where loss reserves have not been recognized, (ii) amount of losses expected on financial guarantee policies where loss reserves have been established, net of expected recoveries, (iii) the cost of capital reserves required to support the financial guarantee liability, (iv) operating expenses, and (v) discount rates. The MBIA Corp. CDS spread and recovery rate are used as the discount rate for MBIA Corp., while the CDS spread and recovery rate of a similar municipal bond insurance company are used as the discount rate for National, as National does not have a published CDS spread and recovery rate.
The carrying value of the Companys gross financial guarantees consists of unearned premium revenue and loss and LAE reserves, net of the insurance loss recoverable as reported on MBIAs consolidated balance sheets.
Ceded Financial Guarantees The fair value of ceded financial guarantees is determined by applying the percentage ceded to reinsurers to the related fair value of the gross financial guarantees. The carrying value of ceded financial guarantees consists of prepaid reinsurance premiums and reinsurance recoverable on paid and unpaid losses as reported within Other assets on the Companys consolidated balance sheets.
Significant Unobservable Inputs
The following tables provide quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. These tables exclude inputs used to measure fair value that are not developed by the Company, such as broker prices and other third-party pricing service valuations.
In millions |
Fair Value as of
September 30, 2013 |
Valuation Techniques |
Unobservable Input |
Range
(Weighted Average) |
||||||||
Assets of consolidated VIEs: |
||||||||||||
Loans receivable at fair value |
$ | 1,704 | Quoted market prices adjusted for financial guarantees provided to VIE obligations | Impact of financial guarantee | 0% -17% (4%) | |||||||
Loan repurchase commitments |
1,116 | Discounted cash flow | Recovery rates | 0% - 98% (81%) | ||||||||
Liabilities of consolidated VIEs: |
||||||||||||
Variable interest entity notes |
745 | Quoted market prices of VIE assets adjusted for financial guarantees provided | Impact of financial guarantee | 0% - 27% (10%) | ||||||||
Credit derivative liabilities, net: |
||||||||||||
CMBS |
956 | BET Model | Recovery rates | 25% - 90% (60%) | ||||||||
Nonperformance risk | 12% - 57% (28%) | |||||||||||
Weighted average life (in years) | 1.4 - 28.3 (3.5) | |||||||||||
CMBS spreads | 1% - 27% (13%) | |||||||||||
Multi-sector CDO |
16 | Direct Price Model | Nonperformance risk | 57% - 57% (57%) | ||||||||
Other |
391 | BET Model | Recovery rates | 42% - 70% (46%) | ||||||||
Nonperformance risk | 18% - 31% (27%) | |||||||||||
Weighted average life (in years) | 0.2 - 3.8 (2.2) |
31
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
In millions |
Fair Value as of
December 31, 2012 |
Valuation Techniques |
Unobservable Input |
Range
(Weighted Average) |
||||||||
Assets of consolidated VIEs: |
||||||||||||
Loans receivable at fair value |
$ | 1,881 | Quoted market prices adjusted for financial guarantees provided to VIE obligations | Impact of financial guarantee | 0% - 14% (3%) | |||||||
Loan repurchase commitments |
1,086 | Discounted cash flow | Recovery rates | 10% - 75% (47%) | ||||||||
Breach rates | 66% - 94% (78%) | |||||||||||
Liabilities of consolidated VIEs: |
||||||||||||
Variable interest entity notes |
1,932 | Quoted market prices of VIE assets adjusted for financial guarantees provided | Impact of financial guarantee | 0% - 23% (6%) | ||||||||
Credit derivative liabilities, net: |
||||||||||||
CMBS |
1,590 | BET Model | Recovery rates | 21% - 90% (51%) | ||||||||
Nonperformance risk | 19% - 59% (58%) | |||||||||||
Weighted average life (in years) | 0.1 - 5.6 (4.4) | |||||||||||
CMBS spreads | 1% - 23% (13%) | |||||||||||
Multi-sector CDO |
525 | Direct Price Model | Nonperformance risk | 59% - 59% (59%) | ||||||||
Other |
806 | BET Model | Recovery rates | 42% - 75% (47%) | ||||||||
Nonperformance risk | 42% - 59% (58%) | |||||||||||
Weighted average life (in years) | 0.1 - 19.6 (3.0) |
Sensitivity of Significant Unobservable Inputs
The significant unobservable input used in the fair value measurement of the Companys loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of loans receivable is calculated by subtracting the value of the financial guarantee from the market value of VIE liabilities. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments under the policy. As expected cash payments provided by the Company under the insurance policy increase, there is a lower expected cash flow on the underlying loans receivable of the VIE. This results in a lower fair value of the loans receivable in relation to the obligations of the VIE.
The significant unobservable inputs used in the fair value measurement of the Companys loan repurchase commitments of consolidated VIEs are the recovery rates. Recovery rates reflect the estimates of future cash flows reduced for litigation delays and risks and/or potential financial distress of the sellers/servicers. The estimated recoveries of the loan repurchase commitments may differ from the actual recoveries that may be received in the future. Significant increases or decreases in the recovery rates would result in significantly higher or lower fair values of the loan repurchase commitments, respectively. Additionally, changes in the legal environment and the ability of the counterparties to pay would impact the recovery rate assumptions, which could significantly impact the fair value measurement.
The significant unobservable input used in the fair value measurement of the Companys VIE notes of consolidated VIEs is the impact of the financial guarantee. The fair value of VIE notes is calculated by adding the value of the financial guarantee to the market value of VIE assets. The value of a financial guarantee is estimated by the Company as the present value of expected cash payments under the policy. As the value of the guarantee provided by the Company to the obligations issued by the VIE increases, the credit support adds value to the liabilities of the VIE. This results in an increase in the fair value of the liabilities of the VIE.
The significant unobservable inputs used in the fair value measurement of MBIA Corp.s CMBS credit derivatives, which are valued using the BET Model, are CMBS spreads, recovery rates, nonperformance risk and weighted average life. The CMBS spread is an indicator of credit risk of the collateral securities. The recovery rate represents the percentage of notional expected to be recovered after an asset defaults, indicating the severity of a potential loss. The nonperformance risk is an assumption of MBIA Corp.s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Weighted average life is based on the Companys estimate of when the principal of the underlying collateral of the CMBS structure will be repaid. A significant increase or decrease in CMBS spreads would result in an increase or decrease in the fair value of the derivative liability, respectively. A significant increase in weighted average life can result in an increase or decrease in the fair value of the derivative liability, depending on the discount rate and the timing of significant losses. Any significant increase or decrease in recovery rates, or MBIA Corp.s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively. CMBS spreads, recovery rates, nonperformance risk and weighted average lives are determined independently. Changes in one input will not necessarily have any impact on the other inputs.
32
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The significant unobservable input used in the fair value measurement of MBIA Corp.s multi-sector CDO credit derivatives, which are valued using the Direct Price Model, is nonperformance risk. The nonperformance risk is an assumption of MBIA Corp.s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Any significant increase or decrease in MBIA Corp.s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively.
The significant unobservable inputs used in the fair value measurement of MBIA Corp.s other credit derivatives, which are valued using the BET Model, are recovery rates, nonperformance risk and weighted average life. The recovery rate represents the percentage of notional expected to be recovered after an asset defaults, indicating the severity of a potential loss. The nonperformance risk is an assumption of MBIA Corp.s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Weighted average life is based on MBIA Corp.s estimate of when the principal of the underlying collateral will be repaid. A significant increase in weighted average life can result in an increase or decrease in the fair value of the derivative liability, depending on the discount rate and the timing of significant losses. Any significant increase or decrease in recovery rates or MBIA Corp.s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively. Recovery rates, nonperformance risk and weighted average lives are determined independently. Changes in one input will not necessarily have any impact on the other inputs.
Fair Value Measurements
The following tables present the fair value of the Companys assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2013 and December 31, 2012:
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets |
Significant
Other Observable Inputs |
Significant
Unobservable Inputs |
Counterparty
and Cash Collateral |
Balance as of
September 30, |
||||||||||||||||
In millions |
(Level 1) | (Level 2) | (Level 3) | Netting | 2013 | |||||||||||||||
Assets: |
||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||
U.S. Treasury and government agency |
$ | 424 | $ | 137 | $ | - | $ | - | $ | 561 | ||||||||||
State and municipal bonds |
- | 1,551 | 62 | (1) | - | 1,613 | ||||||||||||||
Foreign governments |
87 | 109 | 5 | (1) | - | 201 | ||||||||||||||
Corporate obligations |
- | 1,717 | 47 | (1) | - | 1,764 | ||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed agency |
- | 945 | 17 | (1) | - | 962 | ||||||||||||||
Residential mortgage-backed non-agency |
- | 79 | - | - | 79 | |||||||||||||||
Commercial mortgage-backed |
- | 26 | 14 | (1) | - | 40 | ||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
- | 70 | 88 | (1) | - | 158 | ||||||||||||||
Other asset-backed |
- | 89 | 57 | (1) | - | 146 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed-maturity investments |
511 | 4,723 | 290 | - | 5,524 | |||||||||||||||
Money market securities |
910 | 3 | - | - | 913 | |||||||||||||||
Perpetual debt and equity securities |
27 | 14 | 11 | (1) | - | 52 | ||||||||||||||
Cash and cash equivalents |
1,057 | - | - | - | 1,057 | |||||||||||||||
Derivative assets: |
||||||||||||||||||||
Non-insured derivative assets: |
||||||||||||||||||||
Interest rate derivatives |
- | 57 | - | (53) | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total derivative assets |
- | 57 | - | (53) | 4 |
33
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets |
Significant
Other Observable Inputs |
Significant
Unobservable Inputs |
Counterparty
and Cash Collateral |
Balance as of
September 30, |
||||||||||||||||
In millions |
(Level 1) | (Level 2) | (Level 3) | Netting | 2013 | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Corporate obligations |
- | 46 | 48 | (1) | - | 94 | ||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed non-agency |
- | 255 | 4 | (1) | - | 259 | ||||||||||||||
Commercial mortgage-backed |
- | 103 | 2 | (1) | - | 105 | ||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
- | 33 | 20 | (1) | - | 53 | ||||||||||||||
Other asset-backed |
- | 65 | 50 | (1) | - | 115 | ||||||||||||||
Money market securities |
156 | - | - | - | 156 | |||||||||||||||
Cash |
46 | - | - | - | 46 | |||||||||||||||
Loans receivable |
- | - | 1,704 | - | 1,704 | |||||||||||||||
Loan repurchase commitments |
- | - | 1,116 | - | 1,116 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 2,707 | $ | 5,299 | $ | 3,245 | $ | (53) | $ | 11,198 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Medium-term notes |
$ | - | $ | - | $ | 204 | (1) | $ | - | $ | 204 | |||||||||
Derivative liabilities: |
||||||||||||||||||||
Insured derivatives: |
||||||||||||||||||||
Credit derivatives |
- | 7 | 1,363 | - | 1,370 | |||||||||||||||
Non-insured derivatives: |
||||||||||||||||||||
Interest rate derivatives |
- | 195 | - | (195) | - | |||||||||||||||
Currency derivatives |
- | 1 | - | (1) | - | |||||||||||||||
Other liabilities: |
||||||||||||||||||||
Warrants |
- | 48 | - | - | 48 | |||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
Variable interest entity notes |
- | 1,681 | 745 | - | 2,426 | |||||||||||||||
Derivative liabilities: |
||||||||||||||||||||
Currency derivatives |
- | - | 15 | (1) | - | 15 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | - | $ | 1,932 | $ | 2,327 | $ | (196) | $ | 4,063 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) - | Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
34
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets |
Significant
Other Observable Inputs |
Significant
Unobservable Inputs |
Counterparty
and Cash Collateral |
Balance as of
December 31, |
||||||||||||||||
In millions |
(Level 1) | (Level 2) | (Level 3) | Netting | 2012 | |||||||||||||||
Assets: |
||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||
U.S. Treasury and government agency |
$ | 784 | $ | 100 | $ | - | $ | - | $ | 884 | ||||||||||
State and municipal bonds |
- | 1,429 | 103 | (1) | - | 1,532 | ||||||||||||||
Foreign governments |
86 | 107 | 3 | (1) | - | 196 | ||||||||||||||
Corporate obligations |
- | 1,140 | 76 | (1) | - | 1,216 | ||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed agency |
- | 988 | - | - | 988 | |||||||||||||||
Residential mortgage-backed non-agency |
- | 94 | 4 | (1) | - | 98 | ||||||||||||||
Commercial mortgage-backed |
- | 20 | 28 | (1) | - | 48 | ||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
- | 65 | 31 | (1) | - | 96 | ||||||||||||||
Other asset-backed |
- | 119 | 26 | (1) | - | 145 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed-maturity investments |
870 | 4,062 | 271 | - | 5,203 | |||||||||||||||
Money market securities |
585 | 8 | - | - | 593 | |||||||||||||||
Perpetual debt and equity securities |
23 | 20 | 14 | (1) | - | 57 | ||||||||||||||
Cash and cash equivalents |
814 | - | - | - | 814 | |||||||||||||||
Derivative assets: |
||||||||||||||||||||
Non-insured derivative assets: |
||||||||||||||||||||
Interest rate derivatives |
- | 89 | 5 | (1) | (90) | 4 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total derivative assets |
- | 89 | 5 | (90) | 4 |
35
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets |
Significant
Other Observable Inputs |
Significant
Unobservable Inputs |
Counterparty
and Cash Collateral |
Balance as of
December 31, |
||||||||||||||||
In millions |
(Level 1) | (Level 2) | (Level 3) | Netting | 2012 | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
State and municipal bonds |
- | 41 | - | - | 41 | |||||||||||||||
Corporate obligations |
- | 215 | 78 | (1) | - | 293 | ||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed non-agency |
- | 869 | 6 | (1) | - | 875 | ||||||||||||||
Commercial mortgage-backed |
- | 410 | 7 | (1) | - | 417 | ||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
- | 215 | 125 | (1) | - | 340 | ||||||||||||||
Other asset-backed |
- | 120 | 64 | (1) | - | 184 | ||||||||||||||
Money market securities |
210 | - | - | - | 210 | |||||||||||||||
Cash |
176 | - | - | - | 176 | |||||||||||||||
Loans receivable |
- | - | 1,881 | - | 1,881 | |||||||||||||||
Loan repurchase commitments |
- | - | 1,086 | - | 1,086 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 2,678 | $ | 6,049 | $ | 3,537 | $ | (90) | $ | 12,174 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Medium-term notes |
$ | - | $ | - | $ | 165 | (1) | $ | - | $ | 165 | |||||||||
Derivative liabilities: |
||||||||||||||||||||
Insured derivatives: |
||||||||||||||||||||
Credit derivatives |
- | 13 | 2,921 | - | 2,934 | |||||||||||||||
Non-insured derivatives: |
||||||||||||||||||||
Interest rate derivatives |
- | 287 | 4 | (1) | (293) | (2) | ||||||||||||||
Currency derivatives |
- | 1 | 1 | (1) | - | 2 | ||||||||||||||
Other liabilities: |
||||||||||||||||||||
Warrants |
- | 6 | - | - | 6 | |||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
Variable interest entity notes |
- | 1,727 | 1,932 | - | 3,659 | |||||||||||||||
Derivative liabilities: |
||||||||||||||||||||
Interest rate derivatives |
- | 141 | - | - | 141 | |||||||||||||||
Currency derivatives |
- | - | 21 | (1) | - | 21 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | - | $ | 2,175 | $ | 5,044 | $ | (293) | $ | 6,926 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) - | Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
Level 3 assets at fair value, as of September 30, 2013 and December 31, 2012 represented approximately 29% of total assets measured at fair value. Level 3 liabilities at fair value, as of September 30, 2013 and December 31, 2012 represented approximately 57% and 73%, respectively, of total liabilities measured at fair value.
The following tables present the fair values and carrying values of the Companys assets and liabilities that are disclosed at fair value but not reported at fair value on the Companys consolidated balance sheets as of September 30, 2013 and December 31, 2012:
36
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Fair Value | Carry Value | ||||||||||||||||
Active Markets for | Other Observable | Unobservable | Balance as of | Balance as of | ||||||||||||||||
Identical Assets | Inputs | Inputs | September 30, | September 30, | ||||||||||||||||
In millions |
(Level 1) | (Level 2) | (Level 3) | 2013 | 2013 | |||||||||||||||
Assets: |
||||||||||||||||||||
Other investments |
$ | - | $ | - | $ | 6 | $ | 6 | $ | 6 | ||||||||||
Accrued investment income (1) |
44 | - | - | 44 | 44 | |||||||||||||||
Receivable for investments sold (1) |
23 | - | - | 23 | 23 | |||||||||||||||
Net cash collateral pledged (1) |
62 | - | - | 62 | 62 | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Investments held-to-maturity |
- | - | 2,566 | 2,566 | 2,809 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 129 | $ | - | $ | 2,572 | $ | 2,701 | $ | 2,944 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Investment agreements |
$ | - | $ | - | $ | 902 | $ | 902 | $ | 760 | ||||||||||
Medium-term notes |
- | - | 1,035 | 1,035 | 1,350 | |||||||||||||||
Long-term debt |
10 | 1,282 | - | 1,292 | 1,677 | |||||||||||||||
Payable for investments purchased (2) |
150 | - | - | 150 | 150 | |||||||||||||||
Secured loan (2) |
- | - | 50 | 50 | 50 | |||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
Variable interest entity notes |
- | - | 2,689 | 2,689 | 2,959 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | 160 | $ | 1,282 | $ | 4,676 | $ | 6,118 | $ | 6,946 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross |
$ | - | $ | - | $ | 3,097 | $ | 3,097 | $ | 2,490 | ||||||||||
Ceded |
- | - | 69 | 69 | 77 |
(1) - | Reported within Other assets on MBIAs consolidated balance sheets. |
(2) - | Reported within Other liabilities on MBIAs consolidated balance sheets. |
37
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Fair Value | Carry Value | ||||||||||||||||
Active Markets for | Other Observable | Unobservable | Balance as of | Balance as of | ||||||||||||||||
Identical Assets | Inputs | Inputs | December 31, | December 31, | ||||||||||||||||
In millions |
(Level 1) | (Level 2) | (Level 3) | 2012 | 2012 | |||||||||||||||
Assets: |
||||||||||||||||||||
Other investments |
$ | - | $ | - | $ | 9 | $ | 9 | $ | 9 | ||||||||||
Accrued investment income (1) |
43 | - | - | 43 | 43 | |||||||||||||||
Receivable for investments sold (1) |
17 | - | - | 17 | 17 | |||||||||||||||
Net cash collateral pledged (1) |
66 | - | - | 66 | 66 | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Investments held-to-maturity |
- | - | 2,674 | 2,674 | 2,829 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 126 | $ | - | $ | 2,683 | $ | 2,809 | $ | 2,964 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Investment agreements |
$ | - | $ | - | $ | 1,175 | $ | 1,175 | $ | 944 | ||||||||||
Medium-term notes |
- | - | 860 | 860 | 1,433 | |||||||||||||||
Long-term debt |
9 | 702 | - | 711 | 1,732 | |||||||||||||||
Payable for investments purchased (2) |
50 | - | - | 50 | 50 | |||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
Variable interest entity notes |
- | - | 3,147 | 3,147 | 3,465 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | 59 | $ | 702 | $ | 5,182 | $ | 5,943 | $ | 7,624 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross |
$ | - | $ | - | $ | 650 | $ | 650 | $ | 143 | ||||||||||
Ceded |
- | - | 97 | 97 | 91 |
(1) - | Reported within Other assets on MBIAs consolidated balance sheets. |
(2) - | Reported within Other liabilities on MBIAs consolidated balance sheets. |
38
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013 and 2012:
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (3) | $ | - | $ | 5 | $ | - | $ | 5 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
63 | (7) | 1 | 7 | 2 | - | - | (14) | (6) | 1 | - | 47 | 1 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
3 | - | - | - | - | - | - | - | - | 17 | (3) | 17 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
1 | - | - | - | - | - | - | - | - | - | (1) | - | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
13 | - | - | - | - | - | - | (1) | - | 2 | - | 14 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
85 | - | - | 7 | - | - | - | (3) | - | 10 | (11) | 88 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
64 | - | - | (5) | - | - | - | (4) | - | 3 | (1) | 57 | - | |||||||||||||||||||||||||||||||||||||||
State and municipal bonds |
63 | - | - | - | - | - | - | (1) | - | - | - | 62 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
10 | - | - | - | 1 | - | - | - | - | - | - | 11 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
48 | - | - | - | - | - | - | - | - | - | - | 48 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
2 | - | - | - | - | - | - | - | - | 2 | - | 4 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
4 | - | (1) | - | - | - | - | (1) | - | - | - | 2 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
35 | - | 1 | - | - | - | - | (4) | - | - | (12) | 20 | (1) | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
63 | - | (7) | - | - | - | - | (1) | - | 1 | (6) | 50 | (1) | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
1,790 | - | (12) | - | - | - | - | (74) | - | - | - | 1,704 | (12) | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,115 | - | 1 | - | - | - | - | - | - | - | - | 1,116 | 1 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,362 | $ | (7) | $ | (17) | $ | 9 | $ | 3 | $ | - | $ | - | $ | (106) | $ | (6) | $ | 41 | $ | (34) | $ | 3,245 | $ | (12) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
Balance,
Beginning of Period |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Medium-term notes |
$ | 188 | $ | - | $ | 9 | $ | - | $ | 7 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 204 | $ | 17 | ||||||||||||||||||||||||||
Credit derivatives, net |
1,648 | 28 | (285) | - | - | - | - | (28) | - | - | - | 1,363 | (285) | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives, net |
- | - | - | - | - | - | - | - | - | - | - | - | (15) | |||||||||||||||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
824 | - | (6) | - | - | - | - | (73) | - | - | - | 745 | (6) | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
16 | - | - | - | (1) | - | - | - | - | - | - | 15 | (1) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
$ | 2,676 | $ | 28 | $ | (282) | $ | - | $ | 6 | $ | - | $ | - | $ | (101) | $ | - | $ | - | $ | - | $ | 2,327 | $ | (290) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
39
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 12 | $ | - | $ | - | $ | - | $ | 1 | $ | 9 | $ | - | $ | (10) | $ | - | $ | - | $ | - | $ | 12 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
98 | - | 4 | (2) | - | 2 | - | (13) | - | 10 | (8) | 91 | 3 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
4 | - | - | - | - | - | - | (1) | - | - | (3) | - | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
33 | (1) | - | 2 | - | - | - | (5) | - | 1 | (23) | 7 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
27 | - | - | 1 | - | 1 | - | - | - | 1 | - | 30 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
29 | (4) | - | 9 | - | - | - | (4) | - | 4 | (4) | 30 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
69 | (2) | - | 2 | - | 1 | - | (1) | - | 4 | - | 73 | - | |||||||||||||||||||||||||||||||||||||||
State and municipal bonds |
25 | - | - | - | - | - | - | (2) | - | 71 | - | 94 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
13 | - | 1 | - | - | - | - | - | - | - | - | 14 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
95 | - | (10) | - | - | - | - | (2) | - | 3 | (3) | 83 | 1 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
10 | - | - | - | - | - | - | (1) | - | 2 | (3) | 8 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
12 | - | 1 | - | - | - | - | - | - | - | - | 13 | 1 | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
140 | - | (5) | 2 | - | - | - | (1) | - | 37 | - | 173 | (2) | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
42 | - | (1) | - | - | - | - | (5) | - | 30 | - | 66 | 1 | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
1,903 | - | 61 | - | - | - | - | (72) | - | - | - | 1,892 | 61 | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,032 | - | 19 | - | - | - | - | - | - | - | - | 1,051 | 19 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,544 | $ | (7) | $ | 70 | $ | 14 | $ | 1 | $ | 13 | $ | - | $ | (117) | $ | - | $ | 163 | $ | (44) | $ | 3,637 | $ | 84 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
Balance,
Beginning of Period |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Medium-term notes |
$ | 151 | $ | - | $ | 14 | $ | - | $ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 168 | $ | 14 | ||||||||||||||||||||||||||
Credit derivatives, net |
3,285 | (12) | 32 | - | - | - | - | 12 | - | - | - | 3,317 | 33 | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives, net |
(4) | - | - | - | - | - | - | - | - | 4 | - | - | 5 | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
- | - | - | - | - | - | - | - | - | 1 | - | 1 | - | |||||||||||||||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
1,867 | - | 128 | - | - | - | - | (110) | - | - | - | 1,885 | 128 | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
21 | - | 2 | - | - | - | - | - | - | - | - | 23 | 2 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
$ | 5,320 | $ | (12) | $ | 176 | $ | - | $ | 3 | $ | - | $ | - | $ | (98) | $ | - | $ | 5 | $ | - | $ | 5,394 | $ | 182 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
40
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Transfers into and out of Level 3 were $41 million and $34 million, respectively, for the three months ended September 30, 2013. Transfers into and out of Level 2 were $34 million and $41 million, respectively, for the three months ended September 30, 2013. Transfers into Level 3 were principally related to RMBS agency, CDOs and foreign governments, where inputs, which are significant to their valuation, became unobservable during the quarter. CDOs and other ABS, comprised the majority of the transferred instruments out of Level 3 where inputs, which are significant to their valuation, became observable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
Transfers into and out of Level 3 were $168 million and $44 million, respectively, for the three months ended September 30, 2012. Transfers into and out of Level 2 were $44 million and $168 million, respectively, for the three months ended September 30, 2012. Transfers into Level 3 were principally related to state and municipal bonds, CDOs, other ABS and corporate obligations where inputs, which are significant to their valuation, became unobservable during the quarter. RMBS non-agency and corporate obligations comprised the majority of the transferred instruments out of Level 3 where inputs, which are significant to their valuation, became observable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
All Level 1, 2 and 3 designations are made at the end of each accounting period.
The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013 and 2012:
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2013
In millions |
Balance,
Beginning of Year |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (11) | $ | - | $ | 16 | $ | (3) | $ | 5 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
76 | (5) | 6 | 11 | - | 1 | - | (14) | (29) | 1 | - | 47 | 6 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
- | - | - | - | - | - | - | - | - | 20 | (3) | 17 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
4 | - | - | - | - | - | - | (3) | - | - | (1) | - | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
28 | - | - | 4 | - | - | - | (2) | (18) | 3 | (1) | 14 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
31 | (2) | - | 11 | - | 61 | - | (14) | (5) | 28 | (22) | 88 | 1 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
26 | - | - | (5) | - | 3 | - | (9) | - | 47 | (5) | 57 | - | |||||||||||||||||||||||||||||||||||||||
State and municipal bonds |
103 | 2 | - | (1) | - | - | - | (4) | (12) | 42 | (68) | 62 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
14 | - | - | - | - | - | - | - | - | - | (3) | 11 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
78 | (4) | (7) | 6 | - | - | - | (3) | (25) | 3 | - | 48 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
6 | - | 6 | - | - | - | - | (7) | - | 3 | (4) | 4 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
7 | - | (1) | - | - | - | - | - | (24) | 20 | - | 2 | 1 | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
125 | - | (8) | 5 | - | - | - | (5) | (84) | 1 | (14) | 20 | 2 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
64 | - | (7) | - | - | - | - | (10) | (2) | 11 | (6) | 50 | 3 | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
1,881 | - | 208 | - | - | - | - | (211) | (174) | - | - | 1,704 | 194 | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,086 | - | 140 | - | - | - | - | (110) | - | - | - | 1,116 | 140 | |||||||||||||||||||||||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,532 | $ | (9) | $ | 337 | $ | 31 | $ | - | $ | 65 | $ | - | $ | (403) | $ | (373) | $ | 195 | $ | (130) | $ | 3,245 | $ | 347 | ||||||||||||||||||||||||||
|
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41
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
In millions |
Balance,
Beginning of Year |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Medium-term notes |
$ | 165 | $ | - | $ | 34 | $ | - | $ | 5 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 204 | $ | 39 | ||||||||||||||||||||||||||
Credit derivatives, net |
2,921 | 1,548 | (1,562) | - | - | - | - | (1,548) | - | 4 | - | 1,363 | 301 | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives, net |
(1) | - | 2 | - | - | - | - | - | - | - | (1) | - | (21) | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
1 | - | - | - | - | - | - | - | - | - | (1) | - | - | |||||||||||||||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
1,932 | - | 140 | - | - | - | - | (251) | (1,076) | - | - | 745 | 53 | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
21 | - | (5) | - | (1) | - | - | - | - | - | - | 15 | (6) | |||||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||||
Total liabilities |
$ | 5,039 | $ | 1,548 | $ | (1,391) | $ | - | $ | 4 | $ | - | $ | - | $ | (1,799) | $ | (1,076) | $ | 4 | $ | (2) | $ | 2,327 | $ | 366 | ||||||||||||||||||||||||||
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|
|
(1) - | Transferred in and out at the end of the period. |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2012
In millions |
Balance,
Beginning of Year |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets still held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 11 | $ | - | $ | - | $ | - | $ | 1 | $ | 22 | $ | - | $ | (19) | $ | (3) | $ | - | $ | - | $ | 12 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
207 | (15) | 9 | 24 | - | 18 | - | (29) | (140) | 25 | (8) | 91 | 8 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
8 | - | - | 1 | - | - | - | (1) | - | 4 | (12) | - | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
17 | (1) | - | (1) | - | - | - | (11) | (3) | 31 | (25) | 7 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
24 | - | - | 5 | - | 1 | - | - | - | 1 | (1) | 30 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
60 | (9) | - | 18 | - | - | - | (12) | (10) | 14 | (31) | 30 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
317 | (58) | - | 71 | - | 5 | - | (11) | (250) | 5 | (6) | 73 | - | |||||||||||||||||||||||||||||||||||||||
State and municipal bonds |
28 | - | - | - | - | - | - | (5) | - | 71 | - | 94 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
11 | - | 1 | 1 | - | - | - | - | - | 4 | (3) | 14 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
69 | - | (15) | (6) | - | 28 | - | (5) | - | 15 | (3) | 83 | 3 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
21 | - | 6 | - | - | - | - | (5) | (15) | 5 | (4) | 8 | 3 | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
22 | - | 3 | - | - | - | - | (3) | (8) | 5 | (6) | 13 | 2 | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
203 | - | (5) | (1) | - | - | - | (1) | (74) | 51 | - | 173 | 5 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
67 | - | 4 | - | - | 4 | - | (8) | (35) | 34 | - | 66 | 5 | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
2,046 | - | 52 | - | - | - | - | (204) | (2) | - | - | 1,892 | 52 | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,077 | - | (26) | - | - | - | - | - | - | - | - | 1,051 | (26) | |||||||||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
Total assets |
$ | 4,188 | $ | (83) | $ | 29 | $ | 112 | $ | 1 | $ | 78 | $ | - | $ | (314) | $ | (540) | $ | 265 | $ | (99) | $ | 3,637 | $ | 52 | ||||||||||||||||||||||||||
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42
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
In millions |
Balance,
Beginning of Year |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Liabilities still held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Medium-term notes |
$ | 165 | $ | - | $ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 168 | $ | 4 | ||||||||||||||||||||||||||
Credit derivatives, net |
4,790 | 420 | (1,473) | - | - | - | - | (420) | - | - | - | 3,317 | (538) | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives, net |
(3) | - | (1) | - | - | - | - | - | - | 4 | - | - | 12 | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
- | - | - | - | - | - | - | - | - | 1 | - | 1 | - | |||||||||||||||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
2,889 | - | 348 | - | - | - | - | (369) | (983) | - | - | 1,885 | 292 | |||||||||||||||||||||||||||||||||||||||
Credit derivatives, net |
80 | - | 2 | - | - | - | - | - | (82) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
17 | - | 6 | - | - | - | - | - | - | - | - | 23 | 6 | |||||||||||||||||||||||||||||||||||||||
|
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|
|
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|
|||||||||||||||||||||||||||
Total liabilities |
$ | 7,938 | $ | 420 | $ | (1,115) | $ | - | $ | - | $ | - | $ | - | $ | (789) | $ | (1,065) | $ | 5 | $ | - | $ | 5,394 | $ | (224) | ||||||||||||||||||||||||||
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|
|
(1) - | Transferred in and out at the end of the period. |
Transfers into and out of Level 3 were $199 million and $132 million, respectively, for the nine months ended September 30, 2013. Transfers into and out of Level 2 were $132 million and $199 million, respectively, for the nine months ended September 30, 2013. Transfers into Level 3 were principally related to other ABS, state and municipal bonds, CDOs, RMBS agency and CMBS where inputs, which are significant to their valuation, became unobservable during the period. State and municipal bonds and CDOs comprised the majority of the transferred instruments out of Level 3 where inputs, which are significant to their valuation, became observable during the period. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
Transfers into and out of Level 3 were $270 million and $99 million, respectively, for the nine months ended September 30, 2012. Transfers into and out of Level 2 were $99 million and $270 million, respectively, for the nine months ended September 30, 2012. Transfers into Level 3 were principally related to state and municipal bonds, CDOs, other asset backed, RMBS non-agency and corporate obligations where inputs, which are significant to their valuation, became unobservable during the period. CDOs, RMBS non-agency, RMBS agency and corporate obligations comprised the majority of the transferred instruments out of Level 3 where inputs, which are significant to their valuation, became observable during the period. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
All Level 1, 2 and 3 designations are made at the end of each accounting period.
43
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three months ended September 30, 2013 and 2012 are reported on the Companys consolidated statements of operations as follows:
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||
In millions |
Total Gains
(Losses) Included in Earnings |
Change in Unrealized
Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2013 |
Total Gains
(Losses) Included in Earnings |
Change in Unrealized
Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2012 |
||||||||||||
Revenues: |
||||||||||||||||
Unrealized gains (losses) on insured derivatives |
$ | 285 | $ | 285 | $ | (32) | $ | (33) | ||||||||
Realized gains (losses) and other settlements on insured derivatives |
(28) | - | 12 | - | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(24) | (1) | (9) | (16) | ||||||||||||
Net investment losses related to other-than-temporary impairments |
- | - | (7) | - | ||||||||||||
Revenues of consolidated VIEs: |
||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(11) | (6) | (65) | (49) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 222 | $ | 278 | $ | (101) | $ | (98) | ||||||||
|
|
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|
|
|
|
|
44
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Gains and losses (realized and unrealized) included in earnings relating to Level 3 assets and liabilities for the nine months ended September 30, 2013 and 2012 are reported on the Companys consolidated statements of operations as follows:
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||
In millions |
Total Gains
(Losses) Included in Earnings |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2013 |
Total Gains
(Losses) Included in Earnings |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets and Liabilities still held as of September 30, 2012 |
||||||||||||
Revenues: |
||||||||||||||||
Unrealized gains (losses) on insured derivatives |
$ | 1,562 | $ | (301) | $ | 1,473 | $ | 538 | ||||||||
Realized gains (losses) and other settlements on insured derivatives |
(1,548) | - | (420) | - | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(39) | (11) | (8) | (8) | ||||||||||||
Net investment losses related to other-than-temporary impairments |
- | - | (67) | - | ||||||||||||
Revenues of consolidated VIEs: |
||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
193 | 293 | (337) | (254) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 168 | $ | (19) | $ | 641 | $ | 276 | ||||||||
|
|
|
|
|
|
|
|
Fair Value Option
The Company elected to record at fair value certain financial instruments of VIEs that have been consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs, among others.
The following table presents the changes in fair value included in the Companys consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 for all financial instruments for which the fair value option was elected:
Net Gains (Losses) on Financial Instruments at
Fair Value and Foreign Exchange |
||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Fixed-maturity securities held at fair value |
$ | (37) | $ | 21 | $ | (35) | $ | (36) | ||||||||
Loans receivable at fair value: |
||||||||||||||||
Residential mortgage loans |
(87) | (4) | (16) | (103) | ||||||||||||
Other loans |
- | (7) | 13 | (48) | ||||||||||||
Loan repurchase commitments |
1 | 19 | 140 | 62 | ||||||||||||
Variable interest entity notes |
164 | 12 | 85 | 140 |
45
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2013 and December 31, 2012 for loans and VIE notes for which the fair value option was elected:
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
In millions |
Contractual
Outstanding Principal |
Fair
Value |
Difference |
Contractual
Outstanding Principal |
Fair
Value |
Difference | ||||||||||||||||||
Loans receivable at fair value: |
||||||||||||||||||||||||
Residential mortgage loans |
$ | 1,932 | $ | 1,622 | $ | 310 | $ | 2,307 | $ | 1,735 | $ | 572 | ||||||||||||
Residential mortgage loans (90 days or more past due) |
221 | 82 | 139 | 244 | 54 | 190 | ||||||||||||||||||
Other loans |
- | - | - | 22 | 22 | - | ||||||||||||||||||
Other loans (90 days or more past due) |
- | - | - | 197 | 70 | 127 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total loans receivable at fair value |
$ | 2,153 | $ | 1,704 | $ | 449 | $ | 2,770 | $ | 1,881 | $ | 889 | ||||||||||||
Variable interest entity notes |
$ | 3,859 | $ | 2,426 | $ | 1,433 | $ | 9,021 | $ | 3,659 | $ | 5,362 |
Substantially all gains and losses included in earnings during the periods ended September 30, 2013 and December 31, 2012 on loans receivable and VIE notes reported in the preceding table are attributable to credit risk. This is primarily due to the high rate of defaults on loans and the collateral supporting the VIE notes, resulting in depressed pricing of the financial instruments.
Note 7: Investments
Investments, excluding those elected under the fair value option, include debt and equity securities classified as either AFS or HTM. Other invested assets designated as AFS are primarily comprised of money market funds.
The following tables present the amortized cost, fair value, corresponding gross unrealized gains and losses and other-than-temporary impairments (OTTI) for AFS and HTM investments in the Companys consolidated investment portfolio as of September 30, 2013 and December 31, 2012:
46
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
September 30, 2013 | ||||||||||||||||||||
In millions |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
Other-Than-
Temporary Impairments (1) |
|||||||||||||||
AFS Investments |
||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||
U.S. Treasury and government agency |
$ | 526 | $ | 19 | $ | (8) | $ | 537 | $ | - | ||||||||||
State and municipal bonds |
1,632 | 30 | (52) | 1,610 | - | |||||||||||||||
Foreign governments |
192 | 9 | - | 201 | - | |||||||||||||||
Corporate obligations |
1,616 | 32 | (26) | 1,622 | - | |||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed agency |
942 | 10 | (18) | 934 | - | |||||||||||||||
Residential mortgage-backed non-agency |
67 | 13 | (6) | 74 | 3 | |||||||||||||||
Commercial mortgage-backed |
34 | 1 | (1) | 34 | - | |||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
210 | 2 | (57) | 155 | (12) | |||||||||||||||
Other asset-backed |
148 | 2 | (17) | 133 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed-maturity investments |
5,367 | 118 | (185) | 5,300 | (9) | |||||||||||||||
Money market securities |
911 | - | - | 911 | - | |||||||||||||||
Perpetual debt and equity securities |
9 | 1 | - | 10 | - | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Money market securities |
156 | - | - | 156 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total AFS investments |
$ | 6,443 | $ | 119 | $ | (185) | $ | 6,377 | $ | (9) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
HTM Investments |
||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Corporate obligations |
$ | 2,809 | $ | 8 | $ | (251) | $ | 2,566 | $ | - | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total HTM investments |
$ | 2,809 | $ | 8 | $ | (251) | $ | 2,566 | $ | - | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) - | Represents unrealized gains or losses on other than temporarily impaired securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
47
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
December 31, 2012 | ||||||||||||||||||||
In millions |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
Other-Than-
Temporary Impairments (1) |
|||||||||||||||
AFS Investments |
||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||
U.S. Treasury and government agency |
$ | 819 | $ | 40 | $ | (1) | $ | 858 | $ | - | ||||||||||
State and municipal bonds |
1,446 | 97 | (12) | 1,531 | - | |||||||||||||||
Foreign governments |
183 | 13 | - | 196 | - | |||||||||||||||
Corporate obligations |
1,058 | 54 | (20) | 1,092 | 5 | |||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed agency |
939 | 19 | (1) | 957 | - | |||||||||||||||
Residential mortgage-backed non-agency |
86 | 11 | (8) | 89 | - | |||||||||||||||
Commercial mortgage-backed |
46 | - | (4) | 42 | - | |||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
161 | 1 | (71) | 91 | (25) | |||||||||||||||
Other asset-backed |
145 | 3 | (11) | 137 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total fixed-maturity investments |
4,883 | 238 | (128) | 4,993 | (20) | |||||||||||||||
Money market securities |
580 | - | - | 580 | - | |||||||||||||||
Perpetual debt and equity securities |
22 | 1 | - | 23 | - | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
State and municipal bonds |
38 | 3 | - | 41 | - | |||||||||||||||
Corporate obligations |
177 | 9 | (6) | 180 | - | |||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||
Residential mortgage-backed non-agency |
92 | - | (10) | 82 | - | |||||||||||||||
Asset-backed securities: |
||||||||||||||||||||
Collateralized debt obligations |
97 | - | (8) | 89 | - | |||||||||||||||
Other asset-backed |
23 | - | - | 23 | - | |||||||||||||||
Money market securities |
210 | - | - | 210 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total AFS investments |
$ | 6,122 | $ | 251 | $ | (152) | $ | 6,221 | $ | (20) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
HTM Investments |
||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Corporate obligations |
$ | 2,829 | $ | 2 | $ | (157) | $ | 2,674 | $ | - | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total HTM investments |
$ | 2,829 | $ | 2 | $ | (157) | $ | 2,674 | $ | - | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) - | Represents unrealized gains or losses on other than temporarily impaired securities recognized in AOCI, which includes the non-credit component of impairments, as well as all subsequent changes in fair value of such impaired securities reported in AOCI. |
48
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
The following table presents the distribution by contractual maturity of AFS and HTM fixed-maturity securities at amortized cost and fair value as of September 30, 2013. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.
AFS Securities | HTM Securities | |||||||||||||||
Consolidated VIEs | ||||||||||||||||
In millions |
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less |
$ | 551 | $ | 552 | $ | - | $ | - | ||||||||
Due after one year through five years |
913 | 929 | - | - | ||||||||||||
Due after five years through ten years |
926 | 925 | - | - | ||||||||||||
Due after ten years |
1,576 | 1,564 | 2,809 | 2,566 | ||||||||||||
Mortgage-backed and asset-backed |
1,401 | 1,330 | - | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
$ | 5,367 | $ | 5,300 | $ | 2,809 | $ | 2,566 | ||||||||
|
|
|
|
|
|
|
|
Deposited and Pledged Securities
The fair value of securities on deposit with various regulatory authorities was $11 million and $10 million as of September 30, 2013 and December 31, 2012, respectively. These deposits are required to comply with state insurance laws.
The Company enters into securities borrowing and lending contracts in connection with MBIAs collateralized investment agreement activities. Such contracts are only transacted with high-quality dealer firms. It is the Companys policy to take possession of securities borrowed under these contracts. The Company minimizes credit risk from counterparties that might be unable to fulfill their contractual obligations by monitoring customer credit exposure and collateral values and requiring additional collateral to be deposited with the Company when deemed necessary.
Substantially all of the obligations under investment agreements require the Company to pledge securities as collateral. Securities pledged in connection with investment agreement activities may not be repledged by the investment agreement counterparty. As of September 30, 2013 and December 31, 2012, the fair value of securities pledged as collateral for these investment agreements approximated $750 million and $820 million, respectively. The Companys collateral as of September 30, 2013 consisted principally of RMBS, U.S. Treasury and government agency bonds and state and municipal bonds, and was primarily held with major U.S. banks. Additionally, the Company pledged cash and money market securities as collateral under investment agreements in the amount of $24 million and $144 million as of September 30, 2013 and December 31, 2012, respectively.
49
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
Impaired Investments
The following tables present the gross unrealized losses related to AFS and HTM investments as of September 30, 2013 and December 31, 2012:
September 30, 2013 | ||||||||||||||||||||||||
Less than 12
Months |
12 Months or
Longer |
Total | ||||||||||||||||||||||
In millions |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||
AFS Investments |
||||||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||
U.S. Treasury and government agency |
$ | 208 | $ | (8) | $ | 2 | $ | - | $ | 210 | $ | (8) | ||||||||||||
State and municipal bonds |
730 | (48) | 58 | (4) | 788 | (52) | ||||||||||||||||||
Foreign governments |
12 | - | - | - | 12 | - | ||||||||||||||||||
Corporate obligations |
610 | (23) | 20 | (3) | 630 | (26) | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed agency |
528 | (18) | 32 | - | 560 | (18) | ||||||||||||||||||
Residential mortgage-backed non-agency |
5 | - | 23 | (6) | 28 | (6) | ||||||||||||||||||
Commercial mortgage-backed |
22 | (1) | 1 | - | 23 | (1) | ||||||||||||||||||
Asset-backed securities: |
||||||||||||||||||||||||
Collateralized debt obligations |
9 | (1) | 128 | (56) | 137 | (57) | ||||||||||||||||||
Other asset-backed |
22 | - | 56 | (17) | 78 | (17) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
2,146 | (99) | 320 | (86) | 2,466 | (185) | ||||||||||||||||||
Perpetual debt and equity securities |
4 | - | - | - | 4 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total AFS investments |
$ | 2,150 | $ | (99) | $ | 320 | $ | (86) | $ | 2,470 | $ | (185) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
HTM Investments |
||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||
Corporate obligations |
$ | - | $ | - | $ | 1,174 | $ | (251) | $ | 1,174 | $ | (251) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total HTM investments |
$ | - | $ | - | $ | 1,174 | $ | (251) | $ | 1,174 | $ | (251) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
50
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
December 31, 2012 | ||||||||||||||||||||||||
Less than 12
Months |
12 Months or
Longer |
Total | ||||||||||||||||||||||
In millions |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||
AFS Investments |
||||||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||
U.S. Treasury and government agency |
$ | 234 | $ | (1) | $ | - | $ | - | $ | 234 | $ | (1) | ||||||||||||
State and municipal bonds |
69 | - | 87 | (12) | 156 | (12) | ||||||||||||||||||
Foreign governments |
11 | - | 1 | - | 12 | - | ||||||||||||||||||
Corporate obligations |
202 | (2) | 57 | (18) | 259 | (20) | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed agency |
173 | (1) | 38 | - | 211 | (1) | ||||||||||||||||||
Residential mortgage-backed non-agency |
4 | - | 28 | (8) | 32 | (8) | ||||||||||||||||||
Commercial mortgage-backed |
3 | - | 27 | (4) | 30 | (4) | ||||||||||||||||||
Asset-backed securities: |
||||||||||||||||||||||||
Collateralized debt obligations |
1 | - | 80 | (71) | 81 | (71) | ||||||||||||||||||
Other asset-backed |
4 | - | 65 | (11) | 69 | (11) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
701 | (4) | 383 | (124) | 1,084 | (128) | ||||||||||||||||||
Perpetual debt and equity securities |
1 | - | 1 | - | 2 | - | ||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||
Corporate obligations |
- | - | 31 | (6) | 31 | (6) | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed non-agency |
- | - | 82 | (10) | 82 | (10) | ||||||||||||||||||
Asset-backed securities: |
||||||||||||||||||||||||
Collateralized debt obligations |
- | - | 85 | (8) | 85 | (8) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total AFS investments |
$ | 702 | $ | (4) | $ | 582 | $ | (148) | $ | 1,284 | $ | (152) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
HTM Investments |
||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||
Corporate obligations |
$ | 297 | $ | (19) | $ | 1,287 | $ | (138) | $ | 1,584 | $ | (157) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total HTM investments |
$ | 297 | $ | (19) | $ | 1,287 | $ | (138) | $ | 1,584 | $ | (157) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized losses on AFS securities increased as of September 30, 2013 compared with December 31, 2012 primarily due to market price depreciation caused by rising interest rates and not the result of OTTI. Gross unrealized losses on HTM securities increased as of September 30, 2013 compared with December 31, 2012 primarily due to market price depreciation driven by a credit ratings downgrade on one of the HTM corporate obligations and not the result of OTTI.
With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of September 30, 2013 and December 31, 2012 was 19 and 23 years, respectively. As of September 30, 2013 and December 31, 2012, there were 64 and 153 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which the fair values of 39 and 89 securities, respectively, were below book value by more than 5%.
The following table presents the distribution of securities in an unrealized loss position for a continuous twelve-month period or longer by percentage of fair value below book value by more than 5%:
AFS Securities | HTM Securities | |||||||||||||||||||||||
Percentage of Fair Value Below Book Value |
Number of
Securities |
Book Value
(in millions) |
Fair Value
(in millions) |
Number of
Securities |
Book Value
(in millions) |
Fair Value
(in millions) |
||||||||||||||||||
> 5% to 15% |
13 | $ | 110 | $ | 101 | - | $ | - | $ | - | ||||||||||||||
> 15% to 25% |
12 | 66 | 52 | - | - | - | ||||||||||||||||||
> 25% to 50% |
5 | 53 | 36 | 1 | 575 | 345 | ||||||||||||||||||
> 50% |
8 | 52 | 9 | - | - | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
38 | $ | 281 | $ | 198 | 1 | $ | 575 | $ | 345 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
51
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
The following table presents the fair values and gross unrealized losses by credit rating category of ABS, MBS and corporate obligations included in the Companys consolidated AFS investment portfolio as of September 30, 2013 for which fair value was less than amortized cost. The credit ratings are based on ratings from Moodys as of September 30, 2013 or an alternate ratings source, such as S&P, when a security is not rated by Moodys. For investments that are insured by various third-party guarantee insurers, the credit rating reflects the higher of the insurers rating or the underlying bonds rating.
Below | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions |
Aaa | Aa | A | Baa | Investment Grade | Not Rated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Asset Type |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
||||||||||||||||||||||||||||||||||||||||||
ABS |
$ | 13 | $ | - | $ | 59 | $ | (5) | $ | 1 | $ | - | $ | 3 | $ | - | $ | 135 | $ | (69) | $ | 4 | $ | - | $ | 215 | $ | (74) | ||||||||||||||||||||||||||||
MBS |
558 | (18) | 8 | - | 4 | - | 17 | (1) | 9 | (1) | 15 | (5) | 611 | (25) | ||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
129 | (1) | 205 | (8) | 205 | (12) | 74 | (4) | 17 | (1) | - | - | 630 | (26) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total |
$ | 700 | $ | (19) | $ | 272 | $ | (13) | $ | 210 | $ | (12) | $ | 94 | $ | (5) | $ | 161 | $ | (71) | $ | 19 | $ | (5) | $ | 1,456 | $ | (125) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The total ABS, MBS and corporate obligations reported in the preceding table include those which are guaranteed by financial guarantors. In addition, the following table presents information on ABS, MBS and corporate obligations guaranteed by the Company and third-party financial guarantors.
Insured Securities Rated Below
Investment Grade without the Effect of Guarantee |
||||||||||||
Average Credit Rating with the | Average Credit Rating without the | (in millions) | ||||||||||
Asset Type |
Effect of Guarantee | Effect of Guarantee | Fair Value | Percentage | ||||||||
ABS |
Below investment grade | Below investment grade | $ | 101 | 64% | |||||||
MBS |
Baa | Below investment grade | 20 | 99% | ||||||||
Corporate obligations |
A | A | - | - % |
Refer to the table in the Determination of Credit Loss Guaranteed by the Company and Other Third-Party Guarantors section within the OTTI section of this note for information on the insured securities included in the table above.
The Company concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not, that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, the Company examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its businesses, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2013 that would require the sale of impaired securities. Impaired securities that the Company intends to sell before the expected recovery of such securities fair values have been written down to fair value.
Other-Than-Temporary Impairments
Evaluating AFS Securities for OTTI
The Company has an ongoing review process for all securities in its investment portfolio, including a quarterly assessment of OTTI. This evaluation includes both qualitative and quantitative considerations. In assessing whether a decline in value is related to a credit loss, the Company considers several factors, including but not limited to (i) the magnitude and duration of declines in fair value; (ii) the reasons for the declines in fair value, such as general credit spread movements in each asset-backed sector, transaction-specific changes in credit spreads, credit rating downgrades, modeled defaults, and principal and interest payment priorities within each investment structure; and (iii) any guarantees associated with a security such as those provided by financial guarantee insurance companies, including MBIA Corp. and National.
In calculating credit-related losses, the Company utilizes cash flow modeling based on the type of security. The Companys cash flow analysis considers all sources of cash, including credit enhancement, that support the payment of amounts owed by an issuer of a security. This includes the consideration of cash expected to be provided by financial guarantors, including MBIA Corp., resulting from an actual or potential insurance policy claim. In general, any change in the amount and/or timing of cash flows received or expected to be received, whether or not such cash flows are contractually defined, is reflected in the Companys cash flow analysis for purposes of assessing an OTTI loss on an impaired security.
52
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
Each quarter, an internal committee, comprising staff that is independent of the Companys evaluation process for determining OTTI of securities, reviews and approves the valuation of investments. Among other responsibilities, this committee ensures that the Companys process for identifying and calculating OTTI, including the use of models and assumptions, is reasonable and complies with the Companys internal policy.
Determination of Credit Loss on ABS, MBS and Corporate Obligations
Investments with unrealized losses that met the above criteria were tested for OTTI and principally related to ABS, MBS and corporate obligations.
ABS investments are evaluated for OTTI using historical collateral performance, deal waterfall and structural protections, credit ratings, and forward looking projections of collateral performance based on business and economic conditions specific to each collateral type and risk. The underlying collateral is evaluated to identify any specific performance concerns, and stress scenarios are considered in forecasting ultimate returns of principal. Based on this evaluation, if a principal default is projected for a security, estimated future cash flows are discounted at the securitys interest rate used to recognize interest income on the security. For CDO investments, the Company utilizes the same tools as for RMBS investments discussed below, aggregating the bond level cash flows to the CDO investment level. If the present value of cash flows is less than the Companys amortized cost for the security, the difference is recorded as an OTTI loss.
RMBS investments are evaluated for OTTI using several quantitative tools. Loan level data are obtained and analyzed in a model that produces prepayment, default, and severity vectors. The model utilizes macro inputs, including housing price assumptions and interest rates. The vector outputs are used as inputs to a third-party cash flow model, which considers deal waterfall dynamics and structural features, to generate cash flows for an RMBS investment. The expected cash flows of the security are then discounted at the interest rate used to recognize interest income of the security to arrive at a present value amount. If the present value of the cash flows is less than the Companys amortized cost for the investment, the difference is recorded as an OTTI loss.
Corporate obligation investments are evaluated for OTTI using credit analysis techniques. The Companys analysis includes a detailed review of a number of quantitative and qualitative factors impacting the value of an individual security. These factors include the interest rate of the security (fixed or floating), the securitys current market spread, any collateral supporting the security, the securitys position in the issuers capital structure, and credit rating upgrades or downgrades. Additionally, these factors include an assessment of various issuer-related credit metrics including market capitalization, earnings, cash flow, capitalization, interest coverage, leverage, liquidity, management and a third-party quantitative default probability model. The Companys analysis is augmented by comparing market prices for similar securities of other issuers in the same sector, as well as any recent corporate or government actions that may impact the ultimate return of principal. If the Company determines that, after considering these factors, a principal default is projected, a recovery analysis is performed using the above data. If the Companys estimated recovery value for the security is less than its amortized cost, the difference is recorded as an OTTI loss.
53
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
For the nine months ended September 30, 2012, the credit losses recognized in earnings were related to RMBS and CDOs. The following table presents a summary of the significant inputs considered in determining the measurement of the credit losses on securities in which a portion of the impairment is included in AOCI:
Nine Months Ended September 30, | ||||
Asset-backed Securities |
2012 | |||
Expected size of losses (1): |
||||
Range (2) |
12.13% to 97.70% | |||
Weighted average (3) |
88.48% | |||
Current subordination levels (4): |
||||
Range (2) |
0.00% to 0.00% | |||
Weighted average (3) |
0.00% | |||
Prepayment speed (annual constant prepayment rate) (5): |
||||
Range (2) |
0.00% to 30.91% | |||
Weighted average (3) |
12.16% |
(1) - | Represents future expected credit losses on impaired assets expressed as a percentage of total outstanding balance. |
(2) - | Represents the range of inputs/assumptions based upon the individual securities within each category. |
(3) - | Calculated by weighting the relevant input/assumption for each individual security by the outstanding notional of the security. |
(4) - | Represents current level of credit protection (subordination) for the securities, expressed as a percentage of the balance of the collateral group backing the bond. |
(5) - | Values represent high and low points of lifetime vectors of constant prepayment rates. |
Determination of Credit Loss Guaranteed by the Company and Other Third-Party Guarantors
The Company does not record OTTI related to credit concerns about issuers of securities insured by MBIA Corp. and National since investors in these securities, including MBIA, are guaranteed payment of principal and interest when due by MBIA. Securities insured by the Company, whether or not owned by the Company, are evaluated for impairment as part of its insurance surveillance process and, therefore, losses on securities insured by the Company are recorded in accordance with its loss reserving policy. Refer to Note 2: Significant Accounting Policies in the Notes to Consolidated Financial Statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2012 for information about the Companys loss reserving policy and Note 5: Loss and Loss Adjustment Expense Reserves for information about loss reserves.
In considering cash expected to be provided from other third-party financial guarantors, the Company assesses the financial guarantors ability to make claim payments under a variety of scenarios that test the guarantors ultimate claims paying ability. The weighted average outcome of these scenarios, combined with the cash flows provided by the insured security, are used to determine the recoverability of the Companys amortized cost.
The following table provides information about securities held by the Company as of September 30, 2013 that were in an unrealized loss position and insured by a financial guarantor, along with the amount of insurance loss reserves corresponding to the par amount owned by the Company:
54
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
In millions |
Fair Value |
Unrealized
Loss |
Insurance Loss
Reserve (2) |
|||||||||
Asset-backed: |
||||||||||||
MBIA (1) |
$ | 148 | $ | (58) | $ | 15 | ||||||
Other |
9 | (5) | - | |||||||||
|
|
|
|
|
|
|||||||
Total asset-backed |
157 | (63) | 15 | |||||||||
Mortgage-backed: |
||||||||||||
MBIA (1) |
5 | - | - | |||||||||
Other |
15 | - | - | |||||||||
|
|
|
|
|
|
|||||||
Total mortgage-backed |
20 | - | - | |||||||||
Corporate obligations: |
||||||||||||
Other |
6 | (2) | - | |||||||||
|
|
|
|
|
|
|||||||
Total corporate obligations |
6 | (2) | - | |||||||||
Other: |
||||||||||||
MBIA (1) |
104 | (6) | - | |||||||||
Other |
19 | - | - | |||||||||
|
|
|
|
|
|
|||||||
Total other |
123 | (6) | - | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 306 | $ | (71) | $ | 15 | ||||||
|
|
|
|
|
|
(1) - | Includes investments insured by MBIA Corp. and National. |
(2) - | Insurance loss reserve estimates are based on the proportion of par value owned to the total amount of par value insured. |
Credit Loss Rollforward
The portion of certain OTTI losses on fixed-maturity securities that does not represent credit losses is recognized in AOCI. For these impairments, the net amount recognized in earnings represents the difference between the amortized cost of the security and the net present value of its projected future discounted cash flows prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI. The following table presents the amount of credit loss impairments recognized in earnings on fixed-maturity securities held by MBIA as of the dates indicated, for which a portion of the OTTI losses was recognized in AOCI, and the corresponding changes in such amounts.
In millions |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Beginning balance |
$ | 186 | $ | 269 | $ | 197 | $ | 341 | ||||||||
Additions for credit loss impairments recognized in the current period on securities previously impaired |
- | 5 | - | 8 | ||||||||||||
Reductions for credit loss impairments previously recognized on securities sold during the period |
(4) | (2) | (14) | (18) | ||||||||||||
Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period (1) |
- | (52) | - | (111) | ||||||||||||
Reductions for increases in cash flows expected to be collected over the remaining life of the security |
(4) | - | (5) | - | ||||||||||||
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|
|||||||||
Ending balance |
$ | 178 | $ | 220 | $ | 178 | $ | 220 | ||||||||
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|
(1) - | Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the securitys amortized cost. |
55
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
Sales of Available-For-Sale Investments
Gross realized gains and losses are recorded within Net gains (losses) on financial instruments at fair value and foreign exchange on the Companys consolidated statements of operations. The proceeds and gross realized gains and losses from sales of AFS investments for the three and nine months ended September 30, 2013 and 2012 are as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Proceeds from sales |
$ | 695 | $ | 1,163 | $ | 3,009 | $ | 5,697 | ||||||||
Gross realized gains |
$ | 4 | $ | 42 | $ | 52 | $ | 100 | ||||||||
Gross realized losses |
$ | (15) | $ | (6) | $ | (25) | $ | (101) |
Note 8: Derivative Instruments
Overview
MBIA has entered into derivative instruments through its financial guarantee of CDS and for purposes of hedging risks associated with existing assets and liabilities and forecasted transactions. The Company accounts for derivative instruments in accordance with the accounting principles for derivative and hedging activities, which requires that all such instruments be recorded on the balance sheet at fair value. Refer to Note 6: Fair Value of Financial Instruments for the method of determining the fair value of derivative instruments.
U.S. Public Finance Insurance
The Companys derivative exposure within its U.S. public finance insurance operations primarily consists of insured interest rate and inflation-linked swaps related to insured U.S. public finance debt issues. These derivatives do not qualify for the financial guarantee scope exception. The Company has also purchased certain investments containing embedded derivatives. All derivatives are recorded at fair value on the Companys consolidated balance sheets with the changes in fair value recorded on the Companys consolidated statements of operations within Unrealized gains (losses) on insured derivatives, for the insured derivatives, or Net gains (losses) on financial instruments at fair value and foreign exchange for the embedded derivatives.
Structured Finance and International Insurance
The Company entered into derivative instruments that it viewed as an extension of its core financial guarantee business but which do not qualify for the financial guarantee scope exception and, therefore, must be recorded at fair value on the balance sheet. These insured CDS contracts, primarily referencing corporate, asset-backed, residential mortgage-backed, commercial mortgage-backed, CRE loans and CDO securities, are intended to be held for the entire term of the contract absent a negotiated settlement with the counterparty.
Changes in the fair value of derivatives, excluding insured derivatives, are recorded each period in current earnings within Net gains (losses) on financial instruments at fair value and foreign exchange. Changes in the fair value of insured derivatives are recorded each period in current earnings within Net change in fair value of insured derivatives. The net change in the fair value of the Companys insured derivatives has two primary components: (i) realized gains (losses) and other settlements on insured derivatives and (ii) unrealized gains (losses) on insured derivatives. Realized gains (losses) and other settlements on insured derivatives include (i) premiums received and receivable on sold CDS contracts, (ii) premiums paid and payable to reinsurers in respect to CDS contracts, (iii) net amounts received or paid on reinsurance commutations, (iv) losses paid and payable to CDS contract counterparties due to the occurrence of a credit event or settlement agreement, (v) losses recovered and recoverable on purchased CDS contracts due to the occurrence of a credit event or settlement agreement and (vi) fees relating to CDS contracts. The Unrealized gains (losses) on insured derivatives include all other changes in fair value of the insured derivative contracts.
In certain instances, the Companys structured finance and international insurance business purchased or issued securities that contain embedded derivatives. In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Companys embedded derivative instruments is determined by the location of the related security.
Variable Interest Entities
VIEs consolidated by the Company have entered into derivative instruments primarily consisting of interest rate swaps. Interest rate swaps are entered into to mitigate the risks associated with fluctuations in interest rates or fair values of certain contracts.
56
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
Asset/Liability Products
The Companys asset/liability products business has entered into derivative instruments primarily consisting of interest rate swaps, and cross currency swaps. Interest rate swaps are entered into to hedge the risks associated with fluctuations in interest rates or fair values of certain contracts. Cross currency swaps are entered into to hedge the variability in cash flows resulting from fluctuations in foreign currency rates.
In certain instances, the Companys asset/liability products business purchased or issued securities that contain embedded derivatives. In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Companys embedded derivative instruments is determined by the location of the related security.
Changes in the fair value of the Companys asset/liability products business derivatives are recorded on the Companys consolidated statements of operations within Net gains (losses) on financial instruments at fair value and foreign exchange.
Credit Derivatives Sold
The following tables present information about credit derivatives sold by the Companys insurance operations that were outstanding as of September 30, 2013 and December 31, 2012. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moodys, S&P or MBIA.
$ in millions |
As of September 30, 2013 | |||||||||||||||||||||||||||||||
Notional Value | ||||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted
Average Remaining Expected Maturity |
AAA | AA | A | BBB |
Below
Investment Grade |
Total
Notional |
Fair Value
Asset (Liability) |
||||||||||||||||||||||||
Insured credit default swaps |
2.7 Years | $ | 7,412 | $ | 3,150 | $ | 1,705 | $ | 7,419 | $ | 6,085 | $ | 25,771 | $ | (1,355) | |||||||||||||||||
Insured swaps |
19.1 Years | - | 77 | 3,694 | 1,592 | - | 5,363 | (7) | ||||||||||||||||||||||||
All others |
28.3 Years | - | - | - | - | 36 | 36 | (8) | ||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|||||||||||||||||||
Total notional |
$ | 7,412 | $ | 3,227 | $ | 5,399 | $ | 9,011 | $ | 6,121 | $ | 31,170 | ||||||||||||||||||||
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|
|||||||||||||||||||||
Total fair value |
$ | (3) | $ | - | $ | (6) | $ | (386) | $ | (975) | $ | (1,370) | ||||||||||||||||||||
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|
|
$ in millions |
As of December 31, 2012 | |||||||||||||||||||||||||||||||
Notional Value | ||||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted
Average Remaining Expected Maturity |
AAA | AA | A | BBB |
Below
Investment Grade |
Total
Notional |
Fair Value
Asset (Liability) |
||||||||||||||||||||||||
Insured credit default swaps |
5.1 Years | $ | 10,457 | $ | 5,862 | $ | 5,253 | $ | 11,571 | $ | 13,859 | $ | 47,002 | $ | (2,858) | |||||||||||||||||
Insured swaps |
19.4 Years | - | 103 | 3,661 | 1,982 | 71 | 5,817 | (8) | ||||||||||||||||||||||||
All others |
1.8 Years | - | - | - | - | 195 | 195 | (68) | ||||||||||||||||||||||||
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|
|
|
|
|
|||||||||||||||||||
Total notional |
$ | 10,457 | $ | 5,965 | $ | 8,914 | $ | 13,553 | $ | 14,125 | $ | 53,014 | ||||||||||||||||||||
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|
|
|||||||||||||||||||||
Total fair value |
$ | (7) | $ | (70) | $ | (72) | $ | (732) | $ | (2,053) | $ | (2,934) | ||||||||||||||||||||
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|
|
Internal credit ratings assigned by MBIA on the underlying collateral are derived by the Companys surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. Also, where appropriate, cash flow analyses and collateral valuations are considered. The maximum potential amount of future payments (undiscounted) on CDS contracts are estimated as the notional value plus any additional debt service costs, such as interest or other amounts owing on CDS contracts. The maximum amount of future payments that MBIA may be required to make under these guarantees as of September 30, 2013 is $26.4 billion. This amount is net of $67 million of insured derivatives ceded under reinsurance agreements in which MBIA economically hedges a portion of the credit and market risk associated with its insured derivatives and offsetting agreements with a counterparty. The maximum potential amount of future payments (undiscounted) on insured swaps are estimated as the notional value of such contracts.
57
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
MBIA may hold recourse provisions with third parties in derivative instruments through both reinsurance and subrogation rights. MBIAs reinsurance arrangements provide that in the event MBIA pays a claim under a guarantee of a derivative contract, MBIA has the right to collect amounts from any reinsurers that have reinsured the guarantee on either a proportional or non-proportional basis, depending upon the underlying reinsurance agreement. MBIA may also have recourse through subrogation rights whereby if MBIA makes a claim payment, it is entitled to any rights of the insured counterparty, including the right to any assets held as collateral.
Counterparty Credit Risk
The Company manages counterparty credit risk on an individual counterparty basis through master netting agreements covering derivative instruments in the asset/liability products segment. There are no master netting agreements in the structured finance and international insurance or the U.S. public finance insurance segments. The master netting agreements in the asset/liability products segment allow the Company to contractually net amounts due from a counterparty with those amounts due to such counterparty when certain triggering events occur. The Company only executes swaps under master netting agreements, which typically contain mutual credit downgrade provisions that generally provide the ability to require assignment or termination in the event either MBIA or the counterparty is downgraded below a specified credit rating.
Under these arrangements, the Company may receive or provide U.S. Treasury and other highly rated securities or cash to secure counterparties exposure to the Company or its exposure to counterparties, respectively. Such collateral is available to the holder to pay for replacing the counterparty in the event that the counterparty defaults. As of September 30, 2013, the Company did not hold cash collateral to derivative counterparties but posted cash collateral to derivative counterparties of $219 million. Of this amount, $143 million is netted within Derivative liabilities, $16 million is included within Other liabilities as cash collateral netted against accrued interest on derivative liabilities and an additional $60 million is included in Other assets on the Companys consolidated balance sheets. As of December 31, 2012, the Company did not hold cash collateral to derivative counterparties but posted cash collateral to derivative counterparties of $285 million. Of this amount, $203 million is netted within Derivative liabilities, $16 million is included within Other liabilities as cash collateral netted against accrued interest on derivative liabilities and an additional $66 million is included in Other assets on the Companys consolidated balance sheets. As of September 30, 2013 and December 31, 2012, the Company did not post securities to derivative counterparties.
As of September 30, 2013 and December 31, 2012, the fair value on one Credit Support Annex (CSA) was $4 million. This CSA governs collateral posting requirements between MBIA and its derivative counterparties. The Company did not receive collateral due to the Companys credit rating, which was below the CSA minimum credit ratings level for holding counterparty collateral. As of September 30, 2013 and December 31, 2012, the counterparty was rated A2 by Moodys and A by S&P.
Financial Statement Presentation
The fair value of amounts recognized for eligible derivative contracts executed with the same counterparty under a master netting agreement, including any cash collateral that may have been received or posted by the Company, is presented on a net basis in accordance with accounting guidance for the offsetting of fair value amounts related to derivative instruments. Insured CDSs and insured swaps are not subject to master netting agreements. VIE derivative assets and liabilities are not presented net of any master netting agreements.
As of September 30, 2013, the total fair value of the Companys derivative assets, after counterparty netting of $53 million, was $13 million, of which $4 million was reported within Other assets on the Companys consolidated balance sheets. Embedded derivatives of $9 million were reported within Medium-term notes on the Companys consolidated balance sheets.
As of September 30, 2013, the total fair value of the Companys derivative liabilities, after counterparty netting of $53 million and cash collateral posted by the Company of $143 million was $1.4 billion, which was reported within Derivative liabilities and Derivative liabilities presented under Liabilities of consolidated variable interest entities on the Companys consolidated balance sheets. Embedded derivatives of $16 million were reported within Medium-term notes on the Companys consolidated balance sheets.
Counterparty netting of derivative assets and liabilities offsets balances in Interest rate swaps and Currency swaps in the table below.
58
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
The following table presents the total fair value of the Companys derivative assets and liabilities by instrument and balance sheet location, before counterparty netting and posting of cash collateral, as of September 30, 2013:
In millions |
Derivative Assets (1) | Derivative Liabilities (1) | ||||||||||||||
Derivative Instruments |
Notional
Amount Outstanding |
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||
Not designated as hedging instruments: |
||||||||||||||||
Insured credit default swaps |
$ | 25,771 | Other assets | $ | - | Derivative liabilities | $ | (1,355) | ||||||||
Insured swaps |
5,363 | Other assets | - | Derivative liabilities | (7) | |||||||||||
Interest rate swaps |
1,575 | Other assets | 57 | Derivative liabilities | (195) | |||||||||||
Interest rate swaps-embedded |
490 | Medium-term notes | 9 | Medium-term notes | (16) | |||||||||||
Currency swaps |
20 | Other assets | - | Derivative liabilities | (1) | |||||||||||
Currency swaps-VIE |
102 | Other assets-VIE | - | Derivative liabilities-VIE | (15) | |||||||||||
All other |
36 | Other assets | - | Derivative liabilities | (8) | |||||||||||
All other-VIE |
280 | Other assets-VIE | - | Derivative liabilities-VIE | - | |||||||||||
All other-embedded |
10 | Other investments | - | Other investments | - | |||||||||||
|
|
|
|
|
|
|||||||||||
Total non-designated derivatives |
$ | 33,647 | $ | 66 | $ | (1,597) | ||||||||||
|
|
|
|
|
|
(1) - | In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Companys embedded derivative instruments is determined by the location of the related host contract. |
As of December 31, 2012, the total fair value of the Companys derivative assets, after counterparty netting of $90 million, was $12 million, of which $4 million was reported within Other assets and Other assets presented under Assets of consolidated variable interest entities on the Companys consolidated balance sheets. Embedded derivatives of $8 million were reported within Medium-term notes on the Companys consolidated balance sheets.
As of December 31, 2012, the total fair value of the Companys derivative liabilities, after counterparty netting of $90 million and cash collateral posted by the Company of $203 million, was $3.1 billion which was reported within Derivative liabilities and Derivative liabilities presented under Liabilities of consolidated variable interest entities on the Companys consolidated balance sheets. Embedded derivatives of $36 million were reported within Medium-term notes and Other investments on the Companys consolidated balance sheets.
Counterparty netting of derivative assets and liabilities offsets balances in Interest rate swaps and Currency swaps in the table below.
59
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
The following table presents the total fair value of the Companys derivative assets and liabilities by instrument and balance sheet location, before counterparty netting and posting of cash collateral, as of December 31, 2012:
In millions |
Derivative Assets (1) | Derivative Liabilities (1) | ||||||||||||||
Derivative Instruments |
Notional
Amount Outstanding |
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||
Not designated as hedging instruments: |
||||||||||||||||
Insured credit default swaps |
$ | 47,320 | Other assets | $ | - | Derivative liabilities | $ | (2,858) | ||||||||
Insured swaps |
5,817 | Other assets | - | Derivative liabilities | (8) | |||||||||||
Non-insured credit default swaps |
10 | Other assets | - | Derivative liabilities | - | |||||||||||
Interest rate swaps |
1,637 | Other assets | 94 | Derivative liabilities | (290) | |||||||||||
Interest rate swaps-VIE |
2,728 | Other assets-VIE | - | Derivative liabilities-VIE | (141) | |||||||||||
Interest rate swaps-embedded |
483 | Medium-term notes | 8 | Medium-term notes | (35) | |||||||||||
Currency swaps |
40 | Other assets | - | Derivative liabilities | (3) | |||||||||||
Currency swaps-VIE |
110 | Other assets-VIE | - | Derivative liabilities-VIE | (21) | |||||||||||
All other |
195 | Other assets | - | Derivative liabilities | (68) | |||||||||||
All other-VIE |
280 | Other assets-VIE | - | Derivative liabilities-VIE | - | |||||||||||
All other-embedded |
20 | Other investments | - | Other investments | (1) | |||||||||||
|
|
|
|
|
|
|||||||||||
Total non-designated derivatives |
$ | 58,640 | $ | 102 | $ | (3,425) | ||||||||||
|
|
|
|
|
|
(1) - | In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of the Companys embedded derivative instruments is determined by the location of the related host contract. |
The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2013:
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | 287 | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | (28) | ||||
Interest rate swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | 17 | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 2 | ||||
Currency swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | (1) | ||||
All other |
Unrealized gains (losses) on insured derivatives | (2) | ||||
|
|
|||||
Total |
$ | 275 | ||||
|
|
The following tables present the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2012:
In millions |
||||||||||||||
Derivatives in Fair Value Hedging Relationships |
Location of Gain (Loss) Recognized in Income on Derivative |
Gain (Loss)
Recognized in Income on Derivative |
Gain (Loss)
Recognized in Income on Hedged Item |
Net Gain (Loss)
Recognized in Income |
||||||||||
Interest rate swaps |
Net gains (losses) on financial
instruments at fair value and foreign exchange |
$ | (12) | $ | 12 | $ | - | |||||||
|
|
|
|
|
|
|||||||||
Total |
$ | (12) | $ | 12 | $ | - | ||||||||
|
|
|
|
|
|
60
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | (40) | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | 12 | ||||
Interest rate swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | (26) | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 8 | ||||
Currency swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | 1 | ||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (2) | ||||
All other |
Unrealized gains (losses) on insured derivatives | 7 | ||||
|
|
|||||
Total |
$ | (40) | ||||
|
|
The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2013:
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | 1,502 | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | (1,548) | ||||
Interest rate swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | 58 | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 17 | ||||
Currency swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | 1 | ||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 6 | ||||
All other |
Unrealized gains (losses) on insured derivatives | 60 | ||||
|
|
|||||
Total |
$ | 96 | ||||
|
|
The following tables present the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2012:
In millions |
||||||||||||||
Derivatives in Fair Value Hedging Relationships |
Location of Gain (Loss) Recognized in Income on Derivative |
Gain (Loss)
Recognized in Income on Derivative |
Gain (Loss)
Recognized in Income on Hedged Item |
Net Gain (Loss)
Recognized in Income |
||||||||||
Interest rate swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | $ | 25 | $ | (25) | $ | - | |||||||
Interest rate swaps |
Interest income (expense) | - | - | (3) | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
$ | 25 | $ | (25) | $ | (3) | ||||||||
|
|
|
|
|
|
61
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain(Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | 1,463 | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | (420) | ||||
Non-insured credit default swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | (1) | ||||
Non-insured credit default swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (1) | ||||
Interest rate swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | (76) | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 39 | ||||
Currency swaps |
Net gains (losses) on financial instruments at fair value and foreign exchange | 1 | ||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (5) | ||||
All other |
Unrealized gains (losses) on insured derivatives | 10 | ||||
All other |
Net gains (losses) on financial instruments at fair value and foreign exchange | 11 | ||||
All other-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (2) | ||||
|
|
|||||
Total |
$ | 1,019 | ||||
|
|
Note 9: Debt
The Company has disclosed its debt in Note 10: Debt in the Notes to Consolidated Financial Statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2012. The following debt discussion provides an update to the Companys Annual Report on Form 10-K.
Long-Term Debt
The Companys long-term debt consists of surplus notes and MBIA Inc. corporate debt. As of September 30, 2013, accrued interest on the Companys long-term debt was reported within Long-term debt on the Companys consolidated balance sheets. Prior to September 30, 2013, the accrued interest on long-term debt was included in Other liabilities on the Companys consolidated balance sheets. The accrued interest on long-term debt has been reclassified in the prior years financial statements to conform to the current presentation. This reclassification had no impact on total revenues, expenses, assets, liabilities, shareholders equity, operating cash flows, investing cash flows, or financing cash flows for all periods presented.
Surplus Notes
As of September 30, 2013 and December 31, 2012, there was $940 million of principal outstanding related to surplus notes. As of September 30, 2013 and December 31, 2012, accrued interest related to these surplus notes was $143 million and $61 million, respectively.
Interest and principal payments on the 14% Fixed to Floating Rate Surplus Notes due 2033 are subject to prior approval by the Superintendent of the NYSDFS. From the January 15, 2013 interest payment to the present, MBIA Insurance Corporations requests for approval of the note interest payments have been denied by the NYSDFS. MBIA Insurance Corporation provided notice to the Fiscal Agent that it has not made a scheduled interest payment. The deferred interest payment will become due on the first business day on or after which MBIA Insurance Corporation obtains approval to make such payment. No interest will accrue on the deferred interest.
MBIA Inc. Corporate Debt
As of September 30, 2013 and December 31, 2012, there was $584 million and $723 million, respectively, of principal outstanding related to MBIA Inc. corporate debt. As of September 30, 2013 and December 31, 2012, accrued interest related to MBIA Inc. corporate debt was $10 million and $9 million, respectively.
In connection with the BofA Settlement Agreement in May of 2013, MBIA Corp. received $136 million principal amount of the 5.70% Senior Notes due 2034 as consideration for the settlement. These notes were subsequently transferred to National. On a consolidated basis, receipt of these notes by the Company reduced its outstanding debt.
Medium-Term Note Obligations
During the nine months ended September 30, 2013, the Company redeemed $486 million par value outstanding of MTNs issued by the Companys conduit segment at a cost of 100% of par value. The Company also repurchased approximately $80 million par value outstanding of MBIA Global Funding, LLC (GFL) MTNs issued by the Companys asset/liability segment at a weighted average cost of approximately 92% of par value.
62
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 9: Debt (continued)
Other Borrowing Arrangements
Blue Ridge Secured Loan
In connection with the BofA Settlement Agreement in May of 2013, MBIA Insurance Corporation and Blue Ridge entered into the Blue Ridge Secured Loan, pursuant to which Blue Ridge agreed to make revolving loans to MBIA Insurance Corporation in an aggregate of up to $500 million. The following is a summary of the material terms of the Loan Agreement, as amended by Amendment No. 1 entered into in June of 2013. This summary is not complete and is subject to the full text of the document described below.
During the third quarter of 2013, MBIA Insurance Corporation borrowed $50 million under the Blue Ridge Secured Loan. MBIA Insurance Corporation elected the LIBOR Loans interest rate option and the average interest rate for the three months ended September 30, 2013 was 7.76%. Accrued interest expense for the Blue Ridge Secured Loan is included within Other liabilities on the Companys consolidated balance sheets.
Use of Proceeds
The proceeds of the Blue Ridge Secured Loan can be used for general corporate purposes. Once the Blue Ridge Secured Loan amount outstanding exceeds $50 million, the proceeds must be used for the purpose of meeting ordinary course liquidity requirements expected to arise during the 30 days following such borrowing.
Conditions to Borrowings
Blue Ridges obligation to make loans is subject to usual and customary conditions precedent, including that on the date of the borrowing (i) no default is continuing or would occur as a result of that borrowing and (ii) the representations and warranties specified in the Blue Ridge Secured Loan agreement are true and accurate in all material respects.
Security
The Loans are secured by a pledge of collateral consisting of the following: (i) MBIA Insurance Corporations right to receive put-back recoveries related to ineligible mortgage loans included in its insured RMBS transactions; (ii) MBIA Insurance Corporations future recoveries on defaulted insured RMBS transactions resulting from expected excess spread generated by performing loans in such transactions; (iii) MBIA Insurance Corporations future installment premiums; and (iv) 65% of the voting capital stock of MBIA Corp.s equity interest in MBIA UK (Holdings) Limited (the collateral described in clauses (ii) and (iii) above, the (Other Prepayment Collateral). Under the Blue Ridge Secured Loan, the value of the collateral described in clauses (i) through (iii) above, must at all times be greater than $1.0 billion. As of September 30, 2013, the value of the collateral was approximately $2.5 billion.
Interest Rate and Fees
Borrowings under the Blue Ridge Secured Loan have a variable interest rate, at MBIA Insurance Corporations option based on either: (i) the adjusted LIBOR plus an applicable margin (LIBOR Loans), or (ii) the highest between (a) Bank of Americas prime rate and (b) the sum of the federal funds effective rate plus 0.5% and (c) the adjusted LIBOR plus 1.00%, plus an applicable margin (Base Rate Loans). The applicable margin for the LIBOR Loans and the Base Rate Loans is 7.50% and 6.50%, respectively. With respect to any available but undrawn amounts under the Blue Ridge Secured Loan, MBIA Insurance Corporation is obligated to pay a commitment fee on such undrawn amounts of 2.00% per annum. The amount of the commitment fee and interest expense for the nine months ended September 30, 2013 was $4 million.
63
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 9: Debt (continued)
Scheduled Repayment
The maturity date of the Blue Ridge Secured Loan is three years from the closing date, at which time any then outstanding loans will be due and payable.
Mandatory Prepayments
Loans are required to be prepaid (and Blue Ridges commitments reduced) in an amount equal to the following: (i) 100% of the proceeds of any put-back recoveries and (ii) on and after the first anniversary of the closing date, from the proceeds of any Other Prepayment Collateral in an amount equal to (x) from the first anniversary of the closing date to the second anniversary of the closing date, 50% of such proceeds and (y) from the second anniversary of the closing date to the maturity date, 100% of such proceeds. In addition, loans must be prepaid (and Blue Ridges commitments reduced) in an amount equal to 100% of the proceeds of certain disposals of assets to the extent exceeding $1 million in aggregate for all such disposals. Finally, loans must be prepaid (but without any commitment reduction) to the extent the proceeds of any borrowing that is a liquidity borrowing are not in fact used for such purposes and have not otherwise been used to repay loans within the required 30-day period.
Representations and Warranties
The Blue Ridge Secured Loan contains certain customary representations and warranties for loan facilities of this type, which are given on the closing date and at each borrowing under the Blue Ridge Secured Loan agreement, including with respect to organization of MBIA Insurance Corporation, power of authority, enforceability of the loan documents, receipt of any necessary governmental approvals, financial condition and solvency, and compliance with laws.
Covenants
The Blue Ridge Secured Loan contains certain affirmative, negative and financial covenants, which are customary for loan facilities of this type in relation to, among other matters, delivery of financial statements, notice of material events, existence and conduct of business, payment of taxes and other obligations, maintenance of books and records, compliance with all material laws, and maintenance of insurance, and includes a requirement that MBIA Insurance Corporation maintain at least $750 million of statutory capital (defined as policyholders surplus plus contingency reserves).
In addition, MBIA Insurance Corporation may not, without Blue Ridges consent, consummate any amendments, compromises or commutations with respect to insurance obligations and settlements of litigation to the extent (x) that payments made in respect of such remediation efforts subsequent to June 28, 2013 exceed $260 million in the aggregate, (y) after giving effect thereto and to any borrowings of loans in connection therewith, the aggregate principal amount of loans outstanding would exceed $200 million or (z) after giving effect thereto, all remediation efforts taken as a whole since the closing date, would, cumulatively, have reduced MBIA Insurance Corporations statutory capital by $100 million or more.
In addition, MBIA Insurance Corporation may not prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment of principal, interest or fees or any other payment on, any of its indebtedness (including the Surplus Notes), except for payments of the loans under the Blue Ridge Secured Loan agreement and except for certain refinancings and refundings of its indebtedness.
Change of Control
MBIA Insurance Corporation may be required to prepay all amounts outstanding under the Blue Ridge Secured Loan agreement upon the occurrence of a change of control.
Events of Default
The Blue Ridge Secured Loan agreement contains certain events of default which are customary for loan facilities of this type (and with customary cure periods), including failure to pay principal, interest or fees on the loans, misrepresentation, failure to observe covenants or conditions, failure to pay other material indebtedness, insolvency and bankruptcy matters, and unlawfulness or invalidity of the loan documents.
64
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 10: Income Taxes
The Companys income taxes and the related effective tax rates for the three and nine months ended September 30, 2013 and 2012 are as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Income (loss) before income taxes |
$ | 171 | $ | (57) | $ | 122 | $ | 759 | ||||||||
Provision (benefit) for income taxes |
$ | 39 | $ | (64) | $ | 4 | $ | 161 | ||||||||
Effective tax rate |
22.8% | 112.3% | 3.3% | 21.2% |
For the nine months ended September 30, 2013, the Companys effective tax rate applied to its pre-tax income was lower than the U.S. statutory tax rate primarily as a result of the decrease in the valuation allowance against its deferred tax asset.
For the nine months ended September 30, 2012, the Companys effective tax rate applied to its pre-tax income was lower than the U.S. statutory tax rate as a result of the decrease in the valuation allowance, the release of a portion of the reserve for uncertain tax benefits and the benefit of tax-exempt interest income from investments.
For interim reporting purposes, the Company has calculated its effective tax rate for the full year of 2013 by adjusting annual forecasted pre-tax income for mark-to-market income, fair value adjustments, capital gains/losses, and other adjustments, when projecting its full year effective tax rate. The Company has accounted for these items at the federal applicable tax rate after applying the projected full year effective tax rate to actual nine-month results before discrete items.
Deferred Tax Asset, Net of Valuation Allowance
The Company establishes a valuation allowance against its deferred tax asset when it is more likely than not that all or a portion of the deferred tax asset will not be realized. All evidence, both positive and negative, needs to be identified and considered in making the determination. Future realization of the existing deferred tax asset ultimately depends, in part, on the existence of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within the carryforward period available under the tax law.
As of September 30, 2013, the Company reported a net deferred tax asset of $1.2 billion. The $1.2 billion net deferred tax asset is net of a $94 million valuation allowance. As of September 30, 2013, the Company had a valuation allowance against a portion of the deferred tax asset related to losses from asset impairments as these losses are considered capital losses, have a five-year carryforward period, once recognized, and can only offset capital gain income. The September 30, 2013 valuation allowance reflects a decrease of $52 million from the December 31, 2012 valuation allowance of $146 million. The decrease in the valuation allowance for the nine months ended September 30, 2013 was primarily due to the generation of capital gain income from the termination of certain contracts.
The Company has concluded that it is more likely than not that its net deferred tax asset will be realized. In its conclusion, the Company considered the following evidence (both positive and negative):
|
Due to the long-tail nature of the financial guarantee business, MBIA Inc.s insurance subsidiaries, without regard to any new business, will have a steady stream of scheduled premium earnings with respect to the existing insured portfolio. Additionally, MBIA Corp.s announcement in February 2008 of a suspension in writing new structured finance transactions and a permanent cessation with respect to insuring new CDS contracts, except in transactions related to the reduction of existing derivative exposure, would not have an impact on the expected earnings related to the existing insured portfolio. |
|
The Company performed taxable income projections over a twenty-year period to determine whether it will have sufficient income to offset its deferred tax asset that will generate future ordinary deductions. In this analysis, the Company concluded that premium earnings, including projected new business at National, combined with investment income, less deductible expenses, will be sufficient to recover its net deferred tax asset. The Companys taxable income projections used to assess the recoverability of its deferred tax asset include an estimate of future loss and LAE equal to the present value discount of loss reserves already recognized on the balance sheet and an estimate of LAE which is generally insignificant. The Company does not assume additional losses, with the exception of the accretion of its existing present value loss reserves, because the Company establishes case basis reserves on a present value basis based on an estimate of probable losses on specifically identified credits that have defaulted or are expected to default. |
65
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 10: Income Taxes (continued)
|
While the lack of strong credit ratings assigned by the rating agencies have significantly adversely impacted the Companys ability to write new insurance business, these ratings did not have a material impact on earnings from the existing insured portfolio, which the Company believes will be sufficient to absorb losses in the event that the cumulative unrealized losses become fully impaired. |
|
With respect to installment policies, the Company generally does not have an automatic cancellation provision solely in connection with ratings downgrades. With regard to upfront policies, to the extent that the issuer chooses to terminate a policy, any unearned premium reserve with respect to that policy will be accelerated into earnings (i.e. refundings). |
After reviewing all of the evidence available, both positive and negative, the Company believes that it has appropriately valued the recoverability of its deferred tax assets, net of the valuation allowance, as of September 30, 2013. The Company continues to assess the adequacy of its valuation allowance as additional evidence becomes available. The Companys recent financial results have been volatile which has impacted managements ability to accurately project future taxable income. Continued volatility or losses beyond those projected may cause the Company to conclude that certain of the deferred tax assets within the total deferred tax assets of $1.2 billion as of September 30, 2013 may not be realizable. The Company performs an analysis every quarter to review its conclusion as to the ability to realize the deferred tax asset.
Accounting for Uncertainty in Income Taxes
The Companys policy is to record and disclose any change in UTB and related interest and/or penalties to income tax in the consolidated statements of operations.
In millions |
||||
Unrecognized tax benefit as of December 31, 2012 |
$ | 47 | ||
The gross amount of the increase/(decrease) in the UTB as a result of tax positions taken: |
||||
During a prior year |
- | |||
During the current year |
11 | |||
The amounts of decreases in the UTB related to settlements with taxing authorities |
- | |||
The reduction in the UTB as a result of the applicable statute of limitations |
- | |||
|
|
|||
Unrecognized tax benefit as of September 30, 2013 |
$ | 58 | ||
|
|
MBIAs major tax jurisdictions include the U.S. and the U.K. MBIA and its U.S. subsidiaries file a U.S. consolidated federal income tax return.
The U.K. tax authorities are currently auditing tax years 2005 through 2010. On June 5, 2013, the Company met with the HM Revenue & Customs (HMRC). During the third quarter of 2013, the Company sent HMRC additional information supporting its position. Currently, discussions with HMRC are ongoing and a resolution has not been reached. As of September 30, 2013, the Company has not established a reserve for this issue.
During the third quarter of 2013, the Company met with New York State Department of Taxation and Finance to discuss the Companys respective positions regarding certain issues related to the 2008 tax year. Currently, discussions are ongoing and a resolution has not been reached. As of September 30, 2013, the Company has not established a reserve for this issue.
As of December 31, 2012, the Companys consolidated NOL carryforward was $1.3 billion which will expire between tax years 2029 through 2032. As a result of commutation activity in the second quarter of 2013, the Companys NOL has significantly increased from December 31, 2012. As of September 30, 2013, the Companys NOL is approximately $2.8 billion. As of December 31, 2012, the Company also had a capital loss carryforward of $165 million which will expire between tax years 2013 through 2017. However, as of September 30, 2013, the Company has generated year-to-date capital gain income sufficient to fully utilize the 2012 capital loss carryforward.
66
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments
MBIA manages its activities through three principal business operations: U.S. public finance insurance, structured finance and international insurance, and advisory services. The Companys U.S. public finance insurance business is operated through National, its structured finance and international insurance business is operated through MBIA Corp., and its advisory services business is primarily operated through Cutwater. MBIA Inc. and certain of its subsidiaries also manage certain other business activities, the results of which are reported in its corporate, asset/liability products, and conduit segments. The corporate segment includes revenues and expenses that arise from general corporate activities. While the asset/liability products and conduit businesses represent separate business segments, they may be referred to collectively as wind-down operations as the funding programs managed through those businesses are in wind-down.
As defined by segment reporting, an operating segment is a component of a company (i) that engages in business activities from which it earns revenue and incurs expenses, (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker to assess the performance of the segment and to make decisions about the allocation of resources to the segment and, (iii) for which discrete financial information is available. The following sections provide a description of each of the Companys reportable operating segments.
U.S. Public Finance Insurance
The Companys U.S. public finance insurance segment is principally conducted through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, U.S. public finance insured obligations when due. The obligations are generally not subject to acceleration, except that National may have the right, at its discretion, to accelerate insured obligations upon default or otherwise. National issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams. National has not written any meaningful amount of business since its formation in 2009.
Structured Finance and International Insurance
The Companys structured finance and international insurance segment is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of principal of, and interest or other amounts owing on, global structured finance and non-U.S. public finance insured obligations when due, or in the event MBIA Corp. has the right, at its discretion, to accelerate insured obligations upon default or otherwise, upon MBIA Corp.s acceleration. Certain guaranteed investment contracts written by MBIA Inc. are insured by MBIA Corp., and if MBIA Inc. were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments. MBIA Corp. also insures debt obligations of the following affiliates:
|
MBIA Inc.; |
|
GFL; |
|
Meridian Funding Company, LLC; |
|
LaCrosse Financial Products, LLC, a wholly-owned affiliate, in which MBIA Corp. has written insurance policies guaranteeing the obligations under CDS, including termination payments that may become due upon certain events including the insolvency or payment default of the financial guarantor or the CDS issuer. |
MBIA Corp.s guarantees insure structured finance and asset-backed obligations, privately issued bonds used for the financing of public purpose projects, which are primarily located outside of the U.S. and that include toll roads, bridges, airports, public transportation facilities, utilities and other types of infrastructure projects serving a substantial public purpose, and obligations of sovereign-related and sub-sovereign issuers. Structured finance and ABS typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, insurance policies, consumer loans, corporate loans and bonds, trade and export receivables, and leases for equipment, aircraft and real estate property. The Company is no longer insuring new credit derivative contracts except for transactions related to the reduction of existing derivative exposure. MBIA Corp. has not written any meaningful amount of business since 2008.
67
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
Advisory Services
The advisory services segment primarily consists of the operations of Cutwater Investor Services Corp. (Cutwater-ISC), Cutwater Asset Management Corp. (Cutwater-AMC), and Trifinium. Cutwater-ISC and Cutwater-AMC provide advisory services, including cash management, discretionary asset management and structured products on a fee-for-service basis. Cutwater offers these services to public, not-for-profit, corporate and financial services clients, including MBIA Inc. and its subsidiaries, as well as portfolio accounting and reporting services. Cutwater-ISC and Cutwater-AMC are Securities and Exchange Commission registered investment advisers. Cutwater-AMC is also a Financial Industry Regulatory Authority member firm. Trifinium provides certain advisory services primarily in the European Union and is regulated by the Financial Conduct Authority in the U.K.
Corporate
The Companys corporate segment is principally conducted through Optinuity Alliance Resources Corporation (Optinuity), which provides general support services to the corporate segment and other operating businesses. Optinuity is a reportable segment that includes revenues and expenses that arise from general corporate activities, such as fees, net investment income, net gains and losses, interest expense on MBIA Inc. debt and general corporate expenses. Employees of the service company provide various support services including management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, among others, on a fee-for-service basis. The service companys revenues and expenses are included in the results of the corporate segment.
Wind-down Operations
The Companys wind-down operations consist of the asset/liability products and conduit segments. The asset/liability products segment principally consists of the activities of MBIA Inc., MBIA Investment Management Corp. (IMC) and GFL. IMC, along with MBIA Inc., provided customized investment agreements, guaranteed by MBIA Corp., for bond proceeds and other public funds for such purposes as construction, loan origination, escrow and debt service or other reserve fund requirements. It also provided customized products for funds that are invested as part of asset-backed or structured product transactions. GFL raised funds through the issuance of MTNs with varying maturities, which were, in turn, guaranteed by MBIA Corp. GFL lent the proceeds of these MTN issuances to MBIA Inc. (GFL Loans). MBIA Inc. invested the proceeds of investment agreements and GFL Loans in eligible investments, which consisted of investment grade securities rated investment grade at the time of purchase and maintained a minimum average double-A credit quality rating at the time of purchase. MBIA Inc. primarily purchases domestic securities, which are pledged to MBIA Corp. as security for its guarantees on investment agreements and MTNs.
The Companys conduit segment administers one conduit through MBIA Asset Finance, LLC. Assets financed by this conduit are currently funded by MTNs.
The ratings downgrades of MBIA Corp. have resulted in a substantial reduction of funding activities and the termination and collateralization of certain investment agreements, as well as winding down of existing asset/liability products and conduit obligations.
68
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
Segments Results
The following tables provide the Companys segment results for the three months ended September 30, 2013 and 2012:
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
In millions |
U.S.
Public Finance Insurance |
Structured
Finance and International Insurance |
Advisory
Services |
Corporate |
Wind-down
Operations |
Eliminations | Consolidated | |||||||||||||||||||||
Revenues (1) |
$ | 93 | $ | 39 | $ | 3 | $ | 10 | $ | 6 | $ | - | $ | 151 | ||||||||||||||
Net change in fair value of insured derivatives |
- | 257 | - | - | - | - | 257 | |||||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
- | (3) | - | 37 | (29) | - | 5 | |||||||||||||||||||||
Net gains (losses) on extinguishment of debt |
- | - | - | - | 7 | (1) | 6 | |||||||||||||||||||||
Other net realized gains (losses) |
(29) | - | - | - | - | - | (29) | |||||||||||||||||||||
Revenues of consolidated VIEs |
- | 30 | - | (1) | 1 | - | 30 | |||||||||||||||||||||
Inter-segment revenues (2) |
10 | 20 | 8 | 35 | (3) | (70) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
74 | 343 | 11 | 81 | (18) | (71) | 420 | |||||||||||||||||||||
Losses and loss adjustment |
35 | 63 | - | - | - | - | 98 | |||||||||||||||||||||
Operating |
13 | 22 | 16 | 29 | - | - | 80 | |||||||||||||||||||||
Interest |
- | 27 | - | 13 | 19 | - | 59 | |||||||||||||||||||||
Expenses of consolidated VIEs |
- | 12 | - | - | - | - | 12 | |||||||||||||||||||||
Inter-segment expenses (2) |
20 | 23 | 3 | 3 | 17 | (66) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
68 | 147 | 19 | 45 | 36 | (66) | 249 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income taxes |
$ | 6 | $ | 196 | $ | (8) | $ | 36 | $ | (54) | $ | (5) | $ | 171 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Identifiable assets |
$ | 6,509 | $ | 12,096 | $ | 47 | $ | 910 | $ | 1,785 | $ | (3,714) | (3) | $ | 17,633 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees. |
(2) - | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables. |
(3) - | Consists of intercompany reinsurance balances, repurchase agreements and deferred income taxes. |
69
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
In millions |
U.S. Public
Finance Insurance |
Structured
Finance and International Insurance |
Advisory
Services |
Corporate |
Wind-down
Operations |
Eliminations | Consolidated | |||||||||||||||||||||
Revenues (1) |
$ | 149 | $ | 59 | $ | 5 | $ | 3 | $ | 9 | $ | - | $ | 225 | ||||||||||||||
Net change in fair value of insured derivatives |
- | (21) | - | - | - | - | (21) | |||||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
22 | 14 | - | 11 | (40) | - | 7 | |||||||||||||||||||||
Net investment losses related to other-than-temporary impairments |
- | (4) | - | (4) | - | - | (8) | |||||||||||||||||||||
Other net realized gains (losses) |
- | - | - | 1 | - | - | 1 | |||||||||||||||||||||
Revenues of consolidated VIEs |
- | 57 | - | - | 20 | - | 77 | |||||||||||||||||||||
Inter-segment revenues (2) |
43 | 29 | 8 | 53 | (1) | (132) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
214 | 134 | 13 | 64 | (12) | (132) | 281 | |||||||||||||||||||||
Losses and loss adjustment |
4 | 167 | - | - | - | - | 171 | |||||||||||||||||||||
Operating |
14 | 29 | 12 | 24 | 1 | - | 80 | |||||||||||||||||||||
Interest |
- | 33 | - | 14 | 22 | - | 69 | |||||||||||||||||||||
Expenses of consolidated VIEs |
- | 15 | - | - | 3 | - | 18 | |||||||||||||||||||||
Inter-segment expenses (2) |
32 | 54 | 3 | 4 | 39 | (132) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
50 | 298 | 15 | 42 | 65 | (132) | 338 | |||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income taxes |
$ | 164 | $ | (164) | $ | (2) | $ | 22 | $ | (77) | $ | - | $ | (57) | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Identifiable assets |
$ | 7,134 | $ | 17,399 | $ | 53 | $ | 843 | $ | 2,861 | $ | (6,158) | (3) | $ | 22,132 | |||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees. |
(2) - | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables. |
(3) - | Consists of intercompany reinsurance balances, repurchase agreements and loans. |
70
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
The following tables provide the Companys segment results for the nine months ended September 30, 2013 and 2012:
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
In millions |
U.S. Public
Finance Insurance |
Structured
Finance and International Insurance |
Advisory
Services |
Corporate |
Wind-down
Operations |
Eliminations | Consolidated | |||||||||||||||||||||
Revenues (1) |
$ | 314 | $ | 120 | $ | 13 | $ | 15 | $ | 21 | $ | - | $ | 483 | ||||||||||||||
Net change in fair value of insured derivatives |
- | 14 | - | - | - | - | 14 | |||||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
30 | 31 | - | 39 | (38) | - | 62 | |||||||||||||||||||||
Net gains (losses) on extinguishment of debt |
- | - | - | - | 11 | 38 | (3) | 49 | ||||||||||||||||||||
Other net realized gains (losses) |
(29) | - | - | - | - | - | (29) | |||||||||||||||||||||
Revenues of consolidated VIEs |
- | 174 | - | (10) | 8 | - | 172 | |||||||||||||||||||||
Inter-segment revenues (2) |
81 | 52 | 20 | 56 | (5) | (204) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
396 | 391 | 33 | 100 | (3) | (166) | 751 | |||||||||||||||||||||
Losses and loss adjustment |
105 | (13) | - | - | - | - | 92 | |||||||||||||||||||||
Operating |
57 | 91 | 42 | 125 | 1 | - | 316 | |||||||||||||||||||||
Interest |
- | 84 | - | 36 | 59 | - | 179 | |||||||||||||||||||||
Expenses of consolidated VIEs |
- | 38 | - | - | 4 | - | 42 | |||||||||||||||||||||
Inter-segment expenses (2) |
72 | 115 | 6 | 8 | 32 | (233) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
234 | 315 | 48 | 169 | 96 | (233) | 629 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income taxes |
$ | 162 | $ | 76 | $ | (15) | $ | (69) | $ | (99) | $ | 67 | $ | 122 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Identifiable assets |
$ | 6,509 | $ | 12,096 | $ | 47 | $ | 910 | $ | 1,785 | $ | (3,714) | (4) | $ | 17,633 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees. |
(2) - | Represents intercompany premium income and expense, intercompany asset management fees and expenses, intercompany interest income, expenses pertaining to intercompany receivables and payables and intercompany loans. |
(3) - | Represents the gain on the debt received as consideration in connection with the BofA Settlement Agreement. |
(4) - | Consists of intercompany reinsurance balances, repurchase agreements and deferred income taxes. |
71
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||
In millions |
U.S. Public
Finance Insurance |
Structured
Finance and International Insurance |
Advisory
Services |
Corporate |
Wind-down
Operations |
Eliminations | Consolidated | |||||||||||||||||||||
Revenues (1) |
$ | 419 | $ | 194 | $ | 16 | $ | 10 | $ | 44 | $ | - | $ | 683 | ||||||||||||||
Net change in fair value of insured derivatives |
- | 1,053 | - | - | - | - | 1,053 | |||||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
43 | 80 | - | 19 | (160) | - | (18) | |||||||||||||||||||||
Net investment losses related to other-than-temporary impairments |
- | (45) | - | (4) | (56) | - | (105) | |||||||||||||||||||||
Other net realized gains (losses) |
- | 1 | - | 6 | - | - | 7 | |||||||||||||||||||||
Revenues of consolidated VIEs |
- | 23 | - | - | 60 | - | 83 | |||||||||||||||||||||
Inter-segment revenues (2) |
123 | 10 | 26 | 132 | (19) | (272) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
585 | 1,316 | 42 | 163 | (131) | (272) | 1,703 | |||||||||||||||||||||
Losses and loss adjustment |
15 | 315 | - | - | - | - | 330 | |||||||||||||||||||||
Operating |
112 | 120 | 38 | 69 | 4 | - | 343 | |||||||||||||||||||||
Interest |
- | 99 | - | 43 | 72 | - | 214 | |||||||||||||||||||||
Expenses of consolidated VIEs |
- | 46 | - | - | 11 | - | 57 | |||||||||||||||||||||
Inter-segment expenses (2) |
91 | 154 | 10 | 10 | 87 | (352) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
218 | 734 | 48 | 122 | 174 | (352) | 944 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income (loss) before income taxes |
$ | 367 | $ | 582 | $ | (6) | $ | 41 | $ | (305) | $ | 80 | $ | 759 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Identifiable assets |
$ | 7,134 | $ | 17,399 | $ | 53 | $ | 843 | $ | 2,861 | $ | (6,158) | (3) | $ | 22,132 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees. |
(2) - | Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables. |
(3) - | Consists of intercompany reinsurance balances, repurchase agreements and loans. |
Premiums on financial guarantees and insured derivatives reported within the Companys insurance segments are generated within and outside the U.S. The following table summarizes premiums earned on financial guarantees and insured derivatives by geographic location of risk for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Total premiums earned: |
||||||||||||||||
United States |
$ | 82 | $ | 141 | $ | 297 | $ | 402 | ||||||||
United Kingdom |
9 | 9 | 26 | 27 | ||||||||||||
Europe (excluding United Kingdom) |
3 | 3 | 9 | 12 | ||||||||||||
Internationally diversified |
2 | 3 | 8 | 13 | ||||||||||||
Central and South America |
13 | 8 | 28 | 40 | ||||||||||||
Asia |
1 | 2 | 3 | 4 | ||||||||||||
Other |
2 | 2 | 6 | 8 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 112 | $ | 168 | $ | 377 | $ | 506 | ||||||||
|
|
|
|
|
|
|
|
72
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
The following tables provide the results of the segments within the wind-down operations for the three months ended September 30, 2013 and 2012:
Three Months Ended September 30, 2013 | ||||||||||||||||
In millions |
Asset /
Liability Products |
Conduits | Eliminations |
Total Wind-
down Operations |
||||||||||||
Revenues (1) |
$ | 6 | $ | - | $ | - | $ | 6 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(29) | - | - | (29) | ||||||||||||
Net gains (losses) on extinguishment of debt |
7 | - | - | 7 | ||||||||||||
Revenues of consolidated VIEs |
- | 1 | - | 1 | ||||||||||||
Inter-segment revenues (2) |
(1) | (2) | - | (3) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
(17) | (1) | - | (18) | ||||||||||||
Interest |
19 | - | - | 19 | ||||||||||||
Inter-segment expenses (2) |
2 | 15 | - | 17 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
21 | 15 | - | 36 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
$ | (38) | $ | (16) | $ | - | $ | (54) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Identifiable assets |
$ | 1,586 | $ | 198 | $ | 1 | $ | 1,785 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party interest income, investment management services fees and other fees. |
(2) - | Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt. |
Three Months Ended September 30, 2012 | ||||||||||||||||
In millions |
Asset /
Liability Products |
Conduits | Eliminations |
Total Wind-
down Operations |
||||||||||||
Revenues (1) |
$ | 9 | $ | - | $ | - | $ | 9 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(40) | - | - | (40) | ||||||||||||
Revenues of consolidated VIEs |
- | 20 | - | 20 | ||||||||||||
Inter-segment revenues (2) |
(1) | - | - | (1) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
(32) | 20 | - | (12) | ||||||||||||
Operating |
1 | - | - | 1 | ||||||||||||
Interest |
22 | - | - | 22 | ||||||||||||
Expenses of consolidated VIEs |
- | 3 | - | 3 | ||||||||||||
Inter-segment expenses (2) |
3 | 36 | - | 39 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
26 | 39 | - | 65 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
$ | (58) | $ | (19) | $ | - | $ | (77) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Identifiable assets |
$ | 2,219 | $ | 693 | $ | (51) | $ | 2,861 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party interest income, investment management services fees and other fees. |
(2) - | Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt. |
73
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 11: Business Segments (continued)
The following tables provide the results of the segments within the wind-down operations for the nine months ended September 30, 2013 and 2012:
Nine Months Ended September 30, 2013 | ||||||||||||||||
In millions |
Asset /
Liability Products |
Conduits | Eliminations |
Total Wind-
down Operations |
||||||||||||
Revenues (1) |
$ | 21 | $ | - | $ | - | $ | 21 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(38) | - | - | (38) | ||||||||||||
Net gains (losses) on extinguishment of debt |
11 | - | - | 11 | ||||||||||||
Revenues of consolidated VIEs |
- | 8 | - | 8 | ||||||||||||
Inter-segment revenues (2) |
(3) | (8) | 6 | (5) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
(9) | - | 6 | (3) | ||||||||||||
Operating |
1 | - | - | 1 | ||||||||||||
Interest |
59 | - | - | 59 | ||||||||||||
Expenses of consolidated VIEs |
- | 4 | - | 4 | ||||||||||||
Inter-segment expenses (2) |
6 | 26 | - | 32 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
66 | 30 | - | 96 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
$ | (75) | $ | (30) | $ | 6 | $ | (99) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Identifiable assets |
$ | 1,586 | $ | 198 | $ | 1 | $ | 1,785 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party interest income, investment management services fees and other fees. |
(2) - | Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt. |
Nine Months Ended September 30, 2012 | ||||||||||||||||
In millions |
Asset /
Liability Products |
Conduits | Eliminations |
Total Wind-
down Operations |
||||||||||||
Revenues (1) |
$ | 44 | $ | - | $ | - | $ | 44 | ||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(160) | - | - | (160) | ||||||||||||
Net investment losses related to other-than-temporary impairments |
(56) | - | - | (56) | ||||||||||||
Revenues of consolidated VIEs |
- | 60 | - | 60 | ||||||||||||
Inter-segment revenues (2) |
(15) | (2) | (2) | (19) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
(187) | 58 | (2) | (131) | ||||||||||||
Operating |
4 | - | - | 4 | ||||||||||||
Interest |
72 | - | - | 72 | ||||||||||||
Expenses of consolidated VIEs |
- | 11 | - | 11 | ||||||||||||
Inter-segment expenses (2) |
16 | 71 | - | 87 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
92 | 82 | - | 174 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
$ | (279) | $ | (24) | $ | (2) | $ | (305) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Identifiable assets |
$ | 2,219 | $ | 693 | $ | (51) | $ | 2,861 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Represents the sum of third-party interest income, investment management services fees and other fees. |
(2) - | Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt. |
74
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 12: Earnings Per Share
Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the dilutive effect of all stock options, warrants and other items outstanding during the period that could potentially result in the issuance of common stock. For the three months ended September 30, 2013 and 2012, there were 26,988,764 and 28,732,318, respectively, of stock options and warrants outstanding that were not included in the diluted earnings per share calculation because they were antidilutive. For the nine months ended September 30, 2013 and 2012, there were 27,369,789 and 28,785,415, respectively, of stock options and warrants outstanding that were not included in the diluted earnings per share calculation because they were antidilutive.
The following table presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
$ in millions except share and per share amounts |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) |
$ | 132 | $ | 7 | $ | 118 | $ | 598 | ||||||||
Basic weighted average shares (1) |
192,711,608 | 193,879,994 | 193,440,078 | 193,760,654 | ||||||||||||
Effect of common stock equivalents: |
||||||||||||||||
Stock options and warrants |
4,035,163 | 1,097,648 | 4,322,410 | 1,074,883 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average shares |
196,746,771 | 194,977,642 | 197,762,488 | 194,835,537 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per common share: |
||||||||||||||||
Basic |
$ | 0.68 | $ | 0.04 | $ | 0.61 | $ | 3.09 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted |
$ | 0.67 | $ | 0.04 | $ | 0.60 | $ | 3.07 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Includes 4,349,481 and 5,524,396 of unvested restricted stock and units that receive nonforfeitable dividends or dividend equivalents for the three months ended September 30, 2013 and 2012, respectively. Includes 4,981,970 and 5,442,143 of unvested restricted stock and units that receive nonforfeitable dividends or dividend equivalents for the nine months ended September 30, 2013 and 2012, respectively. |
Note 13: Accumulated Other Comprehensive Income
The following table presents the changes in the components of AOCI for the nine months ended September 30, 2013:
In millions |
Unrealized
Gains (Losses) on AFS Securities, Net |
Foreign Currency
Translation, Net |
Total | |||||||||
Balance, January 1, 2013 |
$ | 43 | $ | 13 | $ | 56 | ||||||
Other comprehensive income before reclassifications |
(91) | (8) | (99) | |||||||||
Amounts reclassified from AOCI |
(7) | - | (7) | |||||||||
|
|
|
|
|
|
|||||||
Net current period other comprehensive income (loss) |
(98) | (8) | (106) | |||||||||
|
|
|
|
|
|
|||||||
Balance, September 30, 2013 |
$ | (55) | $ | 5 | $ | (50) | ||||||
|
|
|
|
|
|
75
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 13: Accumulated Other Comprehensive Income (continued)
The following table presents the details of the reclassifications from AOCI for the nine months ended September 30, 2013:
In millions |
||||||
Details about AOCI Components |
Amounts
Reclassified from AOCI |
Affected Line Item on the Consolidated Statements of Operations |
||||
Unrealized gains (losses) on AFS securities: |
||||||
Realized gain on sale of securities |
$ | 15 |
Net gains (losses) on financial instruments at fair value and foreign exchange |
|||
Amortization on securities |
(4) |
Net investment income |
||||
|
|
|||||
11 |
Income (loss) before income taxes |
|||||
4 |
Provision (benefit) for income taxes |
|||||
|
|
|||||
Total reclassifications for the period |
$ | 7 |
Net income (loss) |
|||
|
|
Note 14: Commitments and Contingencies
The following commitments and contingencies provide an update of those discussed in Note 20: Commitments and Contingencies in the Notes to Consolidated Financial Statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2012, and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K.
Recovery Litigation
MBIA Insurance Corp. v. Countrywide Home Loans, Inc., et al.; Index No. 602825/08 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, the parties reached an agreement to resolve MBIAs claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
MBIA Insurance Corp. v. Bank of America Corp.; Countrywide Home Loans, Inc., Countrywide Securities Corp., and Countrywide Financial Corp. et al.; Case No. BC417572 (Ca. Super. Ct., County of Los Angeles)
In May of 2013, the parties reached an agreement to resolve MBIAs claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
MBIA Insurance Corp. v. Federal Deposit Insurance Corporation (in its corporate capacity and as conservator and receiver for IndyMac Federal Bank, F.S.B.); Civil Action No. 09-01011 (ABJ) (D.D.C.)
On March 8, 2013, the United States Court of Appeals for the D.C. Circuit affirmed the district courts ruling dismissing MBIA Corp.s amended complaint.
MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. ; Index No. 603751/2009 (N.Y. Sup. Ct., N.Y. County)
On March 8, 2013, the defendants filed their answer to the amended complaint. On April 19, 2013, the court issued an order scheduling fact discovery to close by June 30, 2014.
MBIA Insurance Corp. v. J.P. Morgan Securities LLC (f/k/a Bear, Stearns & Co. Inc.) ; Index No. 64676/2012 (N.Y. Sup. Ct., County of Westchester)
On October 9, 2013, J.P. Morgan Securities LLC filed its motion for summary judgment.
MBIA Insurance Corp. v. Ally Financial Inc. (f/k/a GMAC, LLC) et al. ; 12-cv-02563 SRN/TNL (D. Minn.)
This case is currently stayed.
MBIA Insurance Corp. v. Flagstar ABS, LLC, et al.; 13-cv-0262 (JSR) (S.D.N.Y.)
The parties filed a Stipulation of Discontinuance and Order of Dismissal with Prejudice of this action on May 2, 2013. Under the terms of the settlement, MBIA Corp. dismissed the lawsuit against Flagstar Bank in exchange for $110 million in cash and other consideration.
76
MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 14: Commitments and Contingencies (continued)
Transformation Litigation
ABN AMRO Bank N.V. et al. v. Eric Dinallo et al.; Index no. 601846/09 (N.Y. Sup. Ct., N.Y. County)
On March 4, 2013, the court issued a decision dismissing the Article 78 proceeding. On April 2, 2013, the remaining plaintiffs filed a Notice of Appeal to the Appellate Division, First Department. In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the settlement agreements.
ABN AMRO Bank N.V. et al. v. MBIA Inc. et al.; Index No. 601475/2009 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the settlement agreements.
Barclays Bank PLC., et al. v. Wrynn et al.; Index No. 651811/2010 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the settlement agreements.
CQS ABS Master Fund Ltd., CQS Select ABS Master Fund Ltd., and CQS ABS Alpha Master Fund Ltd. v. MBIA Inc. et al .; Civil Action No. 12-cv-6840 (R.S.) (S.D.N.Y.)
On October 23, 2013, the plaintiffs filed a motion for a preliminary injunction seeking to prospectively enjoin National from issuing dividends during the pendency of the litigation. Although the motion referenced the dividend that the Company previously had disclosed that National intended to pay in the fourth quarter of 2013, that dividend was paid prior to the filing of the motion and therefore is not subject to the relief requested by the motion. Refer to Note 1: Business Developments and Risks and Uncertainties for information regarding this dividend. National filed its reply to the motion on November 1, 2013, and believes it is not meritorious and should be denied. The court has adjourned oral argument on the motion to November 14, 2013. The court entered a revised Management Plan and Scheduling Order setting a fact discovery deadline of April 4, 2014.
Broadbill Partners LP, et al. v. MBIA Inc., et al. ; Index No. 653865/2012 (N.Y. Sup. Ct., N.Y. County)
On June 6, 2013, the plaintiffs voluntarily dismissed the litigation without prejudice. A Stipulation of Discontinuance was filed on June 7, 2013.
Corporate Litigation
Bank of America v. MBIA Inc. and The Bank of New York Mellon, as Indenture Trustee; Index No. 70444/2012 (N.Y. Sup. Ct., Westchester County)
In May of 2013, the parties reached an agreement to resolve their respective claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
MBIA Inc. v. Bank of America Corp. and Blue Ridge Investments, L.L.C.; Index No. 51664/2013 (N.Y. Sup. Ct., Westchester County)
In May of 2013, the parties reached an agreement to resolve their respective claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
Mary Crescente v. Joseph Brown, et al.; Index No. 17595/2008 (N.Y. Sup. Ct., Westchester County)
On March 25, 2013, a Stipulation of Discontinuance was filed with the court resolving the litigation.
Ambac Bond Insurance Coverage Cases , Coordinated Proceeding Case No. JCCP 4555 (Super. Ct. of Cal., County of San Francisco)
The plaintiffs filed a notice of appeal of the March 22, 2013 decision that granted the Bond Insurer defendants motion to strike pursuant to Californias Anti-SLAPP statute dismissing the plaintiffs claims under Californias Cartwright Act. On October 1, 2013, the Bond Insurer defendants filed a notice of cross-appeal.
Tri-City Healthcare District v. Citibank. et al.; Case No. 30-2010-00359692 (Super. Ct. of Cal., County of Orange)
The parties reached an agreement to resolve Tri-City Healthcare Districts claims in this matter.
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MBIA Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 14: Commitments and Contingencies (continued)
City of Phoenix v. AMBAC et al. , Case No. 2:10-cv-00555-TMB (D. Ariz.)
On June 4, 2013, the parties reached an agreement to resolve the City of Phoenixs claims in this matter.
National Public Finance Guarantee Corp. et al. v City of Detroit, Michigan et al. ; Adv. Pro. No 13-05309-swr (Bkcy. E.D. MI)
On November 8, 2013, National (together with Assured Guaranty Municipal Corp.) commenced an adversary proceeding against the City of Detroit and certain individuals employees/managers in the Chapter 9 bankruptcy case titled In re: City of Detroit, Michigan; Case No. 13-53846, pending in the United States Bankruptcy Court for the Eastern District of Michigan. The complaint seeks, among other things, a declaration that the City of Detroit and its employees/managers must comply with Michigan state law in the collection, segregation and use of restricted ad valorem tax proceeds levied and pledged to repay the principal and interest on several series of Detroits unlimited tax general obligation bonds.
The Company is defending against the aforementioned actions in which it is a defendant and expects ultimately to prevail on the merits. There is no assurance, however, that the Company will prevail in these actions. Adverse rulings in these actions could have a material adverse effect on the Companys ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the litigation, there has not been a determination as to the amount, if any, of damages. Accordingly, the Company is not able to estimate any amount of loss or range of loss.
There are no other material lawsuits pending or, to the knowledge of the Company, threatened, to which the Company or any of its subsidiaries is a party.
Note 15: Subsequent Events
Refer to Note 14: Commitments and Contingencies for information about legal proceedings that occurred after September 30, 2013.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
This quarterly report of MBIA Inc. (MBIA, the Company, we, us or our) includes statements that are not historical or current facts and are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words believe, anticipate, project, plan, expect, estimate, intend, will likely result, looking forward, or will continue and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. MBIA cautions readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. We undertake no obligation to publicly correct or update any forward-looking statement if the Company later becomes aware that such result is not likely to be achieved.
The following are some of the factors that could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the Companys forward-looking statements:
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the possibility that the Company will experience severe losses or liquidity needs due to increased deterioration in its insurance portfolios and in particular, due to the performance of insured credit default swaps (CDS) that are backed by or reference commercial mortgage-backed securities (CMBS) pools and commercial real estate (CRE) collateralized debt obligations (CDOs), insured residential mortgage-backed securities (RMBS) transactions, and insured asset-backed security (ABS) CDOs; |
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uncertainty regarding whether the Company will realize, or will be delayed in realizing, insurance loss recoveries expected in disputes with sellers/servicers of RMBS transactions and excess spread at the levels recorded in its consolidated financial statements; |
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failure to implement our risk reduction and liquidity strategies because of an inability to draw on expected liquidity sources or obtain regulatory approvals; |
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the possibility that loss reserve estimates are not adequate to cover potential claims; |
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our ability to access capital and our exposure to significant fluctuations in liquidity and asset values within the global credit markets, in particular within our asset/liability products segment; |
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our ability to fully implement our strategic plan, including our ability to achieve high stable ratings for National Public Finance Guarantee Corporation (together with its subsidiaries, National) or any of our other insurance companies and our ability to commute certain of our insured exposures, including as a result of limited available liquidity; |
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the possibility of deterioration in the economic environment and financial markets in the United States (U.S.) or abroad, and adverse developments in European sovereign credit performance, real estate market performance, credit spreads, interest rates and foreign currency levels; |
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the possibility that severe fiscal stress will result in credit losses or impairments on obligations of state and local governments that we insure; |
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the possibility of impairment of general obligation bonds that we insure as a result of municipal issuers that are experiencing severe financial stress filing for protection under Chapter 9 of the United States Bankruptcy Code and the unpredictable outcome of bankruptcy proceedings; |
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changes in the Companys or its insurance subsidiaries credit ratings; |
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competitive conditions for bond insurance, including potential entry into the public finance market of additional insurers of municipal bonds, and changes in the demand for financial guarantee insurance; |
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the effects of governmental regulation, including insurance laws, securities laws, tax laws, legal precedents and accounting rules; and |
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uncertainties that have not been identified at this time. |
The above factors provide a summary of and are qualified in their entirety by the risk factors discussed under Risk Factors in Part II, Item 1A of this Form 10-Q. In addition, refer to Note 1: Business Developments and Risks and Uncertainties in the Notes to Consolidated Financial Statements for a discussion of certain risks and uncertainties related to our financial statements.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
EXECUTIVE OVERVIEW
MBIA operates one of the largest financial guarantee insurance businesses in the industry and is a provider of asset management and advisory services. These activities are managed through three business segments: U.S. public finance insurance; structured finance and international insurance; and advisory services. Our U.S. public finance insurance business is primarily operated through National, our structured finance and international insurance business is primarily operated through MBIA Insurance Corporation and its subsidiaries (MBIA Corp.), and our asset management and advisory services business is primarily operated through Cutwater Holdings, LLC and its subsidiaries (Cutwater). We also manage certain business activities through our corporate, asset/liability products, and conduit segments. Our corporate segment includes revenues and expenses that arise from general corporate activities. Funding programs managed through our asset/liability products and conduit segments are in wind-down.
Recent Developments
Operating Cost Reductions
In order to better position the Company for future business opportunities, in the third quarter of 2013, we initiated cost reduction measures focused on our legal, consulting, staffing and head office occupancy costs. As a result, expenses for net compensation costs related to staff reductions totaled $18 million and were recorded primarily during the third quarter of 2013. These expenses are included in Operating expenses on our consolidated statements of operations. These staff reductions reduced our worldwide June 30, 2013 headcount by approximately 21%. We estimate that our staff reductions will result in annualized future savings of approximately $24 million, which will be offset by any future staff increases and increases in compensation. In addition, as a result of the potential sale of the office used in our operations, we recorded an impairment charge of $29 million on our Armonk, New York facility. The carrying value of the facility was adjusted to its fair market value, which was determined based on an independent third-party appraisal of the facility. This impairment charge is reflected in the results of our U.S. public finance insurance segment and is included in Other net realized gains (losses) on our consolidated statements of operations.
In addition, during the three and nine months ended September 30, 2013, operating expenses included $2 million and $89 million, respectively, related to settlement, consulting and legal expenses associated with the resolution of litigation matters with Bank of America, Societe Generale, and Flagstar Bank.
Bank of America Settlement Agreement
In May of 2013, MBIA Inc., together with its subsidiaries MBIA Corp. and National, entered into a comprehensive settlement agreement and related agreements (the BofA Settlement Agreement) with Bank of America Corporation and certain of its subsidiaries (collectively, Bank of America). Refer to Note 1: Business Developments and Risks and Uncertainties in the Notes to Consolidated Financial Statements for a discussion of the BofA Settlement Agreement. As a result of the BofA Settlement Agreement, the repayment of the remaining balance and accrued interest on MBIA Corp.s secured loan from National (the National Secured Loan) and recent credit ratings upgrades, the Company is currently evaluating strategies for re-entry into the U.S. public finance market.
Societe Generale Settlement
In May of 2013, the Company entered into an agreement with Societe Generale pursuant to which MBIA commuted $4.2 billion of gross insured exposure comprising ABS CDOs, structured CMBS pools and CRE CDOs. Refer to Note 1: Business Developments and Risks and Uncertainties in the Notes to Consolidated Financial Statements for a description of the settlement.
Residential Capital LLC Agreement
In May of 2013, the Company, the Consenting Claimants, Residential Capital LLC (ResCap) and Ally Financial Inc. (Ally), agreed to the terms of a comprehensive plan agreement to support ResCaps Chapter 11 plan. The confirmation of ResCaps Chapter 11 plan would resolve MBIA Corp.s claims against the Residential Funding Company, LLC, GMAC Mortgage LLC and ResCap estates, and Ally. In June of 2013, the bankruptcy court issued a Memorandum Opinion approving the Plan Support Agreement (the Plan). The Plan is now subject to voting by creditors as well as a confirmation hearing by the bankruptcy court. All creditor ballots were due back by October 21, 2013 and as of the date of this report, the results had not been tallied. There can be no assurance that the Plan will be confirmed. Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a description of the agreement.
Transformation Litigation
Subsequent to the BofA Settlement Agreement and the Societe Generale settlement, all litigation brought originally by the group of eighteen domestic and international financial institutions, relating to the establishment of National, has been resolved. Refer to Note 14: Commitments and Contingencies in the Notes to Consolidated Financial Statements for a description of this litigation.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
EXECUTIVE OVERVIEW (continued)
National
As a result of the BofA Settlement Agreement and the Societe Generale settlement, Standard & Poors Financial Services LLC (S&P) upgraded Nationals rating to A with a stable outlook. Also, Moodys Investors Service, Inc. (Moodys) upgraded Nationals rating to Baa1 with a positive outlook. The absence of higher ratings from S&P and Moodys has adversely impacted our ability to write new insurance business and our ability to write new premiums. The Company is seeking rating upgrades from the rating agencies and believes the current ratings of National do not fully represent the financial strength of National when compared with other companies in its industry. We expect to achieve high stable ratings for National that would be necessary to support writing new business, but there is no assurance that we will be able to achieve such ratings and the timing of such rating upgrades is uncertain. We are also considering obtaining ratings for National from additional rating agencies.
We expect National will gain market acceptance and become a competitive financial guarantor once its ratings are upgraded. We expect that the majority of its new business will be in the general obligation, tax-backed and revenue bond sectors. The Company also believes there are significant amounts of insurable bonds that have been issued on an unwrapped basis in recent years, which the Company believes meet its underwriting criteria and present attractive secondary market opportunities. In addition, we believe the increase in interest rates during 2013 and the continued issuance of new municipal debt will present attractive risk-adjusted business opportunities for National. National maintains underwriting criteria for most municipal risk types and expects opportunities for new business across the spectrum of municipal sectors. Nationals underwriting criteria does not limit it to particular sectors.
While there are currently two other bond insurers actively engaged in the market, one of which was recently established, we have observed other new competitors indicating an interest in entering the bond insurance market and continue to consider strategies for launch. We will continue to monitor the impact that new and existing market participants may have on our ability to compete in the U.S. public finance insurance market in the future.
In August of 2013, the novation agreement between Financial Guaranty Insurance Corporation (FGIC) and National, whereby FGIC transferred, by novation, to National all the rights and liabilities under each of the policies covered under a reinsurance agreement with FGIC, became effective. This novation agreement included covered policies that previously benefited from the reinsurance agreement and second-to-pay policies entered into by MBIA Insurance Corporation in 2008 that were subsequently assigned to and reinsured by National in 2009. As a result of this novation, National is now the primary insurer under these policies.
While our U.S. public finance insured portfolio in National continued to perform satisfactorily on the whole, we did experience increased stress in this portfolio in the nine months ended September 30, 2013, as a portion of the obligations that we insure were issued by some of the state and local governments that remain under extreme financial and budgetary stress. In addition, several of these local governments have filed for protection under the United States Bankruptcy Code or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of our insured transactions. We continue to monitor and analyze these situations very closely, and the overall extent and duration of this stress is uncertain. National has exposure to the Commonwealth of Puerto Rico (the Commonwealth) and certain governmental issuers in the territory. The Commonwealth is experiencing fiscal stress, however it has taken pro-active actions to address its significant economic challenges. We are continuing to monitor the situation closely, but do not expect a default by the Commonwealth. In addition, during the third quarter of 2013, National participated in the restructuring of a gaming revenue transaction, in which National received marketable securities where the fair value of these securities was less than the salvage receivable recorded at the time of the transaction. We expect to recover the full value of the original salvage receivable over time. Refer to the following Results of Operations - U.S. Public Finance Insurance Loss and Loss Adjustment Expenses section for additional information about this remedial credit transaction.
MBIA Corp.
As a result of the BofA Settlement Agreement, MBIA Corp.s liquidity and capital risk profile has substantially improved. MBIA Corp. still has significant risk within its insured portfolio and the amount and timing of potential claims from its second-lien RMBS and remaining insured CMBS pools are uncertain. MBIA Corp.s strategy for managing its CMBS pool and ABS CDO exposures has been evaluating opportunities to commute exposures and successfully executing such commutations. MBIA Corp.s ability to commute insured transactions is limited by available liquidity. MBIA Corp. believes that it continues to have sufficient capital and liquidity to meet all of its expected obligations. Refer to Note 1: Business Developments and Risks and Uncertainties in the Notes to Consolidated Financial Statements for a discussion of significant risks and uncertainties that could affect amounts reported in the Companys financial statements in future periods. MBIA Corp.s business and financial results have been significantly influenced by a number of factors including, but not limited to, the matters described below:
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
EXECUTIVE OVERVIEW (continued)
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Our expected liquidity and capital forecasts for MBIA Corp., which include expected availability of draws under a $500 million three-year secured revolving credit agreement with Blue Ridge Investments, L.L.C. (Blue Ridge), an affiliate of Bank of America (the Blue Ridge Secured Loan), expected recoveries from the ResCap agreement, and projected collections of excess spread and the remaining put-back recoverables, reflect more than adequate resources to pay expected claims. However, there are risks to these forecasts, as the amount and timing of potential claims from our second-lien RMBS and remaining insured CMBS pools are potentially volatile, as are the projected collections of excess spread and the remaining put-back recoverables. Further, the remaining insured portfolio, aside from these exposures, could deteriorate and result in loss reserves and claim payments. While we believe MBIA Corp. will have adequate resources to pay expected claims, if MBIA Corp. experiences higher than expected claim payments or is unable to commute the remaining exposures that represent substantial risk to the Company, MBIA Corp. may ultimately have insufficient resources to continue to pay claims, which could cause the New York State Department of Financial Services (NYSDFS) to put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding. In addition, if MBIA Corp.s statutory capital falls below $750 million as a result of an increase in loss reserves, claims payments or for other reasons, Blue Ridge may in its sole discretion terminate its obligations to make loans under the Blue Ridge Secured Loan, or declare all borrowings to be due and immediately payable. |
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For the three and nine months ended September 30, 2013, we estimated additional aggregate losses and loss adjustment expense (LAE) of $98 million and $459 million, respectively, related to our insured CMBS exposure. We have recorded additional impairments on our insured CMBS portfolio every quarter since the beginning of 2010 reflecting that actual deterioration has been more than expected. It is possible that we will experience severe losses or near-term liquidity needs due to increased deterioration in our insured CMBS portfolio. |
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During the nine months ended September 30, 2013, MBIA Corp. commuted $19.9 billion of gross insured exposure, primarily comprising structured CMBS pools, investment grade CDOs, ABS CDOs, first-lien subprime RMBS, high yield corporate CDOs, CRE CDOs, structured insurance securities and first-lien alternative A-paper RMBS. In consideration for the commutation of insured transactions, the Company has made and may in the future make payments to the counterparties, the amounts of which, if any, may be less than or greater than any statutory loss reserves established for the respective transactions. The Company enters into commutations in the ordinary course of its business and generally does not intend to make contemporaneous disclosures regarding any such transactions regardless of the amounts paid to effect such commutations in relation to the statutory loss reserves established for the respective transactions. The Companys ability to commute insured transactions is limited by available liquidity, including the availability of the Blue Ridge Secured Loan, other available financing structures and expected put-back recoveries, and commutations may be subject to regulatory approval by the NYSDFS and/or the United Kingdoms (U.K.) Prudential Regulation Authority. There can be no assurance that the Company will be able to fund further commutations by borrowing or otherwise or that it will be able to obtain required regulatory approvals. |
Economic and Financial Market Trends
We believe the first nine months of 2013 continued to show modest improvements in the U.S. economy. For the three months ended September 30, 2013, the U.S. economy expanded slightly aided by stabilization in the housing market and rising home prices. The unemployment rate dropped in the third quarter of 2013 to its lowest levels in over four years. While this continued improvement in the labor market should help to increase personal incomes, the ultimate outcomes on the debt ceiling, the federal budget and the Affordable Care Act will add uncertainty to the business and consumer segments of our economy. In addition, the recent speculation that the Federal Reserve might taper their quantitative easing programs caused concerns over the level of interest rates. Information concerning our interest rate sensitivity appears in Part I, Item 3, Quantitative and Qualitative Disclosures about Market Risk. While Europe begins to display signs of recovering from its recession, such signs remain inconclusive and there continues to be high unemployment rates. Prolonged debt and budget issues and related austerity programs suggest that it may be some time before Europe shows sustained growth and a robust recovery. While we believe confidence in the U.S. economy should continue for the remainder of 2013, sustained job growth and resolution of fiscal policies in Washington are paramount to a complete recovery. MBIAs business outlook should be viewed against this backdrop since these are some of the key economic conditions which, together with the volatility of gains and losses on our insured credit derivatives, significantly impact our financial results.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
EXECUTIVE OVERVIEW (continued)
Financial Highlights
Our financial results, prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), have been extremely volatile since the fourth quarter of 2007 primarily as a result of unrealized gains and losses from fair valuing our insured credit derivatives. We do not believe that the volatility caused by these unrealized gains and losses on our insured derivatives reflects the underlying economics of our business. We expect that our reported financial results will remain volatile and uncertain during the remainder of 2013 as a result of actual and perceived future performance of our insured credit derivatives and the perception of MBIAs credit risk. Our economic performance may also be volatile depending on changes in our loss estimates based on changes in macroeconomic conditions in the U.S. and abroad and deviations in collateral performance from our expectations.
For the three months ended September 30, 2013, we recorded consolidated net income of $132 million or $0.67 per diluted share compared with consolidated net income of $7 million, or $0.04 per diluted share for the same period of 2012.
For the nine months ended September 30, 2013, we recorded consolidated net income of $118 million or $0.60 per diluted share compared with consolidated net income of $598 million or $3.07 per diluted share, for the same period of 2012.
We also use adjusted pre-tax income (loss), a non-GAAP measure, to supplement our analysis of our periodic results. We consider adjusted pre-tax income (loss) a fundamental measure of periodic financial performance, which we believe is useful for an understanding of our results. Adjusted pre-tax income (loss) adjusts GAAP pre-tax income (loss) to remove the effects of consolidating insured variable interest entities (VIEs) and gains and losses related to insured credit derivatives, which we believe will reverse over time, as well as to add in changes in the present value of insurance claims we expect to pay on insured credit derivatives based on our ongoing insurance loss monitoring. Adjusted pre-tax income (loss) is not a substitute for and should not be viewed in isolation of GAAP pre-tax income (loss), and our definition of adjusted pre-tax income (loss) may differ from that used by other companies. Refer to the following Results of Operations section for a reconciliation of adjusted pre-tax income (loss) to GAAP pre-tax income (loss).
For the three months ended September 30, 2013, consolidated adjusted pre-tax loss was $188 million compared with an adjusted pre-tax loss of $118 million for the same period of 2012.
For the nine months ended September 30, 2013, consolidated adjusted pre-tax loss was $368 million compared with an adjusted pre-tax loss of $818 million for the same period of 2012.
Our consolidated shareholders equity was $3.2 billion as of September 30, 2013 and December 31, 2012. Our consolidated book value per share as of September 30, 2013 was $16.54 compared with $16.22 as of December 31, 2012.
In addition to book value per share, we also analyze adjusted book value (ABV) per share, a non-GAAP measure. We consider ABV a measure of fundamental value of the Company and the change in ABV an important measure of financial performance. ABV adjusts GAAP book value to remove the impact of certain items which the Company believes will reverse from GAAP book value over time through the GAAP statements of operations and GAAP statements of comprehensive income, as well as to add in the impact of certain items which the Company believes will be realized in GAAP book value in future periods. The Company has limited such adjustments to those items that it deems to be important to fundamental value and performance and which the likelihood and amount can be reasonably estimated. ABV assumes no new business activity. We have presented ABV to allow investors and analysts to evaluate the Company using the same measure that MBIAs management regularly uses to measure financial performance and value. ABV is not a substitute for and should not be viewed in isolation of GAAP book value, and our definition of ABV may differ from that used by other companies. Refer to the following Results of Operations section for a further discussion of ABV and a reconciliation of GAAP book value per share to ABV per share.
As of September 30, 2013, ABV per share was $28.68, down from $30.68 as of December 31, 2012.
A detailed discussion of our financial results is presented within the Results of Operations section included herein. Refer to the Capital ResourcesInsurance Statutory Capital section for a discussion of Nationals and MBIA Corp.s capital positions under statutory accounting principles (U.S. STAT).
CRITICAL ACCOUNTING ESTIMATES
We prepare our financial statements in accordance with GAAP, which requires the use of estimates and assumptions. Management has discussed and reviewed the development, selection, and disclosure of critical accounting estimates with the Companys Audit Committee. Management believes that the most critical accounting estimates, since these estimates require significant judgment, are loss and LAE reserves, valuation of financial instruments, and deferred income taxes. Financial results could be materially different if other methodologies were used or if management modified its assumptions.
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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
CRITICAL ACCOUNTING ESTIMATES (continued)
For a discussion of the Companys critical accounting estimates, see Critical Accounting Estimates in Part II, Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations included in the Companys Annual Report on Form 10-K for the year ended December 31, 2012. In addition, refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a current description of estimates used in our insurance loss reserving process.
RECENT ACCOUNTING PRONOUNCEMENTS
Refer to Note 3: Recent Accounting Pronouncements in the Notes to Consolidated Financial Statements for a discussion of accounting guidance recently adopted by the Company.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS
Summary of Consolidated Results
The following table presents a summary of our consolidated financial results for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
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In millions except for per share amounts |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Total revenues |
$ | 420 | $ | 281 | $ | 751 | $ | 1,703 | ||||||||
Total expenses |
249 | 338 | 629 | 944 | ||||||||||||
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Pre-tax income (loss) |
171 | (57) | 122 | 759 | ||||||||||||
Provision (benefit) for income taxes |
39 | (64) | 4 | 161 | ||||||||||||
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Net income (loss) |
$ | 132 | $ | 7 | $ | 118 | $ | 598 | ||||||||
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Net income (loss) per common share: |
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Basic |
$ | 0.68 | $ | 0.04 | $ | 0.61 | $ | 3.09 | ||||||||
Diluted |
$ | 0.67 | $ | 0.04 | $ | 0.60 | $ | 3.07 |
For the three months ended September 30, 2013, we recorded consolidated net income of $132 million, or $0.67 per diluted common share, compared with consolidated net income of $7 million, or $0.04 per diluted common share, for the same period of 2012. Weighted average diluted common shares outstanding totaled 197 million and 195 million for the three months ended September 30, 2013 and 2012, respectively. Consolidated total revenues for the three months ended September 30, 2013 included $257 million of net gains on insured derivatives compared with $21 million of net losses for the same period of 2012. The net gains on insured derivatives in 2013 were principally the result of the effects of unfavorable changes in the market perception of MBIA Corp.s nonperformance risk on its derivative liabilities and changes in spreads and pricing of underlying collateral and the weighted average life on transactions. The net losses on insured derivatives in 2012 were principally due to changes in spreads and pricing of underlying collateral and collateral erosion, partially offset by the effects of unfavorable changes in the market perception of MBIA Corp.s nonperformance risk on its derivative liabilities. Consolidated total expenses for the three months ended September 30, 2013 included $98 million of net insurance loss and LAE compared with $171 million for the same period of 2012. The decrease in net insurance loss and LAE in 2013 when compared to 2012 was principally the result of lower increases in expected payments related to CMBS and first-lien RMBS transactions, partially offset by an increase in losses related to a gaming revenue transaction.
For the nine months ended September 30, 2013, we recorded consolidated net income of $118 million, or $0.60 per diluted common share, compared with consolidated net income of $598 million, or $3.07 per diluted common share, for the same period of 2012. Weighted average diluted common shares outstanding totaled 198 million and 195 million for the nine months ended September 30, 2013 and 2012, respectively. Consolidated total revenues for the nine months ended September 30, 2013 included $14 million of net gains on insured derivatives compared with $1.1 billion of net gains for the same period of 2012. The net gains on insured derivatives in 2013 were principally the result of commuting derivative liabilities at prices below their fair values and changes in the weighted average life on transactions, partially offset by the effects of favorable changes in the market perception of MBIA Corp.s nonperformance risk on its derivative liabilities. The net gains on insured derivatives in 2012 were principally the result of commuting derivative liabilities at prices below their fair values and the effects of unfavorable changes in the market perception of MBIA Corp.s nonperformance risk on its derivative liabilities. Consolidated total expenses for the nine months ended September 30, 2013 included $92 million of net insurance loss and LAE compared with $330 million for the same period of 2012. The decrease in net insurance loss and LAE in 2013 when compared to 2012 was principally related to decreases in actual and expected payments related to insured second-lien RMBS and first-lien RMBS transactions, partially offset by an increase in losses related to an international road transaction and certain U.S. public finance transactions. In addition, consolidated total expenses for the nine months ended September 30, 2013 included operating expenses of approximately $89 million related to settlement, consulting and legal expenses associated with the resolution of litigation matters with Bank of America, Societe Generale and Flagstar Bank.
Included in our consolidated net income for the three months ended September 30, 2013 and 2012 was $18 million and $59 million, respectively, of income before income taxes related to consolidated VIEs, after the elimination of intercompany revenues and expenses. Included in our consolidated net income for the nine months ended September 30, 2013 and 2012 was $130 million and $26 million, respectively, of income before income taxes related to consolidated VIEs, after the elimination of intercompany revenues and expenses. The net effect of consolidated VIEs on our financial results will vary over time as VIEs are consolidated or deconsolidated by the Company, and as the values of consolidated VIE assets and liabilities change.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
European Sovereign Debt Exposure
Uncertainties regarding the European sovereign debt crisis have affected the global economy. Outside the U.S., financial guarantee insurance has been used by issuers of sovereign-related and sub-sovereign bonds, structured finance securities, utility debt and financing for public purpose projects, among others. MBIA does not insure any direct European sovereign debt. However, we do insure both structured finance and public finance obligations in select international markets. MBIAs indirect European sovereign insured debt exposure totaled $8.0 billion as of September 30, 2013 and included obligations of sovereign-related and sub-sovereign issuers, such as regions, departments, and sovereign-owned entities that are supported by a sovereign state, region or department. Of the $8.0 billion of insured gross par outstanding, $817 million, $491 million, and $258 million related to Spain, Portugal, and Ireland, respectively. The remaining $6.4 billion related to the U.K. We closely monitor our existing insured European portfolios on an ongoing basis. We consider country risk, including economic and political factors, the type and quality of local regulatory oversight, the strength of the legal framework in each country and the stability of the local institutional framework. We also monitor local accounting, regulatory and legal requirements, local financial market developments, the impact of exchange rates and local demand dynamics. The Company has an immaterial amount of direct and indirect European sovereign debt holdings included in its investment portfolios. A default by one or more sovereign issuers could have an adverse effect on our insured debt exposures.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Adjusted Pre-Tax Income
In addition to the above results, we also analyze the operating performance of the Company using adjusted pre-tax income (loss), a non-GAAP measure. We believe adjusted pre-tax income (loss), as used by management, is useful for an understanding of the results of operations of the Company. Adjusted pre-tax income (loss) is not a substitute for pre-tax income (loss) determined in accordance with GAAP, and our definition of adjusted pre-tax income (loss) may differ from that used by other companies.
For the three months ended September 30, 2013, our consolidated adjusted pre-tax loss increased when compared with the same period of 2012 primarily as a result of decreases in premiums earned and net investment income, an increase in impairments on insured credit derivatives, losses and LAE related to a gaming revenue transaction, and an impairment charge related to our Armonk, New York facility. This increase was partially offset by decreases in other insurance losses and LAE as a result of a lower increase in the expected payments related to CMBS and first-lien RMBS transactions.
For the nine months ended September 30, 2013, our consolidated adjusted pre-tax loss decreased when compared with the same period of 2012 primarily as a result of a decrease in insurance losses and LAE, the absence of net investment losses related to other-than-temporary impairments, net gains from the sale of investments and a decrease in interest expense. These changes were partially offset by lower premiums earned and lower net investment income. In addition, our consolidated adjusted pre-tax loss for the nine months ended September 30, 2013 included operating expenses of approximately $89 million related to settlement, consulting and legal expenses associated with the resolution of litigation matters with Bank of America, Societe Generale and Flagstar Bank.
The following table presents our consolidated adjusted pre-tax income (loss) (a non-GAAP measure) and provides a reconciliation of adjusted pre-tax income (loss) to GAAP pre-tax income (loss) for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Adjusted pre-tax income (loss) |
$ | (188) | $ | (118) | $ | (368) | $ | (818) | ||||||||
Additions to adjusted pre-tax income (loss): |
||||||||||||||||
Impact of consolidating certain VIEs |
20 | 29 | 18 | 62 | ||||||||||||
Mark-to-market gains (losses) on insured credit derivatives |
285 | (33) | 1,562 | 1,473 | ||||||||||||
Subtractions from adjusted pre-tax income (loss): |
||||||||||||||||
Impairments on insured credit derivatives |
(54) | (65) | 1,090 | (42) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Pre-tax income (loss) |
$ | 171 | $ | (57) | $ | 122 | $ | 759 | ||||||||
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|
|
|
|
|
87
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Adjusted Book Value
As of September 30, 2013, ABV per share (a non-GAAP measure) was $28.68, down from $30.68 as of December 31, 2012. The decrease in ABV per share was primarily driven by insurance losses and credit impairments, a decline in future installment premiums related to insured credit derivatives that were commuted during the period and an increase in operating expenses.
The following table provides a reconciliation of consolidated book value per share to consolidated ABV per share:
In millions except share and per share amounts |
As of
September 30, 2013 |
As of
December 31, 2012 |
||||||
Total shareholders equity of MBIA Inc. |
$ | 3,180 | $ | 3,173 | ||||
Common shares outstanding |
192,252,644 | 195,671,509 | ||||||
Book value per share |
$ | 16.54 | $ | 16.22 | ||||
Adjustments for items included in book value per share (after-tax): |
||||||||
Cumulative net loss from consolidating certain VIEs (1) |
0.59 | 0.59 | ||||||
Cumulative unrealized loss on insured credit derivatives |
4.59 | 9.70 | ||||||
Net unrealized (gains) losses included in other comprehensive income |
0.12 | (0.47) | ||||||
Adjustments for items not included in book value per share (after-tax): |
||||||||
Net unearned premium revenue (2)(3) |
8.74 | 9.92 | ||||||
Present value of insured derivative installment revenue (4) |
0.25 | 0.60 | ||||||
Cumulative impairments on insured credit derivatives (4) |
(1.22) | (4.85) | ||||||
Deferred acquisition costs |
(0.93) | (1.03) | ||||||
|
|
|
|
|||||
Total adjustments per share |
12.14 | 14.46 | ||||||
|
|
|
|
|||||
Adjusted book value per share |
$ | 28.68 | $ | 30.68 | ||||
|
|
|
|
(1) - | Represents the impact on book value per share of consolidated VIEs that are not considered a business enterprise of the Company. |
(2) - | Consists of financial guarantee premiums and fees. |
(3) - | The discount rate on financial guarantee installment premiums was the risk-free rate as defined by the accounting principles for financial guarantee insurance contracts. |
(4) - | The discount rate on insured derivative installment revenue and impairments was 5% as of September 30, 2013 and December 31, 2012. |
Our Net unearned premium revenue adjustment to book value per share consists of unearned premium revenue net of prepaid reinsurance premiums related to financial guarantee insurance contracts, the unamortized portion of installment premiums collected on insured derivative contracts, and the unamortized portion of insurance-related deferred fee revenue. Our Present value of insured derivative installment revenue adjustment to book value per share consists of the present value of premiums not yet collected from insured derivative contracts, which are not recorded on our balance sheet in accordance with accounting principles for financial guarantee insurance contracts but which are contractually due to the Company.
U.S. Public Finance Insurance
Our U.S. public finance insurance business is primarily conducted through National. The financial guarantees issued by National provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due or, in the event National has exercised, at its discretion, the right to accelerate the payment under its policies upon the acceleration of the underlying insured obligations due to default or otherwise. Nationals guarantees insure municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utility districts, airports, healthcare institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects are generally supported by taxes, assessments, user fees or tariffs related to the use of these projects, lease payments or other similar types of revenue streams.
88
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
The following table presents our U.S. public finance insurance segment results for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net premiums earned |
$ | 75 | $ | 134 | -44% | $ | 280 | $ | 370 | -24% | ||||||||||||||
Net investment income |
26 | 56 | -54% | 110 | 167 | -34% | ||||||||||||||||||
Fees and reimbursements |
2 | 2 | -% | 5 | 5 | -% | ||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
- | 22 | -100% | 30 | 43 | -30% | ||||||||||||||||||
Other net realized gains (losses) |
(29) | - | n/m | (29) | - | n/m | ||||||||||||||||||
|
|
|
|
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|
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|
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|
|||||||||||||
Total revenues |
74 | 214 | -65% | 396 | 585 | -32% | ||||||||||||||||||
|
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|
|
|
|
|
|
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|
|
|
|||||||||||||
Losses and loss adjustment |
35 | 4 | n/m | 105 | 15 | n/m | ||||||||||||||||||
Amortization of deferred acquisition costs |
16 | 26 | -38% | 59 | 75 | -21% | ||||||||||||||||||
Operating |
17 | 20 | -15% | 70 | 128 | -45% | ||||||||||||||||||
|
|
|
|
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|
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|
|
|
|||||||||||||
Total expenses |
68 | 50 | 36% | 234 | 218 | 7% | ||||||||||||||||||
|
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|
|
|
|
|
|
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|
|
|
|||||||||||||
Pre-tax income |
$ | 6 | $ | 164 | -96% | $ | 162 | $ | 367 | -56% | ||||||||||||||
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n/m - Percent change not meaningful.
For the three and nine months ended September 30, 2013 and 2012, we did not write a meaningful amount of U.S. public finance insurance. The lack of insurance writings in our U.S. public finance segment reflects the insurance financial strength credit ratings assigned to National by major rating agencies and the impact of litigation over the formation of National in 2009. Subsequent to the BofA Settlement Agreement and the Societe Generale settlement, all litigation brought originally by the group of eighteen domestic and international financial institutions relating to the establishment of National has been resolved. In addition, during 2013, the National Secured Loan was repaid in full, S&P upgraded Nationals rating twice to the current rating of A with a stable outlook, and Moodys upgraded Nationals rating to Baa1 from Baa2 with a positive outlook. We are seeking ratings upgrades from the rating agencies as we believe the current ratings of National do not fully represent the financial strength of National compared with other companies in its industry. We do not expect to write a material amount of new business prior to an upgrade of our insurance financial strength ratings. The timing of any rating upgrade is uncertain and will depend on a variety of quantitative and qualitative factors used by the rating agencies in their evaluation. National maintains underwriting criteria for most municipal risk types and expects opportunities for new business across the spectrum of municipal sectors.
NET PREMIUMS EARNED Net premiums earned on non-derivative financial guarantees represent gross premiums earned net of premiums ceded to reinsurers, and include scheduled premium earnings and premium earnings from refunded issues. For the three months ended September 30, 2013, U.S. public finance net premiums earned were $75 million compared with $134 million for the same period of 2012. The decrease in 2013 resulted from a decrease in refunded premiums earned of $56 million and a decrease of $3 million in scheduled premiums earned. For the nine months ended September 30, 2013, U.S. public finance net premiums earned were $280 million compared with $370 million for the same period of 2012. The decrease in 2013 resulted from a decrease in refunded premiums earned of $79 million and a decrease in scheduled premiums earned of $11 million. Scheduled premium earnings declined due to the maturity of insured issues within our U.S. public finance portfolio with no material new insurance writings. Refundings have experienced a decline when compared to the prior periods due to an overall decrease in municipal market issuance. Refunding activity over the past several years has accelerated premium earnings in prior periods and reduced the amount of premiums that would have been earned in the current period.
NET INVESTMENT INCOME The decrease in net investment income for the three and nine months ended September 30, 2013 compared with the same periods of 2012 was primarily due to a higher balance in lower yielding short-term assets generated from the repayment of the National Secured Loan in May of 2013. The interest income on the National Secured Loan for the nine months ended September 30, 2013 totaled $41 million compared with $74 million for the same period of 2012. In connection with the BofA Settlement Agreement, MBIA Corp. repaid the remaining outstanding balance and accrued interest on the National Secured Loan in May of 2013. Refer to the Liquidity section included herein for additional information about the National Secured Loan.
89
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Investment asset balances at amortized cost as of September 30, 2013 and December 31, 2012 are presented in the following table:
September 30, 2013 | December 31, 2012 | |||||||||||||||
In millions |
Investments at
Amortized Cost |
Pre-tax
Yield (1) |
Investments at
Amortized Cost |
Pre-tax
Yield (1) |
||||||||||||
Fixed-income securities: |
||||||||||||||||
Tax-exempt |
$ | 342 | 3.87% | $ | 417 | 3.98% | ||||||||||
Taxable |
3,258 | 3.43% | 2,378 | 2.98% | ||||||||||||
Short-term |
1,002 | 0.24% | 204 | 1.17% | ||||||||||||
|
|
|
|
|||||||||||||
Total fixed-income |
4,602 | 2.76% | 2,999 | 2.99% | ||||||||||||
Secured loan to an affiliate |
- | 1,652 | ||||||||||||||
Other |
11 | 16 | ||||||||||||||
|
|
|
|
|||||||||||||
Total |
$ | 4,613 | $ | 4,667 | ||||||||||||
|
|
|
|
(1) - | Estimated yield-to-maturity. |
NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE AND FOREIGN EXCHANGE The decrease in net gains (losses) on financial instruments at fair value and foreign exchange for the three months ended September 30, 2013 compared with the same period of 2012 was principally due to a decrease in net realized gains from the sales of securities from the ongoing management of our U.S. public finance insurance investment portfolio. The decrease in net gains (losses) on financial instruments at fair value and foreign exchange for the nine months ended September 30, 2013 compared with the same period of 2012 was primarily driven by losses from fair valuing financial instruments.
OTHER NET REALIZED GAINS (LOSSES) Other net realized gains (losses) for the three and nine months ended September 30, 2013 included an impairment charge of $29 million related to our Armonk, New York facility.
LOSS AND LOSS ADJUSTMENT EXPENSES Nationals portfolio surveillance group is responsible for monitoring our U.S. public finance segments insured obligations. The level and frequency of monitoring of any insured obligation depends on the type, size, rating and performance of the insured issue. Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a description of the Companys loss reserving policy and additional information related to its loss reserves.
The following table presents information about our U.S. public finance insurance loss and LAE expenses for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended
September 30, |
Percent |
Nine Months Ended
September 30, |
Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Loss and LAE related to actual and expected payments |
$ | (24) | $ | (10) | 140% | $ | 86 | $ | 57 | 51% | ||||||||||||||
Recoveries of actual and expected payments |
59 | 14 | n/m | 20 | (42) | -148% | ||||||||||||||||||
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|
|
|
|
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|
|
|
|
|
|||||||||||||
Gross losses incurred |
35 | 4 | n/m | 106 | 15 | n/m | ||||||||||||||||||
Reinsurance |
- | - | -% | (1) | - | n/m | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||||
Losses and loss adjustment expenses |
$ | 35 | $ | 4 | n/m | $ | 105 | $ | 15 | n/m | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
90
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Losses and LAE for the three and nine months ended September 30, 2013, included the loss related to the difference in the value of the salvage receivable recorded and the fair market value of the marketable securities received in connection with the restructuring of a gaming revenue transaction. We expect to recover the full value of the original salvage receivable in the future with the securities received as a result of this transaction. Under U.S. STAT, this salvage receivable continues to be reflected as a component of Nationals loss reserves. U.S. STAT differs from GAAP in certain respects. Refer to Note 11: Statutory Accounting Practices in the Notes to Consolidated Financial Statements of National within exhibit 99.1 of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 for an explanation of the differences between U.S. STAT and GAAP. Losses and LAE related to actual and expected payments for the three months ended September 30, 2013 and 2012 are driven by lower expected future payments based on Nationals remediation efforts. In addition, losses and LAE for the nine months ended September 30, 2013, included losses primarily related to certain general obligation bonds. For the three and nine months ended September 30, 2012, losses and LAE primarily related to certain general obligation bonds.
Certain local governments remain under extreme financial and budgetary stress and several have filed for protection under the United States Bankruptcy Code, or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of our insured transactions. We continue to monitor and analyze these situations very closely, however the overall extent and duration of these events is uncertain.
The following tables present information about our U.S. public finance insurance loss and LAE reserves and recoverables as of September 30, 2013 and December 31, 2012:
In millions |
September 30,
2013 |
December 31,
2012 |
Percent
Change |
|||||||||
Gross loss and LAE reserves |
$ | 212 | $ | 267 | -21% | |||||||
Expected recoveries on unpaid losses |
(118) | (108) | 9% | |||||||||
|
|
|
|
|
|
|||||||
Loss and LAE reserves |
$ | 94 | $ | 159 | -41% | |||||||
|
|
|
|
|
|
|||||||
Insurance loss recoverable |
$ | 17 | $ | 256 | -93% | |||||||
Insurance loss recoverable-ceded (1) |
$ | - | $ | 7 | -100% | |||||||
Reinsurance recoverable on paid and unpaid losses (2) |
$ | 1 | $ | 8 | -88% |
(1) - | Reported within Other liabilities on our consolidated balance sheets. |
(2) - | Reported within Other assets on our consolidated balance sheets. |
Loss and LAE reserves as of September 30, 2013 decreased when compared with December 31, 2012 primarily related to the Allegheny Health, Education and Research Foundation transaction discussed below, partially offset by increases in certain general obligation bonds reserves.
Insurance loss recoverable as of September 30, 2013 decreased when compared with December 31, 2012 primarily related to the receipt of salvage in connection with the restructuring of a gaming revenue transaction.
Included in our U.S. public finance loss and LAE reserves are both reserves for insured obligations for which a payment default has occurred and National has already paid a claim and also for which a payment default has not yet occurred but a claim is expected in the future. As of September 30, 2013 and 2012, loss and LAE reserves comprised the following:
Number of Issues (1) | Loss and LAE Reserve | Par Outstanding | ||||||||||||||||||||||
$ in millions |
September 30,
2013 |
December 31,
2012 |
September 30,
2013 |
December 31,
2012 |
September 30,
2013 |
December 31,
2012 |
||||||||||||||||||
Gross of reinsurance: |
||||||||||||||||||||||||
Issues with defaults |
7 | 9 | $ | 81 | $ | 141 | $ | 732 | $ | 749 | ||||||||||||||
Issues without defaults |
8 | 9 | 13 | 18 | 102 | 113 | ||||||||||||||||||
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|
|
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|
|
|
|
|
|||||||||||||
Total gross of reinsurance |
15 | 18 | $ | 94 | $ | 159 | $ | 834 | $ | 862 | ||||||||||||||
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(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
On July 9, 2013, the Company and the Pennsylvania Higher Educational Facilities Authority gave direction to the trustee under each of the indentures for the three Allegheny Health, Education and Research Foundation Bond series to exercise the right of optional redemption at par plus accrued interest. These bonds were redeemed during the third quarter of 2013, the insurance policies were returned to National and $118 million of gross insured par was eliminated.
91
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
POLICY ACQUISITION COSTS AND OPERATING EXPENSES U.S. public finance insurance segment expenses for the three and nine months ended September 30, 2013 and 2012 are presented in the following table:
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Gross expenses |
$ | 17 | $ | 20 | -15% | $ | 70 | $ | 128 | -45% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Amortization of deferred acquisition costs |
$ | 16 | $ | 26 | -38% | $ | 59 | $ | 75 | -21% | ||||||||||||||
Operating |
17 | 20 | -15% | 70 | 128 | -45% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total insurance operating expenses |
$ | 33 | $ | 46 | -28% | $ | 129 | $ | 203 | -36% | ||||||||||||||
|
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|
|
|
|
|
|
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|
|
Gross expenses represent total insurance expenses before the deferral of any policy acquisition costs. Gross expenses decreased for the three months ended September 30, 2013 compared with the same period of 2012 primarily due to decreases in legal and litigation related costs. Gross expenses decreased for the nine months ended September 30, 2013 compared with the same period of 2012 as a result of decreases in legal and litigation related costs partially offset by an increase in consulting fees. We did not defer a material amount of policy acquisition costs during 2013 or 2012.
INSURED PORTFOLIO EXPOSURE Financial guarantee insurance companies use a variety of approaches to assess the underlying credit risk profile of their insured portfolios. MBIA uses both an internally developed credit rating system as well as third-party rating sources in the analysis of credit quality measures of its insured portfolio. In evaluating credit risk, we obtain, when available, the underlying rating of the insured obligation before the benefit of its insurance policy from nationally recognized rating agencies, Moodys and S&P. Other companies within the financial guarantee industry may report credit quality information based upon internal ratings that would not be comparable to our presentation.
The following table presents the credit quality distribution of MBIAs U.S. public finance outstanding gross par insured as of September 30, 2013 and December 31, 2012. Capital appreciation bonds are reported at the par amount at the time of issuance of the insurance policy. All ratings are as of the period presented and represent S&P ratings. If transactions are not rated by S&P, a Moodys equivalent rating is used. If transactions are not rated by either S&P or Moodys, an internal equivalent rating is used.
Gross Par Outstanding | ||||||||||||||||
In millions Rating |
September 30, 2013 | December 31, 2012 | ||||||||||||||
Amount | % | Amount | % | |||||||||||||
AAA |
$ | 15,813 | 5.4% | $ | 18,518 | 5.5% | ||||||||||
AA |
140,279 | 48.1% | 162,504 | 48.2% | ||||||||||||
A |
105,966 | 36.4% | 122,743 | 36.4% | ||||||||||||
BBB |
24,737 | 8.5% | 30,496 | 9.0% | ||||||||||||
Below investment grade |
4,643 | 1.6% | 2,853 | 0.9% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 291,438 | 100.0% | $ | 337,114 | 100.0% | ||||||||||
|
|
|
|
|
|
|
|
The credit quality distribution of our U.S. public finance insurance exposure as of September 30, 2013 remained relatively consistent with December 31, 2012. Total U.S. public finance insurance gross par outstanding rated A or above, before giving effect to Nationals guarantee, was approximately 90% and gross par outstanding rated below investment grade, before giving effect to Nationals guarantee, was less than 2% as of September 30, 2013 and less than 1% as of December 31, 2012.
92
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Structured Finance and International Insurance
Our structured finance and international insurance business is principally conducted through MBIA Corp. The financial guarantees issued by MBIA Corp. generally provide unconditional and irrevocable guarantees of the payment of the principal of, and interest or other amounts owing on, insured obligations when due or, in the event MBIA Corp. has the right, at its discretion, to accelerate the payment under its policies upon the acceleration of the underlying insured obligations due to default or otherwise. Certain guaranteed investment contracts written by MBIA Inc. or its subsidiaries are insured by MBIA Corp. If MBIA Inc. or such subsidiaries were to have insufficient assets to pay amounts due upon maturity or termination, MBIA Corp. would make such payments under its insurance policies. MBIA Corp. also insured debt obligations of other affiliates, including MBIA Global Funding, LLC (GFL) and Meridian Funding Company, LLC (Meridian). MBIA Corp. has also written insurance policies guaranteeing the obligations under CDS contracts of an affiliate, LaCrosse Financial Products, LLC, including termination payments that may become due upon certain events including the insolvency or payment default of the financial guarantor or the CDS issuer. MBIA Insurance Corporation also provides reinsurance to its insurance subsidiaries.
MBIA Corp.s guarantees insure structured finance and asset-backed obligations, privately issued bonds used for the financing of public purpose projects that are primarily located outside of the U.S. which include toll roads, bridges, airports, public transportation facilities, utilities and other types of infrastructure projects serving a substantial public purpose, and obligations of sovereign-related and sub-sovereign issuers. Structured finance and ABS typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgage loans, insurance policies, consumer loans, corporate loans and bonds, trade and export receivables, and leases and loans for equipment, aircraft and real property.
In certain cases, we may be required to consolidate entities established by issuers of insured obligations as part of securitizations when we insure the assets or liabilities of those entities and in connection with remediations under our insurance policies. These entities typically meet the definition of a VIE under accounting principles for the consolidation of VIEs. We do not believe there is any difference in the risks and profitability of financial guarantees provided to VIEs compared with other financial guarantees written by us.
93
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
The following table presents our structured finance and international insurance segment results for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net premiums earned |
$ | 40 | $ | 38 | 5% | $ | 111 | $ | 143 | -22% | ||||||||||||||
Net investment income |
3 | 8 | -63% | 12 | 22 | -45% | ||||||||||||||||||
Fees and reimbursements |
18 | 43 | -58% | 65 | 109 | -40% | ||||||||||||||||||
Change in fair value of insured derivatives: |
||||||||||||||||||||||||
Realized gains (losses) and other settlements on insured derivatives |
(28) | 12 | n/m | (1,548) | (420) | n/m | ||||||||||||||||||
Unrealized gains (losses) on insured derivatives |
285 | (33) | n/m | 1,562 | 1,473 | 6% | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net change in fair value of insured derivatives |
257 | (21) | n/m | 14 | 1,053 | -99% | ||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(3) | 14 | -121% | 31 | 18 | 72% | ||||||||||||||||||
Net investment losses related to other-than-temporary impairments |
- | (4) | -100% | - | (45) | -100% | ||||||||||||||||||
Other net realized gains (losses) |
- | 1 | -100% | - | 1 | -100% | ||||||||||||||||||
Revenues of consolidated VIEs: |
||||||||||||||||||||||||
Net investment income |
13 | 13 | -% | 38 | 40 | -5% | ||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
15 | 42 | -64% | 119 | (25) | n/m | ||||||||||||||||||
Other net realized gains (losses) |
- | - | -% | 1 | - | n/m | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
343 | 134 | n/m | 391 | 1,316 | -70% | ||||||||||||||||||
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|
|
|
|
|
|
|||||||||||||
Losses and loss adjustment |
63 | 167 | -62% | (13) | 315 | -104% | ||||||||||||||||||
Amortization of deferred acquisition costs |
19 | 24 | -21% | 76 | 81 | -6% | ||||||||||||||||||
Operating |
22 | 30 | -27% | 83 | 115 | -28% | ||||||||||||||||||
Interest |
30 | 62 | -52% | 129 | 175 | -26% | ||||||||||||||||||
Expenses of consolidated VIEs: |
||||||||||||||||||||||||
Operating |
3 | 5 | -40% | 10 | 16 | -38% | ||||||||||||||||||
Interest |
10 | 10 | -% | 30 | 32 | -6% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses |
147 | 298 | -51% | 315 | 734 | -57% | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-tax income (loss) |
$ | 196 | $ | (164) | n/m | $ | 76 | $ | 582 | -87% | ||||||||||||||
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|
|
|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
For the three and nine months ended September 30, 2013 and 2012, we did not write a meaningful amount of structured finance and international insurance. As of September 30, 2013, MBIA Corp.s total insured gross par outstanding was $83.9 billion. Since December 31 2007, our total gross par outstanding has decreased approximately 75% from $331.2 billion. The lack of insurance writings in our structured finance and international insurance segment reflects the insurance financial strength credit ratings assigned to MBIA Corp. by the major rating agencies. The Company does not expect to write a material amount of new business prior to an upgrade of the insurance financial strength ratings of MBIA Corp. and market acceptance that such ratings will be stable in the future. The timing of any future upgrades is uncertain and will depend on a variety of quantitative and qualitative factors used by the rating agencies in their evaluation. Pre-tax income (loss) in each of the periods included in the preceding table was primarily driven by changes in the fair value of our insured credit derivatives, which reflects changes in the market perception of MBIA Corp.s credit risk.
ADJUSTED PRE-TAX INCOME (LOSS) In addition to the above results, we also analyze the operating performance of our structured finance and international insurance segment using adjusted pre-tax income (loss), a non-GAAP measure. We believe adjusted pre-tax income (loss), as used by management, is useful for an understanding of the results of operations of our structured finance and international insurance segment. Adjusted pre-tax income (loss) is not a substitute for pre-tax income (loss) determined in accordance with GAAP, and our definition of adjusted pre-tax income (loss) may differ from that used by other companies.
Adjusted pre-tax loss for the three months ended September 30, 2013 decreased when compared with the same period of 2012 principally due to decreases in financial guarantee insurance losses and interest expense from the National Secured Loan, which was repaid in full in May of 2013. These changes were partially offset by an increase in impairments on insured credit derivatives.
94
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Adjusted pre-tax loss for the nine months ended September 30, 2013 decreased when compared with the same period of 2012 principally due to a decrease in financial guarantee insurance losses, an increase in gains on sales of investments, a decrease in interest expense from the National Secured Loan and the absence of net investment losses related to other-than-temporary impairments.
The following table presents the adjusted pre-tax income (loss) of our structured finance and international insurance segment and a reconciliation of adjusted pre-tax income (loss) to GAAP pre-tax income (loss) for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Adjusted pre-tax income (loss) |
$ | (167) | $ | (224) | -25% | $ | (357) | $ | (970) | -63% | ||||||||||||||
Additions to adjusted pre-tax income (loss): |
||||||||||||||||||||||||
Impact of consolidating certain VIEs |
24 | 28 | -14% | (39) | 37 | n/m | ||||||||||||||||||
Mark-to-market gain (loss) on insured credit derivatives |
285 | (33) | n/m | 1,562 | 1,473 | 6% | ||||||||||||||||||
Subtractions from adjusted pre-tax income (loss): |
||||||||||||||||||||||||
Impairments on insured credit derivatives |
(54) | (65) | -17% | 1,090 | (42) | n/m | ||||||||||||||||||
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|
|
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|
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|
|
|||||||||||||
Pre-tax income (loss) |
$ | 196 | $ | (164) | n/m | $ | 76 | $ | 582 | -87% | ||||||||||||||
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|
|
|
|
|
|
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|
|
n/m - Percent change not meaningful.
NET PREMIUMS EARNED Our structured finance and international insurance segment generates net premiums from insurance policies accounted for as financial guarantee contracts and insured derivative contracts, and certain of those premiums may be eliminated in our consolidated financial statements as a result of the Company consolidating VIEs. The following table provides net premiums earned by type of insurance contract for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net premiums earned: |
||||||||||||||||
Financial guarantee contracts |
$ | 40 | $ | 38 | $ | 111 | $ | 143 | ||||||||
Insured derivative contracts (1) |
6 | 12 | 28 | 42 | ||||||||||||
VIEs (eliminated in consolidation) |
4 | 4 | 11 | 11 | ||||||||||||
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|
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|
|||||||||
Total net premiums earned |
$ | 50 | $ | 54 | $ | 150 | $ | 196 | ||||||||
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|
|
(1) - | Premiums related to insured derivatives are included in Realized gains (losses) and other settlements on insured derivatives on our consolidated statements of operations. |
Net premiums earned on non-derivative financial guarantee contracts for the three and nine months ended September 30, 2013 and 2012 are presented in the following table. Net premiums earned represent gross premiums earned net of premiums ceded to reinsurers, and include scheduled premium earnings and premium earnings from refunded issues.
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net premiums earned: |
||||||||||||||||||||||||
U.S. |
$ | 12 | $ | 14 | -14% | $ | 37 | $ | 50 | -26% | ||||||||||||||
Non-U.S. |
28 | 24 | 17% | 74 | 93 | -20% | ||||||||||||||||||
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|
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Total net premiums earned |
$ | 40 | $ | 38 | 5% | $ | 111 | $ | 143 | -22% | ||||||||||||||
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|
|
Structured finance and international net premiums earned decreased for the nine months ended September 30, 2013 when compared with the same period of 2012 primarily due to the maturity and early settlement of insured transactions with no material writings of new insurance policies.
NET INVESTMENT INCOME The decrease in net investment income for the three and nine months ended September 30, 2013 compared with the same periods of 2012 was primarily due to declining average asset balances in 2013 due to sales of investments to fund claim and commutation payments.
95
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Investment asset balances at amortized cost as of September 30, 2013 and December 31, 2012 are presented in the following table:
September 30, 2013 | December 31, 2012 | |||||||||||||||
In millions |
Investments at
Amortized Cost |
Pre-tax
Yield (1) |
Investments at
Amortized Cost |
Pre-tax
Yield (1) |
||||||||||||
Fixed-income securities: |
||||||||||||||||
Taxable |
$ | 316 | 2.10% | $ | 725 | 1.60% | ||||||||||
Short-term |
206 | 1.16% | 160 | 1.38% | ||||||||||||
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|
|
|
|||||||||||||
Total fixed-income |
522 | 1.73% | 885 | 1.56% | ||||||||||||
Other |
2 | 1 | ||||||||||||||
|
|
|
|
|||||||||||||
Total |
$ | 524 | $ | 886 | ||||||||||||
|
|
|
|
(1) - | Estimated yield-to-maturity. |
FEES AND REIMBURSEMENTS The decrease in fees and reimbursements for the three and nine months ended September 30, 2013 compared with the same periods of 2012 was primarily due to a decrease in waiver and consent fees related to the ongoing management of our structured finance and international insurance business.
NET CHANGE IN FAIR VALUE OF INSURED DERIVATIVES The following table presents the net premiums and fees earned related to derivatives and the components of the net change in fair value of insured derivatives for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended
September 30, |
Percent |
Nine Months Ended
September 30, |
Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net premiums and fees earned on insured derivatives |
$ | 6 | $ | 12 | -50% | $ | 29 | $ | 43 | -33% | ||||||||||||||
Realized gains (losses) on insured derivatives |
(34) | - | n/m | (1,577) | (463) | n/m | ||||||||||||||||||
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|
|||||||||||||
Realized gains (losses) and other settlements on insured derivatives |
(28) | 12 | n/m | (1,548) | (420) | n/m | ||||||||||||||||||
Unrealized gains (losses) on insured derivatives |
285 | (33) | n/m | 1,562 | 1,473 | 6% | ||||||||||||||||||
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|
|
|||||||||||||
Net change in fair value of insured derivatives |
$ | 257 | $ | (21) | n/m | $ | 14 | $ | 1,053 | -99% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
The Company no longer insures new credit derivative contracts except in transactions related to the restructuring or reduction of existing derivative exposure. Premiums earned related to insured credit derivatives will decrease over time as a result of settlements prior to maturity and scheduled amortizations. For the three months ended September 30, 2013, realized losses on insured derivatives resulted primarily from claim payments on CMBS transactions. For the nine months ended September 30, 2013 and 2012, realized losses on insured derivatives resulted primarily from settlements and claim payments on CMBS and ABS transactions.
For the three months ended September 30, 2013, unrealized gains on insured derivatives were principally associated with the effects of MBIA Corp.s nonperformance risk on its derivative liabilities, favorable changes in spreads and pricing on the underlying collateral and a decline in the weighted average life on transactions. For the three months ended September 30, 2012, unrealized losses on insured derivatives were principally associated with unfavorable changes in spreads and pricing on the underlying collateral and collateral erosion of transactions, partially offset by a widening of MBIA Corp.s credit spreads and a reduction in MBIA Corp.s recovery rate.
For the nine months ended September 30, 2013, unrealized gains on insured derivatives were principally associated with the reversal of unrealized losses from commutations, a decline in the weighted average life on transactions and favorable changes in spread/prices on the underlying collateral, partially offset by the effects of MBIA Corp.s nonperformance risk on its derivative liabilities and collateral erosion of transactions. For the nine months ended September 30, 2012, unrealized gains on insured derivatives were principally associated with the reversal of unrealized losses from commutations, the effects of MBIA Corp.s nonperformance risk on its derivative liabilities and the result of favorable movements in spreads and pricing on collateral within transactions, partially offset by collateral erosion.
96
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
As of September 30, 2013, MBIA Corp.s five year CDS cost was 16.38% upfront plus 5% per annum compared with 35.88% upfront plus 5% per annum as of September 30, 2012. Our mark-to-market on insured credit derivatives uses the most appropriate of the one to ten year CDS cost for each transaction, and those costs ranged from 4.13% upfront plus 5% per annum to 20.63% upfront plus 5% per annum as of September 30, 2013. As of September 30, 2012, those costs ranged from 17.75% upfront plus 5% per annum to 38.25% upfront plus 5% per annum.
As of September 30, 2013, we had $25.8 billion of gross par outstanding on insured credit derivatives compared with $26.9 billion and $47.5 billion as of June 30, 2013 and December 31, 2012, respectively. The decrease in gross par outstanding was primarily due to contractual terminations, amortizations and maturities. During the three months ended September 30, 2013, three insured issues, representing $1.2 billion in gross par outstanding, either matured or were contractually settled. During the nine months ended September 30, 2013, 36 insured issues, representing $21.3 billion in gross par outstanding, either matured, contractually settled or were agreed to be contractually settled prior to maturity.
Since our insured credit derivatives have similar terms, conditions, risks, and economic profiles as our financial guarantee insurance policies, we evaluate them for impairment periodically in the same way that we estimate loss and LAE for our financial guarantee policies. Credit impairments on insured derivatives represent actual payments plus the present values of our estimates of expected future claim payments, net of expected future recoveries. MBIA Insurance Corporations expected future claim payments were discounted using a rate of 5.72%, the same rate used to calculate its statutory loss reserves as of September 30, 2013. We estimated that additional credit impairments on insured derivatives (excluding LAE) for the nine months ended September 30, 2013 were $483 million across 12 insured CDO issues. Beginning with the fourth quarter of 2007 through September 30, 2013, total credit impairments on insured derivatives were estimated at $6.1 billion across 74 insured CDO issues, inclusive of 71 insured issues for which we made settlement and claim payments of $5.8 billion, net of reinsurance and collections. Accordingly, we expect to realize additional net losses of $337 million. Refer to the following Loss and Loss Adjustment Expenses section for additional information about credit impairments on insured derivatives.
Our estimate of credit impairments, a non-GAAP measure, may differ from the fair values recorded in our consolidated financial statements. The Company believes its disclosure of credit impairments on insured derivatives provides additional meaningful information about potential realized losses on these contracts. The fair value of an insured derivative contract will be influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments. In the absence of credit impairments or the termination of derivatives at losses, the cumulative unrealized losses recorded from fair valuing insured derivatives should reverse before or at the maturity of the contracts. Contracts also may be settled prior to maturity at amounts that may be more or less than their recorded fair values. Those settlements can result in realized gains or losses, and will result in the reversal of unrealized gains or losses. The Company is not required to post collateral to counterparties of these contracts. Refer to Risk Factors in Part II, Item 1A of this Quarterly Report on Form 10-Q for the quarterly period year ended September 30, 2013 for information on legislative changes that could require collateral posting by MBIA Corp. notwithstanding the contract terms.
NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE AND FOREIGN EXCHANGE The decrease in net gains (losses) on financial instruments at fair value and foreign exchange for the three months ended September 30, 2013 when compared with the same period of 2012 was primarily due to an increase in losses from foreign exchange. The increase in net gains (losses) on financial instruments at fair value and foreign exchange for the nine months ended September 30, 2013 when compared with the same period of 2012 was primarily due to net realized gains from the sales of securities.
NET INVESTMENT LOSSES RELATED TO OTHER-THAN-TEMPORARY IMPAIRMENTS Net investment losses related to other-than-temporary impairments for the three and nine months ended September 30, 2012 were primarily related to one impaired security that was written down to its fair value as it was our intent to sell the security before an expected recovery of fair value to its amortized cost. Refer to the Liquidity section included herein for additional information about impaired investments.
REVENUES OF CONSOLIDATED VIEs For the three months ended September 30, 2013, total revenues of consolidated VIEs were $28 million compared with total revenues of $55 million for the same period of 2012. The decrease in revenues of consolidated VIEs for the three months ended September 30, 2013 when compared to the same period of 2012 was primarily related to a decrease in net gains from second-lien RMBS put-back claims on ineligible mortgage loans and a decrease in net gains due to the movements of MBIA Corp.s nonperformance risk. For the nine months ended September 30, 2013, total revenues of consolidated VIEs were $158 million compared with total revenues of $15 million for the same period of 2012. The increase in revenues of consolidated VIEs for the nine months ended September 30, 2013 when compared to the same period of 2012 was primarily related to an increase in net gains from second-lien RMBS put-back claims on ineligible mortgage loans partially offset by a decrease in net gains due to the movements of MBIA Corp.s nonperformance risk.
97
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
LOSS AND LOSS ADJUSTMENT EXPENSES MBIAs insured portfolio management group within its structured finance and international insurance business is responsible for monitoring structured finance and international insured obligations. The level and frequency of monitoring of any insured issue depends on the type, size, rating and performance of the insured issue. If we identify concerns with respect to the performance of an insured issue we may designate such insured issue as Caution List-Low, Caution List-Medium, Caution List-High, or Classified depending on the likelihood of a loss. We establish case basis reserves in connection with insured issues designated as Classified credits.
The Company faces significant risks and uncertainties related to potential or actual losses from its CMBS and CRE CDO insured exposure, its second-lien RMBS insured exposure (due to the unpredictable performance of ineligible mortgage loans included in the transactions we insured) backed by home equity lines of credit (HELOC) or closed-end second mortgages (CES), its first-lien RMBS insured exposure and its ABS CDO insured exposure. Continued significant adverse developments and higher than expected payments on these exposures and/or lower than expected recoveries on the RMBS exposures, could result in a decline in the Companys liquidity and statutory capital position.
The impact of insured exposures on the Companys liquidity position is best understood by assessing the ultimate amount of payments that the Company will be required to make with respect to these exposures. In this regard, the Company discloses the discounted expected future net cash flows to be made under all insurance contracts, irrespective of the legal form of the guarantee (i.e., financial guarantee insurance policy or insured derivative contract) or the GAAP accounting basis.
All amounts presented in the following aggregate losses and LAE tables are calculated in accordance with GAAP, with the exception of those related to insured credit derivative impairments. The amounts reported for insured credit derivative impairments are calculated in accordance with U.S. STAT because GAAP does not contain a comparable measurement basis for these contracts. All losses and recoverables reported in the following tables are measured using discounted probability-weighted cash flows. Losses and recoverables on VIEs that are eliminated in consolidation are included because the consolidation of these VIEs does not impact whether or not we will be required to make payments under our insurance contracts. As a result of the different accounting bases of amounts included in the following tables, the total provided in each table represents a non-GAAP measure.
98
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
The following tables present the aggregate loss and LAE reserves and insurance loss recoverables as of September 30, 2013 and December 31, 2012, and the aggregate change in the discounted values of net payments expected to be made on all insurance contracts for the three and nine months ended September 30, 2013 and 2012:
Aggregate Losses and LAE Roll Forward
In millions |
Financial
Guarantee Insurance (1) |
Financial
Guarantee Insurance Related to VIEs (2) |
Insurance
Credit Derivative Impairments and LAE (3) |
Reinsurance (4) | Total (5) | |||||||||||||||
Gross loss and LAE reserves as of December 31, 2012 |
$ | 694 | $ | 293 | $ | 1,458 | $ | (7) | $ | 2,438 | ||||||||||
Gross insurance loss recoverable as of December 31, 2012 |
(3,392) | (1,338) | (31) | 6 | (4,755) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total reserves (recoverable) as of December 31, 2012 |
(2,698) | (1,045) | 1,427 | (1) | (2,317) | |||||||||||||||
Ceded reserves |
(1) | - | - | 1 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net reserves as of December 31, 2012 |
(2,699) | (1,045) | 1,427 | - | (2,317) | |||||||||||||||
Total aggregate losses and LAE incurred |
(13) | (83) | 483 | - | 387 | |||||||||||||||
(Payments) collections and other |
2,580 | 53 | (1,571) | - | 1,062 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net reserves as of September 30, 2013 |
(132) | (1,075) | 339 | - | (868) | |||||||||||||||
Ceded reserves |
1 | - | (1) | - | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total reserves (recoverable) as of September 30, 2013 |
$ | (131) | $ | (1,075) | $ | 338 | $ | - | $ | (868) | ||||||||||
|
|
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|
|
|
|
|
|
|
|||||||||||
Gross loss and LAE reserves as of September 30, 2013 |
$ | 594 | $ | 240 | $ | 368 | $ | (6) | $ | 1,196 | ||||||||||
Gross insurance loss recoverable as of September 30, 2013 |
(725) | (1,315) | (30) | 6 | (2,064) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total reserves (recoverable) as of September 30, 2013 |
$ | (131) | $ | (1,075) | $ | 338 | $ | - | $ | (868) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) - | Included in Losses and loss adjustment, Loss and loss adjustment expense reserves, and Insurance loss recoverable on the Companys consolidated financial statements. |
(2) - | Represents loss expense, reserves and insurance loss recoverable eliminated upon the consolidation of insured VIEs. |
(3) - | Represents statutory losses and LAE and recoveries for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under GAAP are recorded in Net change in fair value of insured derivatives on the Companys consolidated statements of operations and the fair value of these contracts are recorded in Derivative liabilities on the Companys consolidated balance sheets. |
(4) - | Represents Losses and loss adjustment, Loss and loss adjustment expense reserves and Insurance loss recoverable on the Companys consolidated financial statements and are ceded to third-party reinsurers under insurance contracts. As of December 31, 2012, there was a $1 million receivable related to insured credit derivative impairments and LAE reinsurance. |
(5) - | Represents totals after ceding to third-party reinsurers under insurance contracts. |
Aggregate Losses and LAE (change in discounted values of net payments)
For the Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other (2) | Total | ||||||||||||||||||
Change in actual and expected payments |
$ | (8) | $ | 14 | $ | (10) | $ | 90 | $ | 7 | $ | 93 | ||||||||||||
Change in actual and expected salvage |
61 | (6) | (2) | 8 | 9 | 70 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | 53 | $ | 8 | $ | (12) | $ | 98 | $ | 16 | $ | 163 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Includes HELOC loans and CES. |
(2) - | Primarily represents an international road transaction. |
For the Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other | Total | ||||||||||||||||||
Change in actual and expected payments |
$ | 60 | $ | 46 | $ | 21 | $ | 131 | $ | 3 | $ | 261 | ||||||||||||
Change in actual and expected salvage |
(2) | 1 | 5 | (8) | (5) | (9) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | 58 | $ | 47 | $ | 26 | $ | 123 | $ | (2) | $ | 252 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Includes HELOC loans and CES. |
99
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Aggregate Losses and LAE (change in discounted values of net payments)
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other (2) | Total | ||||||||||||||||||
Change in actual and expected payments |
$ | 126 | $ | 12 | $ | (90) | $ | 472 | $ | 98 | $ | 618 | ||||||||||||
Change in actual and expected salvage |
(262) | (11) | - | (13) | 55 | (231) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | (136) | $ | 1 | $ | (90) | $ | 459 | $ | 153 | $ | 387 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Includes HELOC loans and CES. |
(2) - | Primarily represents an international road transaction and high yield corporate CDOs. |
For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other | Total | ||||||||||||||||||
Change in actual and expected payments |
$ | 266 | $ | 101 | $ | (22) | $ | 602 | $ | 10 | $ | 957 | ||||||||||||
Change in actual and expected salvage |
(7) | 4 | 18 | (13) | 1 | 3 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | 259 | $ | 105 | $ | (4) | $ | 589 | $ | 11 | $ | 960 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Includes HELOC loans and CES. |
The decrease in total aggregate losses and LAE for the three months ended September 30, 2013 compared with the same period of 2012 was primarily due to lower increases in expected future payments on second-lien RMBS, CMBS, first-lien RMBS and ABS CDO exposures. Partially offsetting these decreases were changes in actual and expected salvage primarily related to lower recoveries resulting from ineligible mortgage loans included in insured second-lien RMBS exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgage loans.
The decrease in total aggregate losses and LAE for the nine months ended September 30, 2013 compared with the same period of 2012 was primarily due to lower increases in expected future payments on second-lien RMBS, CMBS, first-lien RMBS and ABS CDO exposures. The Company also recorded increases in actual and expected salvage due to the resolution of the Companys claims as reflected in a disclosure statement filed in August of 2013. The disclosure statement indicated a revised expected recovery for the Company of approximately $828 million which is an increase over the previously identified recovery amount of $796 million reflected in the Plan. The increased recovery amount is primarily due to the favorable disposition of assets and settlements of claims. Additionally, the Company also increased the amount of recoveries subject to contractual obligations by Credit Suisse to repurchase such ineligible mortgage loans. Partially offsetting this was a decrease in excess spread (the difference between interest inflows on mortgage loan collateral and interest outflows on insured beneficial interests) within the RMBS securitizations, reversal of recoveries related to high yield corporate CDOs and deterioration in an international road transaction.
In addition to the information presented above, the following tables present aggregate losses and LAE for the three and nine months ended September 30, 2013 and 2012 by insurance type:
Aggregate Losses and LAE by Insurance Type (change in discounted values of net payments)
For the Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other (2) | Total | ||||||||||||||||||
Financial guarantee insurance (3) |
$ | 28 | $ | 8 | $ | 1 | $ | 10 | $ | 16 | $ | 63 | ||||||||||||
Financial guarantee insurance related to consolidated VIEs (eliminated in consolidation) (4) |
25 | - | (13) | - | - | 12 | ||||||||||||||||||
Insured credit derivatives (statutory basis) (5) |
- | - | - | 88 | - | 88 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | 53 | $ | 8 | $ | (12) | $ | 98 | $ | 16 | $ | 163 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
(1) - | Includes HELOC loans and CES. |
(2) - | Primarily represents an international road transaction. |
(3) - | Included in Losses and loss adjustment as reported on the Companys consolidated statements of operations. |
(4) - | Represents losses eliminated upon the consolidation of insured VIEs. |
(5) - | Represents statutory losses and LAE for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under GAAP are recorded in Net change in fair value of insured derivatives on the Companys consolidated statements of operations. |
100
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
For the Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other | Total | ||||||||||||||||||
Financial guarantee insurance (2) |
$ | 38 | $ | 47 | $ | 9 | $ | 75 | $ | (2) | $ | 167 | ||||||||||||
Financial guarantee insurance related to consolidated VIEs (eliminated in consolidation) (3) |
20 | - | (2) | - | - | 18 | ||||||||||||||||||
Insured credit derivatives (statutory basis) (4) |
- | - | 19 | 48 | - | 67 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | 58 | $ | 47 | $ | 26 | $ | 123 | $ | (2) | $ | 252 | ||||||||||||
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|
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|
|
|
|
|
|
|
|
(1) - | Includes HELOC loans and CES. |
(2) - | Included in Losses and loss adjustment as reported on the Companys consolidated statements of operations. |
(3) - | Represents losses eliminated upon the consolidation of insured VIEs. |
(4) - | Represents statutory losses and LAE for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under GAAP are recorded in Net change in fair value of insured derivatives on the Companys consolidated statements of operations. |
Aggregate Losses and LAE by Insurance Type (change in discounted values of net payments)
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other (2) | Total | ||||||||||||||||||
Financial guarantee insurance (3) |
$ | (92) | $ | 1 | $ | (47) | $ | (28) | $ | 153 | $ | (13) | ||||||||||||
Financial guarantee insurance related to consolidated VIEs (eliminated in consolidation) (4) |
(44) | - | (39) | - | - | (83) | ||||||||||||||||||
Insured credit derivatives (statutory basis) (5) |
- | - | (4) | 487 | - | 483 | ||||||||||||||||||
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|
|
|
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|
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|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | (136) | $ | 1 | $ | (90) | $ | 459 | $ | 153 | $ | 387 | ||||||||||||
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(1) - | Includes HELOC loans and CES. |
(2) - | Primarily represents an international road transaction. |
(3) - | Included in Losses and loss adjustment as reported on the Companys consolidated statements of operations. |
(4) - | Represents losses eliminated upon the consolidation of insured VIEs. |
(5) - | Represents statutory losses and LAE for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under GAAP are recorded in Net change in fair value of insured derivatives on the Companys consolidated statements of operations. |
For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
In millions |
Second-lien
RMBS (1) |
First-lien
RMBS |
ABS CDO | CMBS | Other | Total | ||||||||||||||||||
Financial guarantee insurance (2) |
$ | 106 | $ | 105 | $ | 6 | $ | 87 | $ | 11 | $ | 315 | ||||||||||||
Financial guarantee insurance related to consolidated VIEs (eliminated in consolidation) (3) |
153 | - | (18) | - | - | 135 | ||||||||||||||||||
Insured credit derivatives (statutory basis) (4) |
- | - | 8 | 502 | - | 510 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total aggregate losses and LAE |
$ | 259 | $ | 105 | $ | (4) | $ | 589 | $ | 11 | $ | 960 | ||||||||||||
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|
|
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|
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|
|
(1) - | Includes HELOC loans and CES. |
(2) - | Included in Losses and loss adjustment as reported on the Companys consolidated statements of operations. |
(3) - | Represents losses eliminated upon the consolidation of insured VIEs. |
(4) - | Represents statutory losses and LAE for insurance contracts accounted for as derivatives. Realized and unrealized gains and losses on these contracts under GAAP are recorded in Net change in fair value of insured derivatives on the Companys consolidated statements of operations. |
Summary of Financial Guarantee Insurance Losses and LAE
The following information relates to financial guarantee insurance losses and LAE recorded in accordance with GAAP. Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a description of the Companys loss and LAE reserving policy and additional information related to its loss reserves.
101
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
The following table presents information about our loss and LAE incurred for the three and nine months ended September 30, 2013 and 2012:
Three Months Ended
September 30, |
Percent |
Nine Months Ended
September 30, |
Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Loss and LAE related to actual and expected payments |
$ | 18 | $ | 185 | -90% | $ | 119 | $ | 396 | -70% | ||||||||||||||
Recoveries of actual and expected payments |
45 | (18) | n/m | (132) | (81) | 63% | ||||||||||||||||||
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|
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|
|
|
|
|||||||||||||
Gross losses incurred |
63 | 167 | -62% | (13) | 315 | -104% | ||||||||||||||||||
Reinsurance |
- | - | -% | - | - | -% | ||||||||||||||||||
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|
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|
|
|
|
|||||||||||||
Losses and loss adjustment expenses |
$ | 63 | $ | 167 | -62% | $ | (13) | $ | 315 | -104% | ||||||||||||||
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|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
Losses and LAE incurred in our structured finance and international insurance segment totaled $63 million for the three months ended September 30, 2013. Included in the $63 million were decreases in gross recoveries of actual and expected payments of $45 million and gross losses related to actual and expected future payments of $18 million. The $45 million decrease in recoveries of actual and expected payments includes $42 million of recoveries related to insured second-lien RMBS transactions, primarily driven by a reduction in excess spread within the securitizations. The $18 million of actual and expected payments includes $14 million related to insured first-lien RMBS exposures and $18 million of other loss activity, primarily related to CMBS and an international road transaction, partially offset by a $14 million decrease in actual and expected payments related to insured second-lien RMBS transactions.
Losses and LAE incurred in our structured finance and international insurance segment totaled $167 million for the three months ended September 30, 2012. Included in the $167 million were gross losses related to actual and expected future payments of $185 million, of which $140 million primarily related to CMBS and insured first-lien RMBS transactions and $45 million related to insured second-lien RMBS transactions. Partially offsetting these losses were recoveries of actual and expected payments of $18 million, including $7 million related to insured second-lien RMBS transactions. The $7 million of recoveries related to second-lien RMBS transactions included $44 million of recoveries resulting from ineligible mortgage loans included in insured exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgage loans, partially offset by a $37 million reduction in excess spread within the securitizations.
Losses and LAE incurred in our structured finance and international insurance segment was a benefit of $13 million for the nine months ended September 30, 2013. Included in the $13 million benefit were increases in recoveries of actual and expected payments of $132 million, of which $177 million related to insured second-lien RMBS transactions, partially offset by $45 million of other activity. The $177 million of recoveries related to insured second-lien RMBS transactions included $316 million of recoveries primarily resulting from ineligible mortgage loans included in insured exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgage loans, partially offset by a $139 million reduction in excess spread within the securitizations. The $45 million of other activity was primarily the result of a reversal of recoveries related to high yield corporate CDOs, partially offset by an increase in recoveries related to an international road transaction. These recoveries were partially offset by gross losses related to actual and expected future payments of $119 million, of which $85 million related to insured second-lien RMBS transactions and $12 million related to first-lien RMBS transactions.
Losses and LAE incurred in our structured finance and international insurance segment totaled $315 million for the nine months ended September 30, 2012. Included in the $315 million were gross losses related to actual and expected future payments of $396 million, of which $216 million primarily related to insured first-lien RMBS transactions and CMBS transactions and $180 million related to insured second-lien RMBS transactions. Partially offsetting these losses were recoveries of actual and expected payments of $81 million, including $74 million related to insured second-lien RMBS transactions. The $74 million of recoveries related to insured second-lien RMBS transactions included $154 million of recoveries resulting from ineligible mortgage loans included in insured exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgage loans, partially offset by an $80 million reduction in excess spread within the securitizations.
For the three and nine months ended September 30, 2013, losses and LAE incurred included the elimination of a $12 million expense and an $83 million benefit, respectively, as a result of the consolidation of VIEs. The $12 million expense elimination included recoveries of actual and expected payments of $18 million, partially offset by gross losses related to actual and expected future payments of $6 million. The $83 million benefit elimination included gross recoveries of actual and expected payments of $85 million, partially offset by gross losses related to actual and expected future payments of $2 million.
102
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
For the three and nine months ended September 30, 2012, losses and LAE incurred included the elimination of $18 million and $135 million of expense, respectively, as a result of the consolidation of VIEs. The $18 million elimination included gross losses related to actual and expected future payments of $11 million and a decrease in recoveries of actual and expected payments of $7 million. The $135 million elimination included gross losses related to actual and expected future payments of $68 million and a decrease in recoveries of actual and expected payments of $67 million.
The following table presents information about our insurance reserves and recoverable as of September 30, 2013 and December 31, 2012. The Companys insurance loss recoverable represents expected potential recoveries of paid claims based on probability-weighted net cash inflows discounted at applicable risk-free rates as of the measurement date. Our insurance loss recoverable includes expected recoveries related to put-backs of ineligible mortgage loans within second-lien RMBS transactions and other amounts due to MBIA under the terms and conditions of the respective transactional documents (inclusive of subrogation rights).
In millions |
September 30,
2013 |
December 31,
2012 |
Percent
Change |
|||||||||
Gross loss and LAE reserves |
$ | 802 | $ | 918 | -13% | |||||||
Expected recoveries on unpaid losses |
(208) | (224) | -7% | |||||||||
|
|
|
|
|
|
|||||||
Loss and LAE reserves |
$ | 594 | $ | 694 | -14% | |||||||
|
|
|
|
|
|
|||||||
Insurance loss recoverable |
$ | 725 | $ | 3,392 | -79% | |||||||
Insurance loss recoverable-ceded (1) |
$ | 5 | $ | 6 | -17% | |||||||
Reinsurance recoverable on paid and unpaid losses (2) |
$ | 6 | $ | 7 | -14% |
(1) - | Reported within Other liabilities on our consolidated balance sheets. |
(2) - | Reported within Other assets on our consolidated balance sheets. |
Included in the Companys loss and LAE reserves are both reserves for insured obligations for which a payment default has occurred and MBIA Corp. has already paid a claim and also for which a payment default has not yet occurred but a claim is expected in the future. The following table includes LAE reserves as of September 30, 2013 and December 31, 2012 for four issues that had no expected future claim payments or par outstanding, but for which the Company was obligated to pay LAE incurred in prior periods. As of September 30, 2013 and December 31, 2012, loss and LAE reserves comprised the following:
Number of Issues (1) | Loss and LAE Reserve | Par Outstanding | ||||||||||||||||||||||
$ in millions |
September 30,
2013 |
December 31,
2012 |
September 30,
2013 |
December 31,
2012 |
September 30,
2013 |
December 31,
2012 |
||||||||||||||||||
Gross of reinsurance: |
||||||||||||||||||||||||
Issues with defaults |
105 | 97 | $ | 403 | $ | 448 | $ | 6,494 | $ | 7,194 | ||||||||||||||
Issues without defaults |
19 | 25 | 191 | 246 | 1,004 | 1,402 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total gross of reinsurance |
124 | 122 | $ | 594 | $ | 694 | $ | 7,498 | $ | 8,596 | ||||||||||||||
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|
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|
|
|
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|
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
MBIA reports expected potential recoveries of certain paid claims within Insurance loss recoverable and the corresponding estimated recovery amounts due to reinsurers within Other liabilities on the Companys consolidated balance sheets. As of September 30, 2013 and December 31, 2012, our insurance loss recoverable in our structured finance and international insurance segment was $725 million and $3.4 billion, respectively. The decrease in our insurance loss recoverable primarily resulted from the collections of previously established recoveries related to the BofA Settlement Agreement related to insured second-lien RMBS securitizations. As of September 30, 2013 and December 31, 2012, our insurance loss recoverable also included estimated recoveries of approximately $669 million and $780 million, respectively, primarily from excess spread within insured second-lien RMBS securitizations. Insurance loss recoverables due to reinsurers totaled $5 million and $6 million as of September 30, 2013 and December 31, 2012, respectively. Insurance loss recoverables are only paid to reinsurers upon receipt of such amounts by MBIA.
103
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Residential Mortgage Exposure
MBIA Corp. insures mortgage-backed securities (MBS) backed by residential mortgage loans, including second-lien RMBS transactions (revolving HELOC loans and CES). For the three months ended September 30, 2013, we recorded losses and LAE of $28 million related to insured second-lien RMBS transactions. The $28 million consolidated losses and LAE was due to a decrease in gross recoveries of actual and expected payments of $42 million, partially offset by a decrease in gross losses and LAE related to actual and expected payments of $14 million. For the nine months ended September 30, 2013, we recorded a $92 million benefit related to insured second-lien RMBS transactions. The $92 million benefit was due to gross recoveries of actual and expected payments of $177 million, partially offset by gross losses and LAE related to actual and expected payments of $85 million.
MBIA Corp. also insures MBS backed by first-lien subprime mortgage loans directly through RMBS securitizations. There has been considerable stress and continued deterioration in the subprime mortgage market since 2008 reflected by increased delinquencies and losses, particularly related to subprime mortgage loans originated during 2005, 2006 and 2007. As of September 30, 2013 and December 31, 2012, the Company had $1.1 billion and $2.2 billion, respectively, of gross par outstanding from direct exposure to subprime mortgage loans. While subprime transactions directly guaranteed by MBIA Corp. include collateral comprising mortgage loans that originated during 2005, 2006, and 2007, we currently do not expect ultimate material losses on these transactions given the amount of subordination below MBIA Corp.s insured portion of such transactions available to absorb losses from collateral defaults. As of September 30, 2013, the Company had $59 million of gross par outstanding in two insured direct subprime mortgage transactions with 2005 or 2006 subprime mortgage collateral appearing on the Companys Classified or Caution Lists.
The following table presents the gross par outstanding by vintage year of MBIA Corp.s total direct RMBS insured exposure as of September 30, 2013. Amounts include the gross par outstanding related to transactions that the Company consolidates under accounting guidance for VIEs.
Gross Par Outstanding | ||||||||||||||||||||||||
In millions |
Prime
First- lien |
Alternative
A-paper First-lien |
Subprime
First-lien |
HELOC
Second- lien |
CES
Second- lien |
Total | ||||||||||||||||||
2005 - 2007 |
$ | 15 | $ | 1,733 | $ | 360 | $ | 2,263 | $ | 2,684 | $ | 7,055 | ||||||||||||
2004 and prior |
175 | 761 | 763 | 528 | 52 | 2,279 | ||||||||||||||||||
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|
|
|
|||||||||||||
Total gross par |
$ | 190 | $ | 2,494 | (1) | $ | 1,123 | (2) | $ | 2,791 | $ | 2,736 | $ | 9,334 | ||||||||||
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(1) - | Includes international exposure of $662 million. |
(2) - | Includes international exposure of $9 million. |
During the nine months ended September 30, 2013, we collected approximately $2.7 billion, net of reinsurance and $243 million in payments, on insured second-lien RMBS transactions, or $2.6 billion after eliminating $130 million of collections and $75 million of payments made on behalf of consolidated VIEs. Through September 30, 2013, we paid a cumulative total of $3.9 billion, net of reinsurance and collections, or $1.7 billion after eliminating $2.2 billion of net payments on insured second-lien RMBS transactions that are currently consolidated as VIEs. As of September 30, 2013, we had loss and LAE reserves related to our remaining insured second-lien RMBS exposure of $124 million before eliminating $44 million of loss and LAE reserves related to our consolidated VIEs. The loss and LAE reserves represent the present value of the difference between cash payments we expect to make on the insured transactions and the cash receipts we expect from the performing mortgage loans in the securitizations. As payments are made, a portion of those expected future receipts is recorded within Insurance loss recoverable in our consolidated balance sheets. The payments that we make virtually all go to reduce the principal balances of the securitizations.
104
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
The following table provides information about insured second-lien RMBS transactions included in MBIA Corp.s insured portfolio Classified List as of September 30, 2013. The total payments of consolidated VIEs are not reflected as insurance losses in our consolidated financial statements.
Second-Lien RMBS Transactions with Claim Payments
$ in millions |
Number of
Issues |
Original Par
Insured |
Gross Par
Outstanding |
Claim Payments
and LAE Net of Collections Since Inception |
||||||||||||
Non-Consolidated VIEs: |
||||||||||||||||
HELOC |
14 | $ | 16,253 | $ | 1,830 | $ | 762 | |||||||||
CES |
9 | 8,198 | 1,760 | 956 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
Total |
23 | $ | 24,451 | $ | 3,590 | $ | 1,718 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net of reinsurance |
$ | 1,609 | ||||||||||||||
|
|
|||||||||||||||
Consolidated VIEs: |
||||||||||||||||
HELOC |
6 | $ | 3,657 | $ | 842 | $ | 701 | |||||||||
CES |
6 | 4,683 | 956 | 1,591 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
12 | $ | 8,340 | $ | 1,798 | $ | 2,292 | |||||||||
|
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|
|
|
|
|
|||||||||
Total net of reinsurance |
$ | 2,220 | ||||||||||||||
|
|
The preceding table excludes gross and net claim and LAE payments of $35 million for one issue that has been removed from our Classified List and has no outstanding exposure.
Non-Consolidated VIEs
The gross par outstanding on insured second-lien RMBS transactions decreased from $4.0 billion as of December 31, 2012 to $3.6 billion as of September 30, 2013. As of September 30, 2013, we expect to pay an additional $167 million (on a present value basis) on these transactions and expect to receive a total of $756 million (on a present value basis) in reimbursement of past and future expected claims through excess spread in these transactions. Of our expected reimbursement from excess spread, $669 million is included in Insurance loss recoverable and $87 million is included in Loss and loss adjustment expense reserves. In addition, we expect to receive $18 million (on a present value basis) with respect to amounts contemplated in the ResCap disclosure statement filed in August of 2013, which is included in Insurance loss recoverable.
Consolidated VIEs
The gross par outstanding on insured second-lien RMBS transactions decreased from $2.2 billion as of December 31, 2012 to $1.8 billion as of September 30, 2013. The total payments before reinsurance, includes $751 million that was eliminated subsequent to consolidation. As of September 30, 2013, we expect to pay an additional $60 million (on a present value basis) on these transactions and expect to receive a total of $216 million (on a present value basis) in reimbursement of past and future expected claims through excess spread in these transactions. In addition, we expect to receive $1.1 billion (on a present value basis) as of September 30, 2013 with respect to amounts contemplated in the ResCap disclosure statement filed in August of 2013 as well as Credit Suisses obligation to repurchase ineligible mortgage loans, which is reported in Loan repurchase commitments under Assets of consolidated variable interest entities on the consolidated balance sheets.
Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for additional information about assumptions used to estimate recoveries on our RMBS exposure.
Other
We may seek to purchase, from time to time, directly or indirectly, obligations guaranteed by MBIA or seek to commute policies. The amount of insurance exposure reduced, if any, and the nature of any such actions will depend on market conditions, pricing levels from time to time, and other considerations. In some cases, these activities may result in a reduction of expected loss reserves, but in all cases they are intended to limit our ultimate losses and reduce the future volatility in loss development on the related policies. Our ability to purchase guaranteed obligations and to commute policies will depend on managements assessment of available liquidity.
105
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
POLICY ACQUISITION COSTS AND OPERATING EXPENSES Structured finance and international insurance segment expenses for the three and nine months ended September 30, 2013 and 2012 are presented in the following table:
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Gross expenses |
$ | 23 | $ | 30 | -23% | $ | 88 | $ | 118 | -25% | ||||||||||||||
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|
|
|
|||||||||||||
Amortization of deferred acquisition costs |
$ | 19 | $ | 24 | -21% | $ | 76 | $ | 81 | -6% | ||||||||||||||
Operating |
22 | 30 | -27% | 83 | 115 | -28% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total insurance operating expenses |
$ | 41 | $ | 54 | -24% | $ | 159 | $ | 196 | -19% | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
Gross expenses represent total insurance expenses before the deferral of any policy acquisition costs. Gross expenses decreased for the three months ended September 30, 2013 compared with the same period of 2012 primarily due to decreases in legal and litigation related costs and compensation expenses. The decrease in the amortization of deferred acquisition costs for the three months ended September 30, 2013 compared with the same period of 2012 principally reflects the acceleration of deferred costs into earnings in prior periods as polices were terminated. Gross expenses decreased for the nine months ended September 30, 2013 compared with the same period of 2012 as a result of decreases in legal and litigation related costs and compensation expenses partially offset by an increase in consulting fees.
Operating expenses decreased for the three and nine months ended September 30, 2013 compared with the same periods of 2012 due to decreases in gross expenses. We did not defer a material amount of policy acquisition costs during 2013 or 2012. Policy acquisition costs in these periods were primarily related to ceding commission income and premium taxes on installment policies written in prior periods.
INTEREST EXPENSE Interest expense incurred by our structured finance and international insurance segment decreased for the three and nine months ended September 30, 2013 when compared to the same periods of 2012 primarily due to the repayment of the National Secured Loan in May of 2013. In addition, during 2013, the interest rate on MBIA Corp.s surplus notes decreased as a result of the conversion to a floating rate.
INSURED PORTFOLIO EXPOSURE The credit quality of our structured finance and international insured portfolio is assessed in the same manner as our U.S. public finance insured portfolio. As of September 30, 2013 and December 31, 2012, 23% and 26%, respectively, of our structured finance and international insured portfolio, was rated below investment grade, before giving effect to MBIAs guarantees, based on MBIAs internal ratings, which are more current than the underlying ratings provided by S&P and Moodys for this subset of our insured portfolio.
Structured Finance and International Insurance Selected Portfolio Exposures
The following is a summary of selected significant exposures within the insured portfolio of our structured finance and international insurance segment. The Company has large exposures to many of these sectors. Moreover, many of these sectors are and have been considered volatile over the past several years. As described below, considerable incurred losses and future expected payments are attributable to many of these sectors.
Collateralized Debt Obligations and Related Instruments
As part of our structured finance and international insurance activities, MBIA Corp. typically provided guarantees on senior and, in a limited number of cases, mezzanine tranches of CDOs, as well as protection on structured CMBS pools and corporate securities, and CDS referencing such securities. The following discussion, including reported amounts and percentages, includes insured CDO transactions consolidated by the Company as VIEs.
106
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
As of September 30, 2013, MBIA Corp.s $31.0 billion CDO portfolio represented 37% of its total insured gross par outstanding of $83.9 billion. As of December 31, 2012, MBIA Corp.s $51.8 billion CDO portfolio represented 46% of its total insured gross par outstanding of $112.4 billion. The distribution of the Companys insured CDO and related instruments portfolio by collateral type is presented in the following table:
In billions |
Gross Par Outstanding as of | |||||||||||
Collateral Type |
September 30,
2013 |
December 31,
2012 |
Percent
Change |
|||||||||
Multi-sector CDOs |
$ | 1.6 | $ | 4.3 | -63% | |||||||
Investment grade CDOs and structured corporate credit pools |
16.6 | 24.1 | -31% | |||||||||
High yield corporate CDOs |
4.3 | 5.7 | -25% | |||||||||
Commercial real estate pools and CRE CDOs |
8.5 | 17.7 | -52% | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 31.0 | $ | 51.8 | -40% | |||||||
|
|
|
|
|
|
Multi-Sector CDOs
The multi-sector CDO portfolio is comprised of 12 transactions insured in the primary market between 2002 and 2006 and 21 transactions insured in the secondary market between 2000 and 2004. The underlying collateral in MBIA Corp.s insured multi-sector CDO transactions is comprised of RMBS, other multi-sector CDOs, corporate CDOs, collateralized loan obligations, ABS (e.g., securitizations of auto receivables, credit cards, etc.), CRE CDOs, CMBS and corporate credits. Our remaining insured multi-sector CDO transactions primarily rely on underlying collateral originally rated triple-B.
Generally, we are subject to a claim on a multi-sector CDO when the insured tranche incurs an interest or principal shortfall. Such shortfalls result once the underlying collateral supporting the transaction no longer generates enough cash flow to support the insured notes. MBIA Corp.s payment obligation after a default insures current interest and ultimate principal. Original subordination levels for transactions insured in the primary market ranged from 10% to 31%. Current subordinations range from 0% to 81%.
The significant erosion of subordination in our multi-sector CDO transactions principally resulted from the underperformance of RMBS and CDO collateral. As discussed above, the erosion of subordination in these transactions increases the likelihood that MBIA Corp. will pay claims. As of September 30, 2013, there were credit impairment estimates for 21 classified multi-sector CDO transactions for which MBIA Corp. expects to incur actual net claims in the future (14 of which are insured in the secondary market), representing 64% of all MBIA Corp.-insured multi-sector CDO transactions (including both CDS and non-CDS contracts). Of the remaining transactions, 15% are on our Caution List and 21% continue to perform at or close to our original expectations. In the event of further performance deterioration of the collateral referenced or held in our multi-sector CDO transactions, the amount of credit impairments could increase materially.
Total gross par exposure in our multi-sector CDO portfolio was $37.3 billion as of December 31, 2007. Since the end of 2007 through September 30, 2013, our multi-sector CDO gross par exposure has decreased by approximately $35.7 billion primarily from negotiated commutations of $23.6 billion and contractual terminations without any payment from MBIA Corp. of $5.4 billion. The remaining reduction in gross par was due to the amortization and maturity of transactions. As of September 30, 2013, our gross par exposure to multi-sector CDOs of $1.6 billion represented 5% of MBIA Corp.s CDO exposure and 2% of MBIA Corp.s total gross par insured.
Investment Grade Corporate CDOs
Our 12 investment grade corporate CDO exposures insured in 2006 and 2007 reference pools of predominantly investment grade corporate credits. Three of these pools include limited exposure to other asset classes, including structured finance securities (such as RMBS and CDOs). Our investment grade corporate CDO policies guarantee coverage of losses on collateral assets once a deductible has been eroded, and are highly customized structures. Our gross par exposure to investment grade corporate CDOs of $16.6 billion represents 54% of MBIA Corp.s CDO exposure and 20% of MBIA Corp.s total gross par insured. The Companys insured investment grade corporate CDOs have experienced erosion of subordination due to the default of underlying referenced corporate and structured finance securities, but we currently do not expect losses on MBIA Corp.s insured tranches. As of September 30, 2013, the collateral amount in the portfolio exceeds the gross par outstanding as a result of credit enhancement. Original subordination levels for nine of the investment grade corporate CDO policies ranged from 15% to 30%. Current subordination levels for these nine policies are between 11% and 28%.
107
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Our gross par of insured investment grade corporate CDOs includes $7.1 billion across three transactions that were structured to include buckets (typically 30% to 35% of the overall CDO) of references to specific tranches of other investment grade corporate CDOs (monotranches). In such transactions, MBIA Corp.s insured investment grade corporate CDOs include, among direct corporate or structured credit reference risks, and monotranche or single layer credit risk referencing a diverse pool of corporate assets or obligors with a specific attachment and a specific detachment point. The referenced monotranches in such CDOs were typically rated double-A and sized to approximately 3% of the overall reference risk pool. The inner referenced monotranches are not subject to acceleration and do not give control rights to a senior investor. The inner referenced monotranches have also experienced erosion of subordination due to defaults in their referenced corporate assets. These transactions had original subordination of 25% and current subordination ranges from 15% to 18%.
High Yield Corporate CDOs
Our high yield corporate CDO portfolio, totaling $4.3 billion of gross par exposure, largely comprises middle-market/special- opportunity corporate loan transactions. Our gross par exposure to high yield corporate CDOs represents 14% of MBIA Corp.s CDO exposure and 5% of MBIA Corp.s total gross par insured as of September 30, 2013. Original subordination for our high yield corporate portfolio ranged from 22% to 33%. Current subordination is between 10% and 30%. Declines in subordination levels result from defaults in underlying collateral, as well as sales of underlying collateral at discounted prices. Subordination within CDOs may decline further over time as a result of additional collateral deterioration. We do not expect insured losses on our high yield corporate CDO portfolio. Accordingly, as of September 30, 2013, there is no loss reserve established for this portfolio. However, there can be no assurance that the Company will not incur losses as a result of further deterioration in subordination.
Commercial Real Estate Pools and CRE CDOs
As of September 30, 2013, we had $8.5 billion of gross par exposure to the CRE sector through insured structured transactions primarily comprising CRE collateral. In addition, MBIA Corp. insures approximately $1.5 billion in CRE loan pools, primarily comprising European assets. These CRE loans are not included in the following Structured CMBS Pools and CRE CDOs sections. During the nine months ended September 30, 2013, the Company commuted $8.9 billion of gross par exposure related to CRE exposure. Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a discussion of credit impairments on our CRE pools and CDO exposure, including the methodology used to calculate these impairments.
Structured CMBS Pools
As of September 30, 2013, our gross par exposure to structured CMBS pools totaled $7.2 billion and represented approximately 9% of MBIA Corp.s total gross par insured. Since the end of 2007 through September 30, 2013, our structured CMBS pools gross par exposure has decreased by approximately $33.5 billion, primarily from negotiated commutations and early settlements. Our structured CMBS pool insured transactions are pools of CMBS bonds, Real Estate Investment Trust (REIT) debt and other CRE CDOs structured with first loss deductibles such that MBIA Corp.s obligation attached at a minimum of a triple-A level when the policies were issued. The deductible sizing was a function of the underlying collateral ratings and certain structural attributes. MBIA Corp.s guarantees for most structured CMBS pool transactions cover losses on collateral assets once the deductibles have been eroded. These deductibles provide credit enhancement and subordination to MBIAs insured position.
The collateral in the pools are generally CMBS bonds or CDSs referencing CMBS bonds (collectively, CMBS bonds). MBIA Corp.s guarantee generally is in the form of a CDS referencing the static pooled transactions. MBIA Corp. would have a payment obligation if the volume of CMBS bond defaults exceeds the deductible level in the transaction. Each pool comprising CMBS bonds is ultimately backed by the commercial mortgage loans securitized within each CMBS trust. The same CMBS bonds may be referenced in multiple pools. The Companys structured CMBS pools are static, meaning that the collateral pool of securitizations cannot be and has not been changed since the origination of the policy. Most transactions comprised similarly rated underlying tranches at inception. The deductible for each transaction varies according to the ratings of the underlying collateral. For example, a transaction which comprised originally BBB rated underlying CMBS bonds would typically include a 30-35% deductible to MBIA Corp.s position whereas a transaction comprising all originally AAA rated underlying CMBS bonds would typically have required a 5-10% deductible.
Original deductibles for our structured CMBS pools ranged from 5.0% to 82.3%. As of September 30, 2013, the deductibles for these transactions ranged from 0% to 81.7%. Deductibles are eroded as bonds experience realized losses which are ultimately due to liquidations of underlying loan collateral. During the second and third quarters of 2013, we paid claims on a CMBS pool transaction which experienced deterioration such that all of the remaining deductible was eliminated. We expect to experience additional claims on this transaction.
108
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
As of September 30, 2013, we have significantly reduced our exposure to pools comprised of 2006 and 2007 vintage CMBS collateral originally rated BBB. As of September 30, 2013, we had exposure to four static CMBS pools, having $800 million of gross par outstanding, that were originally insured in 2006 and 2007, and in which substantially all of the underlying collateral comprised CMBS tranches originally rated BBB and lower. Additionally, we insure two static CMBS pools, totaling $3.0 billion of gross par outstanding as of September 30, 2013, that were originally insured in 2007, and are comprised of CMBS collateral which was originally rated A. Ultimate loss rates remain uncertain. If the economy does not continue to improve, it is possible that we will experience severe losses, particularly if the underlying loans are unable to pay off at their expected maturity dates. Although we believe MBIA Corp. will have adequate resources to pay expected claims, there can be no assurance that this will be the case. The remaining insured CMBS portfolio primarily consists of transactions backed by collateral originally rated AAA and originated in 2004, 2005, 2006 or 2007.
Delinquencies increased markedly in the CRE market during and immediately after the economic crisis, however they have stabilized over the last twelve months. As of September 30, 2013, 30-day and over delinquencies in the fixed-rate conduit CMBS market were 7.8%, and in MBIA Corp.s insured static pooled CMBS portfolio were 11.2%. The higher delinquency rate in MBIA Corp.s portfolio was primarily due to a concentration in the 2006 and early 2007 vintages. Additionally, the market includes newer vintage transactions from 2010 to 2012, which have virtually no material delinquencies. Although we have also seen stabilization in the delinquency rate over the past several months, some of the moderation is attributable to increased liquidations, and loan modifications and extensions granted by the special servicers. The special servicers are responsible for managing loans that have defaulted and for conducting the remediation and foreclosure process with the objective of maximizing proceeds for all bondholders by avoiding or minimizing loan level losses.
Actual losses will be a function of the proportion of loans in the pools that are foreclosed and liquidated and the loss severities associated with those liquidations. If the deductibles in the Companys insured transactions and underlying referenced CMBS transactions are fully eroded, additional property level losses upon foreclosures and liquidations could result in substantial losses for MBIA. Ultimate loss rates remain uncertain and it is possible that we will experience severe losses or liquidity needs due to increased deterioration in our insured CMBS portfolio or our failure to commute the policies, in particular if macroeconomic stress escalates, there is a new recession, increased delinquencies, higher levels of liquidations of delinquent loans, and/or higher severities of loss upon liquidation. Although we still believe the likelihood of a new recession is low, we do consider the possibility in our estimates for future claims.
CRE CDOs
As of September 30, 2013, our gross par exposure to CRE CDOs totaled $1.3 billion and represented approximately 2% of MBIA Corp.s total gross par insured. CRE CDOs are managed pools of CMBS, CRE whole loans, B-Notes, mezzanine loans, REIT debt, and other securities (including, in some instances, buckets for RMBS and CRE CDOs) that allow for reinvestment during a defined time period. These transactions benefit from typical CDO structural features such as cash diversion triggers, collateral quality tests, and manager replacement provisions. MBIA Corp. guarantees timely interest and ultimate principal of these CDOs. As with our other insured CDOs, these transactions were structured with credit protection originally rated triple-A, or a multiple of triple-A, below our guarantee. As of September 30, 2013, our CRE CDO insured portfolio did not contain any CDOs of ABS exposures. Some of the CRE CDO transactions do contain some RMBS collateral, but overall this comprises less than 1% of the collateral in the CRE CDO portfolio. To the extent losses do occur on these transactions, the payments are due at the maturity date, which range from the years 2036 through 2056. Current subordination levels are between 0% and 42%.
109
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
U.S. Public Finance and Structured Finance and International Reinsurance
Reinsurance enables the Company to cede exposure for purposes of syndicating risk and increasing its capacity to write new business while complying with its single risk and credit guidelines. When a reinsurer is downgraded by one or more of the rating agencies, less capital credit is given to MBIA under rating agency models and the overall value of the reinsurance to MBIA is reduced. The Company generally retains the right to reassume the business ceded to reinsurers under certain circumstances, including a reinsurers rating downgrade below specified thresholds. The following table presents information about our reinsurance agreements as of September 30, 2013 for our U.S. public finance and structured finance and international insurance operations:
In millions |
Standard & | Letters of | ||||||||||||||
Reinsurers |
Poors Rating (Status) |
Moodys Rating (Status) |
Ceded Par
Outstanding |
Credit/Trust
Accounts |
Reinsurance
Recoverable (1) |
|||||||||||
Assured Guaranty Re Ltd. |
AA- (Stable Outlook) | Baa1 (Stable Outlook) | $ | 4,009 | $ | 5 | $ | 7 | ||||||||
Assured Guaranty Corp. |
AA- (Stable Outlook) |
A3 (Stable Outlook) |
2,773 | - | - | |||||||||||
Overseas Private
|
AA+ (Stable Outlook) |
Aaa (Stable Outlook) |
337 | - | - | |||||||||||
Others |
A+ or above | A2 or above | 132 | 2 | - | |||||||||||
|
|
|
|
|
|
|||||||||||
Total |
$ | 7,251 | $ | 7 | $ | 7 | ||||||||||
|
|
|
|
|
|
(1) - | Total reinsurance recoverable of $7 million is primarily recoverables on unpaid losses. |
MBIA requires certain unauthorized reinsurers to maintain bank letters of credit or establish trust accounts to cover liabilities ceded to such reinsurers under reinsurance contracts. As of September 30, 2013, the total amount available under these letters of credit and trust accounts was $7 million. The Company remains liable on a primary basis for all reinsured risk, and although MBIA believes that its reinsurers remain capable of meeting their obligations, there can be no assurance of such in the future.
As of September 30, 2013, the aggregate amount of insured par outstanding ceded by MBIA to reinsurers under reinsurance agreements was $7.3 billion compared with $3.4 billion as of December 31, 2012. Of the $7.3 billion of ceded par outstanding as of September 30, 2013, $5.8 billion was ceded from our U.S. public finance insurance segment and $1.5 billion was ceded from our structured finance and international insurance segment. Under Nationals reinsurance agreement with MBIA Corp., if a reinsurer of MBIA Corp. is unable to pay claims ceded by MBIA Corp. on U.S. public finance exposure, National will assume liability for such ceded claim payments. As of September 30, 2013, the total amount for which National would be liable in the event that the reinsurers of MBIA Corp. were unable to meet their obligations is $1.6 billion.
In August of 2013, the novation agreement between FGIC and National, whereby FGIC transfers, by novation, to National all the rights and liabilities under each of the policies covered under a reinsurance agreement with FGIC, became effective. This novation agreement includes covered policies that previously benefited from the reinsurance agreement and second-to-pay policies entered into by MBIA Insurance Corporation in 2008 that were subsequently assigned to and reinsured by National in 2009. As a result of this novation, National is now the primary insurer under these policies. The amount of third-party reinsurance available to National via the novation agreement totals $4.2 billion.
Advisory Services
Our asset management and advisory business is primarily conducted through Cutwater and Trifinium Advisors (UK) Limited (Trifinium). Cutwater provides advisory services, including cash management, discretionary asset management and structured products on a fee-for-service basis. Cutwater offers these services to public, not-for-profit, corporate and financial services clients, including MBIA Inc. and its other subsidiaries. Trifinium provides certain advisory services primarily in the European Union.
110
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
The following table summarizes the results and assets under management of our advisory services segment for the three and nine months ended September 30, 2013 and 2012. These results include revenues and expenses from transactions with the Companys insurance, corporate, and wind-down operations.
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Fees |
$ | 11 | $ | 13 | -15% | $ | 33 | $ | 42 | -21% | ||||||||||||||
Operating expenses |
19 | 15 | 27% | 48 | 48 | -% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-tax income (loss) |
$ | (8) | $ | (2) | n/m | $ | (15) | $ | (6) | 150% | ||||||||||||||
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|
|
|
|
|
|
|
|
|||||||||||||
Ending assets under management: |
||||||||||||||||||||||||
Third-party |
$ | 15,010 | $ | 17,624 | -15% | $ | 15,010 | $ | 17,624 | -15% | ||||||||||||||
Insurance and corporate |
6,807 | 7,530 | -10% | 6,807 | 7,530 | -10% | ||||||||||||||||||
Asset/liability products and conduits |
4,040 | 5,061 | -20% | 4,040 | 5,061 | -20% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total ending assets under management |
$ | 25,857 | $ | 30,215 | -14% | $ | 25,857 | $ | 30,215 | -14% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
For the three and nine months ended September 30, 2013, the unfavorable changes in pre-tax income (loss) compared with the same periods of 2012 were primarily driven by decreases in fees due to declines in asset balances managed for our other segments and for third parties. Operating expenses for the three months ended September 30, 2013 increased compared with the same period of 2012 due to increases in legal costs, compensation expense related to severance and consulting fees.
Average third-party assets under management for the nine months ended September 30, 2013 and 2012 were $16.9 billion and $19.7 billion, respectively. This decrease was principally due to declines in our pool products and CDO management business.
Corporate
General corporate activities are conducted through our corporate segment. Our corporate operations primarily consist of holding company activities, including our service company, Optinuity Alliance Resources Corporation (Optinuity). Revenues and expenses for Optinuity are included in the results of our corporate segment. Optinuity provides support services such as management, legal, accounting, treasury, information technology, and insurance portfolio surveillance, among others, to our corporate segment and other operating businesses on a fee-for-service basis.
The following table summarizes the consolidated results of our corporate segment for the three and nine months ended September 30, 2013 and 2012. The results include revenues and expenses that arise from general corporate activities and from providing support to our other segments.
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net investment income |
$ | 6 | $ | 3 | 100% | $ | 15 | $ | 10 | 50% | ||||||||||||||
Fees |
32 | 54 | -41% | 76 | 133 | -43% | ||||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
43 | 11 | n/m | 19 | 19 | -% | ||||||||||||||||||
Net investment losses related to other-than-temporary impairments |
- | (4) | -100% | - | (4) | -100% | ||||||||||||||||||
Other net realized gains (losses) |
- | - | -% | - | 5 | -100% | ||||||||||||||||||
Revenues of consolidated VIEs: |
||||||||||||||||||||||||
Other net realized gains (losses) |
- | - | -% | (10) | - | n/m | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
81 | 64 | 27% | 100 | 163 | -39% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating |
32 | 27 | 19% | 133 | 79 | 68% | ||||||||||||||||||
Interest |
13 | 15 | -13% | 36 | 43 | -16% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses |
45 | 42 | 7% | 169 | 122 | 39% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-tax income (loss) |
$ | 36 | $ | 22 | 64% | $ | (69) | $ | 41 | n/m | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
111
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
FEES Fees are generated from support services provided to business units within the Company on a fee-for-service basis. Fees for the three and nine months ended September 30, 2013 decreased compared with the same periods of 2012 primarily due to decreases in fees paid by our conduit segment for administrative and other services. Such fees may vary significantly from period to period.
NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE AND FOREIGN EXCHANGE The increase in net gains (losses) on financial instruments at fair value and foreign exchange for the three months ended September 30, 2013 compared with the same period of 2012 was primarily due to the changes in the fair value of outstanding warrants issued on MBIA Inc. common stock. These changes were attributable to fluctuations in MBIA Inc.s stock price and volatility, which are used in the valuation of the warrants. Under the terms of the BofA Settlement Agreement, Blue Ridge received a five-year warrant to purchase 9.94 million shares of MBIA common stock in May of 2013. Under the terms of the Investment Agreement with Warburg Pincus Private Equity X, L.P. and certain of its affiliates (Warburg Pincus), the Company issued Warburg Pincus a five-year warrant to purchase 1.91 million shares of MBIA common stock in August of 2013.
OTHER NET REALIZED GAINS (LOSSES) Other net realized gains and losses for the nine months ended September 30, 2012, consisted of insurance recoveries received from our directors and officers insurance policy. These insurance recoveries reimbursed the Company for a portion of the expenses incurred by the Company related to private securities litigation.
REVENUES OF CONSOLIDATED VIEs For the nine months ended September 30, 2013, total revenues of consolidated VIEs related to net losses as a result of the deconsolidation of VIEs.
OPERATING EXPENSES Operating expenses for the three months ended September 30, 2013 increased compared with the same period of 2012 due to an increase in compensation expense related to severance. Operating expenses for the nine months ended September 30, 2013 increased compared with the same period of 2012 due to expenses related to the BofA Settlement Agreement.
Wind-down Operations
We operate an asset/liability products business in which we historically issued debt and investment agreements insured by MBIA Corp. to capital markets and municipal investors. The proceeds of the debt and investment agreements were used initially to purchase assets that largely matched the duration of those liabilities. We also operate a conduit business in which we historically funded transactions by issuing debt insured by MBIA Corp. The rating downgrades of MBIA Corp. resulted in the termination and collateralization of certain derivatives and investment agreements and, together with the rising cost and declining availability of funding and liquidity within many of the asset classes in which proceeds were invested, caused the Company to begin winding down its asset/liability products and conduit businesses in 2008. Since the downgrades of MBIA Corp., we have not issued debt in connection with either business and, as a result, the outstanding liability balances and corresponding asset balances will continue to decline over time as liabilities mature, terminate or are redeemed or repurchased by us.
Asset/Liability Products
The following table presents the results of our asset/liability products segment for the three and nine months ended September 30, 2013 and 2012. These results include revenues and expenses from transactions with the Companys other segments.
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Net investment income |
$ | 5 | $ | 7 | -29% | $ | 18 | $ | 37 | -51% | ||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(29) | (39) | -26% | (38) | (168) | -77% | ||||||||||||||||||
Net investment losses related to other-than-temporary impairments |
- | - | -% | - | (56) | -100% | ||||||||||||||||||
Net gains (losses) on extinguishment of debt |
7 | - | n/m | 11 | - | n/m | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
(17) | (32) | -47% | (9) | (187) | -95% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating |
2 | 4 | -50% | 7 | 12 | -42% | ||||||||||||||||||
Interest expense |
19 | 22 | -14% | 59 | 80 | -26% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total expenses |
21 | 26 | -19% | 66 | 92 | -28% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Pre-tax income (loss) |
$ | (38) | $ | (58) | -34% | $ | (75) | $ | (279) | -73% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
n/m - Percent change not meaningful.
112
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
NET INVESTMENT INCOME The decrease in net investment income for the three and nine months ended September 30, 2013 compared with the same periods of 2012 was primarily due to lower average asset balances as investments were sold to generate liquidity and repay liabilities.
NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE AND FOREIGN EXCHANGE The favorable change in net gains (losses) on financial instruments at fair value and foreign exchange for the three months ended September 30, 2013 compared with the same period of 2012 was primarily the result of derivative gains in 2013 compared with losses in 2012 partially offset by a decline in gains related to the sale of investments. The favorable change in net gains (losses) on financial instruments at fair value and foreign exchange for the nine months ended September 30, 2013 compared to the same period of 2012 was primarily the result of derivative gains in 2013 compared with losses in 2012 and a decline in losses related to the sale of investments, partially offset by higher losses on medium-term notes (MTNs) carried at fair value.
NET INVESTMENT LOSSES RELATED TO OTHER-THAN-TEMPORARY IMPAIRMENTS The Company has an ongoing review process for all securities to assess whether a decline in value is related to a credit loss. The Company utilizes cash flow modeling for purposes of assessing other-than-temporary impairments. Net investment losses related to other-than-temporary impairments for the nine months ended September 30, 2012 related to impairing certain securities to their fair values, as it was our intent to sell these securities before a recovery of their fair values to amortized cost. Refer to the Liquidity section included herein for additional information about impaired investments.
NET GAINS (LOSSES) ON EXTINGUISHMENT OF DEBT For the three and nine months ended September 30, 2013, net gains (losses) on extinguishment of debt was primarily due to gains from terminations of MTNs and investment agreements issued by the Company.
INTEREST EXPENSE The decrease in interest expense for the three and nine months ended September 30, 2013 compared with the same periods of 2012 was primarily due to the continued maturity and repurchases of liabilities by the Company.
Conduits
The following table presents the results of our conduit segment for the three and nine months ended September 30, 2013 and 2012. These results include revenues and expenses from transactions with the Companys other segments.
Three Months Ended September 30, | Percent | Nine Months Ended September 30, | Percent | |||||||||||||||||||||
In millions |
2013 | 2012 | Change | 2013 | 2012 | Change | ||||||||||||||||||
Revenues of consolidated VIEs: |
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Net investment income |
$ | (1) | $ | 4 | -125% | $ | 3 | $ | 9 | -67% | ||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
- | - | -% | (3) | - | n/m | ||||||||||||||||||
Net gains (losses) on extinguishment of debt |
- | 16 | -100% | - | 49 | -100% | ||||||||||||||||||
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Total revenues |
(1) | 20 | -105% | - | 58 | -100% | ||||||||||||||||||
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Expenses of consolidated VIEs: |
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Operating |
15 | 37 | -59% | 26 | 72 | -64% | ||||||||||||||||||
Interest |
- | 2 | -100% | 4 | 10 | -60% | ||||||||||||||||||
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Total expenses |
15 | 39 | -62% | 30 | 82 | -63% | ||||||||||||||||||
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Pre-tax income (loss) |
$ | (16) | $ | (19) | -16% | $ | (30) | $ | (24) | 25% | ||||||||||||||
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n/m- Percent change not meaningful.
Our conduit segment is operated through Meridian. Certain of MBIAs consolidated subsidiaries have received compensation for services provided to Meridian.
For the three and nine months ended September 30, 2013, total revenues decreased compared with the same periods of 2012 primarily due to the absence of net gains from the repurchases of debt issued by Meridian. Total expenses decreased compared with the same periods of 2012, primarily due to a decline in fees paid to our corporate segment for administrative and other services.
113
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
RESULTS OF OPERATIONS (continued)
Taxes
Provision for Income Taxes
The Companys income taxes and the related effective tax rates for the three and nine months ended September 30, 2013 and 2012 are presented in the following table:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Pre-tax income (loss) |
$ | 171 | $ | (57) | $ | 122 | $ | 759 | ||||||||
Provision (benefit) for income taxes |
$ | 39 | $ | (64) | $ | 4 | $ | 161 | ||||||||
Effective tax rate |
22.8% | 112.3% | 3.3% | 21.2% |
For the nine months ended September 30, 2013, our effective tax rate applied to our pre-tax income was lower than the U.S. statutory tax rate of 35% primarily due to a reduction in our valuation allowance against our deferred tax asset.
For the nine months ended September 30, 2012, our effective tax rate applied to our pre-tax income was lower than the U.S. statutory tax rate of 35% as a result of the decrease in the Companys valuation allowance, the release of a portion of the reserve for uncertain tax benefits and the benefit of tax-exempt interest income from investments.
As of December 31, 2012, the Companys consolidated net operating loss (NOL) carryforward was $1.3 billion which will expire between tax years 2029 through 2032. As a result of commutation activity in the second quarter of 2013, the Companys NOL has significantly increased from December 31, 2012. As of September 30, 2013, the Companys NOL is approximately $2.8 billion. As of December 31, 2012, the Company had a capital loss carryforward of $165 million which will expire between tax years 2013 and 2017. However, as of September 30, 2013, the Company has generated year-to-date capital gain income sufficient to fully utilize the 2012 capital loss carryforward.
Refer to Note 10: Income Taxes in the Notes to Consolidated Financial Statements for a further discussion of income taxes, including the Companys valuation allowance against deferred tax assets and its accounting for tax uncertainties.
CAPITAL RESOURCES
The Company manages its capital resources to minimize its cost of capital while maintaining appropriate claims-paying resources (CPR) for National and MBIA Corp. The Companys capital resources consist of total shareholders equity, total debt issued by MBIA Inc. for general corporate purposes, and surplus notes issued by MBIA Insurance Corporation. Total capital resources were $4.7 billion and $4.8 billion as of September 30, 2013 and December 31, 2012, respectively. MBIA Inc. utilizes its capital resources to support the business activities of its subsidiaries. As of September 30, 2013, MBIA Inc.s investments in subsidiaries totaled $4.1 billion.
In addition to managing the capital resources of MBIA Inc.s subsidiaries, we also manage the capital resources of MBIA Inc. supporting our corporate and asset/liability products segments. This includes our corporate unsecured debt issued for general corporate purposes and debt and investment agreements for operating leverage purposes in support of our asset/liability products business. MBIA Inc. seeks to maintain sufficient liquidity and capital resources to meet its general corporate needs as well as the needs of the asset/liability products business. As of September 30, 2013 and December 31, 2012, the combined net debt of MBIA Inc.s corporate segment and asset/liability products segment, which primarily comprised long-term debt, MTNs, investment agreements and derivative liabilities net of cash and investments at amortized cost and a tax receivable from subsidiaries, totaled $1.3 billion and $1.2 billion, respectively. The Company expects that MBIA Inc. will generate sufficient cash to satisfy its net debt and its general corporate needs over time from distributions from its operating subsidiaries. In addition, the Company may also consider raising third-party capital. There can be no assurance that the aforementioned factors will generate sufficient cash to satisfy its net debt. Refer to the following LiquidityMBIA Inc. Liquidity section for additional information about MBIA Inc.s liquidity.
Securities Repurchases
Repurchases of debt and/or common stock may be made from time to time in the open market or in private transactions as permitted by securities laws and other legal requirements. We may also choose to redeem debt obligations where permitted by the relevant agreements. We believe that debt and/or share repurchases and redemptions can be an appropriate deployment of capital in excess of amounts needed to support our liquidity while maintaining the CPR of MBIA Corp. and National as well as other business needs.
114
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
CAPITAL RESOURCES (continued)
Debt securities
MBIA Inc. or its subsidiaries may repurchase or redeem their outstanding debt at prices that we deem to be economically advantageous. During the nine months ended September 30, 2013, the Company redeemed $486 million par value outstanding of MTNs issued by the Companys conduit segment at a cost of 100% of par value. The Company also repurchased approximately $80 million par value outstanding of GFL MTNs issued by the Companys asset/liability segment at a weighted average cost of approximately 92% of par value.
Insurance Statutory Capital
National and MBIA Insurance Corporation are incorporated and licensed in, and are subject to primary insurance regulation and supervision by, the State of New York. National and MBIA Insurance Corporation each are required to file detailed annual financial statements, as well as interim financial statements, with the NYSDFS and similar supervisory agencies in each of the other jurisdictions in which it is licensed. These financial statements are prepared in accordance with New York State and the National Association of Insurance Commissioners statements of U.S. STAT and assist our regulators in evaluating minimum standards of solvency, including minimum capital requirements, and business conduct. U.S. STAT differs from GAAP in a number of ways. Refer to the statutory accounting practices note to consolidated financial statements of National and MBIA Corp. within exhibits 99.1 and 99.2, respectively, of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 for an explanation of the differences between U.S. STAT and GAAP.
National
Capital and Surplus
National reported total statutory capital of $3.4 billion as of September 30, 2013 compared with $3.2 billion as of December 31, 2012. As of September 30, 2013, statutory capital comprised $1.2 billion of contingency reserves and $2.2 billion of policyholders surplus. The increase in Nationals statutory capital is primarily due to statutory net income of $153 million for the nine months ended September 30, 2013. Consistent with our plan to transform our insurance business, the Company received approval from the NYSDFS to reset Nationals unassigned surplus to zero, which was effective January 1, 2010. As of September 30, 2013, Nationals unassigned surplus was $1.6 billion. In October 2010, the plaintiffs in the litigation challenging the establishment of National initiated a court proceeding challenging the approval of the surplus reset. Subsequent to the BofA Settlement Agreement and the Societe Generale settlement, all litigation brought originally by the group of eighteen domestic and international financial institutions, related to the establishment of National, has been resolved. Refer to Note 14: Commitments and Contingencies in the Notes to Consolidated Financial Statements for a discussion of this action.
In order to maintain its New York State financial guarantee insurance license, National is required to maintain a minimum of $65 million of policyholders surplus. National is also required to maintain contingency reserves to provide protection to policyholders in the event of extreme losses in adverse economic events. Refer to the following MBIA Insurance CorporationCapital and Surplus section for additional information about contingency reserves under the New York Insurance Law (NYIL). Nationals policyholders surplus will grow over time from the recognition of unearned premiums and investment income and the expected release of the contingency reserves. Conversely, incurred losses would reduce policyholders surplus. As of September 30, 2013 and December 31, 2012, National was not in compliance with its single risk limits requirements but was in compliance with its aggregate risk limits.
NYIL regulates the payment of dividends by financial guarantee insurance companies and provides that such companies may not declare or distribute dividends except out of statutory earned surplus. Under NYIL, the sum of (i) the amount of dividends declared or distributed during the preceding 12-month period and (ii) the dividend to be declared may not exceed the lesser of (a) 10% of policyholders surplus, as reported in the latest statutory financial statements or (b) 100% of adjusted net investment income for such 12-month period (the net investment income for such 12-month period plus the excess, if any, of net investment income over dividends declared or distributed during the two-year period preceding such 12-month period), unless the Superintendent of the NYSDFS approves a greater dividend distribution based upon a finding that the insurer will retain sufficient surplus to support its obligations.
115
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
CAPITAL RESOURCES (continued)
National is subject to NYIL with respect to the payment of dividends as described above. National had a positive earned surplus as of September 30, 2013, which provides National with dividend capacity. In connection with the court proceeding challenging the approval of the National surplus reset described above, we agreed that National would not pay dividends while the proceeding was adjourned. This agreement terminated in connection with the resolution of the proceeding. In addition, in connection with the approval of a release of excessive contingency reserves during 2011 for MBIA Insurance Corporation, the Company agreed that National would not pay dividends without the prior regulatory approval of the NYSDFS prior to July 19, 2013. Finally, as a condition to the NYSDFS approval of the Asset Swap between MBIA Inc. and National, the NYSDFS requested that, until the notional amount of the Asset Swap has been reduced to 5% or less of Nationals admitted assets, each of MBIA Inc., MBIA Insurance Corporation and National provide the NYSDFS with three months prior notice, or such shorter period as the NYSDFS may permit, of its intent to initiate cash dividends on shares of its common stock. National provided the NYSDFS with such notice. Subsequent to September 30, 2013, National declared and paid a dividend of $214 million to its ultimate parent, MBIA Inc.
Nationals statutory policyholders surplus was lower than its GAAP shareholders equity by $1.7 billion as of September 30, 2013. U.S. STAT differs from GAAP in certain respects. Refer to Note 11: Statutory Accounting Practices in the Notes to Consolidated Financial Statements of National within exhibit 99.1 of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 for an explanation of the differences between U.S. STAT and GAAP.
Claims-Paying Resources (Statutory Basis)
CPR is a key measure of the resources available to National to pay claims under its insurance policies. CPR consists of total financial resources and reserves calculated on a statutory basis. CPR has been a common measure used by financial guarantee insurance companies to report and compare resources and continues to be used by MBIAs management to evaluate changes in such resources. We have provided CPR to allow investors and analysts to evaluate National using the same measure that MBIAs management uses to evaluate Nationals resources to pay claims under its insurance policies. There is no directly comparable GAAP measure. Our calculation of CPR may differ from the calculation of CPR reported by other companies.
116
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
CAPITAL RESOURCES (continued)
Nationals CPR and components thereto, as of September 30, 2013 and December 31, 2012 are presented in the following table:
In millions |
As of September 30,
2013 |
As of December 31,
2012 |
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Policyholders surplus |
$ | 2,162 | $ | 1,999 | ||||
Contingency reserves |
1,203 | 1,249 | ||||||
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Statutory capital |
3,365 | 3,248 | ||||||
Unearned premium reserve |
1,772 | 2,041 | ||||||
Present value of installment premiums (1) |
207 | 217 | ||||||
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Premium resources (2) |
1,979 | 2,258 | ||||||
Net loss and LAE reserves (1) |
(81) | (109) | ||||||
Salvage reserves |
185 | 262 | ||||||
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Gross loss and LAE reserve |
104 | 153 | ||||||
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Total claims-paying resources |
$ | 5,448 | $ | 5,659 | ||||
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(1) - | Calculated using a discount rate of 4.54% as of September 30, 2013 and December 31, 2012. |
(2) - | Includes financial guarantee and insured credit derivative related premiums. |
MBIA Insurance Corporation
Capital and Surplus
MBIA Insurance Corporation reported total statutory capital of $1.0 billion as of September 30, 2013 compared with $1.5 billion as of December 31, 2012. As of September 30, 2013, statutory capital comprised $428 million of contingency reserves and $612 million of policyholders surplus. For the nine months ended September 30, 2013, MBIA Insurance Corporation had a statutory net loss of $358 million, primarily due to losses and LAE incurred partially offset by net premiums earned. MBIA Insurance Corporations policyholders surplus as of September 30, 2013 included a negative unassigned surplus of $1.4 billion. As of September 30, 2013, MBIA Insurance Corporations policyholders surplus was negatively impacted by $39 million because under NYIL it was not permitted to treat as an admitted asset the portion of its investment in subsidiaries in excess of the greater of 50% of policyholders surplus or 60% of surplus. This overage was caused by a decrease in MBIA Insurance Corporations policyholders surplus due to additional insured losses during the third quarter of 2013. MBIA Insurance Corporations policyholders surplus may be further negatively impacted if future additional insured losses are incurred and the percentage of its assets invested in subsidiaries continues to increase.
As of September 30, 2013, MBIA Insurance Corporation recognized estimated recoveries of $714 million, net of reinsurance and income taxes at a rate of 35%, on a statutory basis related to put-backs of ineligible mortgage loans in its insured transactions. These expected insurance recoveries represented 69% of MBIA Insurance Corporations statutory capital as of September 30, 2013. There can be no assurance that we will be successful or that we will not be delayed in realizing these recoveries. Refer to Executive OverviewMBIA Corp. included herein for factors that may influence MBIA Corp.s ability to realize these recoveries.
In order to maintain its New York State financial guarantee insurance license, MBIA Insurance Corporation is required to maintain a minimum of $65 million of policyholders surplus. MBIA Insurance Corporations policyholders surplus is expected to grow over time from the recognition of unearned premiums and investment income and the expected release of the contingency reserves. In addition, MBIA Insurance Corporations policyholders surplus could be enhanced by the settlement, commutation or repurchase of insured transactions at prices less than its statutory loss reserves for such transactions. Conversely, incurred losses or an inability to collect on our ineligible mortgage loan put-back claims would reduce policyholders surplus.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
CAPITAL RESOURCES (continued)
Under NYIL, MBIA Insurance Corporation is also required to establish a contingency reserve to provide protection to policyholders in the event of extreme losses in adverse economic events. The amount of the reserve is based on the percentage of principal insured or premiums earned, depending on the type of obligation (net of collateral, reinsurance, refunding, refinancings and certain insured securities). Under NYIL, MBIA Insurance Corporation is required to invest its minimum surplus and contingency reserves, and 50% of its loss reserves and unearned premium reserves, in certain qualifying assets. Reductions in the contingency reserve may be recognized based on excessive reserves and under certain stipulated conditions, subject to the approval of the Superintendent of the NYSDFS. As of September 30, 2013, MBIA Insurance Corporation had a deficit of $321 million of qualifying assets required to support its contingency reserves. The deficit was caused by the failure of certain mortgage originators to honor contractual obligations to repurchase ineligible mortgage loans from securitizations we insured thus requiring MBIA Insurance Corporation to sell liquid assets in order to make claim payments. The deficit may grow due to additional commutation and claim payments until such time as MBIA Corp. collects additional put-back recoveries. MBIA Insurance Corporation has reported the deficit to the NYSDFS. For risks associated with MBIA Insurance Corporations failure to meet its contingency reserve requirement, see Part II, Item 1A Risk FactorsCapital, Liquidity and Market Related Risk FactorsIf our insurance companies fail to meet regulatory capital requirements they may become subject to regulatory action of this Quarterly Report on Form 10-Q.
As of September 30, 2013, MBIA Insurance Corporation exceeded its aggregate risk limits under the NYIL by $61 million. The overage was caused by the decrease in statutory capital described above. MBIA Insurance Corporation plans to notify the NYSDFS of the overage and submit a plan to achieve compliance with the limits in accordance with the NYIL. If MBIA Insurance Corporation is not in compliance with its aggregate risk limits, the NYSDFS may prevent MBIA Insurance Corporation from transacting any new financial guarantee insurance business until it no longer exceeds the limitations. In 2013 and 2012, MBIA Insurance Corporation reported additional overages to the NYSDFS with respect to its single risk limits due to changes in its statutory capital.
In connection with MBIA Insurance Corporation obtaining approval from the NYSDFS to release excessive contingency reserves in previous periods, MBIA Insurance Corporation agreed that it would not pay any dividends without prior approval from the NYSDFS. Due to its significant negative earned surplus, MBIA Insurance Corporation has not had the statutory capacity to pay dividends since December 31, 2009 and is not expected to have any statutory capacity to pay any dividends in the near term.
MBIA Insurance Corporations statutory policyholders surplus is lower than its GAAP shareholders equity by $6 million as of September 30, 2013. U.S. STAT differs from GAAP in certain respects. Refer to Note 14: Statutory Accounting Practices in the Notes to Consolidated Financial Statements of MBIA Corp. within exhibit 99.2 of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 for an explanation of the differences between U.S. STAT and GAAP.
Claims-Paying Resources (Statutory Basis)
CPR is a key measure of the resources available to MBIA Insurance Corporation to pay claims under its insurance policies. CPR consists of total financial resources and reserves calculated on a statutory basis. CPR has been a common measure used by financial guarantee insurance companies to report and compare resources, and continues to be used by MBIAs management to evaluate changes in such resources. We have provided CPR to allow investors and analysts to evaluate MBIA Insurance Corporation, using the same measure that MBIAs management uses to evaluate MBIA Insurance Corporations resources to pay claims under its insurance policies. There is no directly comparable GAAP measure. Our calculation of CPR may differ from the calculation of CPR reported by other companies.
118
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
CAPITAL RESOURCES (continued)
MBIA Insurance Corporations CPR and components thereto, as of September 30, 2013 and December 31, 2012 are presented in the following table:
In millions |
As of September 30,
2013 |
As of December 31,
2012 |
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Policyholders surplus |
$ | 612 | $ | 965 | ||||
Contingency reserves |
428 | 493 | ||||||
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Statutory capital |
1,040 | 1,458 | ||||||
Unearned premium reserve |
551 | 600 | ||||||
Present value of installment premiums (1) |
841 | 1,035 | ||||||
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Premium resources (2) |
1,392 | 1,635 | ||||||
Net loss and LAE reserves (1) |
(843) | (2,448) | ||||||
Salvage reserves (3) |
1,941 | 4,628 | ||||||
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Gross loss and LAE reserve |
1,098 | 2,180 | ||||||
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Total claims-paying resources |
$ | 3,530 | $ | 5,273 | ||||
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(1) - | Calculated using a discount rate of 5.72% as of September 30, 2013 and December 31, 2012. |
(2) - | Includes financial guarantee and insured credit derivative related premiums. |
(3) - | This amount primarily consists of expected recoveries related to the Companys put-back claims. |
LIQUIDITY
As a financial services company, MBIA has been materially adversely affected by conditions in global financial markets. Current conditions and events in these markets, in addition to delays in obtaining recoveries related to ineligible mortgage loans in securitizations that we had insured, have put substantial stress on our liquidity resources.
We have utilized a liquidity risk management framework, the primary objectives of which are to monitor liquidity positions and projections in our legal entities and guide the matching of liquidity resources to needs. We monitor our cash and liquid asset resources using stress-scenario testing. Members of MBIAs senior management meet regularly to review liquidity metrics, discuss contingency plans and establish target liquidity cushions on an enterprise-wide basis. As part of our liquidity risk management framework, we evaluate and manage liquidity on a legal-entity basis to take into account the legal, regulatory and other limitations on available liquidity resources within the enterprise.
The majority of our liquidity management efforts focus on:
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The liquidity resources of MBIA Inc., which are subject to: uncertainty in the timing and amount of cash inflows from dividends paid by National and MBIA Insurance Corporation; the necessity of having to meet the scheduled principal and interest on its corporate debt and investment agreements issued by the asset/liability products business; payments on derivative contracts related to the asset/liability products business; and ongoing operating expense needs. MBIA Inc. has a net debt, which comprised long-term debt, MTNs, investment agreements and derivative liabilities net of cash and investments at amortized cost and a tax receivable from subsidiaries, of $1.3 billion as of September 30, 2013. In addition, the liquidity resources of MBIA Inc. are subject to collateralization requirements in connection with the liabilities it has issued to third parties and affiliates and in connection with third-party derivative contracts. |
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The liquidity resources of MBIA Corp., which are subject to: ongoing payments related to second-lien RMBS exposures; payments on its remaining CMBS exposures, due to the deterioration in such exposures; payments to counterparties in consideration for the commutation of insured transactions; payments on insured exposures that in some cases may be large bullet payments; and the availability of borrowing under the Blue Ridge Secured Loan. MBIA Corp. is currently subject to negative cash flow as a result of these payments and delays in collecting recoveries. |
We also monitor the liquidity resources of National in order to ensure it maintains sufficient liquidity to pay claims and satisfy its other obligations. We do not believe there is material liquidity risk in National, although there is no assurance that there will not be material liquidity risk in National in the future in the event of material defaults and claims payments in Nationals insured portfolio. Nationals liquidity resources are subject to loss payments on its insured transactions and negative cash flow, primarily due to tax payments resulting from embedded earnings and investment income.
119
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
In order to efficiently manage liquidity across the entire enterprise, certain of our subsidiaries, which are less liquidity constrained have entered into intercompany agreements that provide resources to subsidiaries that are more liquidity constrained. These resources include intercompany agreements described further below between our primary insurance subsidiaries and between these insurance subsidiaries and MBIA Inc., which in each case were approved by the NYSDFS and are subject to ongoing monitoring by the NYSDFS. MBIA Insurance Corporation may also draw on liquidity through the Blue Ridge Secured Loan described below.
Key Lending Agreements
Blue Ridge Secured Loan
In connection with the BofA Settlement Agreement in May of 2013, MBIA Insurance Corporation and Blue Ridge entered into the Blue Ridge Secured Loan, pursuant to which Blue Ridge agreed to make revolving loans to MBIA Insurance Corporation in an aggregate amount of up to $500 million. During the third quarter of 2013, MBIA Insurance Corporation borrowed $50 million under this facility. As of September 30, 2013, the remaining amount available under the Blue Ridge Secured Loan was $450 million. Refer to Note 9: Debt in the Notes to Consolidated Financial Statements for a description of prepayment conditions and other material terms of the Blue Ridge Secured Loan.
National Secured Loan
In 2011, National provided a $1.1 billion National Secured Loan to MBIA Insurance Corporation in order to enable MBIA Insurance Corporation to fund settlements and commutations of its insurance policies. This loan was approved by the NYSDFS as well as by the boards of directors of MBIA Inc., MBIA Insurance Corporation and National. During 2012, MBIA Insurance Corporation borrowed an additional $443 million under the National Secured Loan with the approval of the NYSDFS at the same terms as the original loan to fund additional commutations of its insurance policies. In connection with the BofA Settlement Agreement, in May of 2013, MBIA Insurance Corporation repaid this loan in full and it was extinguished.
Asset Swap
National maintains simultaneous repurchase and reverse repurchase agreements, (Asset Swap), with MBIA Inc. The Asset Swap provides MBIA Inc. with eligible assets to pledge under investment agreements and derivative contracts in the asset/liability products business. As of September 30, 2013, the notional amount utilized under each of these agreements was $444 million and the fair value of collateral pledged by National and MBIA Inc. under these agreements was $470 million and $475 million, respectively. The net average interest rate on these transactions was 0.23% and 0.56% for the nine months ended September 30, 2013 and 2012, respectively. The NYSDFS approved the Asset Swap in connection with the re-domestication of National to New York. National has committed to the NYSDFS to use commercially reasonable efforts to reduce the amount of the Asset Swap over time.
MBIA Insurance Corporation Secured Loan
MBIA Insurance Corporation, as lender, maintained a master repurchase agreement, the MBIA Insurance Corporation Secured Loan, with MBIA Inc. for the benefit of MBIA Inc.s asset/liability products business, which totaled $2.0 billion at inception. This loan was repaid in May of 2012 and there were no further draws. This loan facility expired on May 3, 2013.
Conduit Repurchase Agreement
MBIA Inc. maintains a repurchase agreement with Meridian with a maximum funded amount of $1.0 billion, subject to a pledge of collateral. As of September 30, 2013, there was no balance outstanding under this agreement.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
MBIA Inc. Liquidity
MBIA Inc.s liquidity resources support our corporate and asset/liability products segments. The activities of MBIA Inc. consist of holding and managing investments, servicing outstanding corporate debt instruments, investment agreements and MTNs issued by the asset/liability products and conduit segments, posting collateral under financing and hedging arrangements and investment agreements, making payments and collateral postings related to interest rate and foreign exchange swaps, and paying operating expenses. The primary sources of cash within MBIA Inc. used to meet its liquidity needs include available cash and liquid assets not subject to collateral posting requirements, scheduled principal and interest on assets held in its investment portfolio, dividends from subsidiaries, payments under tax sharing agreements with these subsidiaries (once the payments become unrestricted) and the ability to issue debt and equity. There can be no assurance as to the amount and timing of any such dividends or payments under the tax sharing agreements. MBIA Inc.s corporate debt, investment agreements, and derivatives and the GFL MTNs may be accelerated by the holders of such instruments upon the occurrence of certain events, such as a breach of covenant or representation, a bankruptcy of MBIA Inc., in the case of the corporate debt, investment agreements and derivatives, the filing of an insolvency proceeding with respect to National, in the case of the corporate debt, a bankruptcy of GFL, in the case of the GFL MTNs, or the filing of an insolvency proceeding with respect to MBIA Insurance Corporation, in the cases of the investment agreements and GFL MTNs. MBIA Inc.s obligations under its loans from GFL may be accelerated only upon the occurrence of a bankruptcy or liquidation of MBIA Inc. Refer to Note 11: Business Segments in the Notes to Consolidated Financial Statements for a description of the GFL loans and MTNs. In the event of any acceleration of all of our obligations, including under our corporate debt, investment agreements, GFL MTNs, or derivatives, we likely would not have sufficient liquid resources to pay amounts due. We provided the NYSDFS with notice of our intention to have National pay a dividend in the fourth quarter of 2013. Subsequent to September 30, 2013, National declared and paid a dividend of $214 million to its ultimate parent, MBIA Inc. Refer to the Capital Resources Insurance Statutory Capital section for additional information on this dividend.
During the nine months ended September 30, 2013, pursuant to the tax sharing agreement, National settled its taxes related to the 2012 tax year of $16 million with MBIA Inc. In addition, National paid to MBIA Inc. estimated 2013 taxes of $81 million. Consistent with the tax sharing agreement, this amount was placed in an escrow account until the expiration of Nationals two-year NOL carry-back period under U.S. tax rules. At the expiration of Nationals carry-back period, any funds remaining after any reimbursement to National in respect of any NOL carry-backs would be available for general corporate purposes, including to satisfy any other obligations under the tax sharing agreement. During the first nine months of 2013, MBIA Inc. received $115 million that was previously held in escrow under the MBIA group tax sharing agreement. The amount represents Nationals liability under the tax sharing agreement for the 2010 tax year, and was released pursuant to the terms of the agreement following the expiration of Nationals two-year NOL carry-back period under U.S. tax rules. As of September 30, 2013, $427 million remained in escrow for the 2011 through the 2013 tax years. We expect to release up to $160 million of this escrow related to the 2011 tax year in January 2014 which will increase MBIA Inc.s liquidity position.
MBIA Inc. is subject to material liquidity risks and uncertainty. To mitigate these risks, we seek to maintain cash and liquidity resources that we believe will be sufficient to make all payments due on our obligations and to meet other financial requirements, such as posting collateral, at least through the next twelve months.
Liquidity risk within MBIA Inc. is primarily a result of the following factors:
|
Currently, the majority of the cash and securities of MBIA Inc. is pledged against investment agreement liabilities, intercompany financing arrangements and derivatives, which limit its ability to raise liquidity through asset sales. A significant portion of MBIA Inc.s assets that are pledged against intercompany financing arrangement liabilities are structured finance securities which have been particularly susceptible to price fluctuations during periods of market volatility. In addition, if the market value or rating eligibility of the assets which are pledged against MBIA Inc.s obligations were to decline, we would be required to pledge additional eligible assets in order to meet minimum required collateral amounts against these liabilities. In such event, we may sell additional assets, potentially with substantial losses, finance unencumbered assets through intercompany facilities, or use free cash or other assets, in some cases with NYSDFS approval, although there can be no assurance that these strategies will be available or adequate to meet liquidity requirements. |
|
Uncertainty of the timing and amount of cash inflows from dividends paid by MBIAs principal operating subsidiaries. Refer to the Capital Resources-Insurance Statutory Capital section for a discussion on our insurance subsidiaries dividend restrictions. |
121
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
Because most of MBIA Inc.s assets are pledged against the obligations described above, the widening of credit spreads would have an adverse impact on the market value of these assets and increase collateralization requirements for the portfolio. The following table presents the estimated pre-tax change in the aggregate fair value of the asset/liability products business assets as of September 30, 2013 from instantaneous shifts in credit spread curves. This table assumes that all credit spreads move by the same amount; however, it is more likely that the actual changes in credit spreads will vary by investment sector and individual security. The table presents hypothetical increases and decreases in credit spreads of 50 and 200 basis points. Because downward movements of these amounts in some cases would result in negative spreads, a floor was assumed for minimum spreads.
Change in Credit Spreads
(Asset/Liability Products Business) |
||||||||||||||||
In millions |
200 Basis Point
Decrease |
50 Basis Point
Decrease |
50 Basis Point
Increase |
200 Basis Point
Increase |
||||||||||||
Estimated change in fair value |
$ | 96 | $ | 31 | $ | (29) | $ | (107) |
During the first nine months of 2013, MBIA Inc. maintained three intercompany financing facilities to provide it with additional resources to meet its liquidity requirements within the asset/liability products business: the Asset Swap, the MBIA Insurance Corporation Secured Loan and the Conduit Repurchase Agreement. The MBIA Insurance Corporation Secured Loan expired in May of 2013. Refer to the preceding Key Lending Agreements section for a description of these facilities.
We believe that asset sales undertaken to date have reduced volatility in MBIA Inc.s portfolio in the event of stressed market conditions. However, stressed credit market conditions could cause MBIA Inc. to have insufficient resources to cover collateral and/or other liquidity requirements. Management has identified certain actions to mitigate this risk. These contingent actions include: (1) accessing the capital markets; (2) additional sales of invested assets exposed to credit spread stress risk, which may occur at losses and increase MBIA Inc.s net debt; (3) termination and settlement of interest rate swap agreements; and (4) other available advances from subsidiaries. These actions, if taken, are expected to result in either additional liquidity or reduced exposure to adverse credit spread movements. There can be no assurance that these actions will be sufficient to fully mitigate this risk. In the event that we cannot implement the contingent actions identified above to raise liquidity, we may have insufficient assets to make all payments on our obligations as they come due, which could result in a default by MBIA Inc. on its obligations and the potential for MBIA Corp., as guarantor of the investment agreements and GFL MTNs, to be called upon to satisfy obligations on those instruments as they come due. In addition, the Company expects that MBIA Inc. will generate sufficient cash to satisfy its net debt and its general corporate needs over time from distributions from its operating subsidiaries and by raising third-party capital, although there can be no assurance that such factors will generate sufficient cash to satisfy its net debt.
As of September 30, 2013, the liquidity position of MBIA Inc., which consists of the liquidity positions of its corporate and asset/liability products activities, was $282 million and comprised cash and liquid assets of $228 million available for general corporate liquidity purposes, excluding the amounts held in escrow under its tax sharing agreement, and $54 million not pledged directly as collateral for its asset/liability products activities. As of December 31, 2012, MBIA Inc. had $239 million of cash and liquid assets comprising $170 million available for general corporate liquidity purposes, excluding the amounts held in escrow under its tax sharing agreement, and $69 million not pledged directly as collateral for its asset/liability products activities. We believe this liquidity position provides MBIA Inc. with sufficient funds to cover expected obligations at least through the next twelve months.
MBIA Corp. Liquidity
Liquidity available in the structured finance and international insurance segment is affected by our ability to collect on recoveries associated with loss payments, the payment of claims on insured exposures, payments made to commute insured exposures, the repayment of outstanding borrowings, a reduction in investment income, any unanticipated expenses, or the impairment or a significant decline in the fair value of invested assets. We may also experience liquidity constraints as a result of NYIL requirements that we maintain specified, high quality assets to back our reserves and surplus.
We believe the current liquidity position of MBIA Corp. is adequate to make expected future claim payments. MBIA Corp.s liquidity position has been substantially strengthened as a result of the BofA Settlement Agreement, including the elimination of potential claims on Bank of America/Merrill Lynch CMBS exposures and the execution of the Blue Ridge Secured Loan entered into in May of 2013. The liquidity position of MBIA Corp. has been stressed due to ongoing payments on second-lien RMBS exposures, payments on its remaining CMBS exposures and the payments to counterparties in consideration for the commutation of insured transactions, which have resulted in a substantial reduction of exposure and potential loss volatility. While MBIA Corp. has made and may in the future make payments to counterparties in consideration for the commutation of insured transactions, MBIA Corp.s ability to commute insured transactions will depend on managements assessment of available liquidity or ability to secure other sources of financing. Depending on the amounts of claims on policies issued by MBIA Corp., MBIA Corp. may not have sufficient liquid assets to pay such claims when due.
122
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
Payment requirements for the structured finance and international financial guarantee contracts fall into three categories: (i) timely interest and ultimate principal; (ii) ultimate principal only at final maturity; and (iii) payments upon settlement of individual collateral losses as they occur after any deductible or subordination has been exhausted, which payments are unscheduled and therefore more difficult to predict, and which category applies to most of the transactions on which we have recorded loss reserves. Insured transactions that require payment in full of the principal insured at maturity could present liquidity risks for MBIA Corp. since payment of the principal is due at maturity but any salvage could be recovered over time after payment of the principal amount. MBIA Corp. has insured transactions with substantial principal amounts due at maturity that are scheduled to mature in the near term. MBIA Corp. expects the transactions to be repaid on or prior to the maturity date. MBIA Corp. is generally required to satisfy claims within one to three business days, and as a result seeks to identify potential claims in advance through our monitoring process. While our financial guarantee policies generally cannot be accelerated, thereby helping to mitigate liquidity risk, the insurance of CDS contracts may, in certain circumstances, including the occurrence of certain insolvency or payment defaults under the CDS contracts, be subject to termination by the counterparty, triggering a claim for the fair value of the contract. In order to monitor liquidity risk and maintain appropriate liquidity resources, we use the same methodology as we use to monitor credit quality and losses within our insured portfolio, including stress scenarios. Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a discussion of our loss process.
Our structured finance and international insurance segment also requires cash for the payment of operating expenses, as well as principal and interest related to its surplus notes. Pursuant to Section 1307 of the NYIL and the Fiscal Agency Agreement governing MBIA Corp.s surplus notes, any payment on the notes may be made only with the prior approval of the Superintendent of the NYSDFS whenever, in his judgment, the financial condition of [MBIA Corp.] warrants and payment may be made only out of MBIA Corp.s free and divisible surplus. If these conditions are not met, MBIA Corp. is not permitted to make any applicable interest payment and no default or event of default would occur under the Fiscal Agency Agreement or any of the Companys other agreements. From the January 15, 2013 interest payment to the present, MBIA Corp.s requests for approval of the note interest payments have not been approved by the NYSDFS. In accordance with the terms of the Fiscal Agency Agreement, MBIA Corp. is required to provide, and has provided, notice to the Fiscal Agent that it has not made these scheduled interest payments. The deferred interest payments will become due on the first business day on or after which MBIA Corp. obtains approval to make such payments. No interest will accrue on the deferred interest. There can be no assurance that the NYSDFS will approve these or any subsequent interest payments, or that it will approve any principal payments at maturity or any optional redemption payment that MBIA Corp. may seek to make. Subsequent to September 30, 2013, S&P revised their criteria related to the ratings for certain hybrid capital instruments. As a result, S&P lowered the ratings of MBIA Corp.s surplus notes and MBIA Corp.s preferred stock to D.
Since the fourth quarter of 2007 through September 30, 2013, MBIA Corp. has made $13.5 billion of cash payments, before reinsurance and collections and excluding LAE (including payments made to debt holders of consolidated VIEs), associated with second-lien RMBS securitizations and with commutations and claim payments primarily relating to CDS contracts. These cash payments include loss payments of $1.0 billion made on behalf of MBIA Corp.s consolidated VIEs. Of the $13.5 billion, MBIA Corp. has paid $6.9 billion of gross claims (before reinsurance and collections and excluding LAE) on policies insuring second-lien RMBS securitizations, driven primarily by an extensive number of ineligible mortgage loans being placed in the securitizations in breach of the representations and warranties of the sellers/servicers. In addition, MBIA Corp. has paid $6.6 billion of gross settlement and claim payments (before reinsurance and collections and excluding LAE) on insured credit derivatives. Also, since the fourth quarter of 2007 through September 30, 2013, MBIA Corp. has collected $1.8 billion in cash and securities related to put-back recoveries and $224 million of excess spread before reinsurance.
MBIA Corp. is seeking to enforce its rights to have mortgage sellers/servicers cure, replace or repurchase ineligible mortgage loans from securitizations and has recorded a total of $1.1 billion of related expected recoveries on our consolidated balance sheets as of September 30, 2013, including expected recoveries recorded in our consolidated VIEs. To date, the Company has resolved or agreed to resolve substantially all of its claims related to ineligible loans, with the exception of those loans securitized by Credit Suisse Securities (USA) LLC. However, there can be no assurance that we will be successful or that we will not be delayed in realizing these recoveries. Such risks are contemplated in the scenarios we utilize to calculate these recoveries, which are recognized on our consolidated balance sheets. We collected our put-back claim against Bank of America in May of 2013, which substantially reduced our remaining consolidated expected recoveries. In May of 2013, MBIA Insurance Corporation also consented to a plan to resolve its claims against ResCap and certain of its affiliates. We anticipate that we will receive an initial distribution of funds from ResCap in late 2013 or early 2014, which will further substantially reduce our remaining consolidated expected recoveries. The Plan is subject to bankruptcy court approval. This anticipated timeline may change due to developments related to the Junior Secured Note litigation which occurred in October of 2013 or other matters that develop in the course of events in the bankruptcy court plan confirmation process. Furthermore, there can be no assurance that the Plan will ultimately be approved in its current form, or that MBIA will receive its expected recoveries. Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements for a discussion of the claims related to Credit Suisse Securities (USA) LLC and the ResCap agreement.
123
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
A portion of the commutation payments made since the fourth quarter of 2011 were financed through the National Secured Loan, which was paid in full and extinguished in May of 2013 in connection with the BofA Settlement Agreement and the settlement of Flagstar Banks put-back obligation. Future commutation payments may be financed through draws on the Blue Ridge Secured Loan subject to its continued availability. MBIA Insurance Corporations ability to repay the Blue Ridge Secured Loan and any accrued interest will be largely dependent on MBIA Corp.s ability to collect on its future receivables, including its ability to successfully enforce its rights to have the mortgage sellers/servicers cure, replace or repurchase ineligible mortgage loans from insured securitizations.
MBIA Corp. also insures third-party holders of our asset/liability products segments obligations. MBIA Insurance Corporation, as lender, maintained a master repurchase agreement, the MBIA Insurance Corporation Secured Loan, with MBIA Inc. for the benefit of MBIA Inc.s asset/liability products business, which totaled $2.0 billion at inception. This loan was repaid in May of 2012 and there were no further draws. This loan facility expired on May 3, 2013.
As of September 30, 2013, MBIA Corp. held cash and available-for-sale investments of $866 million, of which $97 million comprised cash and highly liquid assets that was immediately available to MBIA Insurance Corporation. Included in the $866 million was $634 million of cash and available-for-sale investments held by its subsidiaries and not immediately available to MBIA Insurance Corporation. In connection with the BofA Settlement Agreement, MBIA Insurance Corporation, entered into the Blue Ridge Secured Loan, which provides MBIA Corp. with an additional maximum amount of $500 million in liquidity. During the third quarter of 2013, MBIA Insurance Corporation borrowed $50 million from this facility at 7.76%. As of September 30, 2013, the remaining amount available under the Blue Ridge Secured Loan was $450 million. As of December 31, 2012, MBIA Corp. held cash and available-for-sale investments of $1.3 billion, of which $345 million comprised cash and highly liquid assets that was immediately available to MBIA Insurance Corporation. Included in the $1.3 billion was $659 million of cash and available-for-sale investments held by its subsidiaries and not immediately available to MBIA Insurance Corporation. We believe that MBIA Corp.s liquidity resources, including expected cash inflows, will adequately provide for anticipated cash outflows. Depending on the amount of actual claims on the policies issued by MBIA Corp., including claims on insured exposures that in some cases may require large bullet payments, MBIA Corp. may not have sufficient liquid assets to pay such claims. In the event of unexpected liquidity requirements, we may have insufficient resources to meet our obligations or insufficient qualifying assets to support our surplus and reserves, and may seek to increase our cash holdings position by drawing on the Blue Ridge Secured Loan or raising external capital, and there can be no assurance that we will be able to draw on these additional sources of liquidity.
National Liquidity
Despite continued adverse macroeconomic conditions in the U.S., the incidence of default among U.S. public finance issuers remains extremely low and we believe that the liquidity position of our U.S. public finance insurance segment is sufficient to meet cash requirements in the ordinary course of business.
Liquidity risk arises in our U.S. public finance insurance segment primarily from the following:
|
The insurance policies issued or reinsured by National, the entity from which we conduct our U.S. public finance insurance business, provide unconditional and irrevocable guarantees of payments of the principal of, and interest or other amounts owing on, insured obligations when due or, in the event that the insurance company has the right, at its discretion, to accelerate the payment under its policies upon the acceleration of the underlying insured obligations due to default or otherwise. In the event of a default in payment of principal, interest or other insured amounts by an issuer, National generally promises to make funds available in the insured amount within one to three business days following notification. In some cases, the amount due can be substantial, particularly if the default occurs on a transaction to which National has a large notional exposure or on a transaction structured with large, bullet-type principal maturities. The fact that the U.S. public finance insurance segments financial guarantee contracts generally cannot be accelerated by a party other than the insurer helps to mitigate liquidity risk in this segment. |
|
National has entered into certain intercompany transactions to support the liquidity needs of its affiliates. One of these transactions includes the Asset Swap through which National exchanges liquid assets with MBIA Inc. As a result of this transaction, National is subject to repayment risk, which may adversely affect its liquidity. In addition, changes in the market value of securities sold to National under its Asset Swap with the asset/liability products business may adversely affect its liquidity position if MBIA Inc. were unable to pledge additional eligible assets in order to meet minimum required collateral amounts. |
National held cash and short-term investments of $1.5 billion as of September 30, 2013, which was highly liquid and consisted predominantly of highly rated municipal, U.S. agency and corporate bonds. As of December 31, 2012, National held cash and short-term investments of $470 million, of which $419 million was highly liquid and consisted predominantly of highly rated municipal, U.S. agency and corporate bonds.
124
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
Consolidated Cash Flows
Information about our consolidated cash flows by category is presented on our consolidated statements of cash flows. The following table presents a summary of our consolidated cash flows for the nine months ended September 30, 2013 and 2012:
Nine Months Ended September 30, |
Percent
Change |
|||||||||||
In millions |
2013 | 2012 | ||||||||||
Net cash provided (used) by: |
||||||||||||
Operating activities |
$ | 1,033 | $ | (955) | n/m | |||||||
Investing activities |
297 | 3,106 | -90% | |||||||||
Financing activities |
(1,224) | (2,343) | -48% |
n/m - Percent change not meaningful.
Operating activities
Net cash provided by operating activities increased for the nine months ended September 30, 2013 when compared with the same period of 2012 primarily due to an increase in financial guarantee recoveries received and decreases in losses and loss adjustment expense and interest expense paid. This is partially offset by a decrease in cash received from investment income.
Investing activities
Net cash provided by investing activities decreased for the nine months ended September 30, 2013 when compared with the same period of 2012 primarily due to declines in proceeds from net sales and redemptions of securities for purposes of funding commutation and loss payments.
Financing activities
Net cash used by financing activities decreased for the nine months ended September 30, 2013 when compared with the same period of 2012 primarily due to decreases in payments for drawdowns of investment agreements, payments to retire debt related to our conduit segment, and payments for securities sold under agreements to repurchase.
Investments
The following discussion of investments, including references to consolidated investments, excludes cash and investments reported under Assets of consolidated variable interest entities on our consolidated balance sheets. Cash and investments of VIEs support the repayment of VIE obligations and are not available to settle obligations of MBIA.
125
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
Our available-for-sale investments comprise high-quality fixed-income securities and short-term investments. As of September 30, 2013 and December 31, 2012, the fair values of our consolidated available-for-sale investments were $6.2 billion and $5.6 billion, respectively, as presented in the following table. Additionally, consolidated cash and cash equivalents as of September 30, 2013 and December 31, 2012 were $1.1 billion and $814 million, respectively.
In millions |
As of September 30,
2013 |
As of December 31,
2012 |
Percent Change | |||||||||
Available-for-sale investments: |
||||||||||||
U.S. public finance insurance |
||||||||||||
Amortized cost |
$ | 4,496 | $ | 3,006 | 50% | |||||||
Unrealized net gain (loss) |
(54) | 105 | n/m | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
4,442 | 3,111 | 43% | |||||||||
|
|
|
|
|
|
|||||||
Structured finance and international insurance |
||||||||||||
Amortized cost |
524 | 886 | -41% | |||||||||
Unrealized net gain (loss) |
16 | 22 | -27% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
540 | 908 | -41% | |||||||||
|
|
|
|
|
|
|||||||
Corporate |
||||||||||||
Amortized cost |
468 | 543 | -14% | |||||||||
Unrealized net gain (loss) |
(57) | (36) | 58% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
411 | 507 | -19% | |||||||||
|
|
|
|
|
|
|||||||
Advisory services |
||||||||||||
Amortized cost |
5 | 11 | -55% | |||||||||
Unrealized net gain (loss) |
- | - | -% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
5 | 11 | -55% | |||||||||
|
|
|
|
|
|
|||||||
Wind-down operations |
||||||||||||
Amortized cost |
794 | 1,039 | -24% | |||||||||
Unrealized net gain (loss) |
29 | 20 | 45% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
823 | 1,059 | -22% | |||||||||
|
|
|
|
|
|
|||||||
Total available-for-sale investments: |
||||||||||||
Amortized cost |
6,287 | 5,485 | 15% | |||||||||
Unrealized net gain (loss) |
(66) | 111 | n/m | |||||||||
|
|
|
|
|
|
|||||||
Total available-for-sale investments at fair value |
6,221 | 5,596 | 11% | |||||||||
|
|
|
|
|
|
126
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
In millions |
As of September 30,
2013 |
As of December 31,
2012 |
Percent Change | |||||||||
Investments carried at fair value: |
||||||||||||
U.S. public finance insurance |
||||||||||||
Amortized cost |
185 | 190 | -3% | |||||||||
Unrealized net gain (loss) |
(8) | - | n/m | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
177 | 190 | -7% | |||||||||
|
|
|
|
|
|
|||||||
Structured finance and international insurance |
||||||||||||
Amortized cost |
27 | 27 | -% | |||||||||
Unrealized net gain (loss) |
2 | 3 | -33% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
29 | 30 | -3% | |||||||||
|
|
|
|
|
|
|||||||
Corporate |
||||||||||||
Amortized cost |
60 | 38 | 58% | |||||||||
Unrealized net gain (loss) |
(3) | (10) | -70% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
57 | 28 | 104% | |||||||||
|
|
|
|
|
|
|||||||
Advisory services |
||||||||||||
Amortized cost |
4 | 4 | -% | |||||||||
Unrealized net gain (loss) |
1 | - | n/m | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
5 | 4 | 25% | |||||||||
|
|
|
|
|
|
|||||||
Wind-down operations |
||||||||||||
Amortized cost |
- | 5 | -100% | |||||||||
Unrealized net gain (loss) |
- | - | -% | |||||||||
|
|
|
|
|
|
|||||||
Fair value |
- | 5 | -100% | |||||||||
|
|
|
|
|
|
|||||||
Total investments carried at fair value: |
||||||||||||
Amortized cost |
276 | 264 | 5% | |||||||||
Unrealized net gain (loss) |
(8) | (7) | 14% | |||||||||
|
|
|
|
|
|
|||||||
Total investments carried at fair value |
268 | 257 | 4% | |||||||||
|
|
|
|
|
|
|||||||
Other investments at amortized cost: |
||||||||||||
U.S. public finance insurance operations segment |
6 | 9 | -33% | |||||||||
|
|
|
|
|
|
|||||||
Total other investments at amortized cost |
6 | 9 | -33% | |||||||||
|
|
|
|
|
|
|||||||
Consolidated investments at carrying value |
$ | 6,495 | $ | 5,862 | 11% | |||||||
|
|
|
|
|
|
n/m - Percent change not meaningful.
The fair value of the Companys investments is based on prices which include quoted prices in active markets and prices based on market-based inputs that are either directly or indirectly observable, as well as prices from dealers in relevant markets. Differences between fair value and amortized cost arise primarily as a result of changes in interest rates and general market credit spreads occurring after a fixed-income security is purchased, although other factors may also influence fair value, including specific credit-related changes, supply and demand forces and other market factors. When the Company holds an available-for-sale investment to maturity, any unrealized gain or loss currently recorded in accumulated other comprehensive income (loss) in the shareholders equity section of the balance sheet is reversed. As a result, the Company would realize a value substantially equal to amortized cost. However, when investments are sold prior to maturity, the Company will realize any difference between amortized cost and the sale price of an investment as a realized gain or loss within its consolidated statements of operations.
127
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
Credit Quality
The credit quality distribution of the Companys available-for-sale fixed-maturity investment portfolios, excluding short-term investments, based on ratings from Moodys as of September 30, 2013 is presented in the following table. Alternate ratings sources, such as S&P or the best estimate of the ratings assigned by the Company, have been used for a small percentage of securities that are not rated by Moodys.
U.S. Public
Finance |
Structured
Finance and International |
Advisory
Services |
Corporate |
Wind-down
Operations |
Total | |||||||||||||||||||||||||||||||||||||||||||
In millions |
Fair
Value |
% of
Fixed- Income Investments |
Fair
Value |
% of
Fixed- Income Investments |
Fair
Value |
% of
Fixed- Income Investments |
Fair
Value |
% of
Fixed- Income Investments |
Fair
Value |
% of
Fixed- Income Investments |
Fair
Value |
% of
Fixed- Income Investments |
||||||||||||||||||||||||||||||||||||
Available-for-sale: |
||||||||||||||||||||||||||||||||||||||||||||||||
Aaa |
$ | 1,494 | 43% | $ | 210 | 63% | $ | 1 | 50% | $ | - | 0% | $ | 191 | 26% | $ | 1,896 | 40% | ||||||||||||||||||||||||||||||
Aa |
1,118 | 33% | 85 | 26% | - | 0% | 2 | 1% | 107 | 15% | 1,312 | 28% | ||||||||||||||||||||||||||||||||||||
A |
533 | 16% | 11 | 3% | 1 | 50% | 10 | 5% | 208 | 28% | 763 | 16% | ||||||||||||||||||||||||||||||||||||
Baa |
118 | 3% | 6 | 2% | - | 0% | 2 | 1% | 201 | 27% | 327 | 7% | ||||||||||||||||||||||||||||||||||||
Below investment grade |
27 | 1% | 17 | 5% | - | 0% | 157 | 82% | 16 | 2% | 217 | 5% | ||||||||||||||||||||||||||||||||||||
Not rated |
143 | 4% | 3 | 1% | - | 0% | 20 | 11% | 15 | 2% | 181 | 4% | ||||||||||||||||||||||||||||||||||||
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Total |
$ | 3,433 | 100% | $ | 332 | 100% | $ | 2 | 100% | $ | 191 | 100% | $ | 738 | 100% | $ | 4,696 | 100% | ||||||||||||||||||||||||||||||
Short-term investments |
1,003 | 207 | 2 | 221 | 82 | 1,515 | ||||||||||||||||||||||||||||||||||||||||||
Investments carried at fair value |
177 | 29 | 5 | 57 | - | 268 | ||||||||||||||||||||||||||||||||||||||||||
Other investments |
11 | 1 | 1 | - | 3 | 16 | ||||||||||||||||||||||||||||||||||||||||||
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Consolidated investments at carrying value |
$ | 4,624 | $ | 569 | $ | 10 | $ | 469 | $ | 823 | $ | 6,495 | ||||||||||||||||||||||||||||||||||||
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As of September 30, 2013, the weighted average credit quality of the Companys available-for-sale investment portfolios, excluding short-term and other investments, as presented in the preceding table are as follows:
U.S. Public
Finance |
Structured
Finance and International Insurance |
Advisory
Services |
Corporate |
Wind-down
Operations |
||||||
Weighted average credit quality ratings |
Aa | Aa | Aa | Below investment grade | A |
Insured Investments
MBIAs consolidated investment portfolio includes investments that are insured by various financial guarantee insurers (Insured Investments), including investments insured by MBIA Corp. and National (Company-Insured Investments). As of September 30, 2013, Insured Investments at fair value represented $643 million or 10% of consolidated investments, of which $393 million or 7% of consolidated investments were Company-Insured Investments.
As of September 30, 2013, based on the actual or estimated underlying ratings of our consolidated investment portfolio, without giving effect to financial guarantees, the weighted average rating of the consolidated investment portfolio would be in the Aa range, the weighted average rating of only the Insured Investments in the investment portfolio would be in the Baa range, and 3% of the total investment portfolio would be rated below investment grade in the Insured Investments.
128
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
The distribution of our Insured Investments by financial guarantee insurer as of September 30, 2013 is presented in the following table:
U.S. Public Finance |
Structured Finance
and International |
Corporate |
Wind-Down
Operations |
Total | ||||||||||||||||||||||||||||||||||||
In millions |
Fair
Value |
% of Total
Investments |
Fair
Value |
% of Total
Investments |
Fair
Value |
% of Total
Investments |
Fair
Value |
% of Total
Investments |
Fair
Value |
% of Total
Investments |
||||||||||||||||||||||||||||||
MBIA Corp. |
$ | - | 0% | $ | - | 0% | $ | 106 | 2% | $ | 117 | 2% | $ | 223 | 4% | |||||||||||||||||||||||||
National |
65 | 1% | - | 0% | - | 0% | 105 | 2% | 170 | 3% | ||||||||||||||||||||||||||||||
Assured Guaranty Municipal Corp. |
56 | 1% | - | 0% | - | 0% | 123 | 2% | 179 | 3% | ||||||||||||||||||||||||||||||
Ambac Financial Group, Inc. |
9 | 0% | - | 0% | 8 | 0% | 24 | 0% | 41 | 0% | ||||||||||||||||||||||||||||||
FGIC |
3 | 0% | 3 | 0% | 15 | 0% | 6 | 0% | 27 | 0% | ||||||||||||||||||||||||||||||
Other |
3 | 0% | - | 0% | - | 0% | - | 0% | 3 | 0% | ||||||||||||||||||||||||||||||
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Total |
$ | 136 | 2% | $ | 3 | 0% | $ | 129 | 2% | $ | 375 | 6% | $ | 643 | 10% | |||||||||||||||||||||||||
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In purchasing Insured Investments, the Company independently assesses the underlying credit quality, structure and liquidity of each investment, in addition to the creditworthiness of the insurer. Insured Investments are diverse by sector, issuer and size of holding. The Company assigns underlying ratings to its Insured Investments without giving effect to financial guarantees based on underlying ratings assigned by Moodys, or another external agency when a rating is not published by Moodys. When an external underlying rating is not available, the underlying rating is based on the Companys best estimate of the rating of such investment. A downgrade of a financial guarantee insurer will likely have an adverse effect on the fair value of investments insured by the downgraded financial guarantee insurer. If MBIA determines that declines in the fair values of Insured Investments are other-than-temporary, the Company will record a realized loss through earnings.
The underlying ratings of the Company-Insured Investments as of September 30, 2013 are reflected in the following table. Amounts represent the fair value of such investments including the benefit of the MBIA guarantee. The ratings in the following table are based on ratings from Moodys. Alternate ratings sources, such as S&P, have been used for a small percentage of securities that are not rated by Moodys.
In millions |
U.S. Public
Finance Insurance |
Structured
Finance and International Insurance |
Wind-down
Operations |
|||||||||||||||||
Underlying Ratings Scale |
Corporate | Total | ||||||||||||||||||
National: |
||||||||||||||||||||
Aa |
$ | 30 | $ | - | $ | - | $ | 14 | $ | 44 | ||||||||||
A |
35 | - | - | 16 | 51 | |||||||||||||||
Baa |
- | - | - | 75 | 75 | |||||||||||||||
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Total National |
$ | 65 | $ | - | $ | - | $ | 105 | $ | 170 | ||||||||||
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MBIA Corp.: |
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Aa |
$ | - | $ | - | $ | - | $ | 56 | $ | 56 | ||||||||||
A |
- | - | - | 12 | 12 | |||||||||||||||
Baa |
- | - | 3 | 49 | 52 | |||||||||||||||
Below investment grade |
- | - | 103 | - | 103 | |||||||||||||||
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Total MBIA Corp. |
$ | - | $ | - | $ | 106 | $ | 117 | $ | 223 | ||||||||||
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Total MBIA Insured Investments |
$ | 65 | $ | - | $ | 106 | $ | 222 | $ | 393 | ||||||||||
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Without giving effect to the MBIA guarantee of the Company-Insured Investments in the consolidated investment portfolio, as of September 30, 2013, based on actual or estimated underlying ratings, the weighted average rating of the consolidated investment portfolio was in the Aa range, the weighted average rating of only the Company-Insured Investments was in the Baa range, and investments rated as below investment grade in the Company-Insured Investments were 2% of the total consolidated investment portfolio.
Impaired Investments
As of September 30, 2013 and December 31, 2012, we held impaired available-for-sale investments (investments for which fair value was less than amortized cost) with a fair value of $2.5 billion and $1.3 billion, respectively.
129
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations (continued)
LIQUIDITY (continued)
We analyze impaired investments within our investment portfolio for other-than-temporary impairments on a quarterly basis. Key factors considered when assessing other-than-temporary impairments include but are not limited to: (a) structural and economic factors among security types that represent our largest exposure to credit impairment losses; (b) the duration and severity of the unrealized losses (i.e., a decline in the market value of a security by 20% or more at the time of the review, or 5% impaired at the time of review with a fair value below amortized cost for a consecutive 12-month period); and (c) the results of various cash flow modeling techniques. Our cash flow analysis considers all sources of cash, including credit enhancement, that support the payment of amounts owed by an issuer of a security. This includes the consideration of cash expected to be provided by financial guarantors, including MBIA Corp., resulting from an actual or potential insurance policy claim.
Refer to Note 7: Investments in the Notes to Consolidated Financial Statements for a detailed discussion about impaired investments.
Debt Obligations
Principal payments due under our debt obligations for the three months ending December 31, 2013 and each of the subsequent four years ending December 31 and thereafter are presented in the following table. The repayment of principal on our surplus notes is reflected in 2018, which is the next call date. Principal payments under investment agreements are based on expected withdrawal dates. All other principal payments are based on contractual maturity dates. Foreign currency denominated liabilities are presented in U.S. dollars using applicable exchange rates as of September 30, 2013, and liabilities issued at a discount reflect principal amounts due at maturity.
As of September 30, 2013 | ||||||||||||||||||||||||||||
In millions |
Three Months
Ending December 31, 2013 |
2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||
Structured finance and international insurance segment: |
||||||||||||||||||||||||||||
Variable interest entity notes |
$ | 97 | $ | 333 | $ | 439 | $ | 324 | $ | 387 | $ | 4,109 | $ | 5,689 | ||||||||||||||
Surplus notes |
- | - | - | - | - | 940 | 940 | |||||||||||||||||||||
Blue Ridge secured loan |
50 | - | - | - | - | - | 50 | |||||||||||||||||||||
Corporate segment: |
||||||||||||||||||||||||||||
Long-term debt |
- | - | - | - | - | 583 | 583 | |||||||||||||||||||||
Asset/liability products segment: |
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Investment agreements |
37 | 136 | 44 | 49 | 57 | 518 | 841 | |||||||||||||||||||||
Medium-term notes |
17 | 32 | 239 | 131 | 54 | 1,710 | 2,183 | |||||||||||||||||||||
Conduit segment: |
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Medium-term notes |
- | - | - | - | - | 149 | 149 | |||||||||||||||||||||
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Total |
$ | 201 | $ | 501 | $ | 722 | $ | 504 | $ | 498 | $ | 8,009 | $ | 10,435 | ||||||||||||||
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130
Item 3. Quantitative and Qualitative Disclosures About Market Risk
In general, MBIAs market risk relates to changes in the value of financial instruments that arise from adverse movements in factors such as interest rates, foreign exchange rates and credit spreads. MBIA is exposed to changes in interest rates, foreign exchange rates and credit spreads that affect the fair value of its financial instruments, namely investment securities, investment agreement liabilities, MTNs, debentures and certain derivative transactions. The Companys investment portfolio holdings are primarily U.S. dollar-denominated fixed-income securities including municipal bonds, U.S. government bonds, MBS, collateralized mortgage obligations, corporate bonds and ABS. In periods of rising and/or volatile interest rates, foreign exchange rates and credit spreads, profitability could be adversely affected should the Company have to liquidate these securities.
MBIA minimizes its exposure to interest rate risk, foreign exchange risk and credit spread movement through active portfolio management to ensure a proper mix of the types of securities held and to stagger the maturities of its fixed-income securities. In addition, the Company enters into various swap agreements that hedge the risk of loss due to interest rate and foreign currency volatility.
Interest Rate Sensitivity
Interest rate sensitivity can be estimated by projecting a hypothetical instantaneous increase or decrease in interest rates. The following table presents the estimated pre-tax change in fair value of the Companys financial instruments as of September 30, 2013 from instantaneous shifts in interest rates:
Change in Interest Rates | ||||||||||||||||||||||||
In millions |
300 Basis
Point Decrease |
200 Basis
Point Decrease |
100 Basis
Point Decrease |
100 Basis
Point Increase |
200 Basis
Point Increase |
300 Basis
Point Increase |
||||||||||||||||||
Estimated change in fair value |
$ | (51) | $ | (12) | $ | 6 | $ | (34) | $ | (71) | $ | (111) |
Foreign Exchange Sensitivity
Foreign exchange rate sensitivity can be estimated by projecting a hypothetical instantaneous increase or decrease in foreign exchange rates. The following table presents the estimated pre-tax change in fair value of the Companys financial instruments as of September 30, 2013 from instantaneous shifts in foreign exchange rates:
Change in Foreign Exchange Rates | ||||||||||||||||
Dollar Weakens | Dollar Strengthens | |||||||||||||||
In millions |
20% | 10% | 10% | 20% | ||||||||||||
Estimated change in fair value |
$ | (51) | $ | (26) | $ | 26 | $ | 51 |
Credit Spread Sensitivity
Credit spread sensitivity can be estimated by projecting a hypothetical instantaneous increase or decrease in credit spreads. The following table presents the estimated pre-tax change in fair value of the Companys financial instruments as of September 30, 2013 from instantaneous shifts in credit spread curves. For this table it was assumed that all credit spreads move by the same amount. It is more likely that the actual changes in credit spreads will vary by security. Nationals investment portfolio would generally be expected to experience lower credit spread volatility than the investment portfolio of the asset/liability products segment because of higher credit quality and portfolio composition in sectors that have been less volatile historically. The table shows hypothetical increases and decreases in credit spreads of 50 and 200 basis points. Because downward movements of these amounts in some cases would result in negative spreads, a floor was assumed for minimum spreads. The changes in fair value reflect partially offsetting effects as the value of the investment portfolios generally changes in an opposite direction from the liability portfolio.
131
Item 3. Quantitative and Qualitative Disclosures About Market Risk (continued)
Change in Credit Spreads | ||||||||||||||||
In millions |
200 Basis
Point Decrease |
50 Basis
Point Decrease |
50 Basis
Point Increase |
200 Basis
Point Increase |
||||||||||||
Estimated change in fair value |
$ | (44) | $ | 35 | $ | (59) | $ | (259) |
Credit Derivatives Sensitivity
MBIA issued insurance policies insuring payments due on structured credit derivative contracts and directly entered into credit derivative contracts, which are marked-to-market through earnings under the accounting principles for derivatives and hedging activities. All these transactions were insured by the Companys structured finance and international insurance operations. The majority of these structured CDSs related to structured finance transactions with underlying reference obligations of cash securities and CDSs referencing liabilities of corporations or of other structured finance securitizations. The asset classes of the underlying reference obligations included corporate, ABS, RMBS and CMBS. These transactions were usually underwritten at or above a triple-A credit rating level. As of September 30, 2013, approximately 29% of the tranches insured by the Company were rated triple-A.
In the first nine months of 2013, MBIA Corp. has observed a tightening of its own credit spreads. As changes in fair value can be caused by factors unrelated to the performance of MBIA Corp.s business and credit portfolio, including general market conditions and perceptions of credit risk, as well as market use of credit derivatives for hedging purposes unrelated to the specific referenced credits in addition to events that affect particular credit derivative exposures, the application of fair value accounting will cause the Companys earnings to be more volatile than would be suggested by the underlying performance of MBIAs business operations and credit portfolio.
The following tables reflect sensitivities to changes in credit spreads, collateral prices, rating migrations, recovery rates and MBIA Corp.s own credit spreads and recovery rates. Each table stands on its own and should be read independently of each other. Refer to Note 6: Fair Value of Financial Instruments in the Notes to Consolidated Financial Statements for further information about the Companys financial assets and liabilities that are accounted for at fair value, including valuation techniques and disclosures required by GAAP.
Sensitivity to changes in credit spreads can be estimated by projecting a hypothetical instantaneous shift in credit spread curves. The following table presents the estimated pre-tax change in fair value and the cumulative estimated net fair value of MBIA Corp.s credit derivatives portfolio of instantaneous shifts in credit spreads as of September 30, 2013. In scenarios where credit spreads decreased, a floor of zero was used.
Change in Credit Spreads
(Structured Finance and International Insurance) |
||||||||||||||||||||||||||||
In millions |
600 Basis
Point Decrease |
200 Basis
Point Decrease |
50 Basis
Point Decrease |
0 Basis
Point Change |
50 Basis
Point Increase |
200 Basis
Point Increase |
600 Basis
Point Increase |
|||||||||||||||||||||
Estimated pre-tax net gains (losses) |
$ | 613 | $ | 286 | $ | 74 | $ | - | $ | (76) | $ | (306) | $ | (925) | ||||||||||||||
Estimated net fair value |
$ | (750) | $ | (1,077) | $ | (1,289) | $ | (1,363) | $ | (1,439) | $ | (1,669) | $ | (2,288) |
Actual shifts in credit spread curves will vary based on the credit quality of the underlying reference obligations. In general, within any asset class, higher credit rated reference obligations will exhibit less credit spread movement than lower credit rated reference obligations. Additionally, the degree of credit spread movement can vary significantly for different asset classes. The basis point change presented in the preceding table, however, represents a fixed basis point change in referenced obligation credit spreads across all credit quality rating categories and asset classes and, therefore, the actual impact of spread changes would vary from this presentation depending on the credit rating and distribution across asset classes, both of which will adjust over time depending on new business written and runoff of the existing portfolio.
MBIA Corp. uses collateral prices as an input into the Direct Price Model for certain multi-sector insured CDOs, a sensitivity analysis below shows the estimated pre-tax change in fair value and the cumulative estimated net fair value of MBIA Corp.s insured credit derivatives portfolio of a 10% and 20% change in collateral prices as of September 30, 2013.
Change in Collateral Prices
(Structured Finance and International Insurance) |
||||||||||||||||||||
In millions |
20% Increase | 10% Increase | No Change | 10% Decrease | 20% Decrease | |||||||||||||||
Estimated pre-tax net gains (losses) |
$ | 4 | $ | 2 | $ | - | $ | (2) | $ | (5) | ||||||||||
Estimated net fair value |
$ | (1,359) | $ | (1,361) | $ | (1,363) | $ | (1,365) | $ | (1,368) |
132
Item 3. Quantitative and Qualitative Disclosures About Market Risk (continued)
Sensitivity to changes in the collateral portfolio credit quality can be estimated by projecting a hypothetical change in rating migrations. The following table presents the estimated pre-tax change in fair value and the cumulative estimated net fair value of MBIA Corp.s insured credit derivatives portfolio of a one and three notch rating change in the credit quality as of September 30, 2013. A notch represents a one step movement up or down in the credit rating.
Change in Credit Ratings | ||||||||||||||||||||
(Structured Finance and International Insurance) | ||||||||||||||||||||
In millions |
Three Notch
Increase |
One Notch
Increase |
No Change |
One Notch
Decrease |
Three Notch
Decrease |
|||||||||||||||
Estimated pre-tax net gains (losses) |
$ | 612 | $ | 188 | $ | - | $ | (192) | $ | (877) | ||||||||||
Estimated net fair value |
$ | (751) | $ | (1,175) | $ | (1,363) | $ | (1,555) | $ | (2,240) |
Recovery rates on defaulted collateral are an input into MBIA Corp.s valuation model. Sensitivity to changes in the recovery rate assumptions used by MBIA Corp. can be estimated by projecting a hypothetical change in these assumptions. The following table presents the estimated pre-tax change in fair value and the cumulative estimated net fair value of MBIA Corp.s insured credit derivatives portfolio of a 10% and 20% change in the recovery rate assumptions as of September 30, 2013.
Change in Recovery Rates | ||||||||||||||||||||
(Structured Finance and International Insurance) | ||||||||||||||||||||
In millions |
20% Increase | 10% Increase | No Change | 10% Decrease | 20% Decrease | |||||||||||||||
Estimated pre-tax net gains (losses) |
$ | 142 | $ | 67 | $ | - | $ | (62) | $ | (120) | ||||||||||
Estimated net fair value |
$ | (1,221) | $ | (1,296) | $ | (1,363) | $ | (1,425) | $ | (1,483) |
Accounting principles for fair value measurements require MBIA Corp. to incorporate its own nonperformance risk in its valuation methodology. Sensitivity to changes in MBIA Corp.s credit spreads can be estimated by projecting a hypothetical change in this assumption. The following table presents the estimated pre-tax change in fair value and the cumulative estimated net fair value of MBIA Corp.s insured credit derivative portfolio using upfront credit spreads of 0%, an increase of 7 percentage points, and an increase of 15 percentage points. The actual upfront spread used in the valuation as of September 30, 2013 ranged from 4.13% to 20.63% based on the tenor of each transaction. The below amounts include an additional annual running credit spread of 5%.
MBIA Corp.s Upfront Credit Spread | ||||||||||||||||
(Structured Finance and International Insurance) | ||||||||||||||||
In millions |
Increase by
15 Percentage Points |
Increase by
7 Percentage Points |
No Change |
Decrease to
0 Percentage Points |
||||||||||||
Estimated pre-tax net gains (losses) |
$ | 277 | $ | 129 | $ | - | $ | (224) | ||||||||
Estimated net fair value |
$ | (1,086) | $ | (1,234) | $ | (1,363) | $ | (1,587) |
With the inclusion of MBIA Corp.s recovery rate in the calculation of nonperformance risk for MBIA Corp.s insured credit derivatives portfolio, the following sensitivity table presents the estimated pre-tax change in fair value of insured credit derivatives due to changes in that recovery rate. The values shown below reflect an approximate trading range of MBIA Corp.s recovery rate.
MBIA Corp.s Recovery Rate | ||||||||||||
(Structured Finance and International Insurance) | ||||||||||||
In millions |
Decrease to 30
Percentage Points |
No Change |
Increase to 60
Percentage Points |
|||||||||
Estimated pre-tax net gains (losses) |
$ | 7 | $ | - | $ | (10) | ||||||
Estimated net fair value |
$ | (1,356) | $ | (1,363) | $ | (1,373) |
MBIA Corp.s insurance of structured credit derivatives typically remain in place until the maturity of the derivative. With respect to MBIA Corp.s insured structured credit derivatives, in the absence of credit impairments or the termination of derivatives at losses, the cumulative unrealized losses should reverse before or at maturity of the contracts. Additionally, in the event of the termination and settlement of a contract prior to maturity, any resulting gain or loss upon settlement will be recorded in our consolidated financial statements. In February 2008, the Company announced its intention not to insure credit derivatives in the future, except in transactions that are intended to reduce its overall exposure to insured derivatives.
133
Item 4. Controls and Procedures
As of the end of the period covered by this report, an evaluation of the effectiveness of the design and operation of the Companys disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934) was performed under the supervision and with the participation of the Companys senior management, including the Chief Executive Officer and the Chief Financial Officer. Based on that evaluation, the Companys management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Companys disclosure controls and procedures were effective as of the end of the period covered by this report. In addition, there have not been any changes in the Companys internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the fiscal quarter to which this report relates that have materially affected, or are likely to materially affect, the Companys internal control over financial reporting.
134
For a discussion of the Companys litigation and related matters, see Note 14: Commitments and Contingencies in the Notes to Consolidated Financial Statements of MBIA Inc. and Subsidiaries in Part I, Item 1. In the normal course of operating its businesses, MBIA Inc. may be involved in various legal proceedings. As a courtesy, the Company posts on its website under the section Legal Proceedings, selected information and documents in reference to selected legal proceedings in which the Company is the plaintiff or the defendant. The Company will not necessarily post all documents for each proceeding and undertakes no obligation to revise or update them to reflect changes in events or expectations. The complete official court docket can be publicly accessed by contacting the clerks office of the respective court where each litigation is pending.
References in the risk factors to the Company are to MBIA Inc., together with its domestic and international subsidiaries. References to we, our and us are to MBIA Inc. or the Company, as the context requires. Our risk factors are grouped into categories and are presented in the following order: Insured Portfolio Loss Related Risk Factors, Capital, Liquidity and Market Related Risk Factors, Strategic Plan Related Risk Factors and General Risk Factors. Risk factors are listed in order of significance within each category. These risk factors and their order of significance supersede the risk factors discussed under Risk Factors in Part I, Item 1A of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012.
Insured Portfolio Loss Related Risk Factors
Deteriorating performance of CMBS and CRE loans in our structured finance insured portfolio due to adverse developments in the CRE segment of the credit markets may materially and adversely affect our financial condition, results of operations and future business.
MBIA Corp. has insured a substantial amount of credit default swaps (CDS) contracts that are backed by structured commercial mortgage-backed securities (CMBS) pools and commercial real estate (CRE) collateralized debt obligations (CDOs). Through September 30, 2013 we have recorded impairments and loss adjustment expense (LAE) of $4.1 billion (including $487 million of impairments and LAE in the first nine months of 2013) related to CMBS and CRE exposure. MBIA Corp. has experienced ratings erosion in the total CMBS collateral underlying our insured static pools. Whereas approximately 16% of the total CMBS collateral underlying the pools outstanding as of September 30, 2013 was originally rated BBB and below and approximately 49% was originally rated AAA, approximately 68% of the total CMBS collateral underlying these pools as of September 30, 2013 was rated below investment grade.
Currently, we insure four static CMBS pools that were originally insured in 2006 and 2007, and in which substantially all of the underlying collateral comprised CMBS tranches originally rated BBB and lower. Total gross par outstanding on these pools was $800 million as of September 30, 2013. Additionally, we insure two static CMBS pools, totaling $3.0 billion of gross par outstanding as of September 30, 2013, that were originally insured in 2007, and are comprised of CMBS collateral which was originally rated A. If the economy does not continue to improve, it is possible that we will experience severe losses on these transactions, particularly if the underlying loans are unable to pay off at their expected maturity dates. Although we believe MBIA Corp. will have adequate resources to pay expected claims, there can be no assurance that this will be the case.
Ultimate loss rates remain uncertain, and we have recorded additional impairments on our insured CMBS portfolio every quarter since the beginning of 2010 as actual deterioration has been more than expected during that time period. It is possible that we will experience severe losses or near-term liquidity needs due to increased deterioration in our insured CMBS portfolio or our failure to commute the policies, primarily on the four static CMBS pools in which substantially all of the underlying collateral comprised CMBS tranches originally rated BBB and lower, in particular if the economy does not continue to improve, there is a new recession, increased delinquencies, higher levels of liquidations of delinquent loans, or higher severities of loss upon liquidation. Furthermore, MBIA Corp.s guarantees of structured CMBS pools generally are in the form of CDS referencing the CMBS bonds in static pooled transactions, and the same CMBS bonds may be referenced in multiple pools. Accordingly, a collateral failure on a small number of CMBS bonds may require MBIA Corp. to make payments on several insured CDS transactions. In the event MBIA Corp. fails to make these payments, MBIA Corp.s CDS contract obligations could be accelerated, which could materially and adversely affect our financial condition and results of operations.
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Item 1A. | Risk Factors (continued) |
Continued poor performance of ineligible loans in the transactions that we insured in the residential mortgage sector and any delay or failure in collecting expected recoveries may materially and adversely affect our financial condition, results of operations and future business.
As of September 30, 2013, we recorded expected receipts of $756 million (on a present value basis) from excess spread (the difference between interest inflows on assets and interest outflows on liabilities) in our second-lien residential mortgage-backed securities (RMBS) transactions, in reimbursement of our past and future expected claims. Of this amount, $669 million is included in Insurance loss recoverable and $87 million is included in Loss and loss adjustment expense reserves on the Companys consolidated balance sheets. The amount of excess spread depends on future interest rates, borrower refinancing and defaults. There can be no assurance that the $756 million will be received in its entirety or in the expected timeframe.
In addition, we continue to be exposed to risk of losses as a result of poor performance of ineligible loans included in our insured second-lien RMBS transactions, including transactions where we have reached settlements with the sellers/servicers but continue to insure the transaction. Furthermore, Credit Suisse continues to breach its obligations under the relevant contracts to repurchase, replace or cure ineligible mortgage loans. We believe that the inclusion of these ineligible mortgage loans has substantially contributed to the RMBS losses that the Company has incurred to date. Since the fourth quarter of 2007, MBIA Corp. has paid $6.9 billion of claims before reinsurance and collections, excluding LAE and including $1.0 billion of claims made on behalf of consolidated variable interest entities (VIEs), on policies insuring second-lien RMBS securitizations. Losses in these transactions and in other transactions due to the inclusion of ineligible loans could continue. In sizing loss reserves relating to these transactions, we take into account expected recoveries from those sellers/servicers arising from our contractual rights of put-back of ineligible loans. As of September 30, 2013, we recorded estimated recoveries of $1.1 billion related to insured transactions. The recovery amount is based upon a number of factors, including an assessment of the financial abilities of the sellers/servicers using external credit ratings. The impact of such factors on cash flows related to expected recoveries is incorporated into the Companys probability-weighted scenarios.
Finally, although we sought to underwrite RMBS and other structured finance transactions with levels of subordination and other credit enhancements designed to protect us from loss in the event of poor performance of the underlying assets collateralizing the securities, the misrepresentations concerning the quality of the collateral backing those transactions has rendered insufficient the original level of subordination and other credit enhancements to prevent losses. No assurance can be given that any remaining credit enhancements will prove to be adequate to protect us from incurring additional material losses.
There can be no assurance that we will be successful, or that we will not be delayed, in realizing our remaining estimated loan put-back recoveries of $1.1 billion, or $737 million net of reinsurance and income taxes, which is 23% of the consolidated total shareholders equity of MBIA Inc., excluding preferred stock of subsidiary and noncontrolling interest.
As of September 30, 2013, we have recognized remaining estimated loan put-back recoveries of $1.1 billion related to our insured transactions. As of September 30, 2013, the estimated loan put-back recoveries net of reinsurance and income taxes are $737 million, which is 23% of the consolidated total shareholders equity of MBIA Inc., excluding preferred stock of subsidiary and noncontrolling interest. If we fail to ultimately realize the expected recoveries, our current loss reserve estimates may not be adequate for MBIA Corp. to cover potential claims, and MBIA Corp. may have insufficient resources to meet its obligations.
To date, the Company has resolved substantially all of its claims related to ineligible loans with the exception to those loans securitized by Credit Suisse and included in the home equity mortgage trust securitization. The Companys assessment of the ineligibility of individual mortgage loans has been challenged by Credit Suisse in litigation and there is no assurance that the Companys determinations will prevail, or that the Company will be successful in collecting its estimated recoveries. Estimated recoveries may differ from realized recoveries due to the uncertainty of litigation, the cost of litigation, error in determining breach rates, counterparty credit risk, the potential for delay and other sources of uncertainty. In addition, the litigation may take several years to resolve, during which time we will be required to pay losses on the subject transaction.
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Item 1A. | Risk Factors (continued) |
We have also recorded substantial recoveries related to put-backs against two wholly-owned subsidiaries of Residential Capital, LLC (ResCap), GMAC Mortgage, LLC (GMAC) and Residential Funding Company, LLC (RFC), whose ultimate parent company is Ally Financial Inc. (Ally). On May 14, 2012, ResCap, RFC and GMAC each filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. As of May 23, 2013, Ally, ResCap, RFC, GMAC and the Consenting Claimants (which includes the Company), among other parties, executed a term sheet and supplemental term sheet agreeing to, among other things, a settlement amount of $796 million to be paid to the Company as part of a proposed plan to resolve claims against Ally and RFC, GMAC and ResCap. In August 2013, a disclosure statement filed indicated an increased expected recovery for the Company of approximately $828 million. The increased recovery was primarily due to the favorable disposition of assets and settlements of claims. The settlement and anticipated recoveries are consistent with the put-back recoveries recorded by the Company. In June of 2013, the bankruptcy court issued a Memorandum Opinion approving the Plan Support Agreement (the Plan). The Plan is subject to confirmation by the bankruptcy court, with confirmation hearings currently scheduled in November 2013. MBIA anticipates an initial distribution of funds to the Company and other claimants in late 2013 or early 2014. This anticipated timeline may change in the course of events in the bankruptcy court plan confirmation process. Furthermore, there can be no assurance that the Plan will ultimately be confirmed in its current form, or that MBIA will receive its expected recoveries.
Continued poor performance of RMBS and ABS CDOs in our structured finance insured portfolio due to adverse developments in the residential mortgage sector and the broader economy may materially and adversely affect our financial condition, results of operations and future business.
The Company is exposed to credit risks in our portfolio that have arisen from the deterioration and continued poor performance of certain segments of the credit markets, particularly our RMBS and CDOs of asset-backed securities (ABS) portfolios, which has led to the deterioration in the quality of assets and the collection of cash flows from such assets within structured securities that we have guaranteed. Beginning in the second half of 2007, deterioration of the global credit markets coupled with the re-pricing of credit risk created extremely difficult market conditions and volatility in the credit markets. The concerns on the part of market participants were initially focused on the subprime segment of the United States (U.S.) mortgage-backed securities market and expanded to include a broad range of mortgage and asset-backed and other fixed-income securities, including those rated investment grade, the U.S. and international credit and interbank money markets generally, and a wide range of financial institutions and markets, asset classes and sectors. The deterioration in the credit markets was accompanied by a severe economic recession precipitated, in part, by the collapse of U.S. residential home prices. The U.S. economy continues to show sluggish growth in the employment, housing and financial sectors. While many segments of the global credit markets and the economy have since recovered, the performance of certain credits we insure, in particular RMBS and CDOs of ABS have deteriorated significantly since 2007 and those credits continue to perform poorly.
In the first nine months of 2013, we recorded $312 million of losses and LAE related to insured second-lien RMBS exposures in our structured finance portfolio before the $448 million benefit related to an increase in recoveries of ineligible mortgage loans and before the elimination of a $44 million benefit as a result of consolidating VIEs. Furthermore, since the fourth quarter of 2007, we have recorded losses and LAE of $2.0 billion, before the elimination of a $73 million benefit as a result of consolidating VIEs, (including a benefit of $136 million in the first nine months of 2013 before the elimination of a $44 million benefit as a result of consolidating VIEs) related to insured second-lien RMBS exposures. We have made $6.9 billion of claims payments before reinsurance and collections, excluding LAE and including $1.0 billion of claims on behalf of consolidated VIEs. In addition, to date, we have recorded losses and LAE of $380 million, before the elimination of a $52 million expense as a result of consolidating VIEs (including a $86 million benefit in the first nine months of 2013 before the elimination of a $39 million benefit as a result of consolidating VIEs), on the financial guarantee CDOs of ABS and could continue to experience poor performance in some of the structured finance securities we insure and losses on these portions of our insured portfolio.
Our ability to implement our risk reduction and liquidity strategies is dependent on our ability to draw on our credit facility, collect expected put-back recoveries, and obtain regulatory approvals.
In recent years key components of our strategy have included commuting volatile insured exposures, purchasing instruments issued or guaranteed by us in order to reduce future expected economic losses and managing the liquidity requirements and risk in our insured portfolios and asset/liability products segment. In order to implement this strategy, we put in place intercompany agreements that allocate liquidity resources among our entities in order to fund commutations and provide liquidity where needed. The intercompany agreements with our insurance subsidiaries have required the approval of the New York State Department of Financial Services (NYSDFS) and are described further under Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidityKey Lending Agreements in Part I, Item 2 of this Form 10-Q.
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Item 1A. Risk Factors (continued)
In addition, during the second quarter of 2013, MBIA Insurance Corporation entered into a $500 million three-year secured revolving credit agreement with Blue Ridge Investments, L.L.C., an affiliate of Bank of America (the Blue Ridge Secured Loan), which is required to be prepaid with, among other things, proceeds from any put-back recoveries. MBIA Corp. expects to rely on available borrowings under the Blue Ridge Secured Loan and put-back recoveries to fund commutations and other expenses. If MBIA Corp.s access to the Blue Ridge Secured Loan or other financing were unavailable, reduced or were to become significantly more expensive for any reason, including, without limitation, due to its inability to meet any condition in the facility, it may not have sufficient liquidity to commute volatile exposures or to meet its obligations generally. In addition, if it is unable to collect expected put-back recoveries prior to the termination of the facility and is not able to refinance the facility, it may not be able to repay its borrowings.
Our counterparties may also request as a condition to commuting their policies with us that the transaction receive approval from the NYSDFS or the United Kingdom Prudential Regulation Authority. There can be no assurance that we will be able to obtain such approvals. In the event that we do not obtain such regulatory approvals, we do not expect to be able to effect additional commutations of volatile exposures.
Finally, if we do not obtain approvals to draw on intercompany financing, MBIA Inc. may not have sufficient assets to meet its collateral posting requirements and other liquidity needs, as described further under Adverse developments in the credit markets may materially and adversely affect MBIA Inc.s ability to meet liquidity needs. Furthermore, in connection with obtaining required insurance regulatory approvals to enter into certain transactions, MBIA Inc. and its insurance subsidiaries have agreed, and may in the future agree, to comply with certain conditions, including providing notice to the NYSDFS prior to entering into transactions or taking other corporate actions (such as paying dividends when applicable statutory tests are satisfied), that would not otherwise require regulatory approval.
Loss reserve estimates and credit impairments are subject to additional uncertainties and loss reserves may not be adequate to cover potential claims.
The financial guarantees issued by our insurance companies insure the financial performance of the obligations guaranteed over an extended period of time, in some cases over 30 years, under policies that we have, in most circumstances, no right to cancel. We do not use traditional actuarial approaches to determine our loss reserves. The establishment of the appropriate level of loss reserves is an inherently uncertain process involving numerous estimates and subjective judgments by management, and therefore, there can be no assurance that actual paid claims in our insured portfolio will not exceed its loss reserves. Additionally, we use both internal models as well as models generated by third-party consultants and customized by us to project future paid claims on our insured portfolio and establish loss reserves. Since our insured credit derivatives have similar terms, conditions, risks, and economic profiles to our financial guarantee insurance policies, we evaluate them for impairment periodically in the same way that we estimate loss and LAE for our financial guarantee policies. There can be no assurance that the future loss projections based on these models are accurate.
Small changes in the assumptions underlying loss reserve estimates could significantly impact loss expectations. For example, our loss reserves are discounted to a net present value reflecting MBIAs general obligation to pay claims over time and not on an accelerated basis. Risk-free rates are used to discount our loss reserves under GAAP, and the yield-to-maturity of each insurers investment portfolio as of year-end is used to discount each insurers loss reserves under U.S. STAT. Accordingly, changes in the risk-free rates or the yield in our insurers investment portfolios may materially impact loss reserves. Losses on second-lien RMBS caused by the large number of ineligible mortgage loans included in second-lien RMBS securitizations that we insured as well as unprecedented volatility in the credit markets that began in the fourth quarter of 2007 have caused us to increase our loss projections substantially several times especially for second-lien RMBS transactions, where expected losses are significantly greater than originally projected and in many cases exceed the worst historical losses in this category. As a result, historical loss data may have limited value in predicting future second-lien RMBS losses. Moreover, in sizing loss reserves with respect to our insured transactions, we take into account expected recoveries from sellers/servicers of the transactions arising from our contractual rights of put-back of ineligible loans, and these estimated recoveries may differ from realized recoveries due to the outcome of litigation, the cost of litigation, error in determining breach rates, counterparty credit risk, the potential for delay and other sources of uncertainty. Our balance sheet also reflects estimated recoveries in reimbursement of past and future expected claims through excess spread in insured second-lien RMBS transactions. Excess spread is primarily included on our GAAP consolidated balance sheet in Insurance loss recoverable. Excess spread is included on MBIA Corp.s U.S. STAT balance sheets in Losses. Excess spread is generated by performing loans within insured RMBS securitizations and is the difference between interest inflows on mortgage loan collateral and interest outflows on insured beneficial interests. The amount of excess spread depends on the future delinquency and loss trends, future prime and LIBOR interest rates and borrower refinancing behavior, which results in voluntary prepayments. There can be no assurance that we will collect excess spread recoveries in the amounts we have recorded.
We recorded our first credit impairments related to CMBS and CRE exposure in 2010, and have increased our credit impairments on these exposures during each subsequent quarter as a result of the deterioration of our CMBS and CRE portfolio and the increased cost of commuting our exposures. While our credit impairments reflect our current estimate of ultimate losses, if the deterioration of the CRE market worsens, we could incur substantial additional losses on our CMBS and CRE portfolio in excess of these estimates.
Future deterioration in the performance of RMBS, CMBS, ABS CDOs or other obligations we insure or reinsure could lead to the establishment of additional loss reserves or impairments and further losses or reductions in income. There can be no assurance that the estimates of probable and estimable losses are accurate. Actual paid claims could exceed our estimate and could significantly exceed our loss reserves. If our loss reserves are not adequate to cover actual paid claims, our results of operations and financial condition could be materially adversely affected.
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Item 1A. | Risk Factors (continued) |
Economic conditions in the United States and the Eurozone may materially adversely affect our business and results of operations.
Our results of operations are materially affected by general economic conditions, both in the U.S. and elsewhere around the world. While the U.S. economy has consistently grown since the fourth quarter of 2009 and many segments of the global capital markets have recovered from the financial crisis that began in the second half of 2007, markets have continued to experience periods of extreme volatility, and economic activity in Europe remains weak. While we do not insure any direct European sovereign debt, our indirect European sovereign debt exposure totaled $8.0 billion as of September 30, 2013 and included obligations of sovereign-related and sub-sovereign issuers, such as regions, departments, and sovereign-owned entities that are supported by a sovereign state, region or department. Of the $8.0 billion of insured gross par outstanding, $817 million, $491 million, and $258 million related to Spain, Portugal, and Ireland, respectively. The remaining $6.4 billion related to the United Kingdom. A default by one or more sovereigns, or sovereign-related or sub-sovereign entities that rely on sovereign support, could have an adverse effect on our insured and investment portfolios. Moreover, budget deficits at all levels of government in the U.S., continued concerns over the availability and cost of credit for certain borrowers, austerity measures imposed by certain European governments and slowdowns in certain international economies have contributed to diminished expectations for certain parts of the global economy and certain markets going forward.
Losses resulting from poor economic conditions and the related weak performance of RMBS (including due to the inclusion of ineligible loans in second-lien RMBS we insured), ABS CDOs and CMBS, have adversely impacted, and continue to impact our results and financial condition. In addition, recessions, increases in corporate, municipal, sovereign, sub-sovereign or consumer default rates and other general economic conditions may adversely impact the Companys prospects for future business, as well as the performance of our insured portfolios and the Companys investment portfolio. In addition, public finance obligations supported by specified revenue streams, such as revenue bonds issued by toll road authorities, municipal utilities or airport authorities, may be adversely affected by revenue declines resulting from economic recession, reduced demand, changing demographics or other factors.
Termination payments on insured credit derivatives could present a material liquidity risk.
The structured finance and international segments financial guarantee contracts and CDS contracts generally cannot be accelerated, thereby mitigating liquidity risk. However, with respect to the insurance of CDS contracts, in certain circumstances, including the occurrence of certain insolvency or payment defaults under the CDS contracts, the CDS contracts may be subject to termination by the counterparty, triggering a claim for the fair value of the contract. In addition, credit derivative transactions are governed by International Swaps and Derivatives Association (ISDA) documentation and operate differently from financial guarantee insurance policies. For example, the Companys control rights with respect to a reference obligation under a credit derivative may be more limited than when it issues a financial guarantee insurance policy on a direct primary basis. In addition, a credit derivative may be terminated for a breach of the ISDA documentation or other specific events, unlike financial guarantee insurance policies. If a credit derivative is terminated, the Company could be required to make a mark-to-market payment as determined under the ISDA documentation.
Servicer risk could adversely impact performance of structured finance transactions.
Structured finance obligations contain certain risks including servicer risk, which relates to problems with the transaction servicer (the entity which is responsible for collecting the cash flow from the asset pool) that could affect the servicing and performance of the underlying assets. Structural risks primarily involve bankruptcy risks, such as whether the servicer of the assets may be required to delay the remittance of any cash collections held by it or received by it after the time it becomes subject to bankruptcy or insolvency proceedings. Structured finance transactions are usually structured to reduce the risk to the investors from the bankruptcy or insolvency of the servicer. The ability of the servicer to properly service and collect on the underlying assets can contribute to the performance of a transaction. In addition, the lawsuit we have filed against Credit Suisse alleges that the servicer has failed to perform its duties as contractually required.
Some of the state and local governments and finance authorities that issue public finance obligations we insure are experiencing unprecedented fiscal stress that could result in increased credit losses or impairments on those obligations.
We have historically experienced low levels of defaults in our U.S. public finance insured portfolio, including during the financial crisis that began in mid-2007. However, many state and local governments that issue some of the obligations we insure have reported unprecedented fiscal stress that has required them to significantly raise taxes and/or cut spending in order to satisfy their obligations. While there has been some support provided by the U.S. federal government designed to provide aid to state and local governments, certain state and local governments remain under extreme financial stress. In particular, certain jurisdictions have significant unfunded pension liabilities which are placing additional stress on their finances and are particularly challenging to restructure either through negotiation or under Chapter 9 of the United States Bankruptcy Code. If the issuers of the obligations in our public finance portfolio are unable to raise taxes, cut spending, or receive federal assistance, we may experience losses or impairments on those obligations, which could materially and adversely affect our business, financial condition and results of operations. In particular, an increasing number of municipalities are experiencing severe financial stress and, as a consequence, more municipal issuers are considering filing for protection under Chapter 9. The outcome of a Chapter 9 proceeding is unpredictable and could result in impairments on a greater number of general obligation bonds and other insured transactions. For example, the City of Detroit has proposed treating certain National insured general obligation bonds as unsecured debt with no right to specific voter-approved revenues, which could result in significant impairments on those bonds if the citys proposal succeeds. While National intends to vigorously challenge this treatment, there can be no assurance that it will ultimately be successful. Refer to Note 14: Commitments and Contingencies in the Notes to Consolidated Financial Statements for a description of this litigation.
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Item 1A. | Risk Factors (continued) |
Financial modeling contains uncertainty over ultimate outcomes, which makes it difficult to estimate liquidity, potential paid claims, loss reserves and mark-to-market.
The Company uses third-party and internal financial models to estimate liquidity, potential paid claims, loss reserves and mark-to-market. We use internal financial models to conduct liquidity stress-scenario testing to ensure that we maintain cash and liquid securities in an amount in excess of all stress scenario payment requirements. These measurements are performed on a legal entity and operating segment basis. We also rely on financial models, generated internally and supplemented by models generated by third parties, to estimate factors relating to the highly complex securities we insure, including future credit performance of the underlying assets, and to evaluate structures, rights and our potential obligations over time. We also use internal models for ongoing portfolio monitoring and to estimate case basis loss reserves and, where applicable, to mark our obligations under our contracts to market and may supplement such models with third-party models or use third-party experts to consult with our internal modeling specialists. Both internal and external models are subject to model risk and there can be no assurance that these models are accurate or comprehensive in estimating our liquidity, potential future paid claims and related loss reserves or that they are similar to methodologies employed by our competitors, counterparties or other market participants. Estimates of our future paid claims, in particular, may materially impact our liquidity position. In addition, changes to our paid claims, loss reserve or mark-to-market models have been made recently and may be warranted in the future. These changes could materially impact our financial results.
Our risk management policies and procedures may not detect or prevent future losses.
We assess our risk management policies and procedures on a periodic basis. As a result of such assessment, we may take steps to change our internal risk assessment capabilities and procedures, our portfolio management policies, systems and processes and our policies and procedures for monitoring and assessing the performance of our insured portfolio in changing market conditions. There can be no assurance, however, that these steps will be adequate to avoid future losses. In some cases, losses can be substantial, particularly if a loss occurs on a transaction in which we have a large notional exposure or on a transaction structured with large, bullet-type principal maturities.
Geopolitical conditions may adversely affect our business prospects and insured portfolio.
General global unrest, fraud, terrorism, catastrophic events, natural disasters, pandemics or similar events could disrupt the economy in the U.S. and the other countries where we have insured exposure or operate our businesses and could have a direct material adverse impact on certain industries and on general economic activity. Furthermore, in certain jurisdictions outside the U.S. we face higher risks of governmental intervention through nationalization or expropriation of assets, an inability to enforce our rights in court or otherwise and corruption, which may cause us to incur losses on the assets we insure or reputational harm. The Company has exposure in certain sectors that could suffer increased delinquencies and defaults as a direct result of these types of events. Moreover, we are exposed to correlation risk as a result of the possibility that multiple credits will experience losses as a result of any such event or series of events, in particular exposures that are backed by revenues from business and personal travel, such as aircraft securitizations and bonds backed by hotel taxes and car rental fleet securitizations. To the extent that certain corporate sectors may be vulnerable to credit deterioration and increased defaults in the event of future global unrest, CDOs backed by pools of corporate debt issuances in those stressed sectors could also be adversely impacted.
The Companys insurance operations underwrite exposures to the Companys reasonable expectation of future performance as well as at various stress levels estimating defaults and other conditions at levels higher than are reasonably expected to occur. There can be no assurance, however, that the Company will not incur material losses if the economic stress and increased defaults in certain sectors caused by global unrest, fraud, terrorism, catastrophic events, natural disasters, pandemics or similar events in the future is or will be more severe than the Company currently foresees and had assumed in underwriting its exposures and estimating loss reserves.
Capital, Liquidity and Market Related Risk Factors
Continuing elevated loss payments and ongoing delays in our ability to realize expected recoveries on insured RMBS transactions as well as certain other factors may materially and adversely affect MBIA Corp.s ability to meet liquidity needs, which could in turn have an adverse impact on the Company.
As an insurance company MBIA Corp. is particularly sensitive to liquidity risk, which is the probability that an enterprise will not have sufficient resources to meet contractual payment obligations when due. Management of liquidity risk is of critical importance to financial services companies, and most failures of financial institutions have occurred in large part due to their inability to maintain sufficient liquidity resources under adverse circumstances. Generally, lack of sufficient resources results from an enterprises inability to sell assets at values necessary to satisfy payment obligations, the inability to access new capital and/or an unexpected acceleration of payments required to settle liabilities.
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Item 1A. | Risk Factors (continued) |
The effects of the credit crisis which began in the subprime segment of the U.S. mortgage-backed securities market and spread to a wide range of financial institutions and markets, asset classes, sectors and countries, have caused the Company to experience material increased liquidity risk pressures. In particular, since the fourth quarter of 2007, MBIA Corp. has paid $6.9 billion of claims before reinsurance and collections, excluding LAE and including $1.0 billion of claims made on behalf of consolidated VIEs, on policies insuring second-lien RMBS securitizations, which we believe were driven by a substantial number of ineligible mortgage loans being placed in the securitizations in breach of the representations and warranties of the sellers/servicers. Furthermore, since the fourth quarter of 2007, total credit impairments on insured derivatives were estimated at $6.1 billion across 74 CDO insured issues, inclusive of 71 insured issues for which we made settlement and claim payments of $5.8 billion, net of reinsurance and collections. Accordingly, we expect to realize additional net losses of $337 million. If current trends worsen and result in substantial defaults and losses on the underlying loans, we could incur substantial additional losses on our insured exposures in the future. In addition, portions of MBIA Corp.s outstanding insured portfolio have exhibited high degrees of payment volatility and continue to pose material liquidity risk to MBIA Corp.
Managements expected liquidity and capital forecasts for MBIA Corp. for 2013 reflect adequate resources to pay expected claims. In addition, MBIA Corp. can borrow under the Blue Ridge Secured Loan and use its expected recoveries from the ResCap agreement to pay claims. However, there is risk to the liquidity forecast as the Companys second-lien RMBS and remaining insured CMBS pools are potentially volatile. There are risks to the capital forecast due to those potential liabilities, potential volatility in the collection of put-back recoverables and potential volatility associated with remaining ABS CDO exposures. Further, the remaining insured portfolio, aside from these exposures, could deteriorate and result in loss reserves and claim payments. While management believes MBIA Corp. will have adequate resources to pay expected claims, if it experiences higher than expected claims payments or is unable to commute exposures that represent substantial risk to the Company, it may ultimately have insufficient resources to continue paying claims, which could cause the NYSDFS to put MBIA Insurance Corporation into a rehabilitation or liquidation proceeding. An MBIA Insurance Corporation proceeding could accelerate certain of the Companys other obligations and have other adverse consequences.
Adverse developments in the credit markets may materially and adversely affect MBIA Inc.s ability to meet liquidity needs.
MBIA Inc. is subject to material liquidity risks and uncertainty. To mitigate these risks, we seek to maintain cash and liquidity resources that we believe will be sufficient to make all payments due on our obligations and to meet other financial requirements, such as posting collateral, at least through the next twelve months.
Liquidity risk to MBIA Inc. is primarily a result of the following factors:
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Currently, the majority of the cash and securities of MBIA Inc. is pledged against investment agreement liabilities, intercompany financing arrangements and derivatives, which limit its ability to raise liquidity through asset sales. A significant portion of MBIA Inc.s assets that are pledged against intercompany financing arrangement liabilities are structured finance securities which have been particularly susceptible to price fluctuations during periods of market volatility. In addition, if the market value or rating eligibility of the assets which are pledged against MBIA Inc.s obligations were to decline, we would be required to pledge additional eligible assets in order to meet minimum required collateral amounts against these liabilities. In such event, we may sell additional assets, potentially with substantial losses, finance unencumbered assets through intercompany facilities, or use free cash or other assets, in some cases with NYSDFS approval, although there can be no assurance that these strategies will be available or adequate to meet liquidity requirements. |
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The timing and amount of cash inflows from dividends paid by MBIAs principal operating subsidiaries is uncertain. See Our holding company structure and certain regulatory and other constraints could affect our ability to pay dividends and make other payments below. |
Stressed credit market conditions could cause MBIA Inc. to have insufficient resources to cover collateral and/or other liquidity requirements. Management has identified certain actions to mitigate this risk. These contingent actions include: (1) accessing the capital markets, which may not be open to us on favorable terms, or at all; (2) additional sales of invested assets exposed to credit spread stress risk, which may occur at losses and increase the deficit of invested assets to liabilities; (3) termination and settlement of interest rate swap agreements; and (4) other available advances from subsidiaries. These actions, if taken, are expected to result in either additional liquidity or reduced exposure to adverse credit spread movements. There can be no assurance that these actions will be sufficient to fully mitigate this risk. In the event that we cannot implement the contingent actions identified above to raise liquidity, or eliminate the deficit, we may have insufficient assets to make all payments on our obligations as they come due, which could result in a default by MBIA Inc. on its obligations and the potential for MBIA Corp., as guarantor of the investment agreements and MBIA Global Funding, LLC medium-term notes (MTNs), to be called upon to satisfy obligations on those instruments as they come due.
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Item 1A. | Risk Factors (continued) |
An inability to access capital could adversely affect our business, operating results and financial condition and ultimately adversely affect liquidity.
The Companys access to external sources of financing, as well as the cost of such financing, is dependent on various factors, including (i) the long-term debt ratings of the Company, (ii) the insurance financial strength ratings and long-term business prospects of our insurance companies, (iii) the perceptions of the financial strength of our insurance companies and MBIA Inc. and (iv) the outcome of our undertakings to collect recoveries in connection with ineligible mortgage loans in our insured RMBS securitizations. Our debt ratings are influenced by numerous factors, either in absolute terms or relative to our peer group, such as financial leverage, balance sheet strength, capital structure and earnings trends. If we cannot obtain adequate capital on favorable terms or at all, our business, future growth, operating results and financial condition could be adversely affected. While MBIA Corp. currently maintains a credit facility, there can be no assurance that replacement facilities will be available in the future on favorable terms or at all. Refer to Our ability to implement our risk reduction and liquidity strategies is dependent on our ability to draw on our credit facility, collect expected put-back recoveries, and obtain regulatory approvals above. The inability to obtain adequate replacement capital on favorable terms or at all could have an adverse impact on the Companys business and financial condition.
To the extent that we are unable to access capital, our insurance companies may not have sufficient liquidity to meet their obligations, will have less capacity to write business and may not be able to pay dividends to us without experiencing adverse rating agency action. Accordingly, our inability to maintain access to capital on favorable terms could have an adverse impact on our ability to pay losses and debt obligations, to pay dividends on our capital stock, to pay principal and interest on our indebtedness, to pay our operating expenses and to make capital investments in our subsidiaries. See Our holding company structure and certain regulatory and other constraints could affect our ability to pay dividends and make other payments below.
Our holding company structure and certain regulatory and other constraints could affect our ability to pay dividends and make other payments.
We are a holding company and rely to a significant degree on the operations of our principal operating subsidiaries, National, MBIA Corp. and Cutwater, and certain other smaller subsidiaries. As such, we are largely dependent on dividends or advances in the form of intercompany loans from our insurance companies to pay dividends, to the extent payable, on our capital stock, to pay principal and interest on our indebtedness and to make capital investments in our subsidiaries, among other items. Our insurance companies are subject to various statutory and regulatory restrictions, applicable to insurance companies generally, that limit the amount of cash dividends, loans and advances that those subsidiaries may pay to us. Other regulations relating to capital requirements affecting some of our other subsidiaries may also restrict their ability to pay dividends and other distributions and make loans to us.
Under New York law, National and MBIA Corp. may generally pay stockholder dividends only out of statutory earned surplus and subject to additional limits, as described in BusinessInsurance Regulation in Part I, Item 1 and Note 14: Insurance Regulations and Dividends in the Notes to Consolidated Financial Statements of MBIA Inc. and Subsidiaries in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2012. In connection with MBIA Insurance Corporation obtaining approval from the NYSDFS to release excessive contingency reserves as of September 30, 2011, December 31, 2011 and March 31, 2012, MBIA Insurance Corporation agreed that it would not pay any dividends without prior approval from the NYSDFS. Due to its significant negative earned surplus, MBIA Insurance Corporation has not had the statutory capacity to pay dividends since December 31, 2009 and is not expected to have any statutory capacity to pay any dividends in the near term. In addition, as a condition to the NYSDFS approval of the asset swap between MBIA Inc. and National, the NYSDFS requested that, until the notional amount of the Asset Swap has been reduced to 5% or less of Nationals admitted assets, each of MBIA Inc., MBIA Insurance Corporation and National provide the NYSDFS with three months prior notice, or such shorter period as the NYSDFS may permit, of its intent to initiate cash dividends on shares of its common stock. National has provided the NYSDFS with such notice.
Dividend payments by MBIA UK and MBIA Mexico to MBIA Insurance Corporation are also limited by laws and regulatory consideration in their respective jurisdictions. The inability of our insurance companies to pay dividends in an amount sufficient to enable us to meet our cash requirements at the holding company level could affect our ability to repay our debt and have a material adverse effect on our operations.
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Item 1A. | Risk Factors (continued) |
MBIA Inc. has long-term debt, MTNs, investment agreements and derivative liabilities in excess of its cash, investments at amortized cost and tax receivables.
As of September 30, 2013 and December 31, 2012, the combined net debt of MBIA Inc.s corporate segment and asset/liability products segment, which primarily comprised long-term debt, MTNs, investment agreements and derivative liabilities net of cash and investments at amortized cost and a tax receivable from subsidiaries, totaled $1.3 billion and $1.2 billion, respectively. The Company expects that MBIA Inc. will generate sufficient cash to satisfy its net debt over time from distributions from its operating subsidiaries and by raising third-party capital, although there can be no assurance that such factors will generate sufficient cash to satisfy its net debt.
We have substantial indebtedness and may incur substantial additional indebtedness, which could adversely affect our financial health and our ability to obtain financing in the future, react to changes in our business and satisfy our obligations.
As of September 30, 2013, we had $1.7 billion of consolidated long-term debt, $1.6 billion of consolidated medium-term note liabilities and $760 million of consolidated investment agreement liabilities. Our substantial indebtedness and other liabilities could have material consequences, including:
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our ability to obtain additional financing for working capital, capital expenditures, acquisitions, debt service requirements or general corporate purposes and our ability to satisfy our obligations with respect to our debt may be impaired in the future; |
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a large portion of MBIA Inc.s financial resources must be dedicated to the payment of principal and interest on our debt, thereby reducing the funds available to us for other purposes; |
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it may be more difficult for us to satisfy our obligations to our creditors, resulting in possible defaults on, and acceleration of, such debt; |
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we may be more vulnerable to general adverse economic and industry conditions; |
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our ability to refinance debt may be limited or the associated costs may increase; |
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our flexibility to adjust to changing market conditions could be limited, or we may be prevented from carrying out capital spending that is necessary or important to our growth strategy and efforts to improve operating margins of our businesses; and |
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we are exposed to the risk of fluctuations in interest rates and foreign currency exchange rates because a portion of our liabilities are at variable rates of interest or denominated in foreign currencies. |
If our insurance companies fail to meet regulatory capital requirements they may become subject to regulatory action.
Our insurance companies are subject to various statutory and regulatory restrictions that require them to maintain qualifying investments to support their reserves and minimum surplus. Furthermore, our insurance companies may be restricted from making commutation or other payments if doing so would cause them to fail to meet such requirements, and the NYSDFS may impose other remedial actions on us as described further below to the extent the Company does not meet such requirements. While National currently satisfies its statutory capital requirements, as of September 30, 2013, MBIA Corp. had a deficit of $321 million of qualifying assets required to support its contingency reserves. The deficit was caused by MBIA Corp.s sale of liquid assets in order to make claim payments and the failure of certain RMBS sellers/servicers to honor their contractual obligations to repurchase ineligible mortgage loans from securitizations the Company insured. The deficit is expected to grow due to additional commutation and claim payments until such time as MBIA Corp. collects additional put-back recoveries. The Company has reported the deficit to the NYSDFS. MBIA Corp. previously requested approval from the NYSDFS to release an aggregate of $321 million of contingency reserves, which was disapproved by the NYSDFS. Prior to September 30, 2012, MBIA Corp. released to surplus an aggregate of $1.1 billion of contingency reserves pursuant to approvals granted by the NYSDFS in accordance with the New York Insurance Law during 2011 and 2012. Absent these releases MBIA Corp. would have had deficits of qualifying assets to meet its contingency reserve requirements.
Additionally, under New York law, the Superintendent of the NYSDFS may apply for an order directing the rehabilitation or liquidation of a domestic insurance company under certain circumstances, including upon the insolvency of the company, if the company has willfully violated its charter or New York law or if the company is found, after examination, to be in such condition that further transaction of business would be hazardous to its policyholders, creditors or the public. The Superintendent of the NYSDFS may also suspend an insurers license, restrict its license authority, or limit the amount of premiums written in New York if, after a hearing, the Superintendent of the NYSDFS determines that the insurers surplus to policyholders is not adequate in relation to its outstanding liabilities or financial needs. If the Superintendent of the NYSDFS were to take any such action with respect to National or MBIA Insurance Corporation, it would likely result in the reduction or elimination of the payment of dividends to MBIA Inc.
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Item 1A. | Risk Factors (continued) |
Changes in interest rates and foreign currency exchange rates could adversely affect our financial condition and future business.
Increases in prevailing interest rate levels can adversely affect the value of MBIAs investment portfolio and, therefore, our financial condition. In the event that investments must be sold in order to make payments on insured exposures or other liabilities, including the liabilities of our asset/liability products segment, such investments would likely be sold at discounted prices. Lower interest rates can also result in lower net interest income since a substantial portion of assets are now held in cash and cash equivalents given the increased focus on liquidity. Additionally, in the insurance operations, increasing interest rates could lead to increased credit stress on transactions in our insured portfolio, while a decline in interest rates could result in larger loss reserves on a present value basis.
While we are not currently writing a meaningful amount of new financial guarantee insurance, we expect to do so in the future. Prevailing interest rate levels can affect demand for financial guarantee insurance. Lower interest rates are typically accompanied by narrower spreads between insured and uninsured obligations. The purchase of insurance during periods of relatively narrower interest rate spreads will generally provide lower cost savings to the issuer than during periods of relatively wider spreads. These lower cost savings could be accompanied by a corresponding decrease in demand for financial guarantee insurance. Increased interest rates may decrease attractiveness for issuers to enter into capital markets transactions, resulting in a corresponding decreasing demand for financial guarantee insurance in the future.
In addition, the Company is exposed to foreign currency exchange rate fluctuation risk in respect of assets and liabilities denominated in currencies other than U.S. dollars. In addition to insured liabilities denominated in foreign currencies, some of the remaining liabilities of our asset/liability management business are denominated in currencies other than U.S. dollars and the assets of our asset/liability management business are generally denominated in U.S. dollars. Accordingly, the weakening of the U.S. dollar versus foreign currencies could substantially increase our potential obligations and statutory capital exposure. Conversely, the Company regularly makes investments denominated in a foreign currency, in particular as part of a remediation strategy or as an economic hedge against potential future loss payments, and the weakening of the foreign currency versus the U.S. dollar will diminish the value of such non-U.S. dollar denominated asset. Exchange rates have fluctuated significantly in recent periods and may continue to do so in the future, which could adversely impact the Companys financial position, results of operations and cash flows.
Revenues and liquidity would be adversely impacted by a decline in realization of installment premiums.
Due to the installment nature of a significant percentage of its premium income, MBIA Corp. has an embedded future revenue stream. The amount of installment premiums actually realized by MBIA Corp. could be reduced in the future due to factors such as not insuring new transactions, early termination of insurance contracts, accelerated prepayments of underlying obligations, commutation of existing financial guarantee insurance policies or non-payment. Such a reduction would result in lower revenues and reduced liquidity.
We are required to report credit derivatives at fair value, which subjects our results of operations to volatility and losses and could lead to negative shareholders equity for the Company or MBIA Corp. on a GAAP basis.
Any event causing credit spreads on an underlying security referenced in a credit derivative we insure, or on a credit derivative referencing an MBIA Inc. security, to either widen or tighten will affect the fair value of the credit derivative and may increase the volatility of our earnings.
Since changes in fair value can be caused by factors unrelated to the performance of our business and structured finance credit portfolio, including general market conditions and perceptions of credit risk, as well as market use of credit derivatives for hedging purposes unrelated to the specific referenced credits in addition to events that affect particular credit derivative exposure, the application of fair value accounting may cause our earnings to be more volatile than would be suggested by the underlying performance of our business operations and structured finance credit portfolio. Furthermore, volatility in our asset values, loss reserves, impairments or fair value of insured credit derivatives could cause our shareholders equity, and/or that of MBIA Corp., to be negative under accounting principles generally accepted in the United States of America (GAAP) basis in a future period, which may adversely impact investors perceptions of the value of the Company.
The global re-pricing of credit risk that began in the fourth quarter of 2007 caused unprecedented volatility and markdowns in the valuation of these credit derivatives. In addition, due to the complexity of fair value accounting and the application of the accounting guidance for derivative instruments and the accounting guidance for fair value measurement, future amendments or interpretations of derivative and fair value accounting may cause us to modify our accounting methodology in a manner which may have an adverse impact on our financial results. See Managements Discussion and Analysis of Financial Condition and Results of OperationsCritical Accounting Estimates in Part II, Item 7 of Form 10-K for the year ended December 31, 2012 for additional information on the valuation of derivatives.
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Item 1A. | Risk Factors (continued) |
Current accounting standards mandate that we measure the fair value of our insurance policies of CDS. Market prices are generally available for traded securities and market standard CDS but are less available or accurate for highly customized CDS. Most of the derivative contracts the Company insures are the latter as they are non-traded structured credit derivative transactions. Moreover, at the present time, we do not have access to the fair value estimates of the insurance beneficiaries and there can be no assurance that those counterparties (or any other market participants) estimates would be the same as our fair values.
The mark-to-market for the insured credit derivative portfolio has fluctuated significantly during the last five years, resulting in volatility in MBIAs earnings. Since the fourth quarter of 2007, MBIAs mark-to-market on insured credit derivatives fluctuated from a high quarterly loss of $3.6 billion in the first quarter of 2008 to a high quarterly gain of $3.3 billion in the second quarter of 2008, and the mark-to-market caused several quarter over quarter fluctuations in earnings of more than $1 billion and frequent quarter over quarter shifts in earnings from a gain to a loss or a loss to a gain. The mark-to-market volatility was primarily a result of fluctuations in MBIAs credit spreads and recovery rates, changes in credit spreads on the underlying collateral, collateral erosion, rating migration and model and input enhancements.
Strategic Plan Related Risk Factors
An inability to achieve high stable insurer financial strength ratings for National or any of our other insurance companies from the major rating agencies or to generate investor demand for their financial guarantees may adversely affect our results of operations and business prospects.
Nationals and our other insurance companies ability to write new business and to compete with other financial guarantors is currently largely dependent on the financial strength ratings assigned to them by the major rating agencies and the financial enhancement rating also assigned by Standard & Poors Financial Services LLC (S&P), as well as the financial strength of our insurance companies and investors perceptions of their financial strength. Many requirements imposed by the rating agencies in order for our insurance companies to achieve and maintain high insurer financial strength ratings are outside of our control, and such requirements may necessitate that we raise additional capital or take other remedial actions in a relatively short time frame in order to achieve or maintain the ratings necessary to attract new business and compete with other financial guarantee insurers and could make the conduct of the business uneconomical. Our inability to raise capital on favorable terms could therefore materially adversely affect the business prospects of our insurance companies. Furthermore, no assurance can be given that we will successfully comply with rating agency requirements, that these requirements or the related models and methodologies will not change or that, even if we comply with these requirements, one or more rating agency will not lower or withdraw its financial strength ratings with respect to any of our insurance companies. The absence of higher ratings from S&Ps and Moodys Investor Service, Inc. (Moodys), which have typically been required to write financial guarantee insurance, has adversely impacted the premiums our insurers can charge and could diminish the acceptance of our financial guarantee insurance products.
In addition, no assurance can be given that investor demand for our guarantees will increase regardless of our ratings. Finally, our inability to come into compliance with the rating agency and regulatory single risk limits that National and MBIA Corp. exceeded may also prevent us from writing future new business in the categories of risks that were exceeded, in the case of the regulatory limits, or result in an inability to achieve or maintain our desired ratings, in the case of rating agency limits, and may adversely affect our business prospects, and our failure to come into compliance with these guidelines and rules increases the risk of experiencing a large single loss or series of losses.
Downgrades of the ratings of securities that we insure may materially adversely affect our business, results of operations and financial condition.
Individual credits in our insured portfolio (including potential new credits) are assessed a rating agency capital charge based on a variety of factors, including the nature of the credits risk types, underlying ratings, tenor and expected and actual performance. In the event of an actual or perceived deterioration in creditworthiness, a reduction in the underlying rating or a change in the rating agency capital methodology, we may be required to hold more capital in reserve against credits in the insured portfolio, regardless of whether losses actually occur, or against potential new business. Significant reductions in underlying ratings of credits in an insured portfolio can produce significant increases in assessed capital charges. There can be no assurance that each of our insurance companys capital position will be adequate to meet any increased rating agency reserve requirements or that each insurance company will be able to secure additional capital necessary to support increased reserve requirements, especially at a time of actual or perceived deterioration in creditworthiness of new or existing credits. Unless we were able to increase available capital, an increase in capital charges could reduce the amount of capital available to support our ratings and could have an adverse effect on our ability to write new business.
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Item 1A. | Risk Factors (continued) |
Since 2008, Moodys and S&P announced the downgrade of, or other negative ratings actions with respect to, certain transactions that we insure, as well as a large number of structured finance transactions that serve as collateral in structured finance transactions that we insure. There can be no assurance that additional securities in our insured portfolio will not be reviewed and downgraded in the future. Moreover, we do not know if, and when, the rating agencies might review additional securities in our insured portfolio or review again securities that have already been reviewed and/or downgraded. Downgrades of credits that we insure will result in higher capital charges to that insurance company under the relevant rating agency model or models, which could adversely affect our results of operations and financial condition going forward.
Competition may have an adverse effect on our businesses.
Our financial guarantee insurers face competition from other financial guarantee insurance companies and other forms of credit enhancement, including senior-subordinated structures, credit derivatives, letters of credit and guarantees (for example, mortgage guarantees where pools of mortgage loans secure debt service payments) provided by banks and other financial institutions. In addition, alternative financing structures may be developed that do not employ third-party credit enhancement. Furthermore, while one financial guarantee insurance company has written the vast majority of U.S. public finance new business since 2009, an additional recently established bond insurer is actively engaged in the market, and we have observed other new competitors indicating an interest in entering the bond insurance market and continue to consider strategies for launch. Increased competition, either in terms of price, alternative structures, or the emergence of new providers of credit enhancement, could have an adverse effect on our insurance companies business prospects. The uncertainty created by market conditions and the related unpredictable actions of the regulators in the U.S. and foreign markets we serve may create unforeseen competitive advantages for our competitors due to, among other things, explicit or implied support from the government.
Cutwater faces intense competition from banks, insurance companies and independent companies who provide investment advisory services, as well as with companies who manage their investments in-house. Competition varies by product and typically can range from very large asset management firms to very small operations. Cutwaters ability to compete for new advisory services business and to retain existing accounts is largely dependent on its investment performance for a specific client or in general (typically versus established benchmark indices), the consistency of performance through market cycles, fee levels charged and the level of client service provided. A decline in our competitive position as to one or more of these factors could adversely affect our profitability and assets under management. Furthermore, many of Cutwaters competitors are large and well established and some have greater market share and breadth of distribution and offer a broader range of products, services or features. In order to compete for business, Cutwater may be required to expend a significant portion of its earnings on attracting new business, which would diminish the amount of dividends it can pay to MBIA Inc. Such competition could have an adverse impact on its ability to attract and retain business, which could have an adverse effect on our financial position and results of operations.
Future demand for financial guarantee insurance depends on market and other factors that we do not control.
The demand for financial guarantee insurance depends upon many factors, some of which are beyond the control of the Company. Our ability to attract and compete for financial guarantee business is largely dependent on the financial strength ratings assigned to our insurance companies by the major rating agencies. In addition, the perceived financial strength of all financial guarantee insurers also affects demand for financial guarantee insurance. Since 2008, all financial guarantee insurers insurer financial strength ratings have been downgraded, placed on review for a possible downgrade or had their outlooks changed to negative, and the industry-wide downgrades may have eroded investors confidence in the benefits of bond insurance. We do not expect the demand for financial guarantee insurance to regain its former levels in the near term, if ever.
We believe that issuers and investors distinguish among financial guarantors on the basis of various factors, including rating agency assessment, capitalization, size, insured portfolio concentration and financial performance. These distinctions may result in differentials in trading levels for securities insured by particular financial guarantors which, in turn, may provide a competitive advantage to those financial guarantors with better trading characteristics. In addition, various investors may, due to regulatory or internal guidelines, lack additional capacity to purchase securities insured by certain financial guarantors, which may provide a competitive advantage to guarantors with fewer insured obligations outstanding. Differentials in trading values or investor capacity constraints that do not favor us would have an adverse effect on our ability to attract new business at appropriate pricing levels.
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Item 1A. | Risk Factors (continued) |
Regulatory change could adversely affect our businesses, and regulations limit investors ability to effect a takeover or business combination that shareholders might consider in their best interests.
The financial guarantee insurance industry has historically been and will continue to be subject to the direct and indirect effects of governmental regulation, including insurance laws, securities laws, tax laws, legal precedents and accounting rules affecting asset-backed and municipal obligations, as well as changes in those laws. These laws limit investors ability to affect a takeover or business combination without the approval of our insurance regulators, and the failure to comply with applicable laws and regulations could expose our insurance companies, their directors or shareholders to fines, the loss of their insurance licenses, and the inability to engage in certain business activity, as the case may be.
In addition, future legislative, regulatory or judicial changes could adversely affect our insurance companies ability to pursue business, materially impacting our financial results. Since 2009, both the NYSDFS and the New York legislature have proposed enhanced regulation of financial guarantee insurers which would impose limits on the manner and amount of business written by the Company. On the U.S. federal level, we could become subject to federal oversight or enhanced capital requirements, including if we are deemed systemically important under the Dodd-Frank Reform and Consumer Protection Act (the Dodd-Frank Act). Internationally, MBIA UK could also become subject to enhanced capital requirements as a result of the Solvency II Directive.
While it is not possible to predict if new laws, regulations or interpretations will be enacted or the impact they would have, any changes to such laws and regulations or the NYSDFS interpretation thereof could subject MBIA to further restrictions on the type of business that it is authorized to insure, especially in the structured finance area. Any such restrictions could have a material effect on the amount of premiums that MBIA earns in the future. Additionally, any changes to such laws and regulations could subject our insurance companies to increase reserving and capital requirements or more stringent regulation generally, which could materially adversely affect our financial condition, results of operations and future business. Finally, changes to accounting standards and regulations may require modifications to our accounting methodology, both prospectively and for prior periods; and such changes could have an adverse impact on our reported financial results and/or make it more difficult for investors to understand the economics of our business, and may thus influence the types or volume of business that we may choose to pursue.
Developments in the regulation of derivatives may create additional burdens on the Company.
In July 2010, the Dodd-Frank Act was signed into law for the purpose of enacting broad financial industry regulatory reform, including by enhancing regulation of the over-the-counter derivatives markets. Among other reforms, the Dodd-Frank Act requires swap dealers and major swap participants to register with either or both of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and to be subject to enhanced regulation, including capital requirements. The CFTC and SEC have promulgated rules to implement this enhanced regulatory framework, including final rules that require the Company to include its legacy insured derivatives in tests used to determine whether it is a major swap participant. MBIA Insurance Corporation registered with the CFTC as a major swap participant and on an ongoing basis is required to comply with the CFTCs business conduct rules as applied to portfolios in place prior to the enactment of the Dodd-Frank Act. As further rules are enacted, we expect to seek exemptions from certain of the rules that we do not believe we will be able to comply with, including capital requirements.
Because the CFTC has not yet issued final rules establishing capital requirements for major swap participants, the ultimate impact of such requirements on the Company is not yet clear. However, to the extent that the Company becomes subject to significant additional capital requirements, it is unlikely that the Company will be able to meet those standards.
General Risk Factors
Any impairment in the Companys future taxable income can materially affect the recoverability of our deferred tax assets.
The basis for evaluating the recoverability of a deferred tax asset is the existence of future taxable income of appropriate character. To the extent that the Companys ability to recognize future taxable income from its existing insurance portfolio through scheduled premium earnings and net investment income becomes impaired, the recoverability of certain deferred tax assets may be materially affected by a corresponding increase to its valuation allowance.
A different view of the Internal Revenue Service from our current tax treatment of realized losses relating to insured CDS contracts can adversely affect our financial position.
As part of the Companys financial guarantee business, we have insured credit derivative contracts that were entered into by LaCrosse Financial Products, LLC with various financial institutions. We treat these insured derivative contracts as insurance contracts for statutory accounting purposes, which is the basis for computing U.S. federal taxable income. As such, the realized losses in connection with an insured event are considered loss reserve activities for tax purposes. Because the federal income tax treatment of CDS contracts is an unsettled area of tax law, in the event that the Internal Revenue Service has a different view with respect to the tax treatment, our results of operations and financial condition could be materially adversely affected.
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Item 1A. | Risk Factors (continued) |
Private litigation claims could materially adversely affect our reputation, business, results of operations and financial condition.
As further set forth in Note 14: Commitments and Contingencies in the Notes to Consolidated Financial Statements of MBIA Inc. and Subsidiaries in Part I, Item 1 of this Form 10-Q, the Company is named as a defendant in certain litigations. In the ordinary course of business, the Company and its subsidiaries may be defendants in or parties to pending and threatened legal actions and proceedings brought on behalf of various classes of claimants, including counterparties in various transactions. Although the Company intends to vigorously defend against the aforementioned actions and against other potential actions, an adverse ultimate outcome in these actions could result in a loss and have a material adverse effect on our reputation, business, results of operations or financial condition.
Ownership Change under Section 382 of the Internal Revenue Code can have adverse tax consequences.
In connection with transactions in our shares from time to time, we may in the future experience an ownership change within the meaning of Section 382 of the Internal Revenue Code. In general terms, an ownership change may result from transactions increasing the aggregate ownership of certain stockholders in our stock by more than 50 percentage points over a testing period (generally three years). If an ownership change were to occur, our ability to use certain tax attributes, including certain losses, credits, deductions or tax basis, may be limited. Calculating whether a Section 382 ownership change has occurred is subject to uncertainties, including the complexity and ambiguity of Section 382 and limitations on a publicly traded companys knowledge as to the ownership of, and transactions in, its securities. The Company performs detailed calculations during each quarter to determine if an ownership change has occurred and, based on the Companys current methodology of calculation, a Section 382 ownership change has not taken place.
Interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems, could harm our business.
We depend heavily on our telecommunication, information technology and other operational systems and on the integrity and timeliness of data we use to run our businesses. These systems may fail to operate properly or become disabled as a result of events or circumstances wholly or partly beyond our control. Further, we face the risk of operational and technology failures by others, including various financial intermediaries and of vendors and parties to which we outsource the provision of services or business operations. If these parties do not perform as anticipated, we may experience operational difficulties, increased costs and other adverse effects on our business.
Despite our implementation of a variety of security measures, our information technology and other systems could be subject to physical or electronic break-ins, unauthorized tampering or other security breaches, resulting in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to clients or transaction counterparties.
Interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems, whether due to actions by us or others, could delay or disrupt our ability to do business, harm our reputation, subject us to regulatory sanctions and other claims, lead to a loss of clients and revenues and otherwise adversely affect our business.
The Company is dependent on key executives and the loss of any of these executives, or its inability to retain other key personnel, could adversely affect its business.
The Companys success substantially depends upon its ability to attract and retain qualified employees and upon the ability of its senior management and other key employees to implement its business strategy. The Company believes there are only a limited number of available qualified executives in the business lines in which the Company competes. Although the Company is not aware of any planned departures, the Company relies substantially upon the services of Joseph W. Brown, Chief Executive Officer, and other senior executives. There is no assurance that the Company will be able to retain the services of key executives. The loss of the services of any of these individuals or other key members of the Companys management team could adversely affect the implementation of its business strategy.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
In connection with the Bank of America Settlement Agreement described in Note 1: Business Developments and Risks and Uncertainties in the Notes to Consolidated Financial Statements, on May 6, 2013, MBIA Inc. issued Blue Ridge Investments, L.L.C. (Blue Ridge), a subsidiary of Bank of America, a warrant to purchase 9,942,458 million shares of MBIA Inc. common stock at an exercise price of $9.59 per share. The warrants were issued in reliance on an exemption from registration under Section 4(a)(2) under the 1933 Act as transactions by an issuer not involving any public offering.
Pursuant to the anti-dilution provisions of warrants that were issued by MBIA Inc. to Warburg Pincus Private Equity X, L.P. and certain of its affiliates (Warburg Pincus) under the Investment Agreement by and between MBIA Inc. and Warburg Pincus, dated as of December 10, 2007, as amended and restated as of February 6, 2008, (the Investment Agreement), as a result of the issuance of the warrant to Blue Ridge (a) Warburg Pincuss 21,327,646 warrants exercisable at $30.25 per share were revised to 21,914,446 warrants exercisable at $29.44 per share and (b) Warburg Pincuss 4,000,000 of warrants exercisable at $16.20 per share were revised to 4,004,945 warrants exercisable at $16.18 per share. In addition, under the Investment Agreement Warburg has certain gross up rights that are triggered in connection with the offering by the Company of any equity securities. As a settlement of any such gross-up rights Warburg Pincus may have had under the Investment Agreement due to the issuance of the warrant to Blue Ridge, on August 5, 2013 MBIA Inc. issued Warburg Pincus a warrant to purchase 1,910,417 shares of MBIA Inc. common stock at an exercise price of $9.59 per share in exchange for Warburg Pincus delivering to the Company 536,375 shares of MBIA Inc. common stock having a value of $7,262,518 based on the closing price of the Companys stock as of the close of business on July 23, 2013. The warrants issued pursuant to the anti-dilution adjustments and the gross-up rights were issued in reliance on an exemption from registration under Section 4(a)(2) under the 1933 Act as transactions by an issuer not involving any public offering.
The table below presents repurchases made by the Company in each month during the third quarter of 2013:
Month |
Total Number of
Shares Purchased (1) |
Average Price
Paid Per Share |
Total Number of
Shares Purchased as Part of Publicly Announced Plan |
Maximum Amount
That May Be Purchased Under the Plan (in millions) (2) |
||||||||||||
July |
330 | $ | 13.54 | - | $ | 23 | ||||||||||
August |
649,038 | (3) | 13.35 | - | 23 | |||||||||||
September |
85,148 | 11.40 | - | 23 | ||||||||||||
|
|
|
|
|||||||||||||
734,516 | $ | 13.12 | - | $ | 23 |
(1) - | 196,255 shares were repurchased by the Company in open market transactions for settling awards under the Companys long-term incentive plans and 1,886 shares were purchased in open market transactions as an investment in the Companys non-qualified deferred compensation plan. |
(2) - | On February 1, 2007, the Companys Board of Directors authorized the repurchase of common stock up to $1 billion under a new share repurchase program, which superseded the previously authorized program. |
(3) - | Includes 536,375 shares, having a value of $13.54 per share as of the close of business on July 23, 2013, received from Warburg Pincus in exchange for the issuance to Warburg Pincus of a warrant to purchase 1,910,417 shares of MBIA Inc. common stock at an exercise price of $9.59 per share as a settlement of any gross-up rights Warburg Pincus may have had, as described further above. |
Item 5. Other Information
On November 11, 2013 Kewsong Lee resigned from the Board of Directors of MBIA Inc. Mr. Lee was elected to the Board of Directors in January 2008.
Mr. Lee was nominated by Warburg Pincus Private Equity X, L.P. (Warburg Pincus) to be elected to the Board of Directors pursuant to the amended and restated Investment Agreement dated as of February 6, 2008 (the Investment Agreement) between MBIA Inc. and Warburg Pincus. Under the Investment Agreement, David A. Coulter, Warburg Pincuss remaining member of the Board of Directors, has the right to designate Mr. Lees replacement on the Board of Directors, and the Board of Directors is required to use its reasonable best efforts to take all action required to fill the vacancy resulting from Mr. Lees resignation with Mr. Coulters designee.
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4.1. | Warrant Agreement, dated as of August 5, 2013, between MBIA Inc. and Warburg Pincus Private Equity X, L.P., incorporated by reference to Exhibit 4.2 to the Companys Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013. | |
+31.1. | Chief Executive Officer - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
+31.2. | Chief Financial Officer - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
*32.1. | Chief Executive Officer - Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
*32.2. | Chief Financial Officer - Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
+99.1. | Additional Exhibits - National Public Finance Guarantee Corporation and Subsidiaries GAAP Consolidated Financial Statements. | |
+99.2. | Additional Exhibits - MBIA Insurance Corporation and Subsidiaries GAAP Consolidated Financial Statements. | |
+99.3. | Novation Agreement, dated as of September 14, 2012, between Financial Guaranty Insurance Company and National Public Finance Guarantee Corporation. | |
+101. |
Additional Exhibits - MBIA Inc. and Subsidiaries Consolidated Financial Statements and Notes to Consolidated Financial Statements from the Companys Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013, formatted in XBRL. |
+ Filed Herewith
* Furnished Herewith
150
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MBIA Inc. Registrant |
||
Date: November 12, 2013 |
/s/ C. Edward Chaplin |
|
C. Edward Chaplin | ||
Chief Financial Officer | ||
Date: November 12, 2013 |
/s/ Douglas C. Hamilton |
|
Douglas C. Hamilton | ||
Controller (Principal Accounting Officer) |
151
Exhibit 31.1
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Joseph W. Brown, certify that:
1. | I have reviewed the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the Report); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Report; |
4. | The Companys other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | disclosed in this Report that there were no changes in the Companys internal control over financial reporting that occurred during the Companys third quarter of 2013 that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
5. | The Companys other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and to the audit committee of the board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
/s/ Joseph W. Brown |
Joseph W. Brown |
Chief Executive Officer |
November 12, 2013 |
Exhibit 31.2
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, C. Edward Chaplin, certify that:
1. | I have reviewed the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the Report); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this Report; |
4. | The Companys other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Companys disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
(d) | disclosed in this Report that there were no changes in the Companys internal control over financial reporting that occurred during the Companys third quarter of 2013 that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting; and |
5. | The Companys other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Companys auditors and to the audit committee of the board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Companys ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal control over financial reporting. |
/s/ C. Edward Chaplin |
C. Edward Chaplin |
Chief Financial Officer |
November 12, 2013 |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Joseph W. Brown, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Joseph W. Brown |
Joseph W. Brown |
Chief Executive Officer |
November 12, 2013 |
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of MBIA Inc. (the Company) on Form 10-Q for the period ending September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, C. Edward Chaplin, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ C. Edward Chaplin |
C. Edward Chaplin |
Chief Financial Officer |
November 12, 2013 |
Exhibit 99.1
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and December 31, 2012
and for the periods ended September 30, 2013 and 2012
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
INDEX
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands except share and per share amounts)
September 30, 2013 | December 31, 2012 | |||||||
Assets |
||||||||
Investments: |
||||||||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $3,125,396 and $2,335,832) |
$ | 3,075,730 | $ | 2,425,240 | ||||
Investments carried at fair value |
177,275 | 190,321 | ||||||
Investments pledged as collateral, at fair value (amortized cost $475,297 and $487,880) |
469,573 | 501,873 | ||||||
Short-term investments held as available-for-sale, at fair value (amortized cost $1,001,399 and $175,763) |
1,001,901 | 176,015 | ||||||
Other investments (includes investments at fair value of $5,810 and $7,554) |
10,954 | 16,216 | ||||||
|
|
|
|
|||||
Total investments |
4,735,433 | 3,309,665 | ||||||
Cash and cash equivalents |
516,392 | 265,409 | ||||||
Securities purchased under agreements to resell |
443,500 | 480,500 | ||||||
Secured loan to an affiliate |
- | 1,651,408 | ||||||
Accrued investment income |
30,875 | 54,465 | ||||||
Premiums receivable |
241,362 | 254,363 | ||||||
Deferred acquisition costs |
344,215 | 400,970 | ||||||
Insurance loss recoverable |
16,721 | 248,925 | ||||||
Property and equipment at cost (less accumulated depreciation of $1,735 and $9,725) |
30,351 | 61,719 | ||||||
Receivable for investments sold |
5,836 | 16,457 | ||||||
Other assets |
9,337 | 10,031 | ||||||
|
|
|
|
|||||
Total assets |
$ | 6,374,022 | $ | 6,753,912 | ||||
|
|
|
|
|||||
Liabilities and equity |
||||||||
Liabilities: |
||||||||
Unearned premium revenue |
$ | 1,645,270 | $ | 1,928,351 | ||||
Loss and loss adjustment expense reserves |
93,311 | 151,892 | ||||||
Securities sold under agreements to repurchase |
443,500 | 480,500 | ||||||
Current income taxes |
40,384 | 16,418 | ||||||
Deferred income taxes, net |
106,048 | 232,165 | ||||||
Payable for investments purchased |
144,107 | 49,893 | ||||||
Derivative liabilities |
7,045 | 7,336 | ||||||
Other liabilities |
13,953 | 11,653 | ||||||
|
|
|
|
|||||
Total liabilities |
2,493,618 | 2,878,208 | ||||||
|
|
|
|
|||||
Commitments and contingencies (See Note 9) |
||||||||
Equity: |
||||||||
Common stock, par value $30 per share; authorized, issued and outstanding shares500,000 |
15,000 | 15,000 | ||||||
Additional paid-in capital |
2,341,486 | 2,341,599 | ||||||
Retained earnings |
1,550,145 | 1,441,992 | ||||||
Accumulated other comprehensive income (loss), net of tax of $19,045 and $36,598 |
(35,369) | 67,967 | ||||||
|
|
|
|
|||||
Total shareholders equity |
3,871,262 | 3,866,558 | ||||||
Noncontrolling interest |
9,142 | 9,146 | ||||||
|
|
|
|
|||||
Total equity |
3,880,404 | 3,875,704 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | 6,374,022 | $ | 6,753,912 | ||||
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
1
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: |
||||||||||||||||
Premiums earned: |
||||||||||||||||
Scheduled premiums earned |
$ | 48,315 | $ | 50,621 | $ | 156,450 | $ | 164,784 | ||||||||
Refunding premiums earned |
26,947 | 79,338 | 120,950 | 190,088 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Premiums earned (net of ceded premiums of $0, $0, $0, and $1) |
75,262 | 129,959 | 277,400 | 354,872 | ||||||||||||
Net investment income |
26,213 | 56,392 | 109,452 | 166,513 | ||||||||||||
Fees, reimbursements and other |
1,640 | 1,730 | 4,892 | 4,905 | ||||||||||||
Change in fair value of insured derivatives: |
||||||||||||||||
Realized gains (losses) and other settlements on insured derivatives |
103 | 147 | 315 | 356 | ||||||||||||
Unrealized gains (losses) on insured derivatives |
10 | 28 | (19) | 50 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in fair value of insured derivatives |
113 | 175 | 296 | 406 | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(859) | 22,501 | 29,151 | 43,445 | ||||||||||||
Other net realized gains (losses) |
(29,331) | - | (29,331) | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
73,038 | 210,757 | 391,860 | 570,141 | ||||||||||||
Expenses: |
||||||||||||||||
Losses and loss adjustment |
34,912 | 3,842 | 105,118 | 15,139 | ||||||||||||
Amortization of deferred acquisition costs |
15,839 | 26,922 | 58,385 | 75,030 | ||||||||||||
Operating |
17,078 | 19,701 | 69,593 | 128,175 | ||||||||||||
Interest |
3 | 5 | 11 | 20 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
67,832 | 50,470 | 233,107 | 218,364 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
5,206 | 160,287 | 158,753 | 351,777 | ||||||||||||
Provision (benefit) for income taxes |
(969) | 45,593 | 50,760 | 102,717 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
6,175 | 114,694 | 107,993 | 249,060 | ||||||||||||
Net income (loss) attributable to noncontrolling interest |
63 | 166 | (160) | 518 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income available to common shareholder |
$ | 6,112 | $ | 114,528 | $ | 108,153 | $ | 248,542 | ||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
2
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(In thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) |
$ | 6,175 | $ | 114,694 | $ | 107,993 | $ | 249,060 | ||||||||
Other comprehensive income (loss): |
||||||||||||||||
Unrealized gains (losses) on available-for-sale securities: |
||||||||||||||||
Unrealized gains (losses) arising during the period |
(6,013) | 31,912 | (128,660) | 84,082 | ||||||||||||
Provision (benefit) for income taxes |
(2,104) | 11,145 | (45,031) | 29,424 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
(3,909) | 20,767 | (83,629) | 54,658 | ||||||||||||
Reclassification adjustments for (gains) losses included in net income (loss) |
(898) | (6,611) | (30,318) | (15,403) | ||||||||||||
Provision (benefit) for income taxes |
(314) | (2,314) | (10,611) | (5,391) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
(584) | (4,297) | (19,707) | (10,012) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income (loss) |
(4,493) | 16,470 | (103,336) | 44,646 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) |
1,682 | 131,164 | 4,657 | 293,706 | ||||||||||||
Less: comprehensive income (loss) attributable to noncontrolling interest |
63 | 166 | (160) | 518 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) attributable to common shareholder |
$ | 1,619 | $ | 130,998 | $ | 4,817 | $ | 293,188 | ||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
3
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited)
For The Nine Months Ended September 30, 2013
(In thousands except share amounts)
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Total
Shareholders Equity |
Noncontrolling
Interest |
Total
Equity |
||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 |
500,000 | $ | 15,000 | $ | 2,341,599 | $ | 1,441,992 | $ | 67,967 | $ | 3,866,558 | $ | 9,146 | $ | 3,875,704 | |||||||||||||||||
Net income |
- | - | - | 108,153 | - | 108,153 | (160) | 107,993 | ||||||||||||||||||||||||
Other comprehensive income (loss) |
- | - | - | - | (103,336) | (103,336) | - | (103,336) | ||||||||||||||||||||||||
Share-based compensation, net of tax of $113 |
- | - | (113) | - | - | (113) | - | (113) | ||||||||||||||||||||||||
Distributions to noncontrolling interest |
- | - | - | - | - | - | (994) | (994) | ||||||||||||||||||||||||
Contributions by noncontrolling interest |
- | - | - | - | - | - | 1,150 | 1,150 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, September 30, 2013 |
500,000 | $ | 15,000 | $ | 2,341,486 | $ | 1,550,145 | $ | (35,369) | $ | 3,871,262 | $ | 9,142 | $ | 3,880,404 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
4
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities: |
||||||||
Premiums, fees and reimbursements received |
$ | 13,560 | $ | 15,254 | ||||
Return of refunded premiums |
(3,038) | (17,711) | ||||||
Investment income received |
100,370 | 123,683 | ||||||
Financial guarantee losses and loss adjustment expenses paid |
(133,969) | (101,948) | ||||||
Proceeds from recoveries and reinsurance |
84,784 | 7,185 | ||||||
Operating and employee related expenses paid |
(73,624) | (129,701) | ||||||
Income taxes (paid) received |
(97,383) | (106,195) | ||||||
|
|
|
|
|||||
Net cash provided (used) by operating activities |
(109,300) | (209,433) | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Purchase of fixed-maturity securities |
(1,516,881) | (777,518) | ||||||
Sale and redemption of fixed-maturity securities |
1,115,852 | 1,061,082 | ||||||
Repayment (issuance) of secured loan to an affiliate |
1,595,620 | (443,000) | ||||||
Sale (purchase) of short-term investments, net |
(839,187) | 293,431 | ||||||
Sale (purchase) of other investments, net |
5,440 | 1,776 | ||||||
Capital expenditures |
(717) | (3,610) | ||||||
|
|
|
|
|||||
Net cash provided (used) by investing activities |
360,127 | 132,161 | ||||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Contributions by noncontrolling interest |
1,150 | - | ||||||
Distributions to noncontrolling interest |
(994) | (1,730) | ||||||
|
|
|
|
|||||
Net cash provided (used) by financing activities |
156 | (1,730) | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
250,983 | (79,002) | ||||||
Cash and cash equivalents - beginning of period |
265,409 | 137,170 | ||||||
|
|
|
|
|||||
Cash and cash equivalents - end of period |
$ | 516,392 | $ | 58,168 | ||||
|
|
|
|
|||||
Reconciliation of net income to net cash provided (used) by operating activities: |
||||||||
Net income |
$ | 107,993 | $ | 249,060 | ||||
Adjustments to reconcile net income to net cash provided (used) by operating activities: |
||||||||
Change in: |
||||||||
Accrued investment income |
(34,513) | (69,497) | ||||||
Premiums receivable |
13,003 | 17,330 | ||||||
Deferred acquisition costs |
56,755 | 76,792 | ||||||
Unearned premium revenue |
(283,081) | (380,769) | ||||||
Loss and loss adjustment expense reserves |
(58,581) | (38) | ||||||
Insurance loss recoverable |
114,514 | (79,583) | ||||||
Payable to affiliates |
(2,480) | (4,859) | ||||||
Accrued expenses |
(476) | 5,611 | ||||||
Current income taxes |
23,966 | 23,716 | ||||||
Amortization (accretion) of bond premiums (discounts), net |
14,411 | 15,780 | ||||||
Depreciation |
2,755 | 2,632 | ||||||
Other net realized (gains) losses |
29,331 | - | ||||||
Unrealized (gains) losses on insured derivatives |
19 | (50) | ||||||
Net (gains) losses on financial instruments at fair value and foreign exchange |
(29,151) | (43,445) | ||||||
Deferred income tax provision (benefit) |
(70,588) | (27,194) | ||||||
Other operating |
6,823 | 5,081 | ||||||
|
|
|
|
|||||
Total adjustments to net income |
(217,293) | (458,493) | ||||||
|
|
|
|
|||||
Net cash provided (used) by operating activities |
$ | (109,300) | $ | (209,433) | ||||
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
5
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties
Summary
National Public Finance Guarantee Corporation is a wholly-owned subsidiary of MBIA Inc. through an intermediary holding company, National Public Finance Guarantee Holdings, Inc. National Public Finance Guarantee Corporation and its subsidiaries are referred to as National. National Real Estate Holdings of Armonk, LLC is a wholly-owned subsidiary of National.
Through its reinsurance of United States (U.S.) public finance financial guarantees from MBIA Insurance Corporation and transfers by novation of all policies under a reinsurance agreement with Financial Guaranty Insurance Company (FGIC) as discussed below, Nationals insurance portfolio consists of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. Municipal bonds and privately issued bonds used for the financing of public purpose projects generally are supported by taxes, assessments, user fees or tariffs related to the use of these projects, by lease payments or by other similar types of revenue streams.
Business Developments and Risks and Uncertainties
As of September 30, 2013, National was rated A with a stable outlook by Standard & Poors Financial Services LLC and Baa1 with a positive outlook by Moodys Investors Service, Inc. In addition, National is considering seeking ratings from additional rating agencies.
In May of 2013, MBIA Inc., together with its subsidiaries MBIA Insurance Corporation and National, entered into a comprehensive settlement agreement and related agreements (the BofA Settlement Agreement) with Bank of America Corporation and certain of its subsidiaries (collectively, Bank of America). Additionally, in May of 2013, MBIA Inc., together with its subsidiaries, MBIA Insurance Corporation and National, entered into a settlement agreement with Societe Generale. As a result of the BofA Settlement Agreement, the repayment of MBIA Insurance Corporations secured loan from National and recent credit ratings upgrades, National is currently evaluating strategies for such re-entry into the U.S. public finance market. Subsequent to the BofA Settlement Agreement and the Societe Generale settlement, all litigation brought originally by the group of eighteen domestic and international financial institutions, relating to the establishment of National, has been resolved.
Subsequent to September 30, 2013, National declared and paid a dividend of $214 million to its ultimate parent, MBIA Inc.
In August of 2013, the novation agreement between FGIC and National, whereby FGIC transfers, by novation, to National all the rights and liabilities under each of the policies covered under a reinsurance agreement with FGIC, became effective. This novation agreement included covered policies that previously benefited from the reinsurance agreement and second-to-pay policies entered into by MBIA Insurance Corporation in 2008 that were subsequently assigned to and reinsured by National in 2009. As a result of this novation, National is now the primary insurer under these policies.
In order to better position MBIA Inc. for future business opportunities, in the third quarter of 2013, MBIA Inc. initiated cost reduction measures, one of which focused on head office occupancy costs. As a result of the potential sale of the office used in its operations, National recorded an impairment charge of $29 million on its Armonk, New York facility. The carrying value of the facility was adjusted to its fair market value, which was determined based on an independent third-party appraisal of the facility. This impairment charge is reported within Other net realized gains (losses) on Nationals consolidated statements of operations.
National maintains simultaneous repurchase and reverse repurchase agreements (Asset Swap) with MBIA Inc. The Asset Swap provides MBIA Inc. with eligible assets to pledge under investment agreements and derivative contracts in MBIA Inc.s asset/liability products business. As of September 30, 2013, the notional amount utilized under each of these agreements was $444 million and the fair value of collateral pledged by National and MBIA Inc. under these agreements was $470 million and $475 million, respectively. The net average interest rate on these transactions was 0.23% and 0.56% for the nine months ended September 30, 2013 and 2012, respectively. The New York State Department of Financial Services (NYSDFS) approved the Asset Swap in connection with the re-domestication of National to New York. National has committed to the NYSDFS to use commercially reasonable efforts to reduce the amount of the Asset Swap over time.
6
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
Extreme financial and budgetary stress in certain local governments has increased the risk of losses within Nationals insured portfolio. Refer to Note 4: Loss and Loss Adjustment Expense Reserves for information about Nationals insured losses. Nationals claim paying resources are supported by its investment portfolio, which primarily consists of fixed-maturity securities. Fixed-maturity securities are subject to a number of risks, including interest rate risk and default risk, among others. National manages these risks by maintaining a diversification across issuers and maturities of investments. Refer to Note 6: Investments for information about Nationals investment portfolio.
Note 2: Significant Accounting Policies
National has disclosed its significant accounting policies in Note 2: Significant Accounting Policies in the Notes to Consolidated Financial Statements included in Exhibit 99.1 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012. The following significant accounting policies provide an update to those included under the same captions in Exhibit 99.1 to MBIA Inc.s Annual Report on Form 10-K.
Basis of Presentation
The accompanying unaudited consolidated financial statements include the accounts of National and its wholly-owned subsidiaries and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual periods. These statements should be read in conjunction with Nationals consolidated financial statements and notes thereto included in Exhibit 99.1 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of Nationals consolidated financial position and results of operations.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results.
The results of operations for the three and nine months ended September 30, 2013 may not be indicative of the results that may be expected for the year ending December 31, 2013. The December 31, 2012 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. Certain amounts in prior years financial statements have been reclassified to conform to the current presentation. Such reclassifications had no impact on total revenues, expenses, assets, liabilities, or shareholders equity for all periods presented.
Subsequent Events
National evaluated all subsequent events as of November 12, 2013, the date of issuance of the consolidated financial statements, for inclusion in Nationals consolidated financial statements and/or accompanying notes.
Note 3: Recent Accounting Pronouncements
Recently Adopted Accounting Standards
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02)
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220)Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income that requires an entity to present information about the amounts reclassified out of accumulated other comprehensive income (AOCI) by component and to present significant amounts reclassified out of AOCI by the respective line items of net income. The amendment only affects Nationals disclosures and does not affect Nationals consolidated balance sheets, results of operations, or cash flows. National adopted this standard in the first quarter of 2013.
Refer to the Notes to Consolidated Financial Statements of National included in Exhibit 99.1 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 for further information regarding the effects of recently adopted accounting standards on prior year financial statements.
7
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Loss and Loss Adjustment Expense Reserves
U.S. public finance insured transactions consist of municipal bonds, including tax-exempt and taxable indebtedness of U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, student loan issuers, housing authorities and other similar agencies and obligations issued by private entities that finance projects that serve a substantial public purpose. National estimates future losses by utilizing probability-weighted scenarios that are customized to each insured transaction. Future loss estimates consider debt service due for each insured transaction, which includes par outstanding and interest due.
Certain local governments remain under extreme financial and budgetary stress and several have filed for protection under the United States Bankruptcy Code, or have entered into state statutory proceedings established to assist municipalities in managing through periods of severe fiscal stress. This could lead to an increase in defaults by such entities on the payment of their obligations and losses or impairments on a greater number of Nationals insured transactions. National monitors and analyzes these situations closely; however, the overall extent and duration of such events are uncertain.
National has exposure to the Commonwealth of Puerto Rico and certain governmental issuers in the territory. The Commonwealth is experiencing fiscal stress; however, it has taken proactive actions to address its significant economic challenges. National continues to monitor the situation closely, but does not expect a default by Puerto Rico.
As of September 30, 2013, National had $131.5 billion of gross par outstanding on general obligations, of which $251 million was reflected on Nationals Classified List. Capital appreciation bonds are reported at the par amount at the time of issuance of the insurance policy.
For the nine months ended September 30, 2013, National recognized $105 million of loss and loss adjustment expense (LAE) primarily related to certain general obligation bonds and the loss related to the difference in the value of the salvage receivable recorded and the fair market value of the marketable securities received in connection with the restructuring of a gaming revenue transaction.
Refer to Note 5: Loss and Loss Adjustment Expense Reserves in the Notes to Consolidated Financial Statements included in Exhibit 99.1 to MBIA Inc.s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 for information about Nationals monitoring of outstanding insured obligations and for additional information about its loss reserving process.
The following table provides information about the financial guarantees and related claim liability included in each of Nationals surveillance categories as of September 30, 2013:
Surveillance Categories | ||||||||||||||||||||
$ in millions |
Caution List
Low |
Caution List
Medium |
Caution List
High |
Classified
List |
Total | |||||||||||||||
Number of policies |
66 | 2 | 6 | 39 | 113 | |||||||||||||||
Number of issues (1) |
16 | 2 | 5 | 15 | 38 | |||||||||||||||
Remaining weighted average contract period (in years) |
13.2 | 2.6 | 9.6 | 13.4 | 13.1 | |||||||||||||||
Gross insured contractual payments outstanding: (2) |
||||||||||||||||||||
Principal |
$ | 3,174 | $ | 9 | $ | 65 | $ | 820 | $ | 4,068 | ||||||||||
Interest |
2,741 | 2 | 32 | 998 | 3,773 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 5,915 | $ | 11 | $ | 97 | $ | 1,818 | $ | 7,841 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross claim liability |
$ | - | $ | - | $ | - | $ | 249 | $ | 249 | ||||||||||
Less: |
||||||||||||||||||||
Gross potential recoveries |
- | - | - | 209 | 209 | |||||||||||||||
Discount, net |
- | - | - | (14) | (14) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net claim liability (recoverable) |
$ | - | $ | - | $ | - | $ | 54 | $ | 54 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unearned premium revenue |
$ | 25 | $ | - | $ | - | $ | 16 | $ | 41 |
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by National. |
8
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Loss and Loss Adjustment Expense Reserves (continued)
The following table provides information about the financial guarantees and related claim liability included in each of Nationals surveillance categories as of December 31, 2012:
Surveillance Categories | ||||||||||||||||||||
$ in millions |
Caution List
Low |
Caution List
Medium |
Caution List
High |
Classified
List |
Total | |||||||||||||||
Number of policies |
20 | 9 | 7 | 48 | 84 | |||||||||||||||
Number of issues (1) |
9 | 4 | 7 | 18 | 38 | |||||||||||||||
Remaining weighted average contract period (in years) |
11.1 | 7.4 | 12.8 | 13.1 | 11.7 | |||||||||||||||
Gross insured contractual payments outstanding: (2) |
||||||||||||||||||||
Principal |
$ | 817 | $ | 190 | $ | 122 | $ | 843 | $ | 1,972 | ||||||||||
Interest |
1,161 | 88 | 80 | 999 | 2,328 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 1,978 | $ | 278 | $ | 202 | $ | 1,842 | $ | 4,300 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross claim liability |
$ | - | $ | - | $ | - | $ | 310 | $ | 310 | ||||||||||
Less: |
||||||||||||||||||||
Gross potential recoveries |
- | - | - | 387 | 387 | |||||||||||||||
Discount, net |
- | - | - | (6) | (6) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net claim liability (recoverable) |
$ | - | $ | - | $ | - | $ | (71) | $ | (71) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unearned premium revenue |
$ | 12 | $ | 4 | $ | 2 | $ | 18 | $ | 36 |
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by National. |
Nationals potential recoveries are typically based on either salvage rights, the rights conferred to National through the transactional documents (inclusive of the insurance agreement), or subrogation rights embedded within financial guarantee insurance policies. Expected salvage and subrogation recoveries, as well as recoveries from other remediation efforts, reduce Nationals claim liability. Once a claim payment has been made, the claim liability has been satisfied and Nationals right to recovery is no longer considered an offset to future expected claim payments, it is recorded as a salvage asset. The amount of recoveries recorded by National is limited to paid claims plus the present value of projected future claim payments. As claim payments are made, the recorded amount of potential recoveries may exceed the remaining amount of claim liability for a given policy.
While National believes it will be successful in realizing recoveries from contractual claims, the ultimate amounts recovered may be materially different from those recorded by National given the inherent uncertainty in the manner of resolving the claims (e.g. litigation) and the assumptions used in the required estimation process for accounting purposes which are based, in part, on judgments and other information that are not easily corroborated by historical data or other relevant benchmarks.
The following table presents the components of Nationals loss and LAE reserves and insurance loss recoverable as reported on Nationals consolidated balance sheets as of September 30, 2013 and December 31, 2012 for insured obligations within Nationals Classified List. The loss reserves (claim liability) and insurance claim loss recoverable included in the following table represent the present value of the probability-weighted future claim payments and recoveries reported in the preceding tables.
In millions |
As of September 30,
2013 |
As of December 31,
2012 |
||||||
Loss reserves (claim liability) |
$ | 67 | $ | 143 | ||||
LAE reserves |
26 | 9 | ||||||
|
|
|
|
|||||
Loss and LAE reserves |
$ | 93 | $ | 152 | ||||
|
|
|
|
|||||
Insurance claim loss recoverable |
$ | (15) | $ | (216) | ||||
LAE insurance loss recoverable |
(2) | (33) | ||||||
|
|
|
|
|||||
Insurance loss recoverable |
$ | (17) | $ | (249) | ||||
|
|
|
|
9
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Loss and Loss Adjustment Expense Reserves (continued)
The following table presents changes in Nationals loss and LAE reserves for the nine months ended September 30, 2013. Changes in the loss and LAE reserves attributable to the accretion of the claim liability discount, changes in discount rates, changes in the timing and amounts of estimated payments and recoveries, changes in assumptions and changes in LAE reserves are recorded in Losses and loss adjustment expenses in Nationals consolidated statements of operations. LAE reserves are expected to be settled within a one-year period and are not discounted. The weighted average risk-free rate used to discount the claim liability was 2.48% as of September 30, 2013.
In millions |
Changes in Loss and LAE Reserves for Nine Months Ended September 30, 2013 |
|||||||||||||||||||||||||||||||
Gross Loss
and LAE Reserve as of December 31, 2012 |
Loss Payments
with Reserves |
Accretion of
Claim Liability Discount |
Changes in
Discount Rates |
Changes in
Assumptions |
Changes in
Unearned Premium Revenue |
Changes in
LAE Reserves |
Other (1) |
Gross Loss
and LAE Reserve as of September 30, 2013 |
||||||||||||||||||||||||
$ | 152 | $ (120) | $ | 1 | $ | - | $ | 45 | $ | - | $ | 17 | $ | (2) | $ | 93 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Primarily changes in amount and timing of payments. |
The decrease in case reserves for the nine months ended September 30, 2013 primarily related to the change in loss payments for cases with reserves, partially offset by changes in assumptions due to an increase in reserves associated with certain general obligation bond exposures.
The following table presents changes in Nationals insurance loss recoverable for the nine months ended September 30, 2013. Changes in the insurance loss recoverable attributable to the accretion of the discount on the recoverable, changes in discount rates, changes in the timing and amounts of estimated collections, changes in assumptions and changes in LAE recoverable are recorded in Losses and loss adjustment expenses in Nationals consolidated statements of operations.
In millions |
Changes in Insurance Loss Recoverable for the Nine Months Ended September 30, 2013 |
|||||||||||||||||||||||||
Insurance Loss
Recoverable as of December 31, 2012 |
Collections for Cases
with
|
Accretion of
Insurance Loss Recoverable |
Changes in
Discount Rates |
Changes in
Assumptions |
Changes in
LAE Recoverable |
Other (1) |
Insurance Loss
Recoverable as of September 30, 2013 |
|||||||||||||||||||
$ | 249 | $ (170) | $ | - | $ | (1) | $ | (46) | $ | (32) | $ 17 | $ | 17 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Primarily changes in amount and timing of collections. |
The decrease in insurance loss recoverable for the nine months ended September 30, 2013 primarily related to the receipt of salvage in the form of investment notes related to a gaming revenue transaction, which resulted in transferring the recoverable to an investment asset.
Remediation actions may involve, among other things, waivers or renegotiations of financial covenants or triggers, waivers of contractual provisions, the granting of consents, transfer of servicing, consideration of restructuring plans, acceleration, security or collateral enforcement, actions in bankruptcy or receivership, litigation and similar actions. The types of remedial actions pursued are based on the insured obligations risk type and the nature and scope of the event giving rise to the remediation. As part of any such remedial actions, National seeks to improve its security position and to obtain concessions from the issuer of the insured obligation. From time to time, the issuer of a National-insured obligation may, with the consent of National, restructure the insured obligation by extending the term, increasing or decreasing the par amount or decreasing the related interest rate, with National insuring the restructured obligation.
10
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Loss and Loss Adjustment Expense Reserves (continued)
Costs associated with remediating insured obligations assigned to Nationals Caution ListLow, Caution ListMedium, Caution ListHigh and Classified List are recorded as LAE. LAE is primarily recorded as part of Nationals provision for its loss reserves and included in Losses and loss adjustment expense on Nationals consolidated statements of operations. The following table presents the gross expenses related to remedial actions for insured obligations:
Nine Months Ended September 30, | ||||||||
In millions |
2013 | 2012 | ||||||
LAE incurred, gross |
$ | 24 | $ | 10 |
Note 5: Fair Value of Financial Instruments
Fair value is a market-based measure considered from the perspective of a market participant. Therefore, even when market assumptions are not readily available, Nationals own assumptions are set to reflect those which it believes market participants would use in pricing an asset or liability at the measurement date. The fair value measurements of financial instruments held or issued by National are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, National uses alternate valuation methods, including either dealer quotes for similar instruments or modeling using market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions, and changes to such estimates and assumptions may produce materially different fair values.
The accounting guidance for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those National believes that market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect Nationals beliefs about the assumptions market participants would use in pricing an asset or liability based on the best information available. The fair value hierarchy is broken down into three levels based on the observability and reliability of inputs, as follows:
|
Level 1Valuations based on quoted prices in active markets for identical assets or liabilities that National can access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail any degree of judgment. |
|
Level 2Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. |
|
Level 3Valuations based on inputs that are unobservable and supported by little or no market activity and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
The availability of observable inputs can vary from product to product and period to period and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the product. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, National assigns the level in the fair value hierarchy for which the fair value measurement in its entirety falls, based on the least observable input that is significant to the fair value measurement.
11
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
Financial Instruments
Financial instruments held by National primarily consist of investments in debt securities. Substantially all of Nationals investments are priced by independent third parties, including pricing services and brokers. Typically National receives one pricing service value or broker quote for each instrument, which represents a non-binding indication of value. National reviews the assumptions, inputs and methodologies used by pricing services to obtain reasonable assurance that the prices used in its valuations reflect fair value. When National believes a third-party quotation differs significantly from its internally developed expectation of fair value, whether higher or lower, National reviews its data or assumptions with the provider. This review includes comparing significant assumptions such as prepayment speeds, default ratios, forward yield curves, credit spreads and other significant quantitative inputs to internal assumptions, and working with the price provider to reconcile the differences. The price provider may subsequently provide an updated price. In the event that the price provider does not update their price, and National still does not agree with the price provided, National will try to obtain a price from another third-party provider, such as a broker, or use an internally developed price which it believes represents the fair value of the investment. The fair values of investments for which internal prices were used were not significant to the aggregate fair value of Nationals investment portfolio as of September 30, 2013 or December 31, 2012. All challenges to third-party prices are reviewed by the staff of National with relevant expertise to ensure reasonableness of assumptions.
In addition to challenging pricing assumptions, National obtains reports from the independent accountants for significant third-party pricing services attesting to the effectiveness of the controls over data provided to National. These reports are obtained annually and are reviewed by National to ensure key controls are applied by the pricing services, and that appropriate user controls are in place at the third-party pricing services organization to ensure proper measurement of the fair values of its investments. In the event that any controls in these reports are deemed as ineffective by independent accountants, National will take the necessary actions to ensure that internal user controls are in place to mitigate the control risks. No deficiencies were noted for significant third-party pricing services used.
Internal Review Process
All significant financial instruments are reviewed by committees created by National to ensure compliance with Nationals policies and risk procedures in the development of fair values of financial assets and liabilities. These valuation committees review, among other things, key assumptions used for internally developed prices, significant changes in sources and uses of inputs, including changes in model approaches, and any adjustments from third-party inputs or prices to internally developed inputs or prices. The committees also review any significant impairment or improvements in fair values of the financial instruments from prior periods. From time to time, these committees will reach out to Nationals valuation experts to better understand key methods and assumptions used for the determination of fair value, including understanding significant changes in fair values. These committees are comprised of senior finance team members with the relevant experience in the financial instruments their committee is responsible for. Each quarter, these committees document their agreement with the fair values developed by management of National as reported in the quarterly and annual financial statements.
Valuation Techniques
Valuation techniques for financial instruments measured at fair value or disclosed at fair value are described below.
Fixed-Maturity Securities (and Short-Term Investments) Held as Available-For-Sale, Investments Carried at Fair Value, Investments Pledged as Collateral, and Other Investments
Fixed-maturity securities (and short-term investments) held as available-for-sale (AFS), investments carried at fair value, investments pledged as collateral, and other investments include investments in U.S. Treasury and government agencies, foreign governments, corporate obligations, mortgage-backed securities and asset-backed securities (ABS) (including commercial mortgage-backed securities and collateralized debt obligations (CDOs)), state and municipal bonds and other investments (including perpetual debt securities, loans receivables and money market mutual funds).
These investments are generally valued based on recently executed transaction prices or quoted market prices. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, credit default swap (CDS) spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections and the value of any credit enhancement.
12
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and government agency and money market securities. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3.
Cash and Cash Equivalents, Receivable for Investments Sold, Accrued Investment Income and Payable for Investments Purchased
The carrying amounts of cash and cash equivalents, receivable for investments sold, accrued investment income and payable for investments purchased approximate their fair values due to the short-term nature and credit worthiness of these instruments.
Securities Purchased Under Agreements to Resell
The fair values of securities purchased under agreements to resell are determined based on the underlying securities posted as collateral for the resell agreements.
Secured Loan to an Affiliate
The fair value of the secured loan as of December 31, 2012, that was repaid in the second quarter of 2013, was determined using the net present value of expected cash flows from the loan. The discount rate is the yield to maturity of a comparable corporate bond index.
Securities Sold Under Agreements to Repurchase
The fair values of securities sold under agreements to repurchase are determined based on the underlying securities posted as collateral for the repurchase agreements.
Derivative Liabilities
Derivative liabilities are valued using market-based inputs, including interest rate yield curves, foreign exchange rates, and credit spreads. Derivative liabilities are classified as Level 2 within the fair value hierarchy.
Financial Guarantees
Gross Financial GuaranteesThe fair value of gross financial guarantees is determined using discounted cash flow techniques based on inputs that include (i) assumptions of expected losses on financial guarantee policies where loss reserves have not been recognized, (ii) amount of losses expected on financial guarantee policies where loss reserves have been established, net of expected recoveries, (iii) the cost of capital reserves required to support the financial guarantee liability, (iv) operating expenses, and (v) discount rates. The CDS spread and recovery rates of a similar municipal bond insurance company are used as the discount rate for National, as National does not have a published CDS spread and recovery rate.
The carrying value of Nationals gross financial guarantees consists of unearned premium revenue and loss and LAE reserves, net of the insurance loss recoverable as reported on Nationals consolidated balance sheets.
Ceded Financial GuaranteesThe fair value of ceded financial guarantees is determined by applying the percentage ceded to reinsurers to the related fair value of the gross financial guarantees. The carrying value of ceded financial guarantees consists of prepaid reinsurance premiums as reported within Other assets on Nationals consolidated balance sheets.
13
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
Fair Value Measurements
The following tables present the fair value of Nationals assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2013 and December 31, 2012:
Fair Value Measurements at Reporting Date Using |
Balance as of
September 30, 2013 |
|||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||
Assets: |
||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 260 | $ | 53 | $ | - | $ | 313 | ||||||||
State and municipal bonds |
- | 1,299 | 17 | (1) | 1,316 | |||||||||||
Foreign governments |
- | 18 | - | 18 | ||||||||||||
Corporate obligations |
- | 1,417 | 1 | (1) | 1,418 | |||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
- | 901 | 17 | (1) | 918 | |||||||||||
Residential mortgage-backed non-agency |
- | 19 | - | 19 | ||||||||||||
Commercial mortgage-backed |
- | 22 | 3 | (1) | 25 | |||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
- | 5 | 13 | (1) | 18 | |||||||||||
Other asset-backed |
- | 73 | 7 | (1) | 80 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
260 | 3,807 | 58 | 4,125 | ||||||||||||
Money market securities |
596 | - | - | 596 | ||||||||||||
Perpetual debt securities |
3 | 6 | - | 9 | ||||||||||||
Cash and cash equivalents |
516 | - | - | 516 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 1,375 | $ | 3,813 | $ | 58 | $ | 5,246 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities |
$ | - | $ | 7 | $ | - | $ | 7 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | - | $ | 7 | $ | - | $ | 7 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Unobservable inputs are either not developed by National or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
14
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using |
Balance as of
December 31, 2012 |
|||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||
Assets: |
||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 340 | $ | 4 | $ | - | $ | 344 | ||||||||
State and municipal bonds |
- | 1,183 | 33 | (1) | 1,216 | |||||||||||
Foreign governments |
- | 1 | - | 1 | ||||||||||||
Corporate obligations |
- | 573 | 1 | (1) | 574 | |||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
- | 936 | - | 936 | ||||||||||||
Residential mortgage-backed non-agency |
- | 19 | 1 | (1) | 20 | |||||||||||
Commercial mortgage-backed |
- | 20 | 1 | (1) | 21 | |||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
- | 11 | 6 | (1) | 17 | |||||||||||
Other asset-backed |
- | 61 | 4 | (1) | 65 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturity investments |
340 | 2,808 | 46 | 3,194 | ||||||||||||
Money market securities |
98 | - | - | 98 | ||||||||||||
Perpetual debt securities |
2 | 5 | 2 | (1) | 9 | |||||||||||
Cash and cash equivalents |
265 | - | - | 265 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 705 | $ | 2,813 | $ | 48 | $ | 3,566 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities |
$ | - | $ | 7 | $ | - | $ | 7 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | - | $ | 7 | $ | - | $ | 7 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Unobservable inputs are either not developed by National or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
Level 3 Analysis
Level 3 assets at fair value were $58 million and $48 million as of September 30, 2013 and December 31, 2012, respectively, and represented 1.1% and 1.3%, respectively, of total assets measured at fair value.
15
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
The following tables present the fair values and carrying values of Nationals assets and liabilities that are disclosed at fair value but not reported at fair value on Nationals consolidated balance sheets as of September 30, 2013 and December 31, 2012:
Fair Value Measurements at Reporting Date Using |
Fair Value
Balance as of September 30, 2013 |
Carry Value
Balance as of September 30, 2013 |
||||||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||||||
Assets: |
||||||||||||||||||||
Securities purchased under agreements to resell |
$ | - | $ | - | $ | 475 | $ | 475 | $ | 444 | ||||||||||
Receivable for investments sold |
6 | - | - | 6 | 6 | |||||||||||||||
Accrued investment income |
31 | - | - | 31 | 31 | |||||||||||||||
Other investments |
- | - | 5 | 5 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 37 | $ | - | $ | 480 | $ | 517 | $ | 486 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Securities sold under agreements to repurchase |
$ | - | $ | 470 | $ | - | $ | 470 | $ | 444 | ||||||||||
Payable for investments purchased |
144 | - | - | 144 | 144 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | 144 | $ | 470 | $ | - | $ | 614 | $ | 588 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross |
$ | - | $ | - | $ | 1,822 | $ | 1,822 | $ | 1,721 | ||||||||||
Ceded |
- | - | 43 | 43 | - |
Fair Value Measurements at Reporting Date Using |
Fair Value
Balance as of December 31, 2012 |
Carry Value
Balance as of December 31, 2012 |
||||||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
|||||||||||||||||
Assets: |
||||||||||||||||||||
Securities purchased under agreements to resell |
$ | - | $ | - | $ | 529 | $ | 529 | $ | 481 | ||||||||||
Secured loan to an affiliate |
- | 1,685 | - | 1,685 | 1,651 | |||||||||||||||
Receivable for investments sold |
16 | - | - | 16 | 16 | |||||||||||||||
Accrued investment income |
25 | 29 | - | 54 | 54 | |||||||||||||||
Other investments |
- | - | 9 | 9 | 9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 41 | $ | 1,714 | $ | 538 | $ | 2,293 | $ | 2,211 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Securities sold under agreements to repurchase |
$ | - | $ | 502 | $ | - | $ | 502 | $ | 481 | ||||||||||
Payable for investments purchased |
50 | - | - | 50 | 50 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | 50 | $ | 502 | $ | - | $ | 552 | $ | 531 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross |
$ | - | $ | - | $ | 2,186 | $ | 2,186 | $ | 1,831 | ||||||||||
Ceded |
- | - | 77 | 77 | - |
16
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
The following tables present information about changes in Level 3 assets (including short-term investments) measured at fair value on a recurring basis for the three months ended September 30, 2013 and 2012:
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal bonds |
$ | 18 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (1) | $ | - | $ | - | $ | - | $ | 17 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
- | - | - | - | - | - | - | - | - | 1 | - | 1 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
3 | - | - | - | - | - | - | - | - | 17 | (3) | 17 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
1 | - | - | - | - | - | - | - | - | - | (1) | - | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
1 | - | - | - | - | - | - | - | - | 2 | - | 3 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
8 | - | - | - | - | - | - | - | - | 6 | (1) | 13 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
7 | - | - | - | - | - | - | (2) | - | 3 | (1) | 7 | - | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 38 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (3) | $ | - | $ | 29 | $ | (6) | $ | 58 | $ | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
$ | 1 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 9 | $ | - | $ | 10 | $ | - | ||||||||||||||||||||||||||
State and municipal bonds |
25 | - | - | - | - | - | - | (2) | - | - | - | 23 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
4 | - | - | (1) | - | - | - | - | - | - | (3) | - | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
4 | - | - | - | - | - | - | - | (1) | 1 | (1) | 3 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
1 | - | - | - | - | 1 | - | - | - | 1 | - | 3 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
4 | - | - | - | - | - | - | - | - | 1 | (1) | 4 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
5 | - | - | - | - | 2 | - | - | - | 4 | - | 11 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt securities |
2 | - | - | - | - | - | - | - | - | - | - | 2 | - | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 46 | $ | - | $ | - | $ | (1) | $ | - | $ | 3 | $ | - | $ | (2) | $ | (1) | $ | 16 | $ | (5) | $ | 56 | $ | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
17
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
Transfers into and out of Level 3 were $29 million and $6 million, respectively, for the three months ended September 30, 2013. Transfers into and out of Level 2 were $6 million and $29 million, respectively, for the three months ended September 30, 2013. Transfers into Level 3 were principally related to RMBS agency, CDOs and other ABS securities where inputs, which are significant to their valuation, became unobservable during the quarter. Transfers out of Level 3 were principally for RMBS agency, RMBS non-agency, CDOs and other ABS securities where inputs, which are significant to their valuation, became observable during the quarter. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs.
Transfers into and out of Level 3 were $16 million and $5 million, respectively, for the three months ended September 30, 2012. Transfers into and out of Level 2 were $5 million and $16 million, respectively, for the three months ended September 30, 2012. Transfers into Level 3 were principally related to corporate obligations and other asset backed securities where inputs, which are significant to their valuation, became unobservable during the quarter. Transfers out of Level 3 were principally for RMBS agency securities where inputs, which are significant to their valuation, became observable during the year. These inputs include spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs.
There were no transfers into or out of Level 1 during the three months ended September 30, 2013 and 2012. All fair value hierarchy designations are made at the end of each accounting period.
There were no changes and no balances in Level 3 liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013 and 2012.
The following tables present information about changes in Level 3 assets (including short-term investments) measured at fair value on a recurring basis for the nine months ended September 30, 2013 and 2012.
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2013
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
State and municipal bonds |
$ | 33 | $ | 2 | $ | - | $ | (1) | $ | - | $ | - | $ | - | $ | (4) | $ | (13) | $ | - | $ | - | $ | 17 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
1 | - | - | - | - | - | - | (1) | - | 1 | - | 1 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
- | - | - | - | - | - | - | - | - | 20 | (3) | 17 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
1 | - | - | - | - | - | - | - | - | - | (1) | - | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
1 | - | - | - | - | - | - | - | - | 3 | (1) | 3 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
6 | - | - | - | - | - | - | (3) | - | 17 | (7) | 13 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
4 | - | - | - | - | 1 | - | (4) | - | 11 | (5) | 7 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt securities |
2 | - | - | - | - | - | - | - | - | - | (2) | - | - | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 48 | $ | 2 | $ | - | $ | (1) | $ | - | $ | 1 | $ | - | $ | (12) | $ | (13) | $ | 52 | $ | (19) | $ | 58 | $ | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
18
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Fair Value of Financial Instruments (continued)
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2012
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 10 | $ | - | $ | 10 | $ | - | ||||||||||||||||||||||||||
State and municipal bonds |
28 | - | - | - | - | - | - | (5) | - | - | - | 23 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed agency |
- | - | - | (1) | - | - | - | - | - | 4 | (3) | - | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
5 | - | - | - | - | - | - | - | (2) | 1 | (1) | 3 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
2 | - | - | - | - | 1 | - | - | - | 1 | (1) | 3 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
5 | - | - | - | - | - | - | - | (2) | 3 | (2) | 4 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
8 | - | - | - | - | 4 | - | - | - | 5 | (6) | 11 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt securities |
1 | - | - | 1 | - | - | - | - | - | 2 | (2) | 2 | - | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 49 | $ | - | $ | - | $ | - | $ | - | $ | 5 | $ | - | $ | (5) | $ | (4) | $ | 26 | $ | (15) | $ | 56 | $ | - | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
Transfers into and out of Level 3 were $52 million and $19 million, respectively, for the nine months ended September 30, 2013. Transfers into and out of Level 2 were $19 million and $52 million, respectively, for the nine months ended September 30, 2013. Transfers into Level 3 were principally for RMBS agency, CDOs and other ABS securities where inputs, which are significant to their valuation, became unobservable during the period. Transfers out of Level 3 were principally for CDOs, other ABS and RMBS agency securities, where inputs, which are significant to their valuation, became observable during the period. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs.
Transfers into and out of Level 3 were $26 million and $15 million, respectively, for the nine months ended September 30, 2012. Transfers into and out of Level 2 were $15 million and $26 million, respectively, for the nine months ended September 30, 2012. Transfers into Level 3 were principally for corporate obligations, other asset-backed securities, RMBS agency securities, CDOs and perpetual debt securities where inputs, which are significant to their valuation, became unobservable during the period. Transfers out of Level 3 were principally for other ABS, RMBS agency securities, CDOs and perpetual debt securities where inputs, which are significant to their valuation, became observable during the period. These inputs included spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs.
There were no transfers into or out of Level 1 during the nine months ended September 30, 2013 and 2012. All fair value hierarchy designations are made at the end of each accounting period.
There were no changes and no balances in Level 3 liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013 and 2012.
19
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Investments
Nationals AFS investments include debt and equity securities. Other invested assets designated as AFS are primarily comprised of money market funds.
The following tables present the amortized cost, fair value and corresponding gross unrealized gains and losses for AFS investments in Nationals investment portfolios as of September 30, 2013 and December 31, 2012:
September 30, 2013 | ||||||||||||||||
In millions |
Amortized
Cost |
Gross Unrealized
Gains |
Gross Unrealized
Losses |
Fair Value | ||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 295 | $ | 1 | $ | (7) | $ | 289 | ||||||||
State and municipal bonds |
1,345 | 15 | (47) | 1,313 | ||||||||||||
Foreign governments |
18 | - | - | 18 | ||||||||||||
Corporate obligations |
1,337 | 9 | (21) | 1,325 | ||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
899 | 10 | (18) | 891 | ||||||||||||
Residential mortgage-backed non-agency |
13 | 2 | - | 15 | ||||||||||||
Commercial mortgage-backed |
19 | 1 | (1) | 19 | ||||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
16 | - | - | 16 | ||||||||||||
Other asset-backed |
66 | 1 | - | 67 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
4,008 | 39 | (94) | 3,953 | ||||||||||||
Money market securities |
594 | - | - | 594 | ||||||||||||
Perpetual debt securities |
6 | - | - | 6 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total AFS investments |
$ | 4,608 | $ | 39 | $ | (94) | $ | 4,553 | ||||||||
|
|
|
|
|
|
|
|
December 31, 2012 | ||||||||||||||||
In millions |
Amortized
Cost |
Gross Unrealized
Gains |
Gross Unrealized
Losses |
Fair Value | ||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 318 | $ | 1 | $ | (1) | $ | 318 | ||||||||
State and municipal bonds |
1,142 | 74 | (1) | 1,215 | ||||||||||||
Foreign governments |
1 | - | - | 1 | ||||||||||||
Corporate obligations |
471 | 11 | (2) | 480 | ||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
888 | 17 | - | 905 | ||||||||||||
Residential mortgage-backed non-agency |
13 | 2 | - | 15 | ||||||||||||
Commercial mortgage-backed |
14 | 1 | - | 15 | ||||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
13 | - | - | 13 | ||||||||||||
Other asset-backed |
55 | 2 | - | 57 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
2,915 | 108 | (4) | 3,019 | ||||||||||||
Money market securities |
85 | - | - | 85 | ||||||||||||
Perpetual debt securities |
7 | - | - | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total AFS investments |
$ | 3,007 | $ | 108 | $ | (4) | $ | 3,111 | ||||||||
|
|
|
|
|
|
|
|
20
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Investments (continued)
The following table presents the distribution by contractual maturity of AFS fixed-maturity securities at amortized cost and fair value as of September 30, 2013. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.
In millions |
Amortized Cost | Fair Value | ||||||
Due in one year or less |
$ | 372 | $ | 373 | ||||
Due after one year through five years |
584 | 582 | ||||||
Due after five years through ten years |
735 | 716 | ||||||
Due after ten years |
1,304 | 1,274 | ||||||
Mortgage-backed and asset-backed |
1,013 | 1,008 | ||||||
|
|
|
|
|||||
Total fixed-maturity investments |
$ | 4,008 | $ | 3,953 | ||||
|
|
|
|
Deposited Securities
The fair value of securities on deposit with various regulatory authorities was $6 million as of September 30, 2013 and December 31, 2012. These deposits are required to comply with state insurance laws.
Impaired Investments
The following tables present the gross unrealized losses related to AFS investments as of September 30, 2013 and December 31, 2012:
September 30, 2013 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
In millions |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||
U.S. Treasury and government agency |
$ | 191 | $ | (7) | $ | 2 | $ | - | $ | 193 | $ | (7) | ||||||||||||
State and municipal bonds |
668 | (46) | 36 | (1) | 704 | (47) | ||||||||||||||||||
Foreign governments |
8 | - | - | - | 8 | - | ||||||||||||||||||
Corporate obligations |
582 | (21) | - | - | 582 | (21) | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed agency |
526 | (18) | 1 | - | 527 | (18) | ||||||||||||||||||
Residential mortgage-backed non-agency |
3 | - | - | - | 3 | - | ||||||||||||||||||
Commercial mortgage-backed |
8 | (1) | 1 | - | 9 | (1) | ||||||||||||||||||
Asset-backed securities: |
||||||||||||||||||||||||
Collateralized debt obligations |
4 | - | - | - | 4 | - | ||||||||||||||||||
Other asset-backed |
19 | - | - | - | 19 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
2,009 | (93) | 40 | (1) | 2,049 | (94) | ||||||||||||||||||
Perpetual debt securities |
2 | - | - | - | 2 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 2,011 | $ | (93) | $ | 40 | $ | (1) | $ | 2,051 | $ | (94) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
21
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Investments (continued)
December 31, 2012 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
In millions |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||
U.S. Treasury and government agency |
$ | 68 | $ | (1) | $ | - | $ | - | $ | 68 | $ | (1) | ||||||||||||
State and municipal bonds |
63 | - | 41 | (1) | 104 | (1) | ||||||||||||||||||
Corporate obligations |
189 | (2) | 3 | - | 192 | (2) | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed agency |
172 | - | - | - | 172 | - | ||||||||||||||||||
Residential mortgage-backed non-agency |
- | - | 2 | - | 2 | - | ||||||||||||||||||
Commercial mortgage-backed |
3 | - | - | - | 3 | - | ||||||||||||||||||
Asset-backed securities: |
||||||||||||||||||||||||
Collateralized debt obligations |
1 | - | 4 | - | 5 | - | ||||||||||||||||||
Other asset-backed |
4 | - | - | - | 4 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
500 | (3) | 50 | (1) | 550 | (4) | ||||||||||||||||||
Perpetual debt securities |
1 | - | 1 | - | 2 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 501 | $ | (3) | $ | 51 | $ | (1) | $ | 552 | $ | (4) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of September 30, 2013 and December 31, 2012 was 15 and 16 years, respectively. As of September 30, 2013 and December 31, 2012, there were 14 and 27 securities, respectively, that were in an unrealized loss position for a continuous twelve month period or longer, of which the fair values of 5 and 7 securities, respectively, were below book value by more than 5%.
National has evaluated on a security-by-security basis whether the unrealized losses in its investment portfolios were other-than-temporary considering the duration and severity of unrealized losses, the circumstances that gave rise to the unrealized losses, and whether National has the intent to sell the securities or more likely than not will be required to sell the securities before their anticipated recoveries. Based on its evaluation, National determined that the unrealized losses on these securities were temporary in nature because its impairment analysis, including projected discounted future cash flows, indicated that National would be able to recover the amortized cost of impaired assets. National also concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, National examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its business, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2013 that would require the sale of impaired securities. On a quarterly basis, National re-evaluates the unrealized losses in its investment portfolios to determine whether an impairment loss should be realized in current earnings based on adverse changes in its expectation of cash flows and changes in its intent to sell securities.
Sales of Available-For-Sale Investments
Gross realized gains and losses are recorded in Net gains (losses) on financial instruments at fair value and foreign exchange on Nationals consolidated statements of operations. The proceeds and gross realized gains and losses from sales of AFS investments for the three and nine months ended September 30, 2013 and 2012 were as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Proceeds from sales |
$ | 274 | $ | 309 | $ | 816 | $ | 1,622 | ||||||||
Gross realized gains |
$ | - | $ | 18 | $ | 35 | $ | 32 | ||||||||
Gross realized losses |
$ | (3) | $ | - | $ | (5) | $ | (1) |
22
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Income Taxes
Nationals income taxes and the related effective tax rates for the three and nine months ended September 30, 2013 and 2012 are as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Income (loss) before income taxes |
$ | 5 | $ | 160 | $ | 159 | $ | 352 | ||||||||||||||||||||||||
Provision (benefit) for income taxes |
$ | (1) | (20.0)% | $ | 46 | 28.8% | $ | 51 | 32.1% | $ | 103 | 29.3% |
For the nine months ended September 30, 2013 and 2012, Nationals effective tax rate was lower than the U.S. statutory rate of 35% primarily due to tax exempt interest, net of proration.
Accounting for Uncertainty in Income Taxes
As of September 30, 2013 and 2012, National did not have any uncertain tax positions and corresponding interest and/or penalties related to income taxes. National is a member of MBIA Inc.s consolidated U.S. tax group and its only income tax jurisdiction is the U.S. National also files premium and franchise taxes in various states.
Tax Sharing Arrangement
National files its U.S. Corporation Income Tax Return as a member of MBIA Inc.s consolidated group. National participates in a tax sharing agreement with MBIA Inc. under which it is allocated its share of consolidated tax liability or tax benefit, determined on a separate company basis. In the nine months ended September 30, 2013, National has, under the tax sharing agreement, made a tax payment to MBIA Inc. of $17 million which represented the initial payment of the additional tax liability for the tax year ended 2012. Further, National made additional tax payments to MBIA Inc. totaling $81 million which relate to the tax year ending 2013. Nationals payments are being placed in escrow by MBIA Inc. and will remain in escrow until the expiration of a two-year carryback period which would allow National to carryback a separate company tax loss and recover all or a portion of the escrowed funds. After the two year period, the escrow, to the extent not recovered upon carrying back a loss, is released to MBIA Inc. During the first half of 2013, $115 million was released from escrow.
Note 8: Accumulated Other Comprehensive Income
The following table presents the changes in the components of AOCI for the nine months ended September 30, 2013:
In millions |
Unrealized
Gains (Losses) on AFS Securities, Net (1) |
|||
Balance, January 1, 2013 |
$ | 68 | ||
Other comprehensive income before reclassifications |
(83) | |||
Amounts reclassified from AOCI |
(20) | |||
|
|
|||
Net current period other comprehensive income |
(103) | |||
|
|
|||
Balance, September 30, 2013 |
$ | (35) | ||
|
|
(1) - | All amounts are presented net of tax. Amounts in parentheses indicate debits. |
The following table presents the details of the reclassifications from AOCI for the nine months ended September 30, 2013:
In millions |
Amounts
Reclassified from AOCI |
Affected Line Item on the Consolidated Statements of Operations |
||||
Details about AOCI Components |
||||||
Reclassification adjustments on sale of securities |
$ | 30 | Net gains (losses) on financial instruments at fair value and foreign exchange | |||
10 | Provision (benefit) for income taxes | |||||
|
|
|||||
Total reclassifications for the period |
$ | 20 | Net income (loss) | |||
|
|
23
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 9: Commitments and Contingencies
The following commitments and contingencies provide an update of those discussed in Note 14: Commitments and Contingencies in the Notes to Consolidated Financial Statements included in Exhibit 99.1 of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 and should be read in conjunction with the complete descriptions provided in the aforementioned note included in Exhibit 99.1 of Form 10-K. In the normal course of operating its business, National may be involved in various legal proceedings. Additionally, MBIA Inc. together with its subsidiaries (MBIA) may be involved in various legal proceedings that directly or indirectly impact National.
Transformation Litigation
ABN AMRO Bank N.V. et al. v. Eric Dinallo et al.; Index no. 601846/09 (N.Y. Sup. Ct., N.Y. County)
On March 4, 2013, the court issued a decision dismissing the Article 78 proceeding. On April 2, 2013, the remaining plaintiffs filed a Notice of Appeal to the Appellate Division, First Department. In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims.
ABN AMRO Bank N.V. et al. v. MBIA Inc. et al.; Index No. 601475/2009 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims.
Barclays Bank PLC., et al. v. Wrynn et al.; Index No. 651811/2010 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims.
CQS ABS Master Fund Ltd., CQS Select ABS Master Fund Ltd., and CQS ABS Alpha Master Fund Ltd. v. MBIA Inc. et al .; Civil Action No. 12-cv-6840 (R.S.) (S.D.N.Y.)
On October 23, 2013, the plaintiffs filed a motion for a preliminary injunction seeking to prospectively enjoin National from issuing dividends during the pendency of the litigation. Although the motion referenced the dividend that National previously had disclosed it intended to pay in the fourth quarter of 2013, that dividend was paid prior to the filing of the motion and therefore is not subject to the relief requested by the motion. Refer to Note 1: Business Developments and Risks and Uncertainties for information regarding this dividend. National filed its reply to the motion on November 1, 2013, and believes it is not meritorious and should be denied. The court has adjourned oral argument on the motion to November 14, 2013. The court entered a revised Management Plan and Scheduling Order setting a fact discovery deadline of April 4, 2014.
Broadbill Partners LP, et al. v. MBIA Inc., et al. ; Index No. 653865/2012 (N.Y. Sup. Ct., N.Y. County)
On June 6, 2013, the plaintiffs voluntarily dismissed the litigation without prejudice. A Stipulation of Discontinuance was filed on June 7, 2013.
Corporate Litigation
Bank of America v. MBIA Inc. and The Bank of New York Mellon, as Indenture Trustee; Index No. 70444/2012 (N.Y. Sup. Ct., Westchester County)
In May of 2013, the parties reached an agreement to resolve their respective claims in this action.
MBIA Inc. v. Bank of America Corp. and Blue Ridge Investments, L.L.C.; Index No. 51664/2013 (N.Y. Sup. Ct., Westchester County)
In May of 2013, the parties reached an agreement to resolve their respective claims in this action.
Mary Crescente v. Joseph Brown, et al.; Index No. 17595/2008 (N.Y. Sup. Ct., Westchester County)
On March 25, 2013, a Stipulation of Discontinuance was filed with the court resolving the litigation.
Ambac Bond Insurance Coverage Cases , Coordinated Proceeding Case No. JCCP 4555 (Super. Ct. of Cal., County of San Francisco)
The plaintiffs have filed a notice of appeal of the March 22, 2013 decision that granted the Bond Insurer defendants motion to strike pursuant to Californias Anti-SLAPP statute dismissing the plaintiffs claims under Californias Cartwright Act. On October 1, 2013, the Bond Insurer defendants filed a notice of cross-appeal.
24
National Public Finance Guarantee Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 9: Commitments and Contingencies (continued)
Tri-City Healthcare District v. Citibank. et al.; Case No. 30-2010-00359692 (Super. Ct. of Cal., County of Orange)
The parties reached an agreement to resolve Tri-City Healthcare Districts claims in this matter.
City of Phoenix v. AMBAC et al. , Case No. 2:10-cv-00555-TMB (D. Ariz.)
On June 4, 2013, the parties reached an agreement to resolve the City of Phoenixs claims in this matter.
National Public Finance Guarantee Corp. et al. v City of Detroit, Michigan et al. ; Adv. Pro. No 13-05309-swr (Bkcy. E.D. MI)
On November 8, 2013, National (together with Assured Guaranty Municipal Corp.) commenced an adversary proceeding against the City of Detroit and certain individuals employees/managers in the Chapter 9 bankruptcy case titled In re: City of Detroit, Michigan; Case No. 13-53846, pending in the United States Bankruptcy Court for the Eastern District of Michigan. The complaint seeks, among other things, a declaration that the City of Detroit and its employees/managers must comply with Michigan state law in the collection, segregation and use of restricted ad valorem tax proceeds levied and pledged to repay the principal and interest on several series of Detroits unlimited tax general obligation bonds.
MBIA and National are defending against the aforementioned actions in which they are defendants and expect ultimately to prevail on the merits. There is no assurance, however, that they will prevail in these actions. Adverse rulings in these actions could have a material adverse effect on Nationals ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the various litigations, there has not been a determination as to the amount, if any, of damages. Accordingly, National is not able to estimate any amount of loss or range of loss.
There are no other material lawsuits pending or, to the knowledge of National, threatened, to which National is a party.
Note 10: Subsequent Events
Subsequent to September 30, 2013, National declared and paid a dividend of $214 million to its ultimate parent, MBIA Inc.
Refer to Note 9: Commitments and Contingencies for information about legal proceedings that occurred after September 30, 2013.
25
Exhibit 99.2
MBIA INSURANCE CORPORATION
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2013 and December 31, 2012
and for the periods ended September 30, 2013 and 2012
MBIA INSURANCE CORPORATION AND SUBSIDIARIES
INDEX
MBIA INSURANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands except share and per share amounts)
September 30, 2013 | December 31, 2012 | |||||||
Assets |
||||||||
Investments: |
||||||||
Fixed-maturity securities held as available-for-sale, at fair value (amortized cost $300,241 and $708,068) |
$ | 314,118 | $ | 730,440 | ||||
Investments carried at fair value |
4,610 | 3,825 | ||||||
Short-term investments held as available-for-sale, at fair value (amortized cost $205,970 and $157,791) |
206,364 | 158,610 | ||||||
Other investments (includes investments at fair value of $1,432 and $611) |
28,407 | 28,139 | ||||||
|
|
|
|
|||||
Total investments |
553,499 | 921,014 | ||||||
Cash and cash equivalents |
345,748 | 396,788 | ||||||
Accrued investment income |
6,735 | 7,085 | ||||||
Premiums receivable |
1,084,559 | 1,228,381 | ||||||
Deferred acquisition costs |
435,166 | 508,600 | ||||||
Prepaid reinsurance premiums |
1,200,064 | 1,370,711 | ||||||
Insurance loss recoverable |
742,055 | 3,648,025 | ||||||
Reinsurance recoverable on paid and unpaid losses |
88,165 | 159,338 | ||||||
Property and equipment, at cost (less accumulated depreciation of $57,084 and $60,186) |
1,350 | 1,633 | ||||||
Receivable for investments sold |
55 | 65 | ||||||
Derivative assets |
6,484 | 6,764 | ||||||
Current income taxes |
5,880 | 7,071 | ||||||
Deferred income taxes, net |
1,263,497 | 1,239,427 | ||||||
Other assets |
18,799 | 19,744 | ||||||
Assets of consolidated variable interest entities: |
||||||||
Cash |
46,177 | 176,342 | ||||||
Investments held-to-maturity, at amortized cost (fair value of $2,566,396 and $2,674,336) |
2,809,400 | 2,829,200 | ||||||
Fixed-maturity securities at fair value |
626,320 | 1,734,774 | ||||||
Loans receivable at fair value |
1,703,964 | 1,880,586 | ||||||
Loan repurchase commitments |
1,115,725 | 1,086,040 | ||||||
Derivative assets |
423 | 333 | ||||||
|
|
|
|
|||||
Total assets |
$ | 12,054,065 | $ | 17,221,921 | ||||
|
|
|
|
|||||
Liabilities and Equity (Deficit) |
||||||||
Liabilities: |
||||||||
Unearned premium revenue |
$ | 2,191,794 | $ | 2,507,839 | ||||
Loss and loss adjustment expense reserves |
675,104 | 845,573 | ||||||
Reinsurance premiums payable |
293,966 | 313,287 | ||||||
Long-term debt |
1,097,606 | 2,694,699 | ||||||
Deferred fee revenue |
352,355 | 409,458 | ||||||
Derivative liabilities |
1,369,698 | 2,933,229 | ||||||
Other liabilities |
119,345 | 312,679 | ||||||
Liabilities of consolidated variable interest entities: |
||||||||
Variable interest entity notes (includes financial instruments carried at fair value of $2,510,925 and $3,675,182) |
5,320,325 | 6,504,382 | ||||||
Derivative liabilities |
15,235 | 161,745 | ||||||
|
|
|
|
|||||
Total liabilities |
11,435,428 | 16,682,891 | ||||||
|
|
|
|
|||||
Commitments and contingencies (See Note 12) |
||||||||
Equity (deficit): |
||||||||
Series A non-cumulative perpetual preferred stock, par value $1,000 per share, liquidation value $100,000 per share, authorized - 4,000, issued and outstanding - 2,759 |
27,598 | 27,598 | ||||||
Common stock, par value $220.80 per share; authorized, issued and outstanding - 67,936 shares |
15,000 | 15,000 | ||||||
Additional paid-in capital |
980,218 | 981,735 | ||||||
Retained earnings (deficit) |
(416,937) | (510,283) | ||||||
Accumulated other comprehensive income (loss), net of tax of $5,459 and $1,642 |
12,758 | 24,980 | ||||||
|
|
|
|
|||||
Total equity (deficit) |
618,637 | 539,030 | ||||||
|
|
|
|
|||||
Total liabilities and equity (deficit) |
$ | 12,054,065 | $ | 17,221,921 | ||||
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
1
MBIA INSURANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: |
||||||||||||||||
Premiums earned: |
||||||||||||||||
Scheduled premiums earned |
$ | 40,009 | $ | 39,071 | $ | 111,512 | $ | 146,215 | ||||||||
Refunding premiums earned |
431 | 2,769 | 2,733 | 12,408 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Premiums earned (net of ceded premiums of $48,085, $80,175, $166,108 and $226,526) |
40,440 | 41,840 | 114,245 | 158,623 | ||||||||||||
Net investment income |
1,570 | 5,755 | 7,085 | 15,786 | ||||||||||||
Fees and reimbursements |
16,682 | 42,407 | 62,087 | 104,169 | ||||||||||||
Change in fair value of insured derivatives: |
||||||||||||||||
Realized gains (losses) and other settlements on insured derivatives |
(27,703) | 11,549 | (1,548,268) | (420,432) | ||||||||||||
Unrealized gains (losses) on insured derivatives |
284,848 | (32,823) | 1,561,876 | 1,473,161 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in fair value of insured derivatives |
257,145 | (21,274) | 13,608 | 1,052,729 | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(5,650) | 15,200 | 28,344 | 20,809 | ||||||||||||
Investment losses related to other-than-temporary impairments: |
||||||||||||||||
Investment losses related to other-than-temporary impairments |
- | (2,625) | - | (5,830) | ||||||||||||
Other-than-temporary impairments recognized in accumulated other comprehensive income (loss) |
- | - | - | (37,086) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment losses related to other-than-temporary impairments |
- | (2,625) | - | (42,916) | ||||||||||||
Other net realized gains (losses) |
220 | 244 | 462 | 975 | ||||||||||||
Revenues of consolidated variable interest entities: |
||||||||||||||||
Net investment income |
12,763 | 13,091 | 38,153 | 40,208 | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
14,491 | 42,278 | 118,781 | (25,305) | ||||||||||||
Other net realized gains (losses) |
- | - | 765 | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
337,661 | 136,916 | 383,530 | 1,325,078 | ||||||||||||
Expenses: |
||||||||||||||||
Losses and loss adjustment |
62,733 | 167,184 | (13,389) | 314,888 | ||||||||||||
Amortization of deferred acquisition costs |
19,598 | 23,611 | 76,744 | 81,571 | ||||||||||||
Operating |
21,748 | 28,426 | 82,536 | 109,213 | ||||||||||||
Interest |
30,613 | 62,153 | 129,387 | 174,797 | ||||||||||||
Expenses of consolidated variable interest entities: |
||||||||||||||||
Operating |
2,627 | 4,780 | 9,426 | 15,808 | ||||||||||||
Interest |
9,877 | 10,416 | 29,968 | 32,221 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
147,196 | 296,570 | 314,672 | 728,498 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income (loss) before income taxes |
190,465 | (159,654) | 68,858 | 596,580 | ||||||||||||
Provision (benefit) for income taxes |
70,748 | (79,811) | (24,488) | 201,290 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | 119,717 | $ | (79,843) | $ | 93,346 | $ | 395,290 | ||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
2
MBIA INSURANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(In thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) |
$ | 119,717 | $ | (79,843) | $ | 93,346 | $ | 395,290 | ||||||||
Other comprehensive income (loss): |
||||||||||||||||
Unrealized gains (losses) on available-for-sale securities: |
||||||||||||||||
Unrealized gains (losses) arising during the period |
(3,633) | 23,295 | (3,872) | 33,869 | ||||||||||||
Provision (benefit) for income taxes |
(1,586) | 713 | (1,290) | (220) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
(2,047) | 22,582 | (2,582) | 34,089 | ||||||||||||
Reclassification adjustments for (gains) losses included in net income (loss) |
- | 99 | (2,660) | (7,609) | ||||||||||||
Provision (benefit) for income taxes |
- | 35 | (929) | (2,663) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
- | 64 | (1,731) | (4,946) | ||||||||||||
Reclassification adjustments for other-than-temporary impairments included in net income (loss) |
- | - | - | 37,086 | ||||||||||||
Provision (benefit) for income taxes |
- | - | - | 12,980 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
- | - | - | 24,106 | ||||||||||||
Foreign currency translation: |
||||||||||||||||
Foreign currency translation gains (losses) |
31,726 | (12,355) | (7,224) | (23,261) | ||||||||||||
Provision (benefit) for income taxes |
881 | (3,715) | 685 | (2,975) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
30,845 | (8,640) | (7,909) | (20,286) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income (loss) |
28,798 | 14,006 | (12,222) | 32,963 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) |
$ | 148,515 | $ | (65,837) | $ | 81,124 | $ | 428,253 | ||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
3
MBIA INSURANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY (DEFICIT) (Unaudited)
For The Nine Months Ended September 30, 2013
(In thousands except share amounts)
Preferred Stock | Common Stock |
Additional Paid-in |
Retained
Earnings |
Accumulated
Other Comprehensive |
Total
Shareholders Equity |
|||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | (Deficit) | Income (Loss) | (Deficit) | |||||||||||||||||||||||||
Balance, December 31, 2012 |
2,759 | $ | 27,598 | 67,936 | $ | 15,000 | $ | 981,735 | $ | (510,283) | $ | 24,980 | $ | 539,030 | ||||||||||||||||||
Net income (loss) |
- | - | - | - | - | 93,346 | - | 93,346 | ||||||||||||||||||||||||
Other comprehensive income (loss) |
- | - | - | - | - | - | (12,222) | (12,222) | ||||||||||||||||||||||||
Share-based compensation, net of tax of $2,062 |
- | - | - | - | (1,517) | - | - | (1,517) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, September 30, 2013 |
2,759 | $ | 27,598 | 67,936 | $ | 15,000 | $ | 980,218 | $ | (416,937) | $ | 12,758 | $ | 618,637 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
4
MBIA INSURANCE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
Cash flows from operating activities: |
||||||||
Premiums, fees and reimbursements received |
$ | 120,289 | $ | 203,721 | ||||
Investment income received |
190,383 | 275,139 | ||||||
Insured derivative commutations and losses paid |
(452,686) | (463,652) | ||||||
Financial guarantee losses and loss adjustment expenses paid |
(464,440) | (518,000) | ||||||
Proceeds from recoveries and reinsurance |
1,928,448 | 123,863 | ||||||
Operating and employee related expenses paid |
(93,184) | (91,282) | ||||||
Interest paid |
(120,950) | (264,169) | ||||||
Income taxes (paid) received |
(510) | (6,493) | ||||||
|
|
|
|
|||||
Net cash provided (used) by operating activities |
1,107,350 | (740,873) | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Purchase of fixed-maturity securities |
(13,927) | (170,134) | ||||||
Sale and redemption of fixed-maturity securities |
487,771 | 812,124 | ||||||
Proceeds from paydowns on variable interest entity loans |
211,111 | 202,726 | ||||||
Proceeds from paydowns on secured loan to Parent |
- | 300,000 | ||||||
Redemptions of held-to-maturity investments |
19,800 | 7,200 | ||||||
Sale (purchase) of short-term investments, net |
45,287 | (158,871) | ||||||
Sale (purchase) of other investments, net |
(599) | 8,995 | ||||||
Consolidation (deconsolidation) of variable interest entities, net |
(26,385) | (50,901) | ||||||
(Payments) proceeds for derivative settlements |
(27,911) | (66,483) | ||||||
Capital expenditures |
(334) | (520) | ||||||
Disposal of fixed assets |
5 | - | ||||||
|
|
|
|
|||||
Net cash provided (used) by investing activities |
694,818 | 884,136 | ||||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Principal paydowns of variable interest entity notes |
(537,247) | (680,560) | ||||||
Issuance of variable interest entity notes |
92,720 | - | ||||||
Proceeds from (repayment of) secured loan with an affiliate |
(1,595,620) | 443,000 | ||||||
Proceeds from secured loan |
50,000 | - | ||||||
|
|
|
|
|||||
Net cash provided (used) by financing activities |
(1,990,147) | (237,560) | ||||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents |
6,774 | - | ||||||
Net increase (decrease) in cash and cash equivalents |
(181,205) | (94,297) | ||||||
Cash and cash equivalents - beginning of period |
573,130 | 296,484 | ||||||
|
|
|
|
|||||
Cash and cash equivalents - end of period |
$ | 391,925 | $ | 202,187 | ||||
|
|
|
|
|||||
Reconciliation of net income (loss) to net cash provided (used) by operating activities: |
||||||||
Net income (loss) |
$ | 93,346 | $ | 395,290 | ||||
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |
||||||||
Change in: |
||||||||
Accrued investment income |
380 | 3,251 | ||||||
Premiums receivable |
138,013 | 99,843 | ||||||
Deferred acquisition costs |
73,518 | 83,720 | ||||||
Unearned premium revenue |
(312,872) | (346,336) | ||||||
Prepaid reinsurance premiums |
170,647 | 241,883 | ||||||
Reinsurance premiums payable |
(19,321) | (20,063) | ||||||
Loss and loss adjustment expense reserves |
(172,452) | 101,718 | ||||||
Reinsurance recoverable on paid and unpaid losses |
71,173 | 8,700 | ||||||
Insurance loss recoverable |
2,917,057 | (270,606) | ||||||
Payable to affiliates |
(1,261) | 6,406 | ||||||
Payable to reinsurers on recoverables |
(239,415) | 81,501 | ||||||
Accrued interest payable |
112,459 | 40,890 | ||||||
Accounts receivable |
17 | 47 | ||||||
Accrued expenses |
(2,453) | 17,371 | ||||||
Deferred fee revenue |
(57,103) | (77,509) | ||||||
Current income taxes |
1,191 | (4,253) | ||||||
Amortization (accretion) of bond premiums (discounts), net |
1,494 | 5,902 | ||||||
Depreciation |
612 | 383 | ||||||
Other net realized (gains) losses |
(1,227) | (975) | ||||||
Net investment losses related to other-than-temporary impairments |
- | 42,916 | ||||||
Unrealized (gains) losses on insured derivatives |
(1,561,876) | (1,473,161) | ||||||
Net (gains) losses on financial instruments at fair value and foreign exchange |
(147,124) | 4,496 | ||||||
Deferred income tax provision (benefit) |
(26,201) | 198,955 | ||||||
Share-based compensation |
545 | 1,124 | ||||||
Interest on variable interest entities, net |
65,131 | 112,994 | ||||||
Other operating |
3,072 | 4,640 | ||||||
|
|
|
|
|||||
Total adjustments to net income (loss) |
1,014,004 | (1,136,163) | ||||||
|
|
|
|
|||||
Net cash provided (used) by operating activities |
$ | 1,107,350 | $ | (740,873) | ||||
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
5
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties
Summary
MBIA Insurance Corporation is a wholly-owned subsidiary of MBIA Inc. (the Parent or MBIA). The guarantees of MBIA Insurance Corporation and its subsidiaries, (MBIA Corp.) insure structured finance and asset-backed obligations, privately issued bonds used for the financing of public purpose projects, which are primarily located outside of the United States (U.S.) and that include toll roads, bridges, airports, public transportation facilities, utilities and other types of infrastructure projects serving a substantial public purpose, and obligations of sovereign and sub-sovereign issuers. Structured finance and asset-backed securities (ABS) typically are securities repayable from expected cash flows generated by a specified pool of assets, such as residential and commercial mortgages, insurance policies, consumer loans, corporate loans and bonds, trade and export receivables, leases for equipment, aircraft and real property.
Business Developments
In May of 2013, MBIA Inc., together with its subsidiaries, MBIA Corp. and National Public Finance Guarantee Corporation (National), entered into a comprehensive settlement agreement and related agreements (the BofA Settlement Agreement) with Bank of America Corporation and certain of its subsidiaries (collectively, Bank of America), discussed below under Bank of America Settlement. As a result of the BofA Settlement Agreement, MBIA Corp. repaid its secured loan from National (the National Secured Loan). As of September 30, 2013, MBIA Corp. was rated B with a stable outlook by Standard & Poors Financial Services LLC (S&P) and B3 with a positive outlook by Moodys Investors Service, Inc. (Moodys).
Bank of America Settlement
Under the terms of the BofA Settlement Agreement, MBIA Corp. received a payment of approximately $1.7 billion, consisting of $1.6 billion of cash and $136 million principal amount of MBIA Inc.s 5.70% Senior Notes due 2034. In exchange for such payment, MBIA Corp. agreed to dismiss the litigation commenced in September 2008 against Countrywide Home Loans, Inc. (Countrywide), among other parties, and later amended to include claims against Bank of America, relating to breaches of representations and warranties on certain MBIA-insured securitizations sponsored by Countrywide. Bank of America and MBIA also agreed to the commutation of all of the MBIA Corp. policies held by Bank of America, which had a notional insured amount of approximately $7.4 billion, of which $6.1 billion were policies insuring credit default swaps (CDS) held by Bank of America referencing commercial real estate (CRE) exposures. MBIA Corp. has no further payment obligations under the commuted policies. The New York State Department of Financial Services (NYSDFS) advised MBIA Corp. that the NYSDFS did not object to the BofA Settlement Agreement. The $1.6 billion of cash received in connection with the BofA Settlement Agreement is included in Proceeds from recoveries and reinsurance presented under the heading Cash flows from operating activities on MBIA Corp.s consolidated statements of cash flows.
Under the terms of the BofA Settlement Agreement, Blue Ridge Investments, L.L.C. (Blue Ridge), an affiliate of Bank of America, received a five-year warrant to purchase 9.94 million shares of MBIA common stock at a price of $9.59 per share. Bank of America has also agreed to dismiss the pending litigation between the parties concerning the restructuring transactions announced by MBIA on February 18, 2009 (the Transformation) and the pending litigation between the parties concerning the senior debt consent solicitation completed by MBIA in the fourth quarter of 2012. In addition, Bank of America agreed to withdraw the purported notice of default it sent in connection with such consent solicitation.
Under the terms of the BofA Settlement Agreement, the dismissals of the litigations referenced above are initially being filed on a without prejudice basis. The parties will refile such dismissals on a with prejudice basis provided that, within the one-year period following execution of the BofA Settlement Agreement, none of the claims released pursuant to the BofA Settlement Agreement are reinstated and neither party is required to make a payment on any such released claims. MBIA Corp. views the likelihood of such an event as remote, and thus expects that the litigation dismissals will be filed on a with prejudice basis at the expiration of such one-year period.
MBIA Corp.s policies insuring the residential mortgage-backed securities (RMBS) securitizations originated by Countrywide will continue to be in full force and effect, and MBIA Corp. will continue to make timely payments of principal and interest if there are shortfalls when due under such policies. Bank of America will have no further representation and warranty liability with respect to the origination of the mortgage loans in the MBIA-insured Countrywide and certain other securitizations.
In addition, MBIA Corp. has entered into a $500 million three-year secured revolving credit agreement with Blue Ridge (the Blue Ridge Secured Loan). During the third quarter of 2013, MBIA Insurance Corporation borrowed $50 million under this agreement. Refer to Note 9: Debt for a discussion of the Blue Ridge Secured Loan.
6
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
The payment from Bank of America, including the MBIA Inc. notes, was used by MBIA Corp. to repay the outstanding balance and accrued interest on the National Secured Loan. The National Secured Loan balance of $1.7 billion as of March 31, 2013 was reduced to approximately $1.6 billion prior to the Bank of America settlement as a result of the receipt of $110 million in settlement of Flagstar Banks put-back obligation.
The value of the settlement is consistent with amounts recorded on MBIA Corp.s statutory balance sheet as of December 31, 2012. MBIA Corp.s liquidity and capital risk profile has substantially improved as a result of the settlement.
Societe Generale Settlement
In May of 2013, MBIA Inc., together with its subsidiaries, MBIA Corp. and National, entered into an agreement with Societe Generale pursuant to which MBIA commuted $4.2 billion of gross insured exposure comprising ABS collateralized debt obligations (CDOs), structured commercial mortgage-backed securities (CMBS) pools and CRE CDOs. The amount MBIA paid to Societe Generale in consideration of commuting its insured exposure is consistent with MBIA Corp.s December 31, 2012 aggregate statutory loss reserves for the exposures commuted. Also, pursuant to the agreement, Societe Generale agreed to dismiss the pending litigation between the parties concerning the Transformation, which includes any appeals of the decision denying the Article 78 petition and the plenary case.
Residential Capital LLC Agreement
In May of 2013, MBIA Corp. and the other Consenting Claimants, Residential Capital LLC (ResCap) and Ally Financial Inc. (Ally), agreed to the terms of a comprehensive plan agreement to support ResCaps Chapter 11 plan. The confirmation of ResCaps Chapter 11 plan would resolve MBIA Corp.s claims against the Residential Funding Company, LLC (RFC), GMAC Mortgage LLC (GMAC) and ResCap estates, and Ally. In June of 2013, the bankruptcy court issued a Memorandum Opinion approving the Plan Support Agreement (the Plan). The Plan is now subject to voting by creditors as well as a confirmation hearing by the bankruptcy court. All creditor ballots were due back by October 21, 2013 and as of the date of this report, the results had not been tallied. There can be no assurance that the Plan will be confirmed. Refer to Note 5: Loss and Loss Adjustment Expense Reserves for a discussion of the ResCap agreement.
Transformation Litigation
Subsequent to the BofA Settlement Agreement and the Societe Generale settlement, all litigation brought originally by the group of eighteen domestic and international financial institutions relating to the establishment of National has been resolved.
Other
As of September 30, 2013 and December 31, 2012, MBIA Corp.s cash and liquid assets, that were immediately available totaled $97 million and $345 million, respectively. Management believes MBIA Corp.s current liquidity position, together with future cash inflows and amounts available under the Blue Ridge Secured Loan, is adequate to make expected future claim payments. The combination of commutation payments to reduce liabilities and claim payments have placed liquidity pressure on MBIA Corp. MBIA Corp. continues to seek to reduce both the absolute amount and the volatility of its obligations and potential future claim payments through the execution of commutations of insurance policies. During the nine months ended September 30, 2013, MBIA Corp. commuted $19.9 billion of gross insured exposure, primarily comprising structured CMBS pools, investment grade CDOs, ABS CDOs, first-lien subprime RMBS, high yield corporate CDOs, CRE CDOs, structured insurance securities and first-lien alternative A-paper (Alt-A) RMBS.
Risks and Uncertainties
MBIA Corp.s consolidated financial statements include estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. The outcome of certain significant risks and uncertainties could cause MBIA Corp. to revise its estimates and assumptions or could cause actual results to differ from MBIA Corp.s estimates. While MBIA Corp. believes that it continues to have sufficient capital and liquidity to meet all of its expected obligations, if one or more possible adverse outcomes were to be realized, its statutory capital, financial position, results of operations and cash flows could be materially and adversely affected.
7
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
Significant risks and uncertainties that could affect amounts reported in MBIA Corp.s financial statements in future periods include, but are not limited to, the following:
|
The amount and timing of potential claims from MBIA Corp.s second-lien RMBS and remaining insured CMBS pools are potentially volatile, as are the projected collections of excess spread and the remaining put-back recoverables. However, managements expected liquidity and capital forecasts for MBIA Corp., which include expected availability of draws under the Blue Ridge Secured Loan and expected recoveries from the ResCap agreement, reflect adequate resources to pay expected claims. Further, the remaining insured portfolio, aside from these exposures, could deteriorate and result in loss reserves and claim payments. While management believes it will have adequate resources to pay expected claims, if MBIA Corp. experiences higher than expected claim payments or is unable to commute the remaining exposures that represent substantial risk, MBIA Corp. may ultimately have insufficient resources to continue to pay claims, which could cause the NYSDFS to put MBIA Corp. into a rehabilitation or liquidation proceeding (an MBIA Corp. Proceeding), as per Article 74 of the New York Insurance Law (NYIL). Refer to Note 5: Loss and Loss Adjustment Expense Reserves for information about MBIA Corp.s reserves and recoveries. |
|
Management believes that MBIA Corp. has sufficient liquidity resources to meet all of its obligations for the foreseeable future. In order to meet its liquidity requirements, MBIA Corp. may use its ability to finance through third-party facilities, although there can be no assurance that this strategy will be available or adequate. A failure by MBIA Inc. to settle liabilities that are also insured by MBIA Corp. could result in claims on MBIA Corp. |
|
MBIA Corp.s ability to commute insured transactions is limited by available liquidity, including the availability of the Blue Ridge Secured Loan, recoveries from the ResCap agreement and the use of other available financing structures and liquidity, some of which could be subject to regulatory approval by the NYSDFS and/or the United Kingdoms (U.K.) Prudential Regulation Authority. MBIA Corp.s primary strategy for managing its CMBS pool and ABS CDO exposures has been commutations. There can be no assurance that MBIA Corp. will be able to fund further commutations through borrowings or otherwise. Refer to Note 5: Loss and Loss Adjustment Expense Reserves for information about MBIA Corp.s estimate of losses on its exposures. |
|
As of September 30, 2013, MBIA Corp. was not in compliance with a requirement under the NYIL to hold qualifying assets in an amount necessary to satisfy its contingency reserves. MBIA Corp. has reported the deficit to the NYSDFS. In addition, as of September 30, 2013, MBIA Corp. exceeded its aggregate risk limits and reported an overage related to its single risk limits under NYIL. MBIA Corp. plans to notify the NYSDFS of these overages and submit a plan to achieve compliance with its limits. While the NYSDFS has not taken action against MBIA Corp., the NYSDFS may impose remedial actions for failing to meet these requirements. |
|
Changes in fair value of insured credit derivatives can be caused by general market conditions, volatility in MBIA Corp.s credit spreads and volatility on the underlying collateral assets on insured credit derivatives. This may result in significant unrealized gains and losses in MBIA Corp.s reported results of operations. Refer to Note 6: Fair Value of Financial Instruments for information about MBIA Corp.s valuation of insured credit derivatives. |
As a result of the BofA Settlement Agreement, the risk of an MBIA Corp. Proceeding has been significantly reduced. While MBIA Corp. believes it will have adequate resources to pay expected claims, in the event it does not have adequate resources in the future and the NYSDFS were to commence an MBIA Corp. Proceeding, MBIA Corp. may be subject to the following:
|
CDS counterparties may seek to terminate CDS contracts insured by MBIA Corp. and MBIA UK Insurance Limited and make market-based damage claims (irrespective of whether actual credit-related losses are expected under the underlying exposure). MBIA Corp. believes that such an acceleration would likely terminate any residual value. |
|
Medium-term notes (MTNs) issued by MBIAs subsidiaries, MBIA Global Funding, LLC (GFL) and Meridian Funding Company, LLC (Meridian), which are insured by MBIA Corp., would accelerate. To the extent GFL failed to pay the accelerated amounts under the GFL MTNs or the collateral securing the Meridian MTNs was deemed insufficient to pay the accelerated amounts under the Meridian MTNs, the MTN holders would have policy claims against MBIA Corp. for scheduled payments of interest and principal. |
|
An MBIA Corp. Proceeding may accelerate certain investment agreements issued by MBIA Inc. including, in some cases, with make-whole payments. To the extent MBIA fails to pay the accelerated amounts under these investment agreements or the collateral securing these investment agreements is deemed insufficient to pay the accelerated amounts due, the holders of the investment agreements would have policy claims against MBIA Corp. |
|
Payments under MBIA Corp. insurance policies could be suspended, delayed or reduced, in whole or in part. |
|
An acceleration of the surplus notes issued by MBIA Corp. and a possible reduction or further delay or suspension of the amounts due. |
8
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 1: Business Developments and Risks and Uncertainties (continued)
|
MBIA Corp.s ability to carry out its tax planning strategies. This may cause it to record additional allowances against a portion or all of its deferred tax assets. Refer to Note 10: Income Taxes for information about MBIA Corp.s deferred tax assets. In addition, MBIA Corp. is currently included in the consolidated tax return of MBIA Inc. An MBIA Corp. Proceeding could result in challenges to the tax sharing arrangement among the MBIA affiliates that might adversely affect managements ability to manage taxes efficiently. |
|
Approval of the rehabilitator and the rehabilitation court (or liquidator and liquidation court, as the case may be) may be required for a variety of actions of importance to MBIA Corp. and its policyholders, including, without limitation, settlement of MBIA Corp.s put-back litigation and commutation of MBIA Corp.-insured exposures. |
|
The rehabilitator or liquidator would replace the Board of Directors of MBIA Corp. and take control of the operations and assets of MBIA Corp., which would result in changes to its strategies and management. |
|
An MBIA Corp. Proceeding would be an event of default under the Blue Ridge Secured Loan and, as a result, the loan could be accelerated and Bank of America would have rights to the loans collateral. |
|
MBIA Corp. would be subject to significant additional expenses arising from the appointment of the rehabilitator or liquidator, as receiver, and payment of the fees and expenses of the advisors to such rehabilitator or liquidator. |
Note 2: Significant Accounting Policies
MBIA Corp. has disclosed its significant accounting policies in Note 2: Significant Accounting Policies in the Notes to Consolidated Financial Statements included in Exhibit 99.2 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012. The following significant accounting policies provide an update to those included under the same captions in Exhibit 99.2 to MBIA Inc.s Annual Report on Form 10-K.
Basis of Presentation
The accompanying unaudited consolidated financial statements do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual periods. These statements should be read in conjunction with MBIA Corp.s consolidated financial statements and notes thereto included in Exhibit 99.2 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of MBIA Corp.s consolidated financial position and results of operations. All material intercompany balances and transactions have been eliminated.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results.
The results of operations for the three and nine months ended September 30, 2013 may not be indicative of the results that may be expected for the year ending December 31, 2013. The December 31, 2012 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP for annual periods. Certain amounts have been reclassified in the prior years financial statements to conform to the current presentation. This includes the reclassification of accrued interest on surplus notes and the National Secured Loan from Other liabilities to Long-term debt on MBIA Corp.s consolidated balance sheets. Refer to Note 9: Debt for information about the amounts of this reclassification. This reclassification had no impact on total revenues, expenses, assets, liabilities, shareholders equity, operating cash flows, investing cash flows, or financing cash flows for all periods presented.
Subsequent Events
MBIA Corp. has evaluated all subsequent events as of November 12, 2013, the date of issuance of the consolidated financial statements, for inclusion in MBIA Corp.s consolidated financial statements and/or accompanying notes.
9
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 3: Recent Accounting Pronouncements
Recently Adopted Accounting Standards
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02)
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02, Comprehensive Income (Topic 220)Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income that requires an entity to present information about the amounts reclassified out of accumulated other comprehensive income (AOCI) by component and to present significant amounts reclassified out of AOCI by the respective line items of net income. The amendment only affects MBIA Corp.s disclosures and does not affect MBIA Corp.s consolidated balance sheets, results of operations, or cash flows. MBIA Corp. adopted this standard in the first quarter of 2013.
Disclosures about Offsetting Assets and Liabilities (ASU 2011-11)
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210)Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 creates new disclosure requirements about the nature of MBIA Corp.s rights of setoff and related arrangements associated with its financial instruments and derivative instruments. This amendment does not change the existing offsetting eligibility criteria or the permitted balance sheet presentation for those instruments that meet the eligibility criteria. The disclosure requirement was effective for MBIA Corp. beginning in the first quarter of 2013. In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210)Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 clarifies that ASU 2011-11 applies only to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. These standards only affect MBIA Corp.s disclosures and do not affect MBIA Corp.s consolidated balance sheets, results of operations, or cash flows. MBIA Corp. adopted this standard in the first quarter of 2013.
Refer to the Notes to Consolidated Financial Statements of MBIA Corp. included in Exhibit 99.2 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012 for further information regarding the effects of recently adopted accounting standards on prior year financial statements.
Note 4: Variable Interest Entities
MBIA Corp. provides credit protection to issuers of obligations that may involve issuer-sponsored special purpose entities (SPEs). An SPE may be considered a variable interest entity (VIE) to the extent the SPEs total equity at risk is not sufficient to permit the SPE to finance its activities without additional subordinated financial support or its equity investors lack any one of the following characteristics: (i) the power to direct the activities of the SPE that most significantly impact the entitys economic performance or (ii) the obligation to absorb the expected losses of the entity or the right to receive the expected residual returns of the entity. A holder of a variable interest or interests in a VIE is required to assess whether it has a controlling financial interest, and thus is required to consolidate the entity as primary beneficiary. An assessment of a controlling financial interest identifies the primary beneficiary as the variable interest holder that has both of the following characteristics: (i) the power to direct the activities of the VIE that most significantly impact the entitys economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE. An ongoing reassessment of controlling financial interest is required to be performed based on any substantive changes in facts and circumstances involving the VIE and its variable interests.
MBIA Corp. evaluates issuer-sponsored SPEs initially to determine if an entity is a VIE, and is required to reconsider its initial determination if certain events occur. For all entities determined to be VIEs, MBIA Corp. performs an ongoing reassessment to determine whether its guarantee to provide credit protection on obligations issued by VIEs provides MBIA Corp. with a controlling financial interest. Based on its ongoing reassessment of controlling financial interest, MBIA Corp. determines whether a VIE is required to be consolidated or deconsolidated.
10
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Variable Interest Entities (continued)
MBIA Corp. makes its determination for consolidation based on a qualitative assessment of the purpose and design of a VIE, the terms and characteristics of variable interests of an entity, and the risks a VIE is designed to create and pass through to holders of variable interests. MBIA Corp. generally provides credit protection on obligations issued by VIEs, and holds certain contractual rights according to the purpose and design of a VIE. MBIA Corp. may have the ability to direct certain activities of a VIE depending on facts and circumstances, including the occurrence of certain contingent events, and these activities may be considered the activities of a VIE that most significantly impact the entitys economic performance. MBIA Corp. generally considers its guarantee of principal and interest payments of insured obligations, given nonperformance by a VIE, to be an obligation to absorb losses of the entity that could potentially be significant to the VIE. At the time MBIA Corp. determines it has the ability to direct the activities of a VIE that most significantly impact the economic performance of the entity based on facts and circumstances, MBIA Corp. is deemed to have a controlling financial interest in the VIE and is required to consolidate the entity as primary beneficiary. MBIA Corp. performs an ongoing reassessment of controlling financial interest that may result in consolidation or deconsolidation of any VIE.
Nonconsolidated VIEs
The following tables present the total assets of nonconsolidated VIEs in which MBIA Corp. holds a variable interest as of September 30, 2013 and December 31, 2012. The following tables also present MBIA Corp.s maximum exposure to loss for nonconsolidated VIEs and carrying values of the assets and liabilities for its interests in these VIEs as of September 30, 2013 and December 31, 2012. MBIA Corp. has aggregated nonconsolidated VIEs based on the underlying credit exposure of the insured obligation. The nature of MBIA Corp.s variable interests in nonconsolidated VIEs is related to financial guarantees, insured CDS contracts and any investments in obligations issued by nonconsolidated VIEs.
September 30, 2013 | ||||||||||||||||||||||||||||||||
Carrying Value of Assets | Carrying Value of Liabilities | |||||||||||||||||||||||||||||||
In millions |
VIE Assets |
Maximum
Exposure to Loss |
Investments (1) |
Premiums
Receivable (2) |
Insurance
Loss
Recoverable (3) |
Unearned
Premium Revenue (4) |
Loss and Loss
Adjustment Expense Reserves (5) |
Derivative
Liabilities (6) |
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Insurance: |
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Global structured finance: |
||||||||||||||||||||||||||||||||
Collateralized debt obligations |
$ | 13,564 | $ | 7,972 | $ | 118 | $ | 45 | $ | 5 | $ | 38 | $ | 26 | $ | 94 | ||||||||||||||||
Mortgage-backed residential |
22,400 | 9,915 | 11 | 57 | 696 | 56 | 374 | 5 | ||||||||||||||||||||||||
Mortgage-backed commercial |
2,010 | 1,102 | - | 1 | - | 1 | - | - | ||||||||||||||||||||||||
Consumer asset-backed |
6,788 | 2,888 | 9 | 21 | - | 20 | 17 | - | ||||||||||||||||||||||||
Corporate asset-backed |
14,258 | 7,817 | - | 87 | 19 | 103 | - | - | ||||||||||||||||||||||||
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|
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|
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Total global structured finance |
59,020 | 29,694 | 138 | 211 | 720 | 218 | 417 | 99 | ||||||||||||||||||||||||
Global public finance |
51,060 | 20,258 | - | 205 | - | 250 | 5 | - | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total insurance |
$ | 110,080 | $ | 49,952 | $ | 138 | $ | 416 | $ | 720 | $ | 468 | $ | 422 | $ | 99 | ||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
(1) - | Reported within Investments on MBIA Corp.s consolidated balance sheets. |
(2) - | Reported within Premiums receivable on MBIA Corp.s consolidated balance sheets. |
(3) - | Reported within Insurance loss recoverable on MBIA Corp.s consolidated balance sheets. |
(4) - | Reported within Unearned premium revenue on MBIA Corp.s consolidated balance sheets. |
(5) - | Reported within Loss and loss adjustment expense reserves on MBIA Corp.s consolidated balance sheets. |
(6) - | Reported within Derivative liabilities on MBIA Corp.s consolidated balance sheets. |
11
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 4: Variable Interest Entities (continued)
December 31, 2012 | ||||||||||||||||||||||||||||||||
Carrying Value of Assets | Carrying Value of Liabilities | |||||||||||||||||||||||||||||||
In millions |
VIE Assets |
Maximum
Exposure to Loss |
Investments (1) |
Premiums
Receivable (2) |
Insurance
Loss Recoverable (3) |
Unearned
Premium Revenue (4) |
Loss and Loss
Adjustment Expense Reserves (5) |
Derivative
Liabilities (6) |
||||||||||||||||||||||||
Insurance: |
||||||||||||||||||||||||||||||||
Global structured finance: |
||||||||||||||||||||||||||||||||
Collateralized debt obligations |
$ | 16,925 | $ | 10,873 | $ | - | $ | 62 | $ | 5 | $ | 55 | $ | 37 | $ | 74 | ||||||||||||||||
Mortgage-backed residential |
34,061 | 13,075 | 11 | 77 | 3,278 | 75 | 440 | 4 | ||||||||||||||||||||||||
Mortgage-backed commercial |
4,801 | 2,432 | - | 2 | - | 2 | - | - | ||||||||||||||||||||||||
Consumer asset-backed |
5,820 | 3,086 | 10 | 19 | - | 19 | 21 | - | ||||||||||||||||||||||||
Corporate asset-backed |
19,980 | 9,981 | - | 123 | 13 | 140 | - | - | ||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total global structured finance |
81,587 | 39,447 | 21 | 283 | 3,296 | 291 | 498 | 78 | ||||||||||||||||||||||||
Global public finance |
39,259 | 21,346 | - | 220 | - | 267 | 4 |
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-
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|
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|
|
|
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Total insurance |
$ | 120,846 | $ | 60,793 | $ | 21 | $ | 503 | $ | 3,296 | $ | 558 | $ | 502 | $ | 78 | ||||||||||||||||
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|
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|
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|
|
|
(1) - | Reported within Investments on MBIA Corp.s consolidated balance sheets. |
(2) - | Reported within Premiums receivable on MBIA Corp.s consolidated balance sheets. |
(3) - | Reported within Insurance loss recoverable on MBIA Corp.s consolidated balance sheets. |
(4) - | Reported within Unearned premium revenue on MBIA Corp.s consolidated balance sheets. |
(5) - | Reported within Loss and loss adjustment expense reserves on MBIA Corp.s consolidated balance sheets. |
(6) - | Reported within Derivative liabilities on MBIA Corp.s consolidated balance sheets. |
The maximum exposure to loss as a result of MBIA Corp.s variable interests in VIEs is represented by insurance in force. Insurance in force is the maximum future payments of principal and interest, net of cessions to reinsurers, which may be required under commitments to make payments on insured obligations issued by nonconsolidated VIEs.
Consolidated VIEs
The carrying amounts of assets and liabilities of consolidated VIEs were $6.3 billion and $5.3 billion, respectively, as of September 30, 2013, and $7.7 billion and $6.7 billion, respectively, as of December 31, 2012. The carrying amounts of assets and liabilities are presented separately in Assets of consolidated variable interest entities and Liabilities of consolidated variable interest entities on MBIA Corp.s consolidated balance sheets. Additional VIEs are consolidated or deconsolidated based on an ongoing reassessment of controlling financial interest, when events occur or circumstances arise, and whether the ability to exercise rights that constitute power to direct activities of any VIEs are present according to the design and characteristics of these entities. No additional VIEs were consolidated during the nine months ended September 30, 2013 and 2012. There were no net realized gains or losses recorded in the three months ended September 30, 2013 and 2012. During the nine months ended September 30, 2013, MBIA Corp. recorded a net realized gain of $1 million related to the deconsolidation of VIEs. There were no net realized gains or losses recorded in the nine months ended September 30, 2012.
Holders of insured obligations of issuer-sponsored VIEs related to MBIA Corp. do not have recourse to the general assets of MBIA Corp. In the event of nonpayment of an insured obligation issued by a consolidated VIE, MBIA Corp. is obligated to pay principal and interest, when due, on the respective insured obligation only. MBIA Corp.s exposure to consolidated VIEs is limited to the credit protection provided on insured obligations and any additional variable interests held by MBIA Corp.
Note 5: Loss and Loss Adjustment Expense Reserves
Loss and Loss Adjustment Expense Process
As of September 30, 2013, the majority of MBIA Corp.s case basis reserves and insurance loss recoveries recorded in accordance with GAAP were related to insured second-lien and first-lien RMBS transactions. These reserves and recoveries do not include estimates for policies insuring credit derivatives and does not include losses and recoveries on financial guarantee VIEs that are eliminated in consolidation. Policies insuring credit derivative contracts are accounted for as derivatives and carried at fair value under GAAP. The fair values of insured derivative contracts are influenced by a variety of market and transaction-specific factors that may be unrelated to potential future claim payments under MBIA Corp.s insurance policies. In the absence of credit impairments on insured derivative contracts or the early termination of such contracts at a loss, the cumulative unrealized losses recorded from fair valuing these contracts should reverse before or at the maturity of the contracts.
12
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
Notwithstanding the difference in accounting under GAAP for financial guarantee policies and MBIA Corp.s insured derivatives, insured derivatives have similar terms, conditions, risks, and economic profiles to financial guarantee insurance policies, and therefore, are evaluated by MBIA Corp. for loss (referred to as credit impairment herein) and loss adjustment expense (LAE) periodically in a manner similar to the way that loss and LAE reserves are estimated for financial guarantee insurance policies. Credit impairments represent actual payments and collections plus the present value of estimated expected future claim payments, net of recoveries. MBIA Insurance Corporations expected future claim payments for insured derivatives were discounted using a rate of 5.72%, the same rate it used to calculate its statutory loss reserves as of September 30, 2013. These credit impairments, calculated in accordance with statutory accounting principles (U.S. STAT), differ from the fair values recorded in MBIA Corp.s consolidated financial statements. MBIA Corp. considers its credit impairment estimates as critical information for investors as it provides information about loss payments MBIA Corp. expects to make on insured derivative contracts. As a result, the following loss and LAE process discussion includes information about loss and LAE activity recorded in accordance with GAAP for financial guarantee insurance policies and credit impairments estimated in accordance with U.S. STAT for insured derivative contracts. Refer to Note 6: Fair Value of Financial Instruments included herein for additional information about MBIA Corp.s insured credit derivative contracts.
To date, MBIA Corp. has resolved or agreed to resolve substantially all of its contract claims (referred to as put-back claims) related to those mortgage loans whose inclusion in insured securitizations failed to comply with representations and warranties (ineligible loans), with the exception of those ineligible loans securitized by Credit Suisse 2007-2 in the home equity mortgage trust (HEMT) securitization. Credit Suisse has challenged MBIA Corp.s assessment of the ineligibility of individual mortgage loans and the dispute is the subject of litigation for which there is no assurance that MBIA Corp. will prevail.
RMBS Case Basis Reserves and Recoveries ( Financial Guarantees )
MBIA Corp.s RMBS reserves and recoveries relate to financial guarantee insurance policies. MBIA Corp. calculated RMBS case basis reserves as of September 30, 2013 for both second-lien and first-lien RMBS transactions using a process called the Roll Rate Methodology. The Roll Rate Methodology is a multi-step process using a database of loan level information, a proprietary internal cash flow model, and a commercially available model to estimate expected ultimate cumulative losses on insured bonds. Roll Rate is defined as the probability that current loans become delinquent and that loans in the delinquent pipeline are charged-off or liquidated. Generally, Roll Rates are calculated for the previous three months and averaged. The loss reserve estimates are based on a probability-weighted average of three scenarios of loan losses (base case, stress case, and an additional stress case).
In calculating ultimate cumulative losses for RMBS, MBIA Corp. estimates the amount of loans that are expected to be charged-off (deemed uncollectible by servicers of the transactions) or liquidated in the future. MBIA Corp. assumes that charged-off loans have zero recovery values.
Second-lien RMBS Reserves
MBIA Corp.s second-lien RMBS case basis reserves as of September 30, 2013 relate to RMBS backed by home equity lines of credit (HELOC) and closed-end second mortgages (CES).
The Roll Rates for 30-59 day delinquent loans and 60-89 day delinquent loans are calculated on a transaction-specific basis. MBIA Corp. assumes that the Roll Rate for 90+ day delinquent loans, excluding foreclosures and Real Estate Owned (REO) is 95%. The Roll Rates are applied to the amounts in the respective delinquency buckets based on delinquencies as of August 31, 2013 to estimate future losses from loans that are delinquent as of the current reporting period.
13
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
Roll Rates for loans that are current as of August 31, 2013 (Current Roll to Loss) are also calculated on a transaction-specific basis. A proportion of loans reported current as of August 31, 2013 is assumed to become delinquent every month, at a Current Roll to Loss rate that persists at a high level for a time and subsequently starts to decline. A key assumption in the model is the period of time in which MBIA Corp. projects high levels of Current Roll to Loss to persist. MBIA Corp. runs multiple scenarios, each with varying periods of time, for which the high levels of Current Roll to Loss rates persist. Loss reserves are calculated by using a weighted average of these scenarios, with the majority of the probability assigned to stressful scenarios where the high levels of Current Roll to Loss rates persist for six or twenty four months before reverting to historic levels. In the base case scenario, MBIA Corp. assumes that the Current Roll to Loss begins to decline immediately and continues to decline over the next six months to 25% of their levels as of August 31, 2013. For example, in the base case, as of August 31, 2013, if the amount of current loans which become 30-59 days delinquent is 10%, and recent performance suggests that 30% of those loans will be charged-off, the Current Roll to Loss for the transaction is 3%. In the base case, it is then assumed that the Current Roll to Loss will reduce linearly to 25% of its original value over the next six months (i.e., 3% will linearly reduce to 0.75% over the six months from September 2013 to February 2014). After that six-month period, MBIA Corp. further reduces the Current Roll to Loss to 0% by early to mid-2014 with the expectation that the performing seasoned loans will eventually result in loan performance reverting to lower levels of default consistent with history.
In addition, in MBIA Corp.s loss reserve models for transactions secured by HELOCs, MBIA Corp. considers borrower draw and prepayment rates and factors that could affect the excess spread generated by current loans, which offsets losses and reduces payments. For HELOCs, the current three-month average draw rate is generally used to project future draws on the line. For HELOCs and transactions secured by fixed-rate CES, the three-month average conditional prepayment rate is generally used to start the projection for trends in voluntary principal prepayments. Due to the current volatility in mortgage prepayment rates, which influence mortgage refinancing and voluntary principal prepayment rates, MBIA Corp. used historical average mortgage rates to model its loss reserves in the third quarter of 2013. Projected cash flows are also based on an assumed constant basis spread between floating rate assets and floating rate insured debt obligations (the difference between prime and London Interbank Offered Rate (LIBOR) interest rates, minus any applicable fees). For all transactions, cash flow models consider allocations and other structural aspects of the transactions, including managed amortization periods, rapid amortization periods and claims against MBIA Corp.s insurance policy consistent with such policys terms and conditions. In developing multiple loss scenarios, stress is applied by elongating the Current Roll to Loss rate for various periods, simulating a slower improvement in the transaction performance. The estimated net claims from the procedure above are then discounted using a risk-free rate to a net present value reflecting MBIA Corp.s general obligation to pay claims over time and not on an accelerated basis. The above assumptions represent MBIA Corp.s probability-weighted estimates of how transactions will perform over time.
MBIA Corp. monitors portfolio performance on a monthly basis against projected performance, reviewing delinquencies, Roll Rates, and prepayment rates (including voluntary and involuntary). However, loan performance remains difficult to predict and losses may exceed expectations. In the event of a material deviation in actual performance from projected performance, MBIA Corp. would increase or decrease the case basis reserves accordingly. If actual performance were to remain at the peak levels for six additional months compared to the probability-weighted outcome currently used by MBIA Corp., the addition to the case basis reserves would be approximately $85 million.
Second-lien RMBS Recoveries
MBIA Corp. primarily records two types of recoveries related to insured second-lien RMBS exposures; recoveries related to put-back claims on ineligible mortgages and excess spread that is generated from performing loans in the insured transactions.
Ineligible Mortgage Loans
As of September 30, 2013, MBIA Corp. recorded estimated recoveries of $1.1 billion, gross of income taxes, related to second-lien RMBS put-back claims on ineligible mortgage loans, consisting of $18 million included in Insurance loss recoverable and $1.1 billion included in Loan repurchase commitments presented under the heading Assets of consolidated variable interest entities on MBIA Corp.s consolidated balance sheets. As of September 30, 2013 and December 31, 2012, MBIA Corp.s estimated recoveries after income taxes calculated at the federal statutory rate of 35%, were $737 million and $2.3 billion, respectively, which was 119% and 432% of the consolidated total shareholders equity, respectively. As of September 30, 2013, the remaining estimated recoveries relate to MBIA Corp.s claims based on ineligible mortgage loans asserted against Credit Suisse and the agreed to claims and recoveries against the bankruptcy estates of RFC, GMAC and ResCap as reflected in a disclosure statement filed in August of 2013.
On May 14, 2012, ResCap and its wholly-owned subsidiary companies, RFC and GMAC, each filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. MBIA Corp. asserted claims based on the inclusion of ineligible loans against RFC, GMAC and ResCap, based upon the direct contractual relationship between MBIA Corp., RFC and GMAC.
14
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
As of May 23, 2013, Ally, ResCap, RFC, GMAC and the Consenting Claimants (which includes MBIA Corp.), among other parties, executed a term sheet and supplemental term sheet agreeing to, among other things, a settlement amount of $796 million to be paid to MBIA Corp. as part of a proposed plan to resolve claims against Ally and RFC, GMAC and ResCap. In August of 2013, a disclosure statement filed indicated an increased expected recovery for MBIA Corp. of approximately $828 million. The increased recovery was primarily due to the favorable disposition of assets and settlements of claims. The settlement and anticipated recoveries are consistent with the put-back recoveries recorded by MBIA Corp. The agreement will be implemented through a plan of reorganization in ResCaps Chapter 11 cases, subject to bankruptcy court approval. In June of 2013, the bankruptcy court issued a Memorandum Opinion approving the Plan. The Plan is subject to confirmation by the bankruptcy court, with confirmation hearings currently scheduled in November 2013. MBIA Corp. anticipates an initial distribution of funds to MBIA Corp. and other claimants in late 2013 or early 2014. This anticipated timeline may change due to developments related to the Junior Secured Note litigation, which occurred in October of 2013, or other matters that develop in the course of events in the bankruptcy court plan confirmation process.
MBIA Corp. continues to refine the indicative scenarios used to calculate put-back recoveries for ResCap based upon information received during the bankruptcy process. MBIA Corp. has made additional adjustments to its recovery calculations related to ResCap in consideration of the agreed upon recovery amount as described in the executed term sheet, supplemental term sheet and plan support agreement submitted in motions filed in May of 2013. During the third quarter of 2013, MBIA Corp. made additional refinements to the probability assumptions utilized to calculate MBIA Corp.s expected recoveries. The revisions were based upon the submission of documents related to the Plan.
In addition, MBIA Corp. believes that it will prevail in enforcing its contractual put-back rights against Credit Suisse. Based on MBIA Corp.s assessment of the strength of these claims, MBIA Corp. believes it is entitled to collect the full amount of its incurred losses, and interest on amounts paid. However, uncertainty remains with respect to the ultimate outcome of the litigation with Credit Suisse, which is contemplated in the scenario based-modeling MBIA Corp. utilizes. The Credit Suisse recovery scenarios are based on the amount of incurred losses measured against certain probabilities of ultimate resolution of the dispute with Credit Suisse over the inclusion of ineligible mortgage loans in the HEMT securitization. Most of the probability weight is assigned to partial recovery scenarios.
Expected cash inflows from put-back recoveries are discounted using the current risk-free discount rates associated with the underlying transactions cash flows which ranged from 1.4% to 2.7%, depending upon the transactions expected average life, which ranged from 5.0 years to 10.4 years.
MBIA Corp. consistently reviews the approach and assumptions it applies to calculate put-back recoveries. The same transactional documents that provide MBIA Corp. with its put-back rights against Credit Suisse also provide that MBIA Corp. is entitled to reimbursement of interest on paid claims at a prescribed interest rate. Following Judge Jed Rakoffs decision on February 7, 2013 in the Assured Guaranty v. Flagstar case (Assured Guaranty Municipal Corp. v. Flagstar Bank, 11-cv-02375, U.S. District Court, Southern District of New York (Manhattan)), in which he confirmed Assured Guarantys analogous right to recover contractual interest in addition to claims paid, MBIA Corp. has refined its put-back recovery assumptions against Credit Suisse to increase the probability that it will be reimbursed for contractual interest owed on paid claims. Consistent with MBIA Corp.s probability based put-back recovery calculations, it has determined the interest owed contemplating litigation risk and repayment risk, as well as the potential value in the context of a settlement. MBIA Corp. continues to maintain that in the context of its put-back litigation, MBIA Corp. is entitled to receive interest at the New York State statutory rate. However, MBIA Corp. currently calculates its put-back recoveries using the contractual interest rate, which is lower than the New York State statutory rate.
To date, MBIA Corp. has either settled or agreed to settle the majority of MBIA Corp.s put-back claims, with only Credit Suisse remaining as an outstanding dispute. The settlement amounts have been consistent with the put-back recoveries previously included in MBIA Corp.s financial statements. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the BofA Settlement Agreement. Additional information on the status of the litigation against Credit Suisse can be found in the Recovery Litigation discussion within Note 12: Commitments and Contingencies.
MBIA Corp.s assessment of the remaining unsettled recoveries related to insured Credit Suisse second-lien RMBS is principally based on the following factors:
1. | the settlement of the majority of MBIA Corp.s put-back claims with sellers/servicers, including those with Bank of America and Flagstar Bank in May of 2013; |
2. | Assured Guarantys favorable court ruling in its put-back litigation against Flagstar Bank, awarding it the vast majority of the claims paid on the relevant transactions plus interest, fees and expenses, as well as their subsequent settlement with Flagstar Bank, which resolved Assured Guarantys put-back claims; and |
3. | the court rulings in MBIA Corp.s put-back litigations. |
15
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
MBIA Corp. continues to consider all relevant facts and circumstances, including the factors described above, in developing its assumptions on expected cash inflows, probability of potential recoveries (including the outcome of litigation) and recovery period. The estimated amount and likelihood of potential recoveries are expected to be revised and supplemented to the extent there are developments in the pending litigation and/or changes to the financial condition of Credit Suisse. While MBIA Corp. believes it will be successful in realizing recoveries from contractual claims, the ultimate amounts recovered may be materially different from those recorded by MBIA Corp. given the inherent uncertainty of the manner of resolving the claims (e.g., litigation) and the assumptions used in the required estimation process for accounting purposes which are based, in part, on judgments and other information that are not easily corroborated by historical data or other relevant benchmarks.
All of MBIA Corp.s policies insuring second-lien RMBS for which litigation has been initiated against sellers/servicers are in the form of financial guarantee insurance contracts. In accordance with GAAP, MBIA Corp. has not recorded a gain contingency with respect to pending litigation.
Excess Spread
As of September 30, 2013, MBIA Corp. recorded estimated recoveries of $756 million in reimbursement of past and future expected claims through excess spread in insured second-lien RMBS transactions. Of the expected reimbursement from excess spread, $669 million is included in Insurance loss recoverable and $87 million is included in Loss and loss adjustment expense reserves on MBIA Corp.s consolidated balance sheets. Excess spread is generated by performing loans within insured RMBS securitizations and is the difference between interest inflows on mortgage loan collateral and interest outflows on insured beneficial interests. The amount of excess spread depends on the future delinquency and loss trends, future prime and LIBOR interest rates and borrower refinancing behavior, which results in voluntary prepayments.
First-lien RMBS Reserves
MBIA Corp.s first-lien RMBS case basis reserves as of September 30, 2013, which primarily relate to RMBS backed by Alt-A and subprime mortgage loans, were determined using the Roll Rate Methodology. MBIA Corp. assumes that the Roll Rate for loans in foreclosure, REO and bankruptcy are 90%, 90% and 75%, respectively. Roll Rates for current, 30-59 day delinquent loans, 60-89 day delinquent loans and 90+ day delinquent loans are calculated on a transaction-specific basis. The Current Roll to Loss rates stay at the August 31, 2013 level for one month before declining to 25% of this level over a 24-month period.
MBIA Corp. estimates future losses by utilizing three different probability-weighted scenarios: base; stress; and additional stress. The three scenarios differ in the roll rates to loss of 90+ day delinquent loans. In the base scenario, MBIA Corp. uses deal-specific roll rates obtained from historic loan level roll rate data. In the stress scenario, MBIA Corp. assumes a 90% roll rate for all 90+ day delinquent loans. In the additional stress scenario, the roll rates for each deal are an average of the deal-specific roll rate used in the base scenario and the 90% rate. The Roll Rates are applied to the amounts in each deals respective 90+ delinquency bucket based on delinquencies as of August 31, 2013 in order to estimate future losses from loans that are delinquent as of September 30, 2013.
In calculating ultimate cumulative losses for first-lien RMBS, MBIA Corp. estimates the amount of loans that are expected to be liquidated through foreclosure or short sale. The time to liquidation for a defaulted loan is specific to the loans delinquency bucket with the latest three-month average loss severities generally used to start the projection for trends in loss severities at loan liquidation. The loss severities are reduced over time to account for reduction in the amount of foreclosure inventory, anticipated future increases in home prices, principal amortization of the loan and government foreclosure moratoriums.
ABS CDOs (Financial Guarantees and Insured Derivatives)
MBIA Corp.s insured ABS CDOs are transactions that include a variety of collateral ranging from corporate bonds to structured finance assets (which includes but are not limited to RMBS related collateral, ABS CDOs, corporate CDOs and collateralized loan obligations). These transactions were insured as either financial guarantee insurance policies or credit derivatives with the majority currently insured in the form of financial guarantees. Since the fourth quarter of 2007, MBIA Corp.s insured par exposure within the ABS CDO portfolio has been substantially reduced through a combination of terminations and commutations. Accordingly, as of September 30, 2013, the insured par exposure of the ABS CDO financial guarantee insurance policies and credit derivatives portfolio has declined by approximately 96% of the insured amount as of December 31, 2007.
16
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
MBIA Corp.s ABS CDOs originally benefited from two sources of credit enhancement. First, the subordination in the underlying securities collateralizing the transaction must be fully eroded and second, the subordination below the insured tranche in the CDO transaction must be fully eroded before the insured tranche is subject to a claim. MBIA Corp.s payment obligations after a default are timely interest and ultimate principal.
The primary factor in estimating reserves on insured ABS CDO policies written as financial guarantee insurance policies and in estimating impairments on insured ABS CDO credit derivatives is the losses associated with the underlying collateral in the transactions. MBIA Corp.s approach to establishing reserves or impairments in this portfolio employs a methodology which is similar to other structured finance asset classes insured by MBIA Corp. MBIA Corp. utilizes up to a total of four probability-weighted scenarios in order to estimate its reserves or impairments for ABS CDOs.
As of September 30, 2013, MBIA Corp. established loss and LAE reserves totaling $87 million related to ABS CDO financial guarantee insurance policies after the elimination of $196 million as a result of consolidating VIEs. For the nine months ended September 30, 2013, MBIA Corp. had a benefit of $47 million of losses and LAE recorded in earnings related to ABS CDO financial guarantee insurance policies after the elimination of a $39 million benefit as a result of consolidating VIEs. In the event of further deteriorating performance of the collateral referenced or held in ABS CDO transactions, the amount of losses estimated by MBIA Corp. could increase substantially.
Credit Impairments Related to Structured CMBS Pools, CRE CDOs and CRE Loan Pools (Financial Guarantees and Insured Derivatives)
Most of the structured CMBS pools, CRE CDOs and CRE loan pools insured by MBIA Corp. are accounted for as insured credit derivatives and are carried at fair value in MBIA Corp.s consolidated financial statements. Since MBIA Corp.s insured credit derivatives have similar terms, conditions, risks, and economic profiles to its financial guarantee insurance policies, MBIA Corp. evaluates them for impairment in the same way that it estimates loss and LAE for its financial guarantee policies. The following discussion provides information about MBIA Corp.s process for estimating credit impairments on these contracts using its statutory loss reserve methodology, determined as the present value of the probability-weighted potential future losses, net of estimated recoveries, across multiple scenarios, plus actual payments and collections.
MBIA Corp. has developed multiple scenarios to consider the range of potential outcomes in the CRE market and their impact on MBIA Corp. The approaches require substantial judgments about the future performance of the underlying loans, and include the following:
|
The first approach considers the range of commutation agreements achieved over the past several years with multiple counterparties and results in an estimated price to commute the remaining policies. It is customized by counterparty and is dependent upon the level of dialogue with the counterparty and the credit quality and payment profile of the underlying exposure. |
|
The second approach considers current delinquency rates and uses current and projected net operating income (NOI) and capitalization rates (Cap Rates) to project losses under two scenarios. These scenarios assume that property performance remains flat for the near term and then improves gradually. Additionally, certain large loans are reviewed individually so that performance and loss severity can be more accurately determined. Other loans are reviewed for factors that may mitigate potential performance. This approach utilizes two scenarios which vary in the levels of expected future defaults. |
|
The last approach is based on a proprietary model developed by reviewing performance data on over 80,000 securitized CRE loans originated between 1992 and 2011. The time period covered during the performance review includes the years 2006 through 2011 because they encompass a period of extreme stress in the economy and the CRE markets. MBIA Corp. found property type and the debt service coverage ratio to be the most significant determinants of a loans average annual default probability, and developed a model based on these factors. MBIA Corp. then ran Monte Carlo simulations to estimate the timing of defaults and losses at the property level by applying property type-based Cap Rates to estimate the propertys NOI. |
17
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The loss severities projected by these scenarios vary widely, from moderate to substantial losses. Actual losses will be a function of the proportion of loans in the pools that are foreclosed and liquidated and the loss severities associated with those liquidations. If the deductibles in MBIA Corp.s insured transactions and underlying referenced CMBS transactions are fully eroded, additional property level losses upon foreclosures and liquidations could result in substantial losses for MBIA Corp. Ultimate loss rates remain uncertain because many loans are still delinquent and have not yet been resolved, others have been modified and others do not mature for another three to four years at which time they will face the need to refinance. MBIA Corp. assigns a wide range of probabilities to these scenarios and incorporates views that liquidations will continue to be mitigated by loan extensions and modifications, and that property values and NOIs have bottomed for many sectors and markets in the U.S. The weightings are customized for each counterparty. If macroeconomic stress were to increase or the U.S. enters into a recession, higher delinquencies, liquidations and/or higher severities of loss upon liquidation may result and MBIA Corp. may incur substantial additional losses. The foreclosure and REO pipelines are still relatively robust, with several restructurings and liquidations yet to occur, so the range of possible outcomes is wider than those for MBIA Corp.s exposures to ABS CDOs and second-lien RMBS. Prior to June 30, 2013, MBIA Corp. incorporated an additional approach based on recent Roll Rates experienced within each of the commercial mortgage-backed index series. This actuarial approach was eliminated as a result of more emphasis being placed on loan-specific scenarios.
In the CRE CDO portfolio, transaction-specific structures require certain reporting and management protocols and often require MBIA Corp. to incorporate these structural distinctions into its models. None of the CRE CDOs insured by MBIA Corp. allow for reinvesting at this time, and many of the senior bonds have begun to amortize.
For the nine months ended September 30, 2013, MBIA Corp. had a benefit of $28 million of losses and LAE recorded in earnings related to CRE CDO financial guarantee insurance policies. For the nine months ended September 30, 2013, additional credit impairments and LAE for insured derivatives on structured CMBS pools, CRE CDOs and CRE loan pools were estimated to be $487 million as a result of additional delinquencies and loan level liquidations, as well as continued refinements of MBIA Corp.s assessment of various commutation possibilities. The cumulative credit impairments and LAE on structured CMBS pools, CRE CDOs and CRE loan pools were estimated to be $4.1 billion through September 30, 2013. Though the pace of increases in the delinquency rate has slowed, many loans are being modified and liquidations continue to take place. Loan level losses have ranged from 1% to 2%, to near complete losses, and in a few cases severities exceeded 100%. These liquidations have led to bond level losses which have reduced the level of enhancement to the individual CMBS bonds referenced by the insured structured CMBS pools and in certain cases have resulted in deductible erosion. Bond level enhancement and pool level deductibles are structural features intended to mitigate losses to MBIA Corp., however, some of the transactions reference similar rated subordinate tranches of CMBS bonds. When there are broad-based declines in property performance, this leverage can result in rapid deterioration in pool performance. Beginning in the second quarter of 2013, MBIA Corp. paid claims on a CMBS pool transaction that experienced deterioration such that all remaining deductible was eliminated.
Loss and LAE Activity
Financial Guarantee Insurance Losses (Non-Derivative)
MBIA Corp.s financial guarantee insurance losses and LAE for the nine months ended September 30, 2013 are presented in the following table:
Losses and LAE | Nine Months Ended September 30, 2013 | |||||||||||||||
In millions |
Second-lien
RMBS |
First-lien
RMBS |
Other | Total | ||||||||||||
Losses and LAE related to actual and expected payments |
$ | 85 | $ | 12 | $ | 97 | $ | 194 | ||||||||
Recoveries of actual and expected payments |
(177) | (11) | 80 | (108) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross losses incurred |
(92) | 1 | 177 | 86 | ||||||||||||
Reinsurance |
- | - | (99) | (99) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Losses and LAE |
$ | (92) | $ | 1 | $ | 78 ( | 1) | $ | (13) | |||||||
|
|
|
|
|
|
|
|
(1) - | Includes ABS CDOs, CMBS and other issues. |
18
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The losses and LAE related to actual and expected payments in the preceding table includes $97 million in other exposures primarily related to U.S. public finance transactions which MBIA Corp. cedes to National. The second-lien RMBS losses and LAE related to actual and expected payments comprise net increases of previously established reserves. The recoveries of actual and expected payments were primarily related to second-lien RMBS recoveries of $177 million, including $316 million in recoveries primarily resulting from ineligible mortgage loans included in insured exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgages, partially offset by a $139 million reduction in excess spread. Partially offsetting increases in second-lien RMBS recoveries of actual and expected payments were decreases of $80 million related to other issues primarily resulting from a reversal of recoveries related to high yield corporate CDOs.
The following table provides information about the financial guarantees and related claim liability included in each of MBIA Corp.s surveillance categories as of September 30, 2013:
Surveillance Categories | ||||||||||||||||||||
$ in millions |
Caution List
Low |
Caution List
Medium |
Caution List
High |
Classified
List |
Total | |||||||||||||||
Number of policies |
65 | 20 | 5 | 189 | 279 | |||||||||||||||
Number of issues (1) |
28 | 15 | 4 | 133 | 180 | |||||||||||||||
Remaining weighted average contract period (in years) |
10.0 | 5.3 | 8.4 | 9.6 | 9.4 | |||||||||||||||
Gross insured contractual payments outstanding: (2) |
||||||||||||||||||||
Principal |
$ | 4,528 | $ | 1,099 | $ | 44 | $ | 8,242 | $ | 13,913 | ||||||||||
Interest |
3,211 | 279 | 18 | 4,755 | 8,263 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 7,739 | $ | 1,378 | $ | 62 | $ | 12,997 | $ | 22,176 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross claim liability |
$ | - | $ | - | $ | - | $ | 1,465 | $ | 1,465 | ||||||||||
Less: |
||||||||||||||||||||
Gross potential recoveries |
- | - | - | 1,231 | 1,231 | |||||||||||||||
Discount, net |
- | - | - | 278 | 278 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net claim liability (recoverable) |
$ | - | $ | - | $ | - | $ | (44) | $ | (44) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unearned premium revenue |
$ | 125 | $ | 20 | $ | - | $ | 100 | $ | 245 |
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA Corp. |
The following table provides information about the financial guarantees and related claim liability included in each of MBIA Corp.s surveillance categories as of December 31, 2012:
Surveillance Categories | ||||||||||||||||||||
$ in millions |
Caution List
Low |
Caution List
Medium |
Caution List
High |
Classified
List |
Total | |||||||||||||||
Number of policies |
49 | 25 | 8 | 204 | 286 | |||||||||||||||
Number of issues (1) |
27 | 15 | 8 | 135 | 185 | |||||||||||||||
Remaining weighted average contract period (in years) |
8.2 | 4.0 | 6.0 | 9.5 | 8.6 | |||||||||||||||
Gross insured contractual payments outstanding: (2) |
||||||||||||||||||||
Principal |
$ | 4,126 | $ | 1,176 | $ | 307 | $ | 9,412 | $ | 15,021 | ||||||||||
Interest |
2,690 | 256 | 69 | 5,231 | 8,246 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 6,816 | $ | 1,432 | $ | 376 | $ | 14,643 | $ | 23,267 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross claim liability |
$ | - | $ | - | $ | - | $ | 1,569 | $ | 1,569 | ||||||||||
Less: |
||||||||||||||||||||
Gross potential recoveries |
- | - | - | 4,090 | 4,090 | |||||||||||||||
Discount, net |
- | - | - | 233 | 233 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net claim liability (recoverable) |
$ | - | $ | - | $ | - | $ | (2,754) | $ | (2,754) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Unearned premium revenue |
$ | 142 | $ | 11 | $ | 2 | $ | 121 | $ | 276 |
(1) - | An issue represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments. |
(2) - | Represents contractual principal and interest payments due by the issuer of the obligations insured by MBIA Corp. |
19
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The gross claim liability as of September 30, 2013 and December 31, 2012 in the preceding tables represents MBIA Corp.s estimate of undiscounted probability-weighted future claim payments, which principally relate to insured first and second-lien RMBS transactions and U.S. public finance transactions. The gross potential recoveries represent MBIA Corp.s estimate of undiscounted probability-weighted recoveries of actual claim payments and recoveries of estimated future claim payments, and principally relate to insured second-lien RMBS transactions and U.S. public finance transactions. MBIA Corp.s recoveries have been, and remain based on either salvage rights, the rights conferred to MBIA Corp. through the transactional documents (inclusive of the insurance agreement), or subrogation rights embedded within financial guarantee insurance policies. Expected salvage and subrogation recoveries, as well as recoveries from other remediation efforts, reduce MBIA Corp.s claim liability. Once a claim payment has been made, the claim liability has been satisfied and MBIA Corp.s right to recovery is no longer considered an offset to future expected claim payments, it is recorded as a salvage asset. The amount of recoveries recorded by MBIA Corp. is limited to paid claims plus the present value of projected future claim payments. As claim payments are made, the recorded amount of potential recoveries may exceed the remaining amount of the claim liability for a given policy. The gross claim liability and gross potential recoveries reflect the elimination of claim liabilities and potential recoveries related to VIEs consolidated by MBIA Corp.
The following table presents the components of MBIA Corp.s loss and LAE reserves and insurance loss recoverable as reported on MBIA Corp.s consolidated balance sheets as of September 30, 2013 and December 31, 2012 for insured obligations within MBIA Corp.s Classified List. The loss reserves (claim liability) and insurance claim loss recoverable included in the following table represent the present value of the probability-weighted future claim payments and recoveries reported in the preceding tables.
In millions |
As of September 30,
2013 |
As of December 31,
2012 |
||||||
Loss reserves (claim liability) |
$ | 625 | $ | 786 | ||||
LAE reserves |
50 | 60 | ||||||
|
|
|
|
|||||
Loss and LAE reserves |
$ | 675 | $ | 846 | ||||
|
|
|
|
|||||
Insurance claim loss recoverable |
$ | (737) | $ | (3,610) | ||||
LAE insurance loss recoverable |
(5) | (38) | ||||||
|
|
|
|
|||||
Insurance loss recoverable |
$ | (742) | $ | (3,648) | ||||
|
|
|
|
|||||
Reinsurance recoverable on unpaid losses |
$ | 63 | $ | 152 | ||||
Reinsurance recoverable on LAE reserves |
25 | 6 | ||||||
Reinsurance recoverable on paid losses |
- | 1 | ||||||
|
|
|
|
|||||
Reinsurance recoverable on paid and unpaid losses |
$ | 88 | $ | 159 | ||||
|
|
|
|
As of September 30, 2013, loss and LAE reserves include $985 million of reserves for expected future payments offset by expected recoveries of such future payments of $310 million. As of December 31, 2012, loss and LAE reserves included $1.2 billion of reserves for expected future payments offset by expected recoveries of such future payments of $320 million. As of September 30, 2013, the insurance loss recoverable principally related to expected future recoveries on second-lien RMBS transactions resulting from expected excess spread generated by performing loans in such transactions. As of December 31, 2012, the insurance loss recoverable principally related to estimated recoveries of payments made by MBIA Corp. resulting from ineligible mortgage loans in certain insured second-lien residential mortgage loan securitizations that are subject to a contractual obligation by the sellers/servicers to repurchase or replace the ineligible mortgage loans and expected future recoveries on second-lien RMBS transactions resulting from expected excess spread generated by performing loans in such transactions.
To date, as a result of the Bank of America and Flagstar Bank settlements, as well as the agreement between Consenting Claimants, ResCap and Ally, in the ResCap bankruptcy proceeding discussed above, MBIA Corp. expects to be reimbursed for the majority of its potential recoveries related to ineligible mortgage loans by the end of 2013 or early 2014, which are primarily included in Loan repurchase commitments presented under the heading Assets of consolidated variable interest entities on MBIA Corp.s consolidated balance sheets.
For the nine months ended September 30, 2013, MBIA Corp. collected approximately $2.8 billion, net of reinsurance, primarily related to insured second-lien RMBS transactions. MBIA Corp. made payments of $238 million, of which $166 million related to insured second-lien RMBS transactions.
For the nine months ended September 30, 2013, the decrease in insurance loss recoverable related to paid losses totaled $2.9 billion, and primarily resulted from the collections of previously established recoveries related to the settlement with Bank of America on the ineligible mortgage loans related to insured second-lien RMBS transactions.
20
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The following table presents the amounts of MBIA Corp.s second-lien RMBS exposure, gross undiscounted claim liability and potential recoveries related to non-consolidated VIEs and consolidated VIEs, included in MBIA Corp.s Classified List, as of September 30, 2013.
Second-lien RMBS Exposure | Outstanding | Gross Undiscounted | ||||||||||||||||||
$ in billions |
Issues |
Gross
Principal |
Gross
Interest |
Claim
Liability |
Potential
Recoveries |
|||||||||||||||
Non-consolidated VIEs |
23 | $ | 3.6 | $ | 1.3 | $ | 0.2 | $ | 0.9 | |||||||||||
Consolidated VIEs |
11 | $ | 1.8 | $ | 0.7 | $ | 0.1 | $ | 1.4 |
The following table presents changes in MBIA Corp.s loss and LAE reserves for the nine months ended September 30, 2013. Changes in the loss and LAE reserves attributable to the accretion of the claim liability discount, changes in discount rates, changes in the timing and amounts of estimated payments and recoveries, changes in assumptions and changes in LAE reserves are recorded in Losses and loss adjustment expenses in MBIA Corp.s consolidated statements of operations. As of September 30, 2013, the weighted average risk-free rate used to discount MBIA Corp.s loss reserves (claim liability) was 2.10%. LAE reserves are expected to be settled within a one-year period and are not discounted.
In millions | Changes in Loss and LAE Reserves for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Gross Loss and LAE Reserves as of December 31, 2012 |
Loss
with
|
Accretion
|
Changes in
|
Changes in
|
Changes in
|
Changes
|
Other (1) |
Gross Loss and
|
||||||||||||||||||||||||||
$ | 846 | $ | (292) | $ | 10 | $ | (71) | $ | 109 | $ | 2 | $ | (10) | $ | 81 | $ | 675 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Primarily changes in amount and timing of payments. |
The decrease in MBIA Corp.s gross loss and LAE reserves reflected in the preceding table was primarily due to a decrease in reserves related to loss payments on insured first and second-lien RMBS securitizations and U.S. public finance issues, partially offset by changes in assumptions.
Current period changes in MBIA Corp.s estimate of potential recoveries may be recorded as an insurance loss recoverable asset, netted against the gross loss and LAE reserve liability, or both. The following table presents changes in MBIA Corp.s insurance loss recoverable and changes in recoveries on unpaid losses reported within MBIA Corp.s claim liability for the nine months ended September 30, 2013. Changes in insurance loss recoverable attributable to the accretion of the discount on the recoverable, changes in discount rates, changes in the timing and amounts of estimated collections, changes in assumptions and changes in LAE recoveries are recorded in Losses and loss adjustment expenses on MBIA Corp.s consolidated statements of operations.
Changes in Insurance Loss Recoverable and Recoveries on Unpaid Losses for the | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
In millions |
Gross
Reserve as of December 31, 2012 |
Collections
for Cases with Recoveries |
Accretion of
Recoveries |
Changes in
Discount Rates |
Changes in
Assumptions |
Changes in
LAE Recoveries |
Other (1) |
Gross
Reserve as of September 30, 2013 |
||||||||||||||||||||||||
Insurance loss recoverable |
$ | 3,648 | $ | (2,981) | $ | 16 | $ | (25) | $ | 129 | $ | (33) | $ | (12) | $ | 742 | ||||||||||||||||
Recoveries on unpaid losses |
320 | - | 4 | (25) | 9 | 2 | | 310 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
$ | 3,968 | $ | (2,981) | $ | 20 | $ | (50) | $ | 138 | $ | (31) | $ | (12) | $ | 1,052 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Primarily changes in amount and timing of collections. |
MBIA Corp.s insurance loss recoverable decreased during 2013 primarily due to recoveries associated with issues outstanding as of December 31, 2012, which related to the settlement with Bank of America on the ineligible mortgage loans included in insured second-lien residential mortgage securitization exposures that are subject to contractual obligations by sellers/servicers to repurchase or replace such mortgages. Recoveries on unpaid losses decreased primarily due to changes in discount rates, partially offset by changes in assumptions.
21
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 5: Loss and Loss Adjustment Expense Reserves (continued)
The following table presents MBIA Corp.s total estimated recoveries from ineligible mortgage loans included in certain insured second-lien mortgage loan securitizations as of September 30, 2013. The total estimated recoveries from ineligible mortgage loans of $1.1 billion include $18 million recorded as Insurance loss recoverable and $1.1 billion recorded as Loan repurchase commitments presented under the heading Assets of consolidated variable interest entities on MBIA Corp.s consolidated balance sheets.
In millions | ||||||||||||||||||||||||||
Total Estimated Recoveries from Ineligible Mortgage Loans as of December 31, 2012 |
Accretion of
|
Changes in
|
Recoveries
|
Changes in
|
Other (1) |
Total Estimated
|
||||||||||||||||||||
$ | 3,583 | $ | 20 | $ | (7) | $ | (2,897) | $ | 433 | $ | 1 | $ | 1,133 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Primarily changes in amount and timing of collections. |
The decrease in MBIA Corp.s total estimated recoveries from ineligible mortgage loans in the preceding table primarily resulted from the collections of previously established recoveries related to the settlement with Bank of America and Flagstar Bank on the ineligible mortgage loans related to insured second-lien RMBS securitizations.
Remediation actions may involve, among other things, waivers or renegotiations of financial covenants or triggers, waivers of contractual provisions, the granting of consents, transfer of servicing, consideration of restructuring plans, acceleration, security or collateral enforcement, actions in bankruptcy or receivership, litigation and similar actions. The types of remedial actions pursued are based on the insured obligations risk type and the nature and scope of the event giving rise to the remediation. As part of any such remedial actions, MBIA Corp. seeks to improve its security position and to obtain concessions from the issuer of the insured obligation. From time to time, the issuer of an MBIA Corp.-insured obligation may, with the consent of MBIA Corp., restructure the insured obligation by extending the term, increasing or decreasing the par amount or decreasing the related interest rate, with MBIA Corp. insuring the restructured obligation.
Costs associated with remediating insured obligations assigned to MBIA Corp.s Caution ListLow, Caution ListMedium, Caution ListHigh and Classified List are recorded as LAE. LAE is primarily recorded as part of MBIA Corp.s provision for its loss reserves and included in Losses and loss adjustment expenses on MBIA Corp.s consolidated statements of operations. The following table presents the gross expenses related to remedial actions for insured obligations:
Nine Months Ended September 30, | ||||||||
In millions |
2013 | 2012 | ||||||
Loss adjustment expense incurred, gross |
$ | 31 | $ | 108 |
Note 6: Fair Value of Financial Instruments
Fair Value Measurement
Fair value is a market-based measure considered from the perspective of a market participant. Therefore, even when market assumptions are not readily available, MBIA Corp.s own assumptions are set to reflect those which it believes market participants would use in pricing an asset or liability at the measurement date. The fair value measurements of financial instruments held or issued by MBIA Corp. are determined through the use of observable market data when available. Market data is obtained from a variety of third-party sources, including dealer quotes. If dealer quotes are not available for an instrument that is infrequently traded, MBIA Corp. uses alternate valuation methods, including either dealer quotes for similar instruments or modeling using market data inputs. The use of alternate valuation methods generally requires considerable judgment in the application of estimates and assumptions, and changes to such estimates and assumptions may produce materially different fair values.
22
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The accounting guidance for fair value measurement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available and reliable. Observable inputs are those MBIA Corp. believes that market participants would use in pricing an asset or liability based on available market data. Unobservable inputs are those that reflect MBIA Corp.s beliefs about the assumptions market participants would use in pricing an asset or liability based on the best information available. The fair value hierarchy is broken down into three levels based on the observability and reliability of inputs, as follows:
|
Level 1Valuations based on quoted prices in active markets for identical assets or liabilities that MBIA Corp. can access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail any degree of judgment. |
|
Level 2Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 2 assets include debt securities with quoted prices that are traded less frequently than exchange-traded instruments, securities which are priced using observable inputs and derivative contracts whose values are determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. |
|
Level 3Valuations based on inputs that are unobservable and supported by little or no market activity and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
The availability of observable inputs can vary from product to product and period to period and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the product. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, MBIA Corp. assigns the level in the fair value hierarchy for which the fair value measurement in its entirety falls, based on the least observable input that is significant to the fair value measurement.
Financial Assets (excluding derivative assets)
Financial assets, excluding derivative assets, held by MBIA Corp. primarily consist of investments in debt securities. Substantially all of MBIA Corp.s investments are priced by independent third parties, including pricing services and brokers. Typically MBIA Corp. receives one pricing service value or broker quote for each instrument, which represents a non-binding indication of value. MBIA Corp. reviews the assumptions, inputs and methodologies used by pricing services to obtain reasonable assurance that the prices used in its valuations reflect fair value. When MBIA Corp. believes a third-party quotation differs significantly from its internally developed expectation of fair value, whether higher or lower, MBIA Corp. reviews its data or assumptions with the provider. This review includes comparing significant assumptions such as prepayment speeds, default ratios, forward yield curves, credit spreads and other significant quantitative inputs to internal assumptions, and working with the price provider to reconcile the differences. The price provider may subsequently provide an updated price. In the event that the price provider does not update its price, and MBIA Corp. still does not agree with the price provided, MBIA Corp. will try to obtain a price from another third-party provider, such as a broker, or use an internally developed price which it believes represents the fair value of the investment. The fair values of investments for which internal prices were used were not significant to the aggregate fair value of MBIA Corp.s investment portfolio as of September 30, 2013 or December 31, 2012. All challenges to third-party prices are reviewed by staff of MBIA Corp. with relevant expertise to ensure reasonableness of assumptions.
In addition to challenging pricing assumptions, MBIA Corp. obtains reports from the independent accountants for significant third-party pricing services attesting to the effectiveness of the controls over data provided to MBIA Corp. These reports are obtained annually and are reviewed by MBIA Corp. to ensure key controls are applied by the pricing services, and that appropriate user controls are in place at the third-party pricing services organization to ensure proper measurement of the fair values of its investments. In the event that any controls in these reports are deemed ineffective by independent accountants, MBIA Corp. will take the necessary actions to ensure that internal user controls are in place to mitigate the control risks. No deficiencies were noted for significant third-party pricing services used.
Derivative Assets and Liabilities
MBIA Corp.s derivative liabilities are primarily insured credit derivatives that reference structured pools of cash securities and CDSs. MBIA Corp. generally insured the most senior liabilities of such transactions, and at the inception of transactions its exposure generally had more subordination than needed to achieve triple-A ratings from credit rating agencies. The types of collateral underlying its insured derivatives consist of cash securities and CDSs referencing primarily corporate, asset-backed, residential mortgage-backed, commercial mortgage-backed, CRE loans, and CDO securities.
23
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
MBIA Corp.s insured credit derivative contracts are non-traded structured credit derivative transactions. Since insured derivatives are highly customized and there is generally no observable market for these derivatives, MBIA Corp. estimates their fair values in a hypothetical market based on internal and third-party models simulating what a similar company would charge to assume MBIA Corp.s position in the transaction at the measurement date. This pricing would be based on the expected loss of the exposure. MBIA Corp. reviews its valuation model results on a quarterly basis to assess the appropriateness of the assumptions and results in light of current market activity and conditions. This review is performed by internal staff with relevant expertise. If live market spreads or securities prices are observable for similar transactions, those spreads are an integral part of the analysis. New insured transactions that resemble existing (previously insured) transactions, if any, would be considered, as well as negotiated settlements of existing transactions.
MBIA Corp. may from time to time make changes in its valuation techniques if the change results in a measurement that it believes is equally or more representative of fair value under current circumstances.
Internal Review Process
All significant financial assets and liabilities, including derivative assets and liabilities, are reviewed by committees created by MBIA Corp. to ensure compliance with MBIA Corp. policies and risk procedures in the development of fair values of financial assets and liabilities. These valuation committees review, among other things, key assumptions used for internally developed prices, significant changes in sources and uses of inputs, including changes in model approaches, and any adjustments from third-party inputs or prices to internally developed inputs or prices. The committees also review any significant impairment or improvements in fair values of the financial instruments from prior periods. From time to time, these committees will reach out to MBIA Corp. valuation experts to better understand key methods and assumptions used for the determination of fair value, including understanding significant changes in fair values. These committees are comprised of senior finance team members with the relevant experience in the financial instruments their committee is responsible for. Each quarter, these committees document their agreement with the fair values developed by management of MBIA Corp. as reported in the quarterly and annual financial statements.
Valuation Techniques
Valuation techniques for financial instruments measured at fair value or disclosed at fair value are described below:
Fixed-Maturity Securities (and Short-Term Investments) Held as Available-For-Sale, Investments (including fixed-maturity securities) Carried at Fair Value, Other Investments, and Investments Held-to-Maturity, at Amortized Cost.
Fixed-maturity securities (and short-term investments) held as available-for-sale (AFS), investments carried at fair value, other investments, and investments held-to-maturity (HTM), at amortized cost include investments in U.S. Treasury and government agencies, foreign governments, corporate obligations, mortgage-backed and asset-backed securities (including CMBS and CDOs), state and municipal bonds, perpetual debt and equity securities (including money market mutual funds), and loans receivable with an affiliate.
These investments are generally valued based on recently executed transaction prices or quoted market prices. When quoted market prices are not available, fair value is generally determined using quoted prices of similar investments or a valuation model based on observable and unobservable inputs. Inputs vary depending on the type of investment. Observable inputs include contractual cash flows, interest rate yield curves, CDS spreads, prepayment and volatility scores, diversity scores, cross-currency basis index spreads, and credit spreads for structures similar to the financial instrument in terms of issuer, maturity and seniority. Unobservable inputs include cash flow projections and the value of any credit enhancement.
The fair value of the HTM investments is determined using discounted cash flow models. Key inputs include unobservable cash flows projected over the expected term of the investment discounted using observable interest rate yield curves of similar securities.
Investments based on quoted market prices of identical investments in active markets are classified as Level 1 of the fair value hierarchy. Level 1 investments generally consist of U.S. Treasury and foreign government and agency investments. Quoted market prices of investments in less active markets, as well as investments which are valued based on other than quoted prices for which the inputs are observable, such as interest rate yield curves, are categorized in Level 2 of the fair value hierarchy. Investments that contain significant inputs that are not observable are categorized as Level 3.
Cash and Cash Equivalents, Accrued Investment Income, Secured Loan and Payable for Investments Purchased
The carrying amounts of cash and cash equivalents, accrued investment income, secured loan and payable for investments purchased approximate fair values due to the short-term nature and credit worthiness of these instruments.
24
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Loans Receivable at Fair Value
Loans receivable at fair value are comprised of loans held by consolidated VIEs consisting of residential mortgage loans, commercial mortgage loans and other whole business loans. Fair values of residential mortgage loans are determined using quoted prices for mortgage-backed securities (MBS) issued by the respective VIE and adjustments for the fair values of the financial guarantees provided by MBIA Corp. on the related MBS. Fair values of commercial mortgage loans and other whole business loans are valued based on quoted prices of similar collateralized MBS. Loans receivable at fair value are categorized in Level 3 of the fair value hierarchy.
Loan Repurchase Commitments
Loan repurchase commitments are obligations owed by the sellers/servicers of mortgage loans to either MBIA Corp. as reimbursement of paid claims or to the RMBS trusts as defined in the transaction documents. Loan repurchase commitments are assets of the consolidated VIEs. This asset represents the rights of MBIA Corp. against the sellers/servicers for breaches of representations and warranties that the securitized residential mortgage loans sold to the trust to comply with stated underwriting guidelines and for the sellers/servicers to cure, replace, or repurchase mortgage loans. Fair value measurements of loan repurchase commitments represent the amounts owed by the sellers/servicers to MBIA Corp. as reimbursement of paid claims. Loan repurchase commitments are not securities and no quoted prices or comparable market transaction information are observable or available. Loan repurchase commitments at fair value are categorized in Level 3 of the fair value hierarchy. Fair values of loan repurchase commitments are determined using discounted cash flow techniques based on inputs including:
|
breach rates representing the rate at which the sellers/servicers failed to comply with stated representations and warranties; |
|
recovery rates representing the estimates of future cash flows for the asset, including estimates about possible variations in the amount of cash flows expected to be collected; |
|
expectations about possible variations in the timing of collections of the cash flows; and |
|
time value of money, represented by the rate on risk-free monetary assets. |
Variable Interest Entity Notes
The fair values of VIE notes are determined based on recently executed transaction prices or quoted prices where observable. When position-specific quoted prices are not observable, fair values are based on quoted prices of similar securities. Fair values based on quoted prices of similar securities may be adjusted for factors unique to the securities, including any credit enhancement. When observable quoted prices are not available, fair value is determined based on discounted cash flow techniques of the underlying collateral using observable and unobservable inputs. Observable inputs include interest rate yield curves and bond spreads of similar securities. Unobservable inputs include the value of any credit enhancement. VIE notes are categorized in Level 2 or Level 3 of the fair value hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety.
Variable Interest Entity Derivatives
The VIEs have entered into derivative transactions primarily consisting of interest rate swaps, cross currency swaps, and interest rate caps. Fair values of over-the-counter derivatives are determined using valuation models based on observable inputs. These observable and market-based inputs include interest rate and volatilities. These derivatives are categorized in Level 2 or Level 3 of the fair value hierarchy based on the input that is significant to the fair value measurement in its entirety.
Long-term Debt
Long-term debt consists of surplus notes and related accrued interest. As of December 31, 2012, there was a secured loan from an affiliate which was repaid in the second quarter of 2013. The fair value of the surplus notes is estimated based on quoted market prices for identical or similar securities. The fair value of the secured loan was determined as the net present value of expected cash flows from the loan. The discount rate is the yield to maturity of a comparable corporate bond index. The fair value of the accrued interest expense on the surplus notes is determined based on the scheduled interest payments discounted by the markets perception of the credit risk related to the repayment of the surplus notes. The credit risk related to the repayment of the surplus notes is based on recent trades of the surplus notes. The deferred interest payment will be due on the first business day on or after which MBIA Corp. obtains approval to make such payment.
The carrying amounts of accrued interest expense on all other long-term debt approximate fair value due to the short-term nature of these instruments. Long-term debt is categorized as Level 2 of the fair value hierarchy.
25
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Insured Credit Derivatives
MBIA Corp. derivative contracts primarily consist of insured credit derivatives which cannot be legally traded and generally do not have observable market prices. MBIA Corp. determines the fair values of insured credit derivatives using valuation models. The fair valuation models are consistently applied from period to period, with refinements to the fair value estimation approach being applied as and when the information becomes available. Negotiated settlements are also considered when determining fair value to provide the best estimate of how another market participant would evaluate fair value.
Approximately 98% of the balance sheet fair value of insured credit derivatives as of September 30, 2013 was valued based on the Binomial Expansion Technique (BET) Model. Approximately 2% of the balance sheet fair value of insured credit derivatives as of September 30, 2013 was valued based on the internally developed Direct Price Model and a dual-default model. The valuation of insured derivatives includes the impact of its credit standing. All of these derivatives are categorized as Level 3 of the fair value hierarchy as their fair value is derived using significant unobservable inputs.
Description of the BET Model
1. Valuation Model Overview
The BET Model estimates what a bond insurer would charge to guarantee a transaction at the measurement date, based on the market-implied default risk of the underlying collateral and the remaining structural protection in a deductible or subordination.
Inputs to the process of determining fair value for structured transactions using the BET Model include estimates of collateral loss, allocation of loss to separate tranches of the capital structure and calculation of the change in value.
|
Estimates of aggregated collateral losses are calculated by reference to the following (described in further detail under BET Model Inputs below): |
|
credit spreads of underlying collateral based on actual spreads or spreads on similar collateral with similar ratings, or in some cases, are benchmarked; for collateral pools where the spread distribution is characterized by extremes, MBIA Corp. models each segment of the pool separately instead of using an overall pool average; |
|
diversity score of the collateral pool as an indication of correlation of collateral defaults; and |
|
recovery rate for all defaulted collateral. |
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Allocation of losses to separate tranches of the capital structure according to priority of payments in a transaction. |
|
The inception-to-date unrealized gain or loss on a transaction is the difference between the original price of the risk (the original market-implied expected loss) and the current price of the risk based on the assumed market-implied expected losses derived from the model. |
Additional structural assumptions of the BET Model are:
|
Default probabilities are determined by three factors: credit spread, recovery rate after default and the time period under risk; |
|
Frequencies of defaults are modeled evenly over time; |
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Collateral assets are generally considered on an average basis rather than being modeled on an individual basis; and |
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Collateral asset correlation is modeled using a diversity score, which is calculated based on industry or sector concentrations. Recovery rates are based on historical averages and updated based on market evidence. |
2. BET Model Inputs
a. Credit spreads
The average spread of collateral is a key input as MBIA Corp. assumes credit spreads reflect the markets assessment of default probability for each piece of collateral. Spreads are obtained from market data sources published by third parties (e.g., dealer spread tables for assets most closely resembling collateral within MBIA Corp.s transactions) as well as collateral-specific spreads on the underlying reference obligations provided by trustees or market sources. Also, when these sources are not available, MBIA Corp. benchmarks spreads for collateral against market spreads or prices. This data is reviewed on an ongoing basis for reasonableness and applicability to MBIA Corp.s derivative portfolio. MBIA Corp. also calculates spreads based on quoted prices and on internal assumptions about expected life when pricing information is available and spread information is not.
MBIA Corp. uses the spread hierarchy listed below in determining which source of spread information to use, with the rule being to use CDS spreads where available and cash security spreads as the next alternative.
26
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Spread Hierarchy:
|
Collateral-specific credit spreads when observable; |
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Sector-specific spread tables by asset class and rating; |
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Corporate spreads, including Bloomberg spread tables based on rating; and |
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Benchmark from most relevant market source when corporate spreads are not directly relevant. |
There were some transactions where MBIA Corp. incorporated multiple levels within the hierarchy, including using actual collateral-specific credit spreads in combination with a calculated spread based on an assumed relationship. In those cases, MBIA Corp. classified the transaction as being benchmarked from the most relevant spread source even though the majority of the average spread was from actual collateral-specific spreads. As of September 30, 2013, sector-specific spreads were used in 8% of the transactions valued using the BET Model. Corporate spreads were used in 50% of the transactions and spreads benchmarked from the most relevant spread source were used for 42% of the transactions. The spread source can also be identified by whether or not it is based on collateral weighted average rating factor (WARF). No collateral-specific spreads are based on WARF. Sector-specific spreads, corporate spreads and some benchmarked spreads are based on WARF. WARF-sourced and/or ratings-sourced credit spreads were used for 76% of the transactions.
Over time, the data inputs change as new sources become available, existing sources are discontinued or are no longer considered to be reliable or the most appropriate. It is always MBIA Corp.s objective to use more observable spread hierarchies defined above. However, MBIA Corp. may on occasion move to less observable spread inputs due to the discontinuation of data sources or due to MBIA Corp. considering certain spread inputs no longer representative of market spreads.
b. Diversity Scores
Diversity scores are a means of estimating the diversification in a portfolio. The diversity score estimates the number of uncorrelated assets that are assumed to have the same loss distribution as the actual portfolio of correlated assets. While diversity score is a required input into the BET model, due to current high levels of default within the collateral of the structures, diversity score does not have a significant impact on valuation.
c. Recovery Rate
The recovery rate represents the percentage of par expected to be recovered after an asset defaults, indicating the severity of a potential loss. MBIA Corp. generally uses rating agency recovery assumptions which may be adjusted to account for differences between the characteristics and performance of the collateral used by the rating agencies and the actual collateral in MBIA Corp.-insured transactions. MBIA Corp. may also adjust rating agency assumptions based on the performance of the collateral manager and on empirical market data.
d. Nonperformance Risk
MBIA Corp.s valuation methodology for insured credit derivative liabilities incorporates MBIA Corp.s own nonperformance risk. MBIA Corp. calculates the fair value by discounting the market value loss estimated through the BET Model at discount rates which include MBIA Corp.s CDS spreads as of September 30, 2013. The CDS spreads assigned to each deal are based on the weighted average life of the deal. MBIA Corp. limits the nonperformance impact so that the derivative liability could not be lower than MBIA Corp.s recovery derivative price multiplied by the unadjusted derivative liability.
Overall Model Results
As of September 30, 2013 and December 31, 2012, MBIA Corp.s net insured derivative liability was $1.4 billion and $2.9 billion, respectively, and was primarily related to the fair values of insured credit derivatives based on the results of the aforementioned pricing models. In the current environment the most significant driver of changes in fair value is nonperformance risk. In aggregate, the nonperformance calculation resulted in a pre-tax net insured derivative liability that was $548 million and $4.4 billion lower than the net liability that would have been estimated if MBIA Corp. excluded nonperformance risk in its valuation as of September 30, 2013 and December 31, 2012, respectively. Nonperformance risk is a fair value concept and does not contradict MBIA Corp.s internal view, based on fundamental credit analysis of MBIA Corp.s economic condition, that MBIA Corp. will be able to pay all claims when due.
27
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Financial Guarantees
Gross Financial Guarantees The fair value of gross financial guarantees is determined using discounted cash flow techniques based on inputs that include (i) assumptions of expected losses on financial guarantee policies where loss reserves have not been recognized, (ii) amount of losses expected on financial guarantee policies where loss reserves have been established, net of expected recoveries, (iii) the cost of capital reserves required to support the financial guarantee liability, (iv) operating expenses, and (v) discount rates. MBIA Corp.s CDS spread and recovery rate are used as its discount rate.
The carrying value of MBIA Corp.s gross financial guarantees consists of unearned premium revenue and loss and LAE reserves, net of the insurance loss recoverable as reported on MBIA Corp.s consolidated balance sheets.
Ceded Financial Guarantees The fair value of ceded financial guarantees is determined by applying the percentage ceded to reinsurers to the related fair value of the gross financial guarantees. The carrying value of ceded financial guarantees consists of prepaid reinsurance premiums and reinsurance recoverable on paid and unpaid losses as reported on MBIA Corp.s consolidated balance sheets.
Significant Unobservable Inputs
The following tables provide quantitative information regarding the significant unobservable inputs used by MBIA Corp. for assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. These tables exclude inputs used to measure fair value that are not developed by MBIA Corp., such as broker prices and other third-party pricing service valuations.
In millions |
Fair Value
as of September 30, 2013 |
Valuation Techniques |
Unobservable Input |
Range
|
||||||
Assets of consolidated VIEs: |
||||||||||
Loans receivable at fair value |
$ | 1,704 | Quoted market prices adjusted for financial guarantees provided to VIE obligations | Impact of financial guarantee | 0% - 17% (4%) | |||||
Loan repurchase commitments |
1,116 | Discounted cash flow | Recovery rates | 0% - 98% (81%) | ||||||
Liabilities of consolidated VIEs: |
||||||||||
Variable interest entity notes |
753 | Quoted market prices of VIE assets adjusted for financial guarantees provided | Impact of financial guarantee | 0% - 27% (10%) | ||||||
Credit derivative liabilities, net: |
||||||||||
CMBS |
956 | BET Model | Recovery rates | 25% - 90% (60%) | ||||||
Nonperformance risk | 12% - 57% (28%) | |||||||||
Weighted average life (in years) | 1.4 - 28.3 (3.5) | |||||||||
CMBS spreads | 1% - 27% (13%) | |||||||||
Multi-sector CDO |
16 | Direct Price Model | Nonperformance risk | 57% - 57% (57%) | ||||||
Other |
391 | BET Model | Recovery rates | 42% - 70% (46%) | ||||||
Nonperformance risk | 18% - 31% (27%) | |||||||||
Weighted average life (in years) | 0.2 - 3.8 (2.2) |
28
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
In millions |
Fair Value
as of December 31, 2012 |
Valuation Techniques |
Unobservable Input |
Range
(Weighted
|
||||||
Assets of consolidated VIEs: |
||||||||||
Loans receivable at fair value |
$ | 1,881 | Quoted market prices adjusted for financial guarantees provided to VIE obligations | Impact of financial guarantee | 0% - 14% (3%) | |||||
Loan repurchase commitments |
1,086 | Discounted cash flow | Recovery rates | 10% - 75% (47%) | ||||||
Breach rates | 66% - 94% (78%) | |||||||||
Liabilities of consolidated VIEs: |
||||||||||
Variable interest entity notes |
1,948 | Quoted market prices of VIE assets adjusted for financial guarantees provided | Impact of financial guarantee | 0% - 23% (6%) | ||||||
Credit derivative liabilities, net: |
||||||||||
CMBS |
1,590 | BET Model | Recovery rates | 21% - 90% (51%) | ||||||
Nonperformance risk | 19% - 59% (58%) | |||||||||
Weighted average life (in years) | 0.1 - 5.6 (4.4) | |||||||||
CMBS spreads | 1% - 23% (13%) | |||||||||
Multi-sector CDO |
525 | Direct Price Model | Nonperformance risk | 59% - 59% (59%) | ||||||
Other |
806 | BET Model | Recovery rates | 42% - 75% (47%) | ||||||
Nonperformance risk | 42% - 59% (58%) | |||||||||
Weighted average life (in years) | 0.1 - 19.6 (3.0) |
Sensitivity of Significant Unobservable Inputs
The significant unobservable input used in the fair value measurement of MBIA Corp.s loans receivable at fair value of consolidated VIEs is the impact of the financial guarantee. The fair value of loans receivable is calculated by subtracting the value of the financial guarantee from the market value of VIE liabilities. The value of a financial guarantee is estimated by MBIA Corp. as the present value of expected cash payments under the policy. As expected cash payments provided by MBIA Corp. under the insurance policy increase, there is a lower expected cash flow on the underlying loans receivable of the VIE. This results in a lower fair value of the loans receivable in relation to the obligations of the VIE.
The significant unobservable inputs used in the fair value measurement of MBIA Corp.s loan repurchase commitments of consolidated VIEs are recovery rates. Recovery rates reflect the estimates of future cash flows reduced for litigation delays and risks and/or potential financial distress of the sellers/servicers. The estimated recoveries of the loan repurchase commitments may differ from the actual recoveries that may be received in the future. Significant increases or decreases in the recovery rates would result in significantly higher or lower fair values of the loan repurchase commitments, respectively. Additionally, changes in the legal environment and the ability of the counterparties to pay would impact the recovery rate assumptions, which could significantly impact the fair value measurement.
The significant unobservable input used in the fair value measurement of MBIA Corp.s variable interest entity notes of consolidated VIEs is the impact of the financial guarantee. The fair value of VIE notes is calculated by adding the value of the financial guarantee to the market value of VIE assets. The value of a financial guarantee is estimated by MBIA Corp. as the present value of expected cash payments under the policy. As the value of the guarantee provided by MBIA Corp. to the obligations issued by the VIE increases, the credit support adds value to the liabilities of the VIE. This results in an increase in the fair value of the liabilities of the VIE.
29
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The significant unobservable inputs used in the fair value measurement of MBIA Corp.s CMBS credit derivatives, which are valued using the BET Model, are CMBS spreads, recovery rates, nonperformance risk and weighted average life. The CMBS spread is an indicator of credit risk of the collateral securities. The recovery rate represents the percentage of notional expected to be recovered after an asset defaults, indicating the severity of a potential loss. The nonperformance risk is an assumption of MBIA Corp.s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Weighted average life is based on MBIA Corp.s estimate of when the principal of the underlying collateral of the CMBS structure will be repaid. A significant increase or decrease in CMBS spreads can result in an increase or decrease in the fair value of the derivative liability, respectively. A significant increase in weighted average life can result in an increase or decrease in the fair value of the derivative liability, depending on the discount rate and the timing of significant losses. Any significant increase or decrease in recovery rates or MBIA Corp.s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively. CMBS spreads, recovery rates, nonperformance risk and weighted average lives are determined independently. Changes in one input will not necessarily have any impact on the other inputs.
The significant unobservable input used in the fair value measurement of MBIA Corp.s multi-sector CDO credit derivatives, which are valued using the Direct Price Model, is nonperformance risk. The nonperformance risk is an assumption of MBIA Corp.s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Any significant increase or decrease in MBIA Corp.s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively.
The significant unobservable inputs used in the fair value measurement of MBIA Corp.s other credit derivatives, which are valued using the BET Model, are recovery rates, nonperformance risk and weighted average life. The recovery rate represents the percentage of notional expected to be recovered after an asset defaults, indicating the severity of a potential loss. The nonperformance risk is an assumption of MBIA Corp.s own ability to pay and whether MBIA Corp. will have the necessary resources to pay the obligations as they come due. Weighted average life is based on MBIA Corp.s estimate of when the principal of the underlying collateral will be repaid. A significant increase in weighted average life can result in an increase or decrease in the fair value of the derivative liability, depending on the discount rate and the timing of significant losses. Any significant increase or decrease in recovery rates or MBIA Corp.s nonperformance risk would result in a decrease or increase in the fair value of the derivative liabilities, respectively. Recovery rates, nonperformance risk and weighted average lives are determined independently. Changes in one input will not necessarily have any impact on the other inputs.
30
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The following tables present the fair value of MBIA Corp.s assets (including short-term investments) and liabilities measured and reported at fair value on a recurring basis as of September 30, 2013 and December 31, 2012:
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Balance as of
September 30, 2013 |
||||||||||||
Assets: |
||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 86 | $ | - | $ | - | $ | 86 | ||||||||
State and municipal bonds |
- | 7 | - | 7 | ||||||||||||
Foreign governments |
87 | 91 | 5 | (1) | 183 | |||||||||||
Corporate obligations |
- | 203 | - | 203 | ||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
- | 3 | - | 3 | ||||||||||||
Residential mortgage-backed non-agency |
- | 9 | - | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
173 | 313 | 5 | 491 | ||||||||||||
Money market securities |
29 | - | - | 29 | ||||||||||||
Perpetual debt and equity securities |
- | 1 | 5 | (1) | 6 | |||||||||||
Cash and cash equivalents |
346 | - | - | 346 | ||||||||||||
Derivative assets: |
||||||||||||||||
Credit derivatives |
- | 6 | - | 6 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative assets |
- | 6 | - | 6 | ||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||
Cash |
46 | - | - | 46 | ||||||||||||
Corporate obligations |
- | 46 | 48 | (1) | 94 | |||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed non-agency |
- | 255 | 4 | (1) | 259 | |||||||||||
Commercial mortgage-backed |
- | 103 | 2 | (1) | 105 | |||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
- | 33 | 20 | (1) | 53 | |||||||||||
Other asset-backed |
- | 65 | 50 | (1) | 115 | |||||||||||
Loans receivable |
- | - | 1,704 | 1,704 | ||||||||||||
Loan repurchase commitments |
- | - | 1,116 | 1,116 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 594 | $ | 822 | $ | 2,954 | $ | 4,370 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities: |
||||||||||||||||
Credit derivatives |
$ | - | $ | 7 | $ | 1,363 | $ | 1,370 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
- | 7 | 1,363 | 1,370 | ||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||
Variable interest entity notes |
- | 1,758 | 753 | 2,511 | ||||||||||||
Derivative liabilities: |
||||||||||||||||
Currency rate derivatives |
- | - | 15 | (1) | 15 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
- | - | 15 | 15 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | - | $ | 1,765 | $ | 2,131 | $ | 3,896 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Unobservable inputs are either not developed by MBIA Corp. or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
31
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Balance as of
December 31, 2012 |
||||||||||||
Assets: |
||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 353 | $ | - | $ | - | $ | 353 | ||||||||
State and municipal bonds |
- | 7 | - | 7 | ||||||||||||
Foreign governments |
86 | 106 | 3 | (1) | 195 | |||||||||||
Corporate obligations |
- | 261 | - | 261 | ||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
- | 3 | - | 3 | ||||||||||||
Residential mortgage-backed non-agency |
- | 29 | 3 | (1) | 32 | |||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
- | 1 | - | 1 | ||||||||||||
Other asset-backed |
- | 16 | 5 | (1) | 21 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
439 | 423 | 11 | 873 | ||||||||||||
Money market securities |
15 | - | - | 15 | ||||||||||||
Perpetual debt and equity securities |
- | 1 | 4 | (1) | 5 | |||||||||||
Cash and cash equivalents |
397 | - | - | 397 | ||||||||||||
Derivative assets: |
||||||||||||||||
Credit derivatives |
- | 7 | - | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative assets |
- | 7 | - | 7 | ||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||
Cash |
176 | - | - | 176 | ||||||||||||
Corporate obligations |
- | 58 | 56 | (1) | 114 | |||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed non-agency |
- | 787 | 6 | (1) | 793 | |||||||||||
Commercial mortgage-backed |
- | 409 | 7 | (1) | 416 | |||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
- | 185 | 66 | (1) | 251 | |||||||||||
Other asset-backed |
- | 99 | 62 | (1) | 161 | |||||||||||
Loans receivable |
- | - | 1,881 | 1,881 | ||||||||||||
Loan repurchase commitments |
- | - | 1,086 | 1,086 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 1,027 | $ | 1,969 | $ | 3,179 | $ | 6,175 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities: |
||||||||||||||||
Credit derivatives |
$ | - | $ | 12 | $ | 2,921 | $ | 2,933 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
- | 12 | 2,921 | 2,933 | ||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||
Variable interest entity notes |
- | 1,727 | 1,948 | 3,675 | ||||||||||||
Derivative liabilities: |
||||||||||||||||
Interest rate derivatives |
- | 141 | - | 141 | ||||||||||||
Currency rate derivatives |
- | - | 21 | (1) | 21 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total derivative liabilities |
- | 141 | 21 | 162 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | - | $ | 1,880 | $ | 4,890 | $ | 6,770 | ||||||||
|
|
|
|
|
|
|
|
(1) - | Unobservable inputs are either not developed by MBIA Corp. or do not significantly impact the overall fair values of the aggregate financial assets and liabilities. |
Level 3 assets at fair value, as of September 30, 2013 and December 31, 2012 represented approximately 68% and 51%, respectively, of total assets measured at fair value. Level 3 liabilities at fair value, as of September 30, 2013 and December 31, 2012, represented approximately 55% and 72%, respectively, of total liabilities measured at fair value.
32
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The following tables present the fair values and carrying values of MBIA Corp.s assets and liabilities that are disclosed at fair value but not reported at fair value on MBIA Corp.s consolidated balance sheets as of September 30, 2013 and December 31, 2012:
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Fair Value
Balance as of September 30, 2013 |
Carry Value
Balance as of September 30, 2013 |
|||||||||||||||
Assets: |
||||||||||||||||||||
Other investments |
$ | - | $ | - | $ | 27 | $ | 27 | $ | 27 | ||||||||||
Accrued investment income |
7 | - | - | 7 | 7 | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Investments held-to-maturity |
- | - | 2,566 | 2,566 | 2,809 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 7 | $ | - | $ | 2,593 | $ | 2,600 | $ | 2,843 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt |
$ | - | $ | 735 | $ | - | $ | 735 | $ | 1,098 | ||||||||||
Secured loan (1) |
- | - | 50 | 50 | 50 | |||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
VIE notes |
- | - | 2,566 | 2,566 | 2,809 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | - | $ | 735 | $ | 2,616 | $ | 3,351 | $ | 3,957 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross |
$ | - | $ | - | $ | 2,597 | $ | 2,597 | $ | 2,125 | ||||||||||
Ceded |
- | - | 1,348 | 1,348 | 1,288 |
(1) - | Reported within Other liabilities on MBIA Corp.s consolidated balance sheets. |
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||
In millions |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Fair Value
Balance as of December 31, 2012 |
Carry Value
Balance as of December 31, 2012 |
|||||||||||||||
Assets: |
||||||||||||||||||||
Other investments |
$ | - | $ | - | $ | 28 | $ | 28 | $ | 28 | ||||||||||
Accrued investment income |
7 | - | - | 7 | 7 | |||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||
Investments held-to-maturity |
- | - | 2,675 | 2,675 | 2,829 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 7 | $ | - | $ | 2,703 | $ | 2,710 | $ | 2,864 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities: |
||||||||||||||||||||
Long-term debt |
$ | - | $ | 1,886 | $ | - | $ | 1,886 | $ | 2,694 | ||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||
VIE notes |
- | - | 2,675 | 2,675 | 2,829 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
$ | - | $ | 1,886 | $ | 2,675 | $ | 4,561 | $ | 5,523 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial Guarantees: |
||||||||||||||||||||
Gross |
$ | - | $ | - | $ | (114) | $ | (114) | $ | (294) | ||||||||||
Ceded |
- | - | 1,442 | 1,442 | 1,530 |
33
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the three months ended September 30, 2013 and 2012:
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (3) | $ | - | $ | 5 | $ | - | $ | 5 | $ | - | ||||||||||||||||||||||||||
Perpetual debt and equity securities |
7 | - | (2) | - | - | - | - | - | - | - | - | 5 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
48 | - | - | - | - | - | - | - | - | - | - | 48 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
2 | - | - | - | - | - | - | - | - | 2 | - | 4 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
4 | - | (1) | - | - | - | - | (1) | - | - | - | 2 | - | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
35 | - | 1 | - | - | - | - | (4) | - | - | (12) | 20 | (1) | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
63 | - | (7) | - | - | - | - | (1) | - | 1 | (6) | 50 | (1) | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
1,790 | - | (12) | - | - | - | - | (74) | - | - | - | 1,704 | (12) | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,115 | - | 1 | - | - | - | - | - | - | - | - | 1,116 | 1 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,067 | $ | - | $ | (20) | $ | - | $ | - | $ | - | $ | - | $ | (83) | $ | - | $ | 8 | $ | (18) | $ | 2,954 | $ | (13) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
Balance,
Beginning of Period |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change
in
Unrealized (Gains) Losses for the Period Included in Earnings for Assets Still Held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivative, net |
$ | 1,648 | $ | 28 | $ | (285) | $ | - | $ | - | $ | - | $ | - | $ | (28) | $ | - | $ | - | $ | - | $ | 1,363 | $ | (285) | ||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
832 | - | (6) | - | - | - | - | (73) | - | - | - | 753 | (6) | |||||||||||||||||||||||||||||||||||||||
Currency derivative, net |
16 | - | - | - | (1) | - | - | - | - | - | - | 15 | (1) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
$ | 2,496 | $ | 28 | $ | (291) | $ | - | $ | (1) | $ | - | $ | - | $ | (101) | $ | - | $ | - | $ | - | $ | 2,131 | $ | (292) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
34
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions |
Balance,
Beginning of Period |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 12 | $ | - | $ | - | $ | - | $ | 1 | $ | 8 | $ | - | $ | (9) | $ | - | $ | - | $ | - | $ | 12 | $ | - | ||||||||||||||||||||||||||
Corporate obligations |
22 | - | - | - | - | - | - | (12) | - | - | (8) | 2 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
4 | - | - | - | - | - | - | (1) | - | - | - | 3 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
31 | (2) | - | - | - | - | - | (2) | - | - | - | 27 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
2 | - | 3 | - | - | - | - | - | - | - | - | 5 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
72 | - | (10) | - | - | - | - | (1) | - | 3 | (3) | 61 | 1 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
10 | - | - | - | - | - | - | (1) | - | 2 | (3) | 8 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
12 | - | 1 | - | - | - | - | - | - | - | - | 13 | 1 | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
84 | - | (5) | - | - | - | - | - | - | 3 | - | 82 | (2) | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
38 | - | (1) | - | - | - | - | (4) | - | 30 | - | 63 | 1 | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
1,903 | - | 61 | - | - | - | - | (72) | - | - | - | 1,892 | 61 | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,032 | - | 19 | - | - | - | - | - | - | - | - | 1,051 | 19 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,222 | $ | (2) | $ | 68 | $ | - | $ | 1 | $ | 8 | $ | - | $ | (102) | $ | - | $ | 38 | $ | (14) | $ | 3,219 | $ | 81 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions |
Balance,
Beginning of Period |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Assets Still Held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivative, net |
$ | 3,285 | $ | (12) | $ | 32 | $ | - | $ | - | $ | - | $ | - | $ | 12 | $ | - | $ | - | - | $ | 3,317 | $ | 33 | |||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
1,883 | - | 128 | - | - | - | - | (109) | - | - | - | 1,902 | 128 | |||||||||||||||||||||||||||||||||||||||
Currency derivative, net |
21 | - | 2 | - | - | - | - | - | - | - | - | 23 | 2 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
$ | 5,189 | $ | (12) | $ | 162 | $ | - | $ | - | $ | - | $ | - | $ | (97) | $ | - | $ | - | $ | - | $ | 5,242 | $ | 163 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - | Transferred in and out at the end of the period. |
Transfers into and out of Level 3 were $8 million and $18 million, respectively, for the three months ended September 30, 2013. Transfers into and out of Level 2 were $18 million and $8 million, respectively, for the three months ended September 30, 2013. Transfers into Level 3 were principally related to foreign government and RMBS non-agency securities where inputs, which are significant to their valuation, became unobservable during the quarter. Transfers out of Level 3 were CDOs and other ABS securities where inputs, which are significant to their valuation, became observable. These inputs include spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
35
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Transfers into and out of Level 3 were $38 million and $14 million, respectively, for the three months ended September 30, 2012. Transfers into and out of Level 2 were $14 million and $38 million, respectively, for the three months ended September 30, 2012. Transfers into Level 3 were principally for other ABS securities where inputs, which are significant to their valuation, became unobservable during the quarter. Transfers out of Level 3 were principally corporate obligations and RMBS non-agency securities where inputs, which are significant to their valuation, became observable. These inputs include spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
All Level 1, 2 and 3 designations are made at the end of each accounting period.
The following tables present information about changes in Level 3 assets (including short-term investments) and liabilities measured at fair value on a recurring basis for the nine months ended September 30, 2013 and 2012:
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions |
Balance,
Beginning of Year |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
$ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (11) | $ | - | $ | 16 | $ | (3) | $ | 5 | $ | - | ||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
3 | - | - | - | - | - | - | (3) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
- | - | - | 1 | - | - | - | (1) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
5 | - | - | - | - | - | - | - | (5) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
4 | - | 2 | - | - | - | - | (1) | - | - | - | 5 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
56 | - | (7) | - | - | - | - | (4) | - | 3 | - | 48 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
6 | - | 6 | - | - | - | - | (7) | - | 3 | (4) | 4 | - | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
7 | - | (1) | - | - | - | - | - | (24) | 20 | - | 2 | 1 | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
66 | - | (8) | - | - | - | - | (3) | (22) | 1 | (14) | 20 | 2 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
62 | - | (7) | - | - | - | - | (10) | - | 11 | (6) | 50 | 3 | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
1,881 | - | 208 | - | - | - | - | (211) | (174) | - | - | 1,704 | 194 | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,086 | - | 140 | - | - | - | - | (110) | - | - | - | 1,116 | 140 | |||||||||||||||||||||||||||||||||||||||
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|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,179 | $ | - | $ | 333 | $ | 1 | $ | - | $ | - | $ | - | $ | (361) | $ | (225) | $ | 54 | $ | (27) | $ | 2,954 | $ | 340 | ||||||||||||||||||||||||||
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|
|
In millions |
Balance,
Beginning of Year |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Assets Still Held as of September 30, 2013 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives, net |
$ | 2,921 | $ | 1,548 | $ | (1,562) | $ | - | $ | - | $ | - | $ | - | $ | (1,548) | $ | - | $ | 4 | $ | - | $ | 1,363 | $ | 301 | ||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
1,948 | - | 141 | - | - | - | - | (251) | (1,085) | - | - | 753 | 54 | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
21 | - | (5) | - | (1) | - | - | - | - | - | - | 15 | (6) | |||||||||||||||||||||||||||||||||||||||
|
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|
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|
|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
$ | 4,890 | $ | 1,548 | $ | (1,426) | $ | - | $ | (1) | $ | - | $ | - | $ | (1,799) | $ | (1,085) | $ | 4 | $ | - | $ | 2,131 | $ | 349 | ||||||||||||||||||||||||||
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|
|
(1) - | Transferred in and out at the end of the period. |
36
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions |
Balance,
Beginning of Year |
Realized
Gains / (Losses) |
Unrealized
Gains / (Losses) Included in Earnings |
Unrealized
Gains / (Losses) Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized Gains (Losses) for the Period Included in Earnings for Assets Still Held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign governments |
11 | - | - | - | 1 | 21 | - | (18) | (3) | - | - | 12 | - | |||||||||||||||||||||||||||||||||||||||
Corporate obligations |
4 | - | - | - | (1) | 8 | - | (14) | - | 13 | (8) | 2 | - | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
7 | - | - | - | - | - | - | (2) | - | - | (2) | 3 | - | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
42 | (43) | - | 38 | - | - | - | (4) | (6) | - | - | 27 | - | |||||||||||||||||||||||||||||||||||||||
Perpetual debt and equity securities |
- | - | 5 | - | - | - | - | - | - | - | - | 5 | - | |||||||||||||||||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate obligations |
67 | - | (15) | - | - | - | - | (3) | - | 15 | (3) | 61 | 3 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed non-agency |
21 | - | 6 | - | - | - | - | (5) | (15) | 5 | (4) | 8 | 3 | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed |
22 | - | 3 | - | - | - | - | (3) | (8) | 5 | (6) | 13 | 2 | |||||||||||||||||||||||||||||||||||||||
Collateralized debt obligations |
149 | - | (5) | - | - | - | - | (1) | (74) | 13 | - | 82 | 5 | |||||||||||||||||||||||||||||||||||||||
Other asset-backed |
67 | - | 4 | - | - | - | - | (7) | (35) | 34 | - | 63 | 5 | |||||||||||||||||||||||||||||||||||||||
Loans receivable |
2,046 | - | 52 | - | - | - | - | (204) | (2) | - | - | 1,892 | 52 | |||||||||||||||||||||||||||||||||||||||
Loan repurchase commitments |
1,077 | - | (26) | - | - | - | - | - | - | - | - | 1,051 | (26) | |||||||||||||||||||||||||||||||||||||||
|
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|
|
|
|||||||||||||||||||||||||||
Total assets |
$ | 3,513 | $ | (43) | $ | 24 | $ | 38 | $ | - | $ | 29 | $ | - | $ | (261) | $ | (143) | $ | 85 | $ | (23) | $ | 3,219 | $ | 44 | ||||||||||||||||||||||||||
|
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|
|
|
|
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|
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|
|
|
|
In millions |
Balance,
Beginning of Year |
Realized
(Gains) / Losses |
Unrealized
(Gains) / Losses Included in Earnings |
Unrealized
(Gains) / Losses Included in OCI |
Foreign
Exchange Recognized in OCI or Earnings |
Purchases | Issuances | Settlements | Sales |
Transfers
into Level 3 (1) |
Transfers
out of Level 3 (1) |
Ending
Balance |
Change in
Unrealized (Gains) Losses for the Period Included in Earnings for Assets Still Held as of September 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives, net |
$ | 4,790 | $ | 420 | $ | (1,473) | $ | - | $ | - | $ | - | $ | - | $ | (420) | $ | - | $ | - | $ | - | $ | 3,317 | $ | (538) | ||||||||||||||||||||||||||
Liabilities of consolidated VIEs: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE notes |
2,922 | - | 332 | - | - | - | - | (369) | (983) | - | - | 1,902 | 293 | |||||||||||||||||||||||||||||||||||||||
Credit derivatives, net |
80 | - | 2 | - | - | - | - | - | (82) | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Currency derivatives, net |
17 | - | 6 | - | - | - | - | - | - | - | - | 23 | 6 | |||||||||||||||||||||||||||||||||||||||
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|
|
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|
|
|
|
|||||||||||||||||||||||||||
Total liabilities |
$ | 7,809 | $ | 420 | $ | (1,133) | $ | - | $ | - | $ | - | $ | - | $ | (789) | $ | (1,065) | $ | - | $ | - | $ | 5,242 | $ | (239) | ||||||||||||||||||||||||||
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|
|
(1) - | Transferred in and out at the end of the period. |
Transfers into and out of Level 3 were $58 million and $27 million, respectively, for the nine months ended September 30, 2013. Transfers into and out of Level 2 were $27 million and $58 million, respectively, for the nine months ended September 30, 2013. Transfers into Level 3 were principally related to CMBS, foreign governments and other ABS securities, where inputs, which are significant to their valuation, became unobservable during the period. Transfers out of Level 3 were principally for CDOs, other ABS and RMBS non-agency securities, where inputs, which are significant to their valuation, became observable during the period. These inputs include spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
37
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Transfers into and out of Level 3 were $85 million and $23 million, respectively, for the nine months ended September 30, 2012. Transfers into and out of Level 2 were $23 million and $85 million, respectively, for the nine months ended September 30, 2012. Transfers into Level 3 were principally related to other ABS, corporate obligations and CDOs where inputs, which are significant to their valuation, became unobservable during the period. Transfers out of Level 3 were principally for corporate obligations, CMBS and RMBS non-agency securities where inputs, which are significant to their valuation, became observable during the period. These inputs include spreads, prepayment speeds, default speeds, default severities, yield curves observable at commonly quoted intervals, and market corroborated inputs. There were no transfers into or out of Level 1.
All Level 1, 2 and 3 designations are made at the end of each accounting period.
Gains and losses (realized and unrealized) included in earnings related to Level 3 assets and liabilities for the three and nine months ended September 30, 2013 and 2012 are reported on MBIA Corp.s consolidated statements of operations as follows:
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||
In millions |
Total Gains
(Losses) included in earnings |
Change in
unrealized gains (losses) for the period included in earnings for assets and liabilities still held as of September 30, 2013 |
Total Gains
(Losses) included in earnings |
Change in
unrealized gains (losses) for the period included in earnings for assets and liabilities still held as of September 30, 2012 |
||||||||||||
Revenues: |
||||||||||||||||
Unrealized gains (losses) on insured derivatives |
$ | 285 | $ | 285 | $ | (32) | $ | (33) | ||||||||
Realized gains (losses) and other settlements on insured derivatives |
(28) | - | 12 | - | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(2) | - | 3 | - | ||||||||||||
Net investment losses related to other-than-temporary impairments |
- | - | (2) | - | ||||||||||||
Revenues of consolidated VIEs: |
||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
(11) | (6) | (65) | (49) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 244 | $ | 279 | $ | (84) | $ | (82) | ||||||||
|
|
|
|
|
|
|
|
38
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||
In millions |
Total Gains
(Losses) included in earnings |
Change in
unrealized gains (losses) for the period included in earnings for assets and liabilities still held as of September 30, 2013 |
Total Gains
(Losses) included in earnings |
Change in
unrealized gains (losses) for the period included in earnings for assets and liabilities still held as of September 30, 2012 |
||||||||||||
Revenues: |
||||||||||||||||
Unrealized gains (losses) on insured derivatives |
1,562 | (301) | 1,473 | 538 | ||||||||||||
Realized gains (losses) and other settlements on insured derivatives |
(1,548) | - | (420) | - | ||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
2 | - | 5 | - | ||||||||||||
Net investment losses related to other-than-temporary impairments |
- | - | (43) | - | ||||||||||||
Revenues of consolidated VIEs: |
||||||||||||||||
Net gains (losses) on financial instruments at fair value and foreign exchange |
196 | 292 | (321) | (255) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 212 | $ | (9) | $ | 694 | $ | 283 | ||||||||
|
|
|
|
|
|
|
|
Fair Value Option
MBIA Corp. elected to record at fair value certain financial instruments of VIEs that have been consolidated in connection with the adoption of the accounting guidance for consolidation of VIEs, among others.
The following table presents the changes in fair value included in MBIA Corp.s consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012, for all financial instruments for which the fair value option was elected:
Net Gains (Losses) on
Financial
Instruments at Fair Value and Foreign Exchange |
||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Fixed-maturity securities held at fair value |
$ | (37) | $ | 21 | $ | (35) | $ | (36) | ||||||||
Loans receivable at fair value: |
||||||||||||||||
Residential mortgage loans |
(87) | (4) | (16) | (103) | ||||||||||||
Other loans |
- | (7) | 13 | (48) | ||||||||||||
Loan repurchase commitments |
1 | 19 | 140 | 62 | ||||||||||||
Variable interest entity notes |
176 | 12 | 97 | 140 |
39
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 6: Fair Value of Financial Instruments (continued)
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2013 and December 31, 2012, for loans and VIE notes for which the fair value option was elected:
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||
In millions |
Contractual
Principal Outstanding |
Fair Value | Difference |
Contractual
Principal Outstanding |
Fair Value | Difference | ||||||||||||||||||
Loans receivable at fair value: |
||||||||||||||||||||||||
Residential mortgage loans |
$ | 1,932 | $ | 1,622 | $ | 310 | $ | 2,307 | $ | 1,735 | $ | 572 | ||||||||||||
Residential mortgage loans (90 days or more past due) |
221 | 82 | 139 | 244 | 54 | 190 | ||||||||||||||||||
Other loans |
- | - | - | 22 | 22 | - | ||||||||||||||||||
Other loans (90 days or more past due) |
- | - | - | 197 | 70 | 127 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total loans receivable at fair value |
$ | 2,153 | $ | 1,704 | $ | 449 | $ | 2,770 | $ | 1,881 | $ | 889 | ||||||||||||
Variable interest entity notes |
$ | 3,949 | $ | 2,511 | $ | 1,438 | $ | 9,079 | $ | 3,675 | $ | 5,404 |
Substantially all gains and losses included in earnings during the periods ended September 30, 2013 and December 31, 2012 on loans receivable and VIE notes reported in the preceding table are attributable to credit risk. This is primarily due to the high rate of defaults on loans and the collateral supporting the VIE notes, resulting in depressed pricing of the financial instruments.
Note 7: Investments
MBIA Corp.s investments, excluding those elected under the fair value option, include debt and equity securities classified as either AFS or HTM. Other invested assets designated as AFS are primarily comprised of money market funds.
The following tables present the amortized cost, fair value and corresponding gross unrealized gains and losses for AFS and HTM investments in MBIA Corp.s investment portfolios as of September 30, 2013 and December 31, 2012:
September 30, 2013 | ||||||||||||||||
In millions |
Amortized
Cost |
Gross Unrealized
Gains |
Gross
Unrealized Losses |
Fair Value | ||||||||||||
AFS Investments |
||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 86 | $ | - | $ | - | $ | 86 | ||||||||
State and municipal bonds |
6 | 1 | - | 7 | ||||||||||||
Foreign governments |
174 | 9 | - | 183 | ||||||||||||
Corporate obligations |
199 | 5 | - | 204 | ||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
3 | - | - | 3 | ||||||||||||
Residential mortgage-backed non-agency |
9 | - | - | 9 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
477 | 15 | - | 492 | ||||||||||||
Money market securities |
29 | - | - | 29 | ||||||||||||
Perpetual debt and equity securities |
1 | - | - | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total AFS investments |
$ | 507 | $ | 15 | $ | - | $ | 522 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
HTM Investments |
||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||
Corporate obligations |
$ | 2,809 | $ | 8 | $ | (251) | $ | 2,566 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total HTM investments |
$ | 2,809 | $ | 8 | $ | (251) | $ | 2,566 | ||||||||
|
|
|
|
|
|
|
|
40
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
December 31, 2012 | ||||||||||||||||
In millions |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair Value | ||||||||||||
AFS Investments |
||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||
U.S. Treasury and government agency |
$ | 352 | $ | 1 | $ | - | $ | 353 | ||||||||
State and municipal bonds |
6 | 1 | - | 7 | ||||||||||||
Foreign governments |
183 | 13 | - | 196 | ||||||||||||
Corporate obligations |
254 | 7 | - | 261 | ||||||||||||
Mortgage-backed securities: |
||||||||||||||||
Residential mortgage-backed agency |
2 | - | - | 2 | ||||||||||||
Residential mortgage-backed non-agency |
31 | 2 | - | 33 | ||||||||||||
Commercial mortgage-backed |
1 | - | (1) | - | ||||||||||||
Asset-backed securities: |
||||||||||||||||
Collateralized debt obligations |
1 | - | - | 1 | ||||||||||||
Other asset-backed |
20 | 1 | - | 21 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
850 | 25 | (1) | 874 | ||||||||||||
Money market securities |
15 | - | - | 15 | ||||||||||||
Perpetual debt and equity securities |
1 | - | - | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total AFS investments |
$ | 866 | $ | 25 | $ | (1) | $ | 890 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
HTM Investments |
||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||
Corporate obligations |
$ | 2,829 | $ | 2 | $ | (157) | $ | 2,674 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total HTM investments |
$ | 2,829 | $ | 2 | $ | (157) | $ | 2,674 | ||||||||
|
|
|
|
|
|
|
|
The following table presents the distribution by contractual maturity of AFS and HTM fixed-maturity securities at amortized cost and fair value as of September 30, 2013. Contractual maturity may differ from expected maturity as borrowers may have the right to call or prepay obligations.
AFS Securities | HTM Securities | |||||||||||||||
Consolidated VIEs | ||||||||||||||||
In millions |
Amortized
Cost |
Fair Value |
Amortized
Cost |
Fair Value | ||||||||||||
Due in one year or less |
$ | 177 | $ | 177 | $ | - | $ | - | ||||||||
Due after one year through five years |
219 | 226 | - | - | ||||||||||||
Due after five years through ten years |
59 | 66 | - | - | ||||||||||||
Due after ten years |
10 | 11 | 2,809 | 2,566 | ||||||||||||
Mortgage-backed and asset-backed |
12 | 12 | - | - | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed-maturity investments |
$ | 477 | $ | 492 | $ | 2,809 | $ | 2,566 | ||||||||
|
|
|
|
|
|
|
|
Deposited Securities
The fair value of securities on deposit with various regulatory authorities was $5 million as of September 30, 2013 and December 31, 2012. These deposits are required to comply with state insurance laws.
41
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
Impaired Investments
The following tables present the gross unrealized losses related to AFS and HTM investments as of September 30, 2013 and December 31, 2012:
September 30, 2013 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
In millions |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
||||||||||||||||||
AFS Investments |
||||||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||
U.S. Treasury and government agency |
$ | 5 | $ | - | $ | - | $ | - | $ | 5 | $ | - | ||||||||||||
State and municipal bonds |
1 | - | - | - | 1 | - | ||||||||||||||||||
Foreign governments |
4 | - | - | - | 4 | - | ||||||||||||||||||
Corporate obligations |
5 | - | - | - | 5 | - | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed agency |
2 | - | - | - | 2 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
17 | - | - | - | 17 | - | ||||||||||||||||||
Perpetual debt and equity securities |
1 | - | - | - | 1 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total AFS investments |
$ | 18 | $ | - | $ | - | $ | - | $ | 18 | $ | - | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
HTM Investments |
||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||
Corporate obligations |
$ | - | $ | - | $ | 1,174 | $ | (251) | $ | 1,174 | $ | (251) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total HTM investments |
$ | - | $ | - | $ | 1,174 | $ | (251) | $ | 1,174 | $ | (251) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
In millions |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
Fair Value |
Unrealized
Losses |
||||||||||||||||||
AFS Investments |
||||||||||||||||||||||||
Fixed-maturity investments: |
||||||||||||||||||||||||
U.S. Treasury and government agency |
$ | 151 | $ | - | $ | - | $ | - | $ | 151 | $ | - | ||||||||||||
State and municipal bonds |
1 | - | - | - | 1 | - | ||||||||||||||||||
Foreign governments |
11 | - | 1 | - | 12 | - | ||||||||||||||||||
Corporate obligations |
8 | - | 4 | - | 12 | - | ||||||||||||||||||
Mortgage-backed securities: |
||||||||||||||||||||||||
Residential mortgage-backed non-agency |
2 | - | 6 | - | 8 | - | ||||||||||||||||||
Commercial mortgage-backed |
- | - | - | (1) | - | (1) | ||||||||||||||||||
Asset-backed securities: |
||||||||||||||||||||||||
Other asset-backed |
- | - | 10 | - | 10 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total fixed-maturity investments |
173 | - | 21 | (1) | 194 | (1) | ||||||||||||||||||
Perpetual debt and equity securities |
1 | - | - | - | 1 | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total AFS investments |
$ | 174 | $ | - | $ | 21 | $ | (1) | $ | 195 | $ | (1) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
HTM Investments |
||||||||||||||||||||||||
Assets of consolidated VIEs: |
||||||||||||||||||||||||
Corporate obligations |
$ | 297 | $ | (19) | $ | 1,287 | $ | (138) | $ | 1,584 | $ | (157) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total HTM investments |
$ | 297 | $ | (19) | $ | 1,287 | $ | (138) | $ | 1,584 | $ | (157) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
With the weighting applied on the fair value of each security relative to the total fair value, the weighted average contractual maturity of securities in an unrealized loss position as of September 30, 2013 and December 31, 2012 was 26 and 27 years, respectively. As of September 30, 2013 and December 31, 2012, there were 5 and 36 securities, respectively, that were in an unrealized loss position for a continuous twelve-month period or longer, of which the fair values of 4 and 6 securities, respectively, were below book value by more than 5%.
42
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 7: Investments (continued)
Other-Than-Temporary Impairments
MBIA Corp. has evaluated on a security-by-security basis whether the unrealized losses in its investment portfolios were other-than-temporary considering duration and severity of unrealized losses, the circumstances that gave rise to the unrealized losses, and whether MBIA Corp. has the intent to sell the securities or more likely than not will be required to sell the securities before their anticipated recovery. Based on its evaluation, MBIA Corp. determined that the unrealized losses on the remaining securities were temporary in nature because its impairment analysis, including projected future cash flows, indicated that MBIA Corp. would be able to recover the amortized cost of impaired assets. MBIA Corp. also concluded that it does not have the intent to sell securities in an unrealized loss position and it is more likely than not that it would not have to sell these securities before recovery of their cost basis. In making this conclusion, MBIA Corp. examined the cash flow projections for its investment portfolios, the potential sources and uses of cash in its business, and the cash resources available to its business other than sales of securities. It also considered the existence of any risk management or other plans as of September 30, 2013 that would require the sale of impaired securities. On a quarterly basis, MBIA Corp. re-evaluates the unrealized losses in its investment portfolios to determine whether an impairment loss should be realized in current earnings. Impaired securities that MBIA Corp. intends to sell before the expected recovery of such securities fair values have been written down to fair value.
Credit Loss Rollforward
The portion of certain other-than-temporary impairment (OTTI) losses on fixed-maturity securities that does not represent credit losses is recognized in AOCI. For these impairments, the net amount recognized in earnings represents the difference between the amortized cost of the security and the net present value of its projected future discounted cash flows prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI.
The following table presents the amount of credit loss impairments recognized in earnings on fixed-maturity securities held by MBIA Corp. as of the dates indicated, for which a portion of the OTTI losses was recognized in AOCI, and the corresponding changes in such amounts. There were no OTTI losses for which a portion was recognized in AOCI for the nine months ended September 30, 2013.
In millions |
Nine Months
Ended September 30, |
|||
Credit Losses Recognized in Earnings Related to Other-Than-Temporary Impairments |
2012 | |||
Beginning balance |
$ | 57 | ||
Reductions for credit loss impairments previously recognized on securities impaired to fair value during the period (1) |
(57) | |||
|
|
|||
Ending balance |
$ | - | ||
|
|
(1) - | Represents circumstances where MBIA Corp. determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the securitys amortized cost. |
Sales of Available-for-Sale Investments
Gross realized gains and losses are recorded in Net gains (losses) on financial instruments at fair value and foreign exchange on MBIA Corp.s consolidated statements of operations. The proceeds and gross realized gains and losses from sales of AFS investments for the three and nine months ended September 30, 2013 and 2012 are as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||
Proceeds from sales |
$ | 25 | $ | 151 | $ | 509 | $ | 819 | ||||||||
Gross realized gains |
$ | - | $ | - | $ | 22 | $ | 11 | ||||||||
Gross realized losses |
$ | - | $ | (1) | $ | (1) | $ | (2) |
43
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments
Overview
MBIA Corp. accounts for derivative instruments in accordance with the accounting principles for derivative and hedging activities, which requires that all such instruments be recorded on MBIA Corp.s consolidated balance sheets at fair value. Refer to Note 6: Fair Value of Financial Instruments for the method used for determining the fair value of derivative instruments.
MBIA Corp. has entered into derivative instruments that it viewed as an extension of its core financial guarantee business but which do not qualify for the financial guarantee scope exception and, therefore, must be recorded at fair value in MBIA Corp.s consolidated balance sheets. MBIA Corp. insures CDS contracts, primarily referencing corporate, asset-backed, residential mortgage-backed, commercial mortgage-backed, CRE loans, and CDO securities that are intended to be held for the entire term of the contract absent a negotiated settlement with the counterparty.
Changes in the fair value of derivatives, excluding insured derivatives, are recorded each period in current earnings within Net gains (losses) on financial instruments at fair value and foreign exchange. Changes in the fair value of insured derivatives are recorded each period in current earnings within Net change in fair value of insured derivatives. The net change in the fair value of MBIA Corp.s insured derivatives has two primary components: (i) realized gains (losses) and other settlements on insured derivatives and (ii) unrealized gains (losses) on insured derivatives. Realized gains (losses) and other settlements on insured derivatives include (i) premiums received and receivable on sold CDS contracts, (ii) premiums paid and payable to reinsurers in respect to CDS contracts, (iii) net amounts received or paid on reinsurance commutations, (iv) losses paid and payable to CDS contract counterparties due to the occurrence of a credit event or settlement agreement, (v) losses recovered and recoverable on purchased CDS contracts due to the occurrence of a credit event or settlement agreement and (vi) fees relating to CDS contracts. The Unrealized gains (losses) on insured derivatives include all other changes in fair value of the insured derivative contracts.
In certain instances, MBIA Corp. purchased or issued securities that contain embedded derivatives. In accordance with the accounting guidance for derivative instruments and hedging activities, the balance sheet location of MBIA Corp.s embedded derivative instruments is determined by the location of the related security.
Variable Interest Entities
VIEs consolidated by MBIA Corp. have entered into derivative instruments primarily consisting of interest rate swaps. Interest rate swaps are entered into to hedge the risks associated with fluctuations in interest rates or fair values of certain contracts.
Credit Derivatives Sold
The following tables present information about credit derivatives sold by MBIA Corp. that were outstanding as of September 30, 2013 and December 31, 2012. Credit ratings represent the lower of underlying ratings assigned to the collateral by Moodys, S&P or MBIA.
$ in millions |
As of September 30, 2013 | |||||||||||||||||||||||||||||||
Notional Value | ||||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted
Average Remaining Expected Maturity |
AAA | AA | A | BBB |
Below
Investment Grade |
Total
Notional |
Fair Value
Asset (Liability) |
||||||||||||||||||||||||
Insured credit default swaps |
2.7 Years | $ | 7,412 | $ | 3,150 | $ | 1,705 | $ | 7,419 | $ | 6,085 | $ | 25,771 | $ | (1,355) | |||||||||||||||||
Insured swaps |
20.6 Years | - | 77 | 2,623 | 1,302 | - | 4,002 | (7) | ||||||||||||||||||||||||
All others |
28.3 Years | - | - | - | - | 36 | 36 | (8) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total notional |
$ | 7,412 | $ | 3,227 | $ | 4,328 | $ | 8,721 | $ | 6,121 | $ | 29,809 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total fair value |
$ | (3) | $ | - | $ | (6) | $ | (386) | $ | (975) | $ | (1,370) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
44
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
$ in millions |
As of December 31, 2012 | |||||||||||||||||||||||||||||||
Notional Value | ||||||||||||||||||||||||||||||||
Credit Derivatives Sold |
Weighted
Average Remaining Expected Maturity |
AAA | AA | A | BBB |
Below
Investment Grade |
Total
Notional |
Fair Value
Asset (Liability) |
||||||||||||||||||||||||
Insured credit default swaps |
5.1 Years | $ | 10,457 | $ | 5,862 | $ | 5,253 | $ | 11,571 | $ | 13,859 | $ | 47,002 | $ | (2,858) | |||||||||||||||||
Insured swaps |
20.8 Years | - | 103 | 2,520 | 1,627 | 71 | 4,321 | (7) | ||||||||||||||||||||||||
All others |
1.8 Years | - | - | - | - | 195 | 195 | (68) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total notional |
$ | 10,457 | $ | 5,965 | $ | 7,773 | $ | 13,198 | $ | 14,125 | $ | 51,518 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total fair value |
$ | (7) | $ | (70) | $ | (72) | $ | (732) | $ | (2,052) | $ | (2,933) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Internal credit ratings assigned by MBIA on the underlying collateral are derived by MBIA Corp.s surveillance group. In assigning an internal rating, current status reports from issuers and trustees, as well as publicly available transaction-specific information, are reviewed. Also, where appropriate, cash flow analyses and collateral valuations are considered. The maximum potential amount of future payments (undiscounted) on CDS contracts are estimated as the notional value plus any additional debt service costs, such as interest or other amounts owing on CDS contracts. The maximum amount of future payments that MBIA Corp. may be required to make under these guarantees as of September 30, 2013 is $26.4 billion. This amount is net of $67 million of insured derivatives ceded under reinsurance agreements in which MBIA Corp. economically hedges a portion of the credit and market risk associated with its insured derivatives and offsetting agreements with a counterparty. The maximum potential amount of future payments (undiscounted) on insured swaps are estimated as the notional value of such contracts.
MBIA Corp. may hold recourse provisions with third parties in derivative instruments through both reinsurance and subrogation rights. MBIA Corp.s reinsurance arrangements provide that in the event MBIA Corp. pays a claim under a guarantee of a derivative contract, MBIA Corp. has the right to collect amounts from any reinsurers that have reinsured the guarantee on either a proportional or non-proportional basis, depending upon the underlying reinsurance agreement. MBIA Corp. may also have recourse through subrogation rights whereby if MBIA Corp. makes a claim payment, it is entitled to any rights of the insured counterparty, including the right to any assets held as collateral.
Financial Statement Presentation
Insured CDSs and insured swaps are not subject to master netting agreements. VIE derivative assets and liabilities are not presented net of any master netting agreements.
As of September 30, 2013 and December 31, 2012, MBIA Corp. reported derivative assets of $7 million, and derivative liabilities of $1.4 billion and $3.1 billion, respectively, which are shown separately on MBIA Corp.s consolidated balance sheets. The following table presents the total fair value of MBIA Corp.s derivative assets and liabilities by instrument and balance sheet location as of September 30, 2013:
In millions |
Notional | Derivative Assets | Derivative Liabilities | |||||||||||||
Derivative Instruments |
Amount
Outstanding |
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||
Not designated as hedging instruments: |
||||||||||||||||
Insured credit default swaps |
$ | 25,771 | Derivative assets | $ | - | Derivative liabilities | $ | (1,355) | ||||||||
Insured swaps |
7,297 | Derivative assets | 7 | Derivative liabilities | (7) | |||||||||||
Cross currency swaps-VIE |
102 | Derivative assets-VIE | - | Derivative liabilities-VIE | (15) | |||||||||||
All other |
36 | Derivative assets | - | Derivative liabilities | (8) | |||||||||||
All other-VIE |
280 | Derivative assets-VIE | - | Derivative liabilities-VIE | - | |||||||||||
All other-embedded |
1 | Derivative assets | - | Derivative liabilities | - | |||||||||||
|
|
|
|
|
|
|||||||||||
Total derivatives |
$ | 33,487 | $ | 7 | $ | (1,385) | ||||||||||
|
|
|
|
|
|
45
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
The following tables present the total fair value of MBIA Corp.s derivative assets and liabilities by instrument and balance sheet location as of December 31, 2012:
In millions |
Notional | Derivative Assets | Derivative Liabilities | |||||||||||||
Derivative Instruments |
Amount
Outstanding |
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||
Not designated as hedging instruments: |
||||||||||||||||
Insured credit default swaps |
$ | 47,320 | Derivative assets | $ | - | Derivative liabilities | $ | (2,858) | ||||||||
Insured swaps |
7,890 | Derivative assets | 7 | Derivative liabilities | (7) | |||||||||||
Interest rate swaps -VIE |
2,728 | Derivative assets-VIE | - | Derivative liabilities-VIE | (141) | |||||||||||
Cross currency swaps -VIE |
110 | Derivative assets-VIE | - | Derivative liabilities-VIE | (21) | |||||||||||
All other |
195 | Derivative assets | - | Derivative liabilities | (68) | |||||||||||
All other-VIE |
280 | Derivative assets-VIE | - | Derivative liabilities-VIE | - | |||||||||||
|
|
|
|
|
|
|||||||||||
Total derivatives |
$ | 58,523 | $ | 7 | $ | (3,095) | ||||||||||
|
|
|
|
|
|
The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2013:
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | 287 | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | (28) | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 2 | ||||
All other |
Unrealized gains (losses) on insured derivatives | (2) | ||||
|
|
|||||
Total |
$ | 259 | ||||
|
|
The following table presents the effect of derivative instruments on the consolidated statements of operations for the three months ended September 30, 2012:
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | (40) | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | 12 | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 8 | ||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (2) | ||||
All other |
Unrealized gains (losses) on insured derivatives | 7 | ||||
|
|
|||||
Total |
$ | (15) | ||||
|
|
46
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 8: Derivative Instruments (continued)
The following table presents the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2013:
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | 1,502 | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | (1,548) | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 17 | ||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 6 | ||||
All other |
Unrealized gains (losses) on insured derivatives | 60 | ||||
|
|
|||||
Total |
$ | 37 | ||||
|
|
The following table shows the effect of derivative instruments on the consolidated statements of operations for the nine months ended September 30, 2012:
In millions |
||||||
Derivatives Not Designated as Hedging Instruments |
Location of Gain (Loss) Recognized in Income on Derivative |
Net Gain (Loss)
Recognized in Income |
||||
Insured credit default swaps |
Unrealized gains (losses) on insured derivatives | $ | 1,463 | |||
Insured credit default swaps |
Realized gains (losses) and other settlements on insured derivatives | (420) | ||||
Non-insured credit default swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (1) | ||||
Interest rate swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | 39 | ||||
Currency swaps-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (6) | ||||
All other |
Unrealized gains (losses) on insured derivatives | 10 | ||||
All other-VIE |
Net gains (losses) on financial instruments at fair value and foreign exchange-VIE | (2) | ||||
|
|
|||||
Total |
$ | 1,083 | ||||
|
|
Note 9: Debt
MBIA Insurance Corporation has disclosed its debt in Note 10: Debt in the Notes to Consolidated Financial Statements included in Exhibit 99.2 to MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012. The following debt discussion provides an update to those included under the same captions in Exhibit 99.2 to MBIA Inc.s Annual Report on Form 10-K.
Long-Term Debt
Interest and principal payments on the 14% Fixed to Floating Rate Surplus Notes due 2033 are subject to prior approval by the Superintendent of the NYSDFS. From the January 15, 2013 interest payment to the present, MBIA Insurance Corporations requests for approval of the note interest payments have been denied by the NYSDFS. MBIA Insurance Corporation provided notice to the Fiscal Agent that it has not made a scheduled interest payment. The deferred interest payment will become due on the first business day on or after which MBIA Insurance Corporation obtains approval to make such payment. No interest will accrue on the deferred interest.
As of September 30, 2013 and December 31, 2012, there was $953 million of principal outstanding related to surplus notes. As of September 30, 2013 and December 31, 2012, accrued interest related to these surplus notes was $145 million and $61 million, respectively.
National Secured Loan
In connection with the BofA Settlement Agreement, in May 2013, MBIA Insurance Corporation repaid the National Secured Loan and extinguished the agreement. As of December 31, 2012, the outstanding principal amount and accrued interest under this loan was $1.7 billion and $29 million, respectively.
47
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 9: Debt (continued)
Other Borrowing Arrangements
Blue Ridge Secured Loan
In connection with the BofA Settlement Agreement in May of 2013, MBIA Insurance Corporation and Blue Ridge entered into the Blue Ridge Secured Loan, pursuant to which Blue Ridge agreed to make revolving loans to MBIA Insurance Corporation in an aggregate of up to $500 million. The following is a summary of the material terms of the Loan Agreement, as amended by Amendment No. 1 entered into in June of 2013. This summary is not complete and is subject to the full text of the document described below.
During the third quarter of 2013, MBIA Insurance Corporation borrowed $50 million under the Blue Ridge Secured Loan. MBIA Insurance Corporation elected the LIBOR Loans interest rate option and the average interest rate for the three months ended September 30, 2013 was 7.76%. Accrued interest expense for the Blue Ridge Secured Loan is included in Other liabilities on MBIA Corp.s consolidated balance sheets.
Use of Proceeds
The proceeds of the Blue Ridge Secured Loan can be used for general corporate purposes. Once the Blue Ridge Secured Loan amount outstanding exceeds $50 million, the proceeds must be used for the purpose of meeting ordinary course liquidity requirements expected to arise during the 30 days following such borrowing.
Conditions to Borrowings
Blue Ridges obligation to make loans is subject to usual and customary conditions precedent, including that on the date of the borrowing (i) no default is continuing or would occur as a result of that borrowing and (ii) the representations and warranties specified in the Blue Ridge Secured Loan agreement are true and accurate in all material respects.
Security
The loans are secured by a pledge of collateral consisting of the following: (i) MBIA Insurance Corporations right to receive put-back recoveries related to ineligible mortgage loans included in its insured RMBS transactions; (ii) MBIA Insurance Corporations future recoveries on defaulted insured RMBS transactions resulting from expected excess spread generated by performing loans in such transactions; (iii) MBIA Insurance Corporations future installment premiums; and (iv) 65% of the voting capital stock of MBIA Insurance Corporations equity interest in MBIA UK (Holdings) Limited (the collateral described in clauses (ii) and (iii) above, the (Other Prepayment Collateral). Under the Blue Ridge Secured Loan, the value of the collateral described in clauses (i) through (iii) above, must at all times be greater than $1.0 billion. As of September 30, 2013, the value of the collateral was approximately $2.5 billion.
Interest Rate and Fees
Borrowings under the Blue Ridge Secured Loan have a variable interest rate, at MBIA Insurance Corporations option, based on either: (i) the adjusted LIBOR plus an applicable margin (LIBOR Loans), or (ii) the highest between (a) Bank of Americas prime rate and (b) the sum of the federal funds effective rate plus 0.5%, and (c) the adjusted LIBOR plus 1.00%, plus an applicable margin (Base Rate Loans). The applicable margin for the LIBOR Loans and the Base Rate Loans is 7.50% and 6.50%, respectively. With respect to any available but undrawn amounts under the Blue Ridge Secured Loan, MBIA Insurance Corporation is obligated to pay a commitment fee on such undrawn amounts of 2.00% per annum. The amount of the commitment fee and interest expense for the nine months ended September 30, 2013 was $4 million.
Scheduled Repayment
The maturity date of the Blue Ridge Secured Loan is three years from the closing date, at which time any then outstanding loans will be due and payable.
48
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 9: Debt (continued)
Mandatory Prepayments
Loans are required to be prepaid (and Blue Ridges commitments reduced) in an amount equal to the following: (i) 100% of the proceeds of any put-back recoveries and (ii) on and after the first anniversary of the closing date, from the proceeds of any Other Prepayment Collateral in an amount equal to (x) from the first anniversary of the closing date to the second anniversary of the closing date, 50% of such proceeds and (y) from the second anniversary of the closing date to the maturity date, 100% of such proceeds. In addition, loans must be prepaid (and Blue Ridges commitments reduced) in an amount equal to 100% of the proceeds of certain disposals of assets to the extent exceeding $1 million in aggregate for all such disposals. Finally, loans must be prepaid (but without any commitment reduction) to the extent the proceeds of any borrowing that is a liquidity borrowing are not in fact used for such purposes and have not otherwise been used to repay loans within the required 30-day period.
Representations and Warranties
The Blue Ridge Secured Loan contains certain customary representations and warranties for loan facilities of this type, which are given on the closing date and at each borrowing under the Blue Ridge Secured Loan agreement, including with respect to organization of MBIA Insurance Corporation, power of authority, enforceability of the loan documents, receipt of any necessary governmental approvals, financial condition and solvency, and compliance with laws.
Covenants
The Blue Ridge Secured Loan contains certain affirmative, negative and financial covenants, which are customary for loan facilities of this type in relation to, among other matters, delivery of financial statements, notice of material events, existence and conduct of business, payment of taxes and other obligations, maintenance of books and records, compliance with all material laws, and maintenance of insurance, and includes a requirement that MBIA Insurance Corporation maintain at least $750 million of statutory capital (defined as policyholders surplus plus contingency reserves).
In addition, MBIA Insurance Corporation may not, without Blue Ridges consent, consummate any amendments, compromises or commutations with respect to insurance obligations and settlements of litigation to the extent (x) that payments made in respect of such remediation efforts subsequent to June 28, 2013 exceed $260 million in the aggregate, (y) after giving effect thereto and to any borrowings of loans in connection therewith, the aggregate principal amount of loans outstanding would exceed $200 million or (z) after giving effect thereto, all remediation efforts taken as a whole since the closing date, would, cumulatively, have reduced MBIA Insurance Corporations statutory capital by $100 million or more.
In addition, MBIA Insurance Corporation may not prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment of principal, interest or fees or any other payment on, any of its indebtedness (including the Surplus Notes), except for payments of the loans under the Blue Ridge Secured Loan agreement and except for certain refinancings and refundings of its indebtedness.
Change of Control
MBIA Insurance Corporation may be required to prepay all amounts outstanding under the Blue Ridge Secured Loan agreement upon the occurrence of a change of control.
Events of Default
The Blue Ridge Secured Loan agreement contains certain events of default which are customary for loan facilities of this type (and with customary cure periods), including failure to pay principal, interest or fees on the loans, misrepresentation, failure to observe covenants or conditions, failure to pay other material indebtedness, insolvency and bankruptcy matters, and unlawfulness or invalidity of the loan documents.
49
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 10: Income Taxes
MBIA Corp.s income taxes and the related effective tax rates for the three and nine months ended September 30, 2013 and 2012 are as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
In millions |
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Income (loss) before income taxes |
$ | 190 | $ | (160) | $ | 69 | $ | 597 | ||||||||||||||||||||||||
Provision (benefit) for income taxes |
$ | 71 | 37.4% | $ | (80) | 50.0% | $ | (24) | (34.8)% | $ | 201 | 33.7% |
For the nine months ended September 30, 2013 and 2012, MBIA Corp.s effective tax rate applied to its pre-tax income was less than the U.S. statutory tax rate primarily as a result of the decrease in the valuation allowance.
For interim reporting purposes, MBIA Corp. has calculated its effective tax rate for the full year of 2013 by adjusting annual forecasted pre-tax income for mark-to-market income, fair value adjustments, capital gains/losses, and other tax adjustments when projecting its full year effective tax rate. MBIA Corp. has accounted for these items at the federal applicable tax rate after applying the projected full year effective tax rate to its actual nine-month results before discrete items.
Deferred Tax Asset, Net of Valuation Allowance
MBIA Corp. recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on tax assets and liabilities is recognized in income in the period that includes the enactment date.
MBIA Corp. establishes a valuation allowance against its deferred tax asset when it is more likely than not that all or a portion of the deferred tax asset will not be realized. All evidence, both positive and negative, needs to be identified and considered in making the determination. Future realization of the existing deferred tax asset ultimately depends, in part, on the existence of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within the carryforward period available under the tax law.
As of September 30, 2013, MBIA Corp. reported a net deferred tax asset of $1.3 billion. The $1.3 billion net deferred tax asset is net of a $3.4 million valuation allowance. As of September 30, 2013, MBIA Corp. had a valuation allowance against a portion of the deferred tax asset related to capital loss carryforwards and losses from asset impairments as these losses are considered capital losses, have a five-year carryforward period, once recognized, can only offset capital gain income. The September 30, 2013 valuation allowance reflects a decrease of $50 million from the December 31, 2012 valuation allowance of $54 million. The decrease in the valuation allowance for the nine months ended September 30, 2013 was primarily due to the generation of capital gain income from the termination of certain contracts.
MBIA Corp. has concluded that it is more likely than not that its net deferred tax asset will be realized. MBIA Corp. relied on MBIA Inc.s tax sharing agreement and the Parents assurance that it intended for no net operating loss (NOL) or capital loss generated by MBIA Corp., to the extent used in consolidation, to expire without compensation.
Accounting for Uncertainty in Income Taxes
MBIA Corp.s policy is to record and disclose any change in unrecognized tax benefit and related interest and/or penalties to income tax in the consolidated statements of operations. As of September 30, 2013 and 2012, MBIA Corp. did not have any uncertain tax positions and corresponding interest or penalties.
MBIA Corp.s major tax jurisdictions include the U.S. and U.K. MBIA and its U.S. subsidiaries file a U.S. consolidated federal income tax return.
The U.K. tax authorities are currently auditing tax years 2005 through 2010. On June 5, 2013, MBIA Corp. met with the HM Revenue and Customs (HMRC). During the third quarter of 2013, MBIA Corp. sent HMRC additional information supporting its position, and discussions with HMRC are ongoing and a resolution has not been reached. As of September 30, 2013, MBIA Corp. has not established a reserve for this issue.
50
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 10: Income Taxes (continued)
As of December 31, 2012, MBIA Corp. had a NOL carryforward of $907 million, which will expire between tax years 2031-2032. As a result of commutation activity in the first three quarters of 2013, MBIA Corp.s NOL has significantly increased from the 2012 year end amount as of September 30, 2013. MBIA Corp. also had a capital loss carryforward of $165 million, which will expire in tax year 2017. However, as of September 30, 2013, MBIA Corp. has generated year-to-date capital gain income sufficient to fully utilize the 2012 capital loss.
Tax Sharing Arrangement
MBIA Corp. files its U.S. Corporation Income Tax Return as a member of the MBIA Inc. consolidated group and participates in a tax sharing agreement between MBIA Corp. and MBIA Inc. under which MBIA Corp. is allocated its share of consolidated tax liability or tax benefit as determined on a standalone basis under the tax sharing agreement.
As of September 30, 2013, MBIA Corp. has not made tax payments under this tax sharing agreement for 2013 and 2012. If tax payments had been made, all funds would have been placed in escrow by MBIA Inc. and would remain in escrow until the expiration of a two-year carryback period which would allow MBIA Corp. to carryback a separate company tax loss and recover all or a portion of the escrowed funds.
As of September 30, 2013, MBIA Corp. has not received any payment with respect to tax losses contributed to the consolidated group. MBIA Corp. will receive benefits of its losses as it is able to earn out those losses in the future. However, it is MBIA Inc.s intention not to allow any tax loss generated by MBIA Corp., to the extent used in consolidation, to expire without compensation.
Note 11: Accumulated Other Comprehensive Income
The following table presents the changes in the components of AOCI for the nine months ended September 30, 2013:
In millions |
Unrealized
Gains (Losses) on AFS Securities, Net (1) |
Foreign Currency
Translation, Net (1) |
Total (1) | |||||||||
Balance, January 1, 2013 |
$ | 16 | $ | 9 | $ | 25 | ||||||
Other comprehensive income before reclassification |
(2) | (8) | (10) | |||||||||
Amounts reclassified from AOCI |
(2) | - | (2) | |||||||||
|
|
|
|
|
|
|||||||
Net current period other comprehensive income |
(4) | (8) | (12) | |||||||||
|
|
|
|
|
|
|||||||
Balance, September 30, 2013 |
$ | 12 | $ | 1 | $ | 13 | ||||||
|
|
|
|
|
|
(1) - | All amounts are presented net of tax. Amounts in parentheses indicate debits. |
The following table presents the details of the reclassifications from AOCI for the nine months ended September 30, 2013:
In millions |
Amounts | |||||
Details about AOCI Components |
Reclassified
From AOCI |
Affected Line Item on the Consolidated Statements of Operations |
||||
Reclassification adjustment on sale of securities |
$ | 3 | Net gains (losses) on financial instruments at fair value and foreign exchange | |||
1 | Provision (benefit) for income taxes | |||||
|
|
|||||
Total reclassifications for the period |
$ | 2 | Net income (loss) | |||
|
|
Note 12: Commitments and Contingencies
The following commitments and contingencies provide an update of those discussed in Note 18: Commitments and Contingencies in the Notes to Consolidated Financial Statements included in Exhibit 99.2 of MBIA Inc.s Annual Report on Form 10-K for the year ended December 31, 2012, and should be read in conjunction with the complete descriptions provided in the aforementioned note included in Exhibit 99.2 of Form 10-K. In the normal course of operating its business, MBIA Corp. may be involved in various legal proceedings. Additionally, MBIA may be involved in various legal proceedings that directly or indirectly impact MBIA Corp.
51
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 12: Commitments and Contingencies (continued)
Recovery Litigation
MBIA Insurance Corp. v. Countrywide Home Loans, Inc., et al.; Index No. 602825/08 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, the parties reached an agreement to resolve MBIA Corp.s claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
MBIA Insurance Corp. v. Bank of America Corp.; Countrywide Home Loans, Inc., Countrywide Securities Corp., and Countrywide Financial Corp. et al.; Case No. BC417572 (Ca. Super. Ct., County of Los Angeles)
In May of 2013, the parties reached an agreement to resolve MBIA Corp.s claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
MBIA Insurance Corp. v. Federal Deposit Insurance Corporation (in its corporate capacity and as conservator and receiver for IndyMac Federal Bank, F.S.B.); Civil Action No. 09-01011 (ABJ) (D.D.C.)
On March 8, 2013, the United States Court of Appeals for the D.C. Circuit affirmed the district courts ruling dismissing MBIA Corp.s amended complaint.
MBIA Insurance Corp. v. Credit Suisse Securities (USA) LLC, et al. ; Index No. 603751/2009 (N.Y. Sup. Ct., N.Y. County)
On March 8, 2013, the defendants filed their answer to the amended complaint. On April 19, 2013, the court issued an order scheduling fact discovery to close by June 30, 2014.
MBIA Insurance Corp. v. J.P. Morgan Securities LLC (f/k/a Bear, Stearns & Co. Inc) ; Index No. 64676/2012 (N.Y. Sup. Ct., County of Westchester)
On October 9, 2013, J.P. Morgan Securities LLC filed its motion for summary judgment.
MBIA Insurance Corp. v. Ally Financial Inc. (f/k/a GMAC, LLC) et al. ; 12-cv-02563 SRN/TNL (D. Minn.)
This case is currently stayed.
MBIA Insurance Corp. v. Flagstar ABS, LLC, et al.; 13-cv-0262 (JSR) (S.D.N.Y.)
The parties filed a Stipulation of Discontinuance and Order of Dismissal with Prejudice of this action on May 2, 2013. Under the terms of the settlement, MBIA Corp. dismissed the lawsuit against Flagstar Bank in exchange for $110 million in cash and other consideration.
Transformation Litigation
ABN AMRO Bank N.V. et al. v. Eric Dinallo et al.; Index no. 601846/09 (N.Y. Sup. Ct., N.Y. County)
On March 4, 2013, the court issued a decision dismissing the Article 78 proceeding. On April 2, 2013, the remaining plaintiffs filed a Notice of Appeal to the Appellate Division, First Department. In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the settlement agreements.
ABN AMRO Bank N.V. et al. v. MBIA Inc. et al.; Index No. 601475/2009 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the settlement agreements.
Barclays Bank PLC., et al. v. Wrynn et al.; Index No. 651811/2010 (N.Y. Sup. Ct., N.Y. County)
In May of 2013, following the Bank of America and Societe Generale settlements, all plaintiffs in this matter dismissed their claims. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the settlement agreements.
52
MBIA Insurance Corporation and Subsidiaries
Notes to Consolidated Financial Statements (Unaudited)
Note 12: Commitments and Contingencies (continued)
CQS ABS Master Fund Ltd., CQS Select ABS Master Fund Ltd., and CQS ABS Alpha Master Fund Ltd. v. MBIA Inc. et al .; Civil Action No. 12-cv-6840 (R.S.) (S.D.N.Y.)
On October 23, 2013, the plaintiffs filed a motion for a preliminary injunction seeking to prospectively enjoin National from issuing dividends during the pendency of the litigation. Although the motion referenced the dividend that MBIA previously had disclosed that National intended to pay in the fourth quarter of 2013, that dividend was paid prior to the filing of the motion, and therefore is not subject to the relief requested by the motion. National filed its reply to the motion on November 1, 2013 and believes it is not meritorious and should be denied. The court has adjourned oral argument on the motion to November 14, 2013. The court entered a revised Management Plan and Scheduling Order setting a fact discovery deadline of April 4, 2014.
Broadbill Partners LP, et al. v. MBIA Inc., et al. ; Index No. 653865/2012 (N.Y. Sup. Ct., N.Y. County)
On June 6, 2013, the plaintiffs voluntarily dismissed the litigation without prejudice. A Stipulation of Discontinuance was filed on June 7, 2013.
Corporate Litigation
Bank of America v. MBIA Inc. and The Bank of New York Mellon, as Indenture Trustee; Index No. 70444/2012 (N.Y. Sup. Ct., Westchester County)
In May of 2013, the parties reached an agreement to resolve their respective claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
MBIA Inc. v. Bank of America Corp. and Blue Ridge Investments, L.L.C.; Index No. 51664/2013 (N.Y. Sup. Ct., Westchester County)
In May of 2013, the parties reached an agreement to resolve their respective claims in this action. Refer to Note 1: Business Developments and Risks and Uncertainties included herein for a description of the comprehensive settlement agreement.
Mary Crescente v. Joseph Brown, et al.; Index No. 17595/2008 (N.Y. Sup. Ct., Westchester County)
On March 25, 2013, a Stipulation of Discontinuance was filed with the court resolving the litigation.
Ambac Bond Insurance Coverage Cases , Coordinated Proceeding Case No. JCCP 4555 (Super. Ct. of Cal., County of San Francisco)
The plaintiffs filed a notice of appeal of the March 22, 2013 decision that granted the Bond Insurer defendants motion to strike pursuant to Californias Anti-SLAPP statute dismissing the plaintiffs claims under Californias Cartwright Act. On October 1, 2013, the Bond Insurer defendants filed a notice of cross-appeal.
Tri-City Healthcare District v. Citibank. et al.; Case No. 30-2010-00359692 (Super. Ct. of Cal., County of Orange)
The parties reached an agreement to resolve Tri-City Healthcare Districts claims in this matter.
City of Phoenix v. AMBAC et al. , Case No. 2:10-cv-00555-TMB (D. Ariz.)
On June 4, 2013, the parties reached an agreement to resolve the City of Phoenixs claims in this matter.
MBIA and MBIA Corp. are defending against the aforementioned actions in which they are defendants and expect ultimately to prevail on the merits. There is no assurance, however, that they will prevail in these actions. Adverse rulings in these actions could have a material adverse effect on MBIA Corp.s ability to implement its strategy and on its business, results of operations, cash flows and financial condition. At this stage of the various litigations, there has not been a determination as to the amount, if any, of damages. Accordingly, MBIA Corp. is not able to estimate any amount of loss or range of loss.
There are no other material lawsuits pending or, to the knowledge of MBIA Corp., threatened, to which MBIA Corp. or any of its subsidiaries is a party.
Note 13: Subsequent Events
Refer to Note 12: Commitments and Contingencies for information about legal proceedings that occurred after September 30, 2013.
53
Exhibit 99.3
NOVATION AGREEMENT
This NOVATION AGREEMENT, dated as of September 14, 2012 (this Agreement ), by and between Financial Guaranty Insurance Company, a New York stock insurance company ( FGIC ), and National Public Finance Guarantee Corporation (formerly named MBIA Insurance Corp. of Illinois), a New York stock insurance company ( National and, together with FGIC, the Parties ).
RECITALS
WHEREAS , FGIC and MBIA Insurance Corporation, a New York stock insurance company ( MBIA ), entered into (i) a Reinsurance Agreement, dated as of September 30, 2008 (the Reinsurance Agreement ), pursuant to which FGIC ceded as reinsurance to MBIA, and MBIA assumed as reinsurance from FGIC, the interest of FGIC in and to, and the risks associated with each of the Covered Policies (as defined below) (net of certain pre-existing third party reinsurance relating to the Covered Policies provided to FGIC), and (ii) an Administrative Services Agreement, dated as of December 1, 2008 (the Administrative Services Agreement ), pursuant to which MBIA agreed to provide all administrative and other services on behalf of and for FGIC with respect to the Covered Policies;
WHEREAS , pursuant to an Assignment and Assumption Agreement, dated as of February 17, 2009 (the Assignment and Assumption Agreement ), MBIA assigned to National all of its rights, interests, obligations and liabilities under the Reinsurance Agreement, effective as of January 1, 2009, and National assumed the same;
WHEREAS , in connection with the Assignment and Assumption Agreement, National and MBIA entered into a subcontracting arrangement, whereby National agreed to provide all services required to be performed by MBIA under the Administrative Services Agreement; and
WHEREAS , FGIC desires to transfer by novation to National the Covered Policies, the Covered Policy Liabilities (as defined below) and the Covered Policy Rights (as defined below), and National desires to accept such transfer by novation and assume the Covered Policies, the Covered Policy Liabilities and the Covered Policy Rights, all on the terms and subject to the conditions provided herein.
NOW, THEREFORE , in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I
DEFINITIONS
1.1 Definitions . As used in this Agreement, the following terms shall have the meanings set forth below:
(a) | Administrative Services Agreement shall have the meaning set forth in the recitals to this Agreement. |
(b) | Affiliate means, with respect to any particular Person, any other Person which, directly or indirectly, controls or is controlled by or under common control with such particular Person. A Person will be controlled by any other Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, contract, or otherwise. |
(c) | Agreement shall have the meaning set forth in the preamble to this Agreement. |
(d) | Assignment and Assumption Agreement shall have the meaning set forth in the recitals to this Agreement. |
(e) | Business Day means any day other than a day on which banks in the State of New York are permitted or required to be closed. |
(f) | Court Order means an order of the Rehabilitation Court in the Proceeding approving this Agreement and ordering that the Covered Policies, the Covered Policy Rights and the Covered Policy Liabilities shall be legally novated from FGIC to National in accordance with the terms and conditions of this Agreement. |
(g) | Covered Policy means each Policy written by FGIC and reinsured by National (as assignee of MBIA) pursuant to the Reinsurance Agreement, as set forth on Schedule 1 . |
(h) |
Covered Policy Liabilities means the Liabilities of FGIC pursuant to the terms and conditions of the Covered Policies. For the avoidance of doubt, neither the term Covered Policy nor the term Covered Policy Liabilities shall include (i) any FGIC Extra Contractual Obligations, (ii) any Liabilities of FGIC arising out of or relating to any agreement, contract, instrument or other document included in the definition of Covered Policy Rights, other than to the extent (x) pursuant to the terms and conditions of the Covered Policies or (y) arising out of any action or inaction of National or any of its Affiliates, (iii) any Liabilities of FGIC arising out of FGICs entry into this Agreement and the consummation of |
2
the transactions contemplated hereby and (iv) any Liabilities of FGIC or any of its Affiliates arising from or relating to litigation known as AMBAC Bond Insurance Cases and the City of Phoenix vs. Ambac Assurance Corporation, MBIA Insurance Corporation and Financial Guaranty Insurance Company or litigation on substantially similar matters; provided that this exclusion (iv) shall not include amounts payable pursuant to the terms and conditions of the Covered Policies. |
(i) | Covered Policy Rights means the rights of FGIC under or with respect to the Covered Policies and the rights of FGIC, as the original insurer, surety or similar capacity under the Covered Policies, under any agreement, contract, instrument or other document relating to the Covered Policies or any obligations insured by the Covered Policies. For the avoidance of doubt, Covered Policy Rights shall not include Third Party Reinsurance or any other reinsurance coverage of risks under any of the Covered Policies or FGICs rights thereunder. |
(j) | Covered Policyholder means for each Covered Policy the holder or beneficiary of such Covered Policy as set forth therein. |
(k) | Documents shall have the meaning set forth in Section 3.1(b) of this Agreement. |
(l) | Extra Contractual Obligations means, with respect to any Person, all liabilities (i) for compensatory, consequential, exemplary, punitive or similar damages which directly relate to any alleged or actual act, error, omission, fraud or misrepresentation by such Person, any of its Affiliates or any of its or its Affiliates officers or employees, whether intentional or otherwise or (ii) from any actual or alleged reckless conduct or bad faith by such Person, any of its Affiliates or any of its or its Affiliates officers or employees in connection with such Persons handling of any claim under any of the Covered Policies (including the settlement, defense of, or appeal of any claim) or in connection with the issuance, offer, sale, delivery, cancellation or administration by such Person or any of its Affiliates or any of its or its Affiliates officers or employees of any of the Covered Policies. |
(m) | FGIC shall have the meaning set forth in the preamble to this Agreement. |
(n) | FGIC Extra Contractual Obligations means any and all Extra Contractual Obligations to the extent arising out of any action or inaction of FGIC or any of its Affiliates. |
(o) |
Final Order means an order or judgment of a court of competent jurisdiction entered on the docket maintained by the clerk of such court that has not been reversed, vacated or stayed and as to which (i) the time |
3
to appeal, petition for certiorari or move for a new trial, reargument or rehearing has expired and as to which no appeal, petition for certiorari or other proceedings for a new trial, reargument or rehearing shall then be pending, or (ii) if an appeal, writ of certiorari , new trial, reargument or rehearing thereof has been sought, (a) such order or judgment shall have been affirmed by the highest court to which such order was appealed, leave to appeal or certiorari shall have been denied or a new trial, reargument or rehearing shall have been denied or resulted in no modification of such order or otherwise been dismissed with prejudice, and (b) the time to take any further appeal, petition for certiorari , or move for a new trial, reargument or rehearing shall have expired; provided , however , that the possibility that a motion under Rule 60 of the Federal Rules of Civil Procedure, Rule 5015 of the New York Civil Practice Law and Rules, or any analogous rule, may be filed relating to such order shall not prevent such order from being a Final Order. |
(p) | Governmental Authority means any federal, state, local or foreign government or any subdivision, agency, instrumentality, authority, self-regulatory organization, department, commission, board or bureau thereof or any federal, state, local or foreign court or tribunal. |
(q) | Liabilities means any and all claims, losses, exposures, risks, liabilities, expenses and other obligations of any kind or nature, whether based in contract, tort or otherwise, whether known, unknown, asserted, not asserted, absolute, contingent, accrued, unaccrued, disputed, undisputed, or otherwise, and whether incurred, existing or arising before, on or after the Novation Effective Date. |
(r) | Master Agreement shall have the meaning set forth in Section 2.3(a) of this Agreement. |
(s) | Material Adverse Effect means a material adverse effect on (i) the ability of the applicable Party to consummate the transactions contemplated by this Agreement, (ii) the ability of the applicable Party to perform its obligations under this Agreement or (iii) the effectiveness of the novation of the Covered Policies, the Covered Policy Rights or the Covered Policy Liabilities as contemplated by this Agreement. |
(t) | MBIA shall have the meaning set forth in the recitals to this Agreement. |
(u) | National shall have the meaning set forth in the preamble to this Agreement. |
(v) | National Extra Contractual Obligations means any and all Extra Contractual Obligations to the extent arising out of any action or inaction of National or any of its Affiliates (including, for the avoidance of doubt, any such action or inaction during the term of the Administrative Services Agreement). |
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(w) | Novation Effective Date means the earliest date on which both (i) all conditions to the effectiveness of the Plan are either satisfied or waived pursuant to the terms of the Plan and (ii) the Court Order is in full force and effect and is a Final Order, provided that FGIC may waive in writing the requirement that the Court Order be a Final Order. |
(x) | Novation Endorsement shall have the meaning set forth in Section 2.4 of this Agreement. |
(y) | Parties shall have the meaning set forth in the preamble to this Agreement. |
(z) | Person means an individual, corporation, limited liability company, association, joint-stock company, business trust or other similar organization, partnership, joint venture, trust, unincorporated organization or government or any agency, instrumentality or political subdivision thereof. |
(aa) | Plan means the Plan of Rehabilitation for FGIC (or, if the Proceeding is converted to a liquidation proceeding, the Plan of Liquidation for FGIC) as approved by an order entered by the Rehabilitation Court in the Proceeding. |
(bb) | Policy means a policy, insurance contract, surety bond, financial guarantee, or similar instrument or contract (but not including forward commitments to issue any of the foregoing), issued or written by FGIC in the United States, the District of Columbia, Puerto Rico or the U.S. Virgin Islands, and shall include primary policies, secondary market policies and ancillary policies or guaranties guarantying debt service reserve fund obligations, interest rate swaps and liquidity facilities or similar obligations in connection with primary policies. |
(cc) | Proceeding means the rehabilitation proceeding for FGIC pursuant to Article 74 of the New York Insurance Law (Article 74) currently pending before the Rehabilitation Court, captioned as In the Matter of the Rehabilitation of Financial Guaranty Insurance Company, Index No. 401265/2012, as such proceeding may be converted to a liquidation proceeding pursuant to Article 74. |
(dd) | Records shall have the meaning set forth in Section 3.2(b) of this Agreement. |
(ee) | Rehabilitation Court means the court having jurisdiction over the Proceeding. |
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(ff) | Rehabilitation Order means the Order of Rehabilitation signed by the Honorable Doris Ling-Cohan of the Rehabilitation Court on June 28, 2012 in the Matter of the Application of Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York , for an order to take possession of the property of and rehabilitate Financial Guaranty Insurance Company, Index No. 401265/2012. |
(gg) | Reinsurance Agreement shall have the meaning set forth in the recitals to this Agreement. |
(hh) | Second-to-Pay Policy means the second-to-pay policy (policy No. MBNA-0002), as amended or supplemented, issued by National, whereby National agreed, among other things, to guarantee any shortfall in amounts due from FGIC under the Covered Policies. |
(ii) | Third Party Reinsurance means, as of any date of determination, all reinsurance coverage of risks under any of the Covered Policies provided to FGIC by a Third Party Reinsurer as of such date. |
(jj) | Third Party Reinsurers means, as applicable, each third party reinsurer of FGIC, including Assured Guaranty Corp. and its Affiliates, American Overseas Reinsurance Company Limited (fka RAM Reinsurance Company Ltd.) and The TOA Reinsurance Company of America. |
1.2 Interpretation . When a reference is made in this Agreement to an Article, Section, Exhibit, or Schedule, such reference shall be to an Article or Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The Article and Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words include, includes or including are used in this Agreement, they shall be deemed to be followed by the words without limitation. The words hereof, herein and hereunder and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes. References to a Person are also to its permitted successors and assigns.
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ARTICLE II
NOVATION OF THE COVERED POLICIES
2.1 Novation . As of the Novation Effective Date, without the need for any action on the part of either Party or any other Person (including any consent or other action on the part of any Covered Policyholder or any other interested Person):
(a) | FGIC hereby transfers by novation to National, and National hereby accepts such transfer by novation of, the Covered Policies, the Covered Policy Rights and the Covered Policy Liabilities, with the effect that National is hereby irrevocably designated the successor in interest to, and substituted in the place and stead of, FGIC as if it were the original insurer, surety or Person acting in a similar capacity under the Covered Policies and with respect to the Covered Policy Rights and the Covered Policy Liabilities, and National will be the sole insurer, surety or Person acting in a similar capacity, respectively, under the Covered Policies and with respect to the Covered Policy Rights and the Covered Policy Liabilities. |
(b) | National hereby irrevocably accepts the Covered Policy Rights, including all rights to premiums, recoveries, subrogation and salvage that have accrued or may accrue under or with respect to the Covered Policies but excluding any such amounts paid by any Person to MBIA or National pursuant to the Administrative Services Agreement prior to the Novation Effective Date, and shall have the sole and direct benefit of such Covered Policy Rights in substitution for FGIC; provided , however , that, for the avoidance of doubt, it is acknowledged and agreed that pursuant to the Reinsurance Agreement FGIC has previously ceded and paid to National (as assignee of MBIA) all unearned premiums relating to the Covered Policies net of the ceding commissions payable to FGIC thereunder and that FGIC shall not have any obligation to pay or remit to National any additional or further premiums relating to the Covered Policies except as and to the extent provided in the next sentence. FGIC shall promptly remit to National one hundred percent (100%) of the premiums, recoveries, subrogation and salvage under or with respect to the Covered Policies, if any, that FGIC may receive after the Novation Effective Date. All monies, checks, drafts, money orders and other instruments received by FGIC after the Novation Effective Date for such amounts will be promptly transferred and delivered to National and any such instruments, when so delivered, will bear all endorsements required to effect the transfer to National. |
(c) |
National hereby irrevocably assumes the Covered Policy Liabilities, and shall have the sole and direct liability and responsibility for, and shall fully and timely perform, the Covered Policy Liabilities in substitution for FGIC. National shall have the direct benefit of, and be fully subrogated to, |
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any and all defenses, setoffs and counterclaims to which FGIC would have been entitled under or with respect to the Covered Policies or the Covered Policy Liabilities. The Parties agree that no such defenses, set-offs or counterclaims are waived by the execution of this Agreement or the consummation of the transactions contemplated hereby. |
(d) | The Covered Policyholders, the issuers or obligors of the obligations insured by the Covered Policies and all other interested Persons are authorized and directed to pay all future premiums and recoveries, if any, and to submit all future claims, if any, under or with respect to the Covered Policies solely and directly to National and to treat National for all purposes as if it had originally issued or written the Covered Policies instead of FGIC. |
(e) | The Covered Policies shall remain in full force and effect and will be subject in all respects to the same terms and conditions of the Covered Policies, respectively, as in effect immediately prior to the Novation Effective Date, except as modified hereby or by the Novation Endorsement. |
2.2 Release and Discharge of FGIC . As of the Novation Effective Date, without the need for any action on the part of either Party or any other Person (including any consent or other action on the part of any Covered Policyholder or any other interested Person), FGIC is hereby irrevocably released and fully, finally and forever discharged from the Covered Policy Liabilities, and National shall indemnify, defend and hold FGIC harmless against all Covered Policy Liabilities.
2.3 Reinsurance Agreement, Administrative Services Agreement and Master Agreement .
(a) |
Without the need for any action on the part of either Party or any other Person (including any consent or other action on the part of any Covered Policyholder or any other interested Person), the Parties hereby agree that each of the (i) Reinsurance Agreement, following settlement as of the Novation Effective Date of all amounts then known to be owed and remaining unpaid on such date as between FGIC and National under or with respect to the Reinsurance Agreement, (ii) Administrative Services Agreement, and (iii) Master Agreement, dated as of August 27, 2008, by and among FGIC, MBIA Inc. and MBIA (the Master Agreement ), shall terminate as of the Novation Effective Date, and each Party shall be irrevocably released and fully, finally and forever discharged from any and all Liabilities to the other Party thereunder or with respect thereto, including any Liability of National to FGIC to return premium on any Policies determined after the Novation Effective Date to have been refinanced or otherwise not in-force as of the effective date of the Reinsurance Agreement, in each case subject to Sections 2.3(c) and (d) below. Notwithstanding anything to the contrary herein or in any of the |
8
foregoing agreements, in the event of any commutation or recapture of any or all the Third Party Reinsurance, whether before, at or after the Novation Effective Date, no amount or other obligation shall be payable or owed by FGIC to National in connection therewith. |
(b) | National has informed FGIC, and FGIC acknowledges, that pursuant to Section 3 of the Second-to-Pay Policy, upon the termination of the Reinsurance Agreement, the Second-to-Pay Policy will be cancelled automatically and immediately without any further action on the part of National. |
(c) | In the event that an applicable Governmental Authority should finally determine that all or any portion of any Covered Policies, Covered Policy Rights and/or Covered Policy Liabilities are not, by virtue of this Agreement, legally novated to National, the Parties hereby agree that the Reinsurance Agreement and the Administrative Services Agreement and the Parties respective rights and obligations thereunder shall be deemed to be reinstated and in full force and effect (continuously from and after the Novation Effective Date, but without giving effect to any provisions concerning Third Party Reinsurance), solely as to such Covered Policies, Covered Policy Rights and/or Covered Policy Liabilities (or portion thereof, as applicable) that were subject to such final determination, as the case may be, automatically and without any further action of the Parties or any other Person notwithstanding Section 2.3(a) of this Agreement. Furthermore, with respect to any such determination (final, pending, threatened, potential or otherwise) or similar matter, facts or circumstances, notwithstanding anything herein to the contrary (i) automatic reinstatement of the Reinsurance Agreement and Administrative Services Agreement and the Parties respective rights and obligations thereunder, solely if and to the extent provided under the foregoing sentence, shall be the sole and exclusive remedy of the Parties and (ii) this Agreement shall terminate with respect to such Covered Policies, Covered Policy Rights and/or Covered Policy Liabilities, or any such portion thereof, as applicable, and neither Party shall have any Liability under or arising out of this Agreement with respect thereto. |
(d) |
In the event that an applicable Governmental Authority should issue a stay or injunction preventing the implementation of this Agreement with respect to all or any portion of any Covered Policies, Covered Policy Rights and/or Covered Policy Liabilities, the Parties hereby agree that the Reinsurance Agreement and the Administrative Services Agreement and the Parties respective rights and obligations thereunder shall be deemed to be reinstated and in full force and effect (continuously from and after the Novation Effective Date, but without giving effect to any provisions concerning Third Party Reinsurance), during the pendency of such stay or injunction solely as to such Covered Policies, Covered Policy Rights and/or Covered Policy Liabilities (or portion thereof, as applicable) that |
9
were subject to such stay or injunction, as the case may be, automatically and without any further action of the Parties or any other Person notwithstanding Section 2.3(a) of this Agreement. Furthermore, with respect to any such stay or injunction (final, pending, threatened, potential or otherwise) or similar matter, facts or circumstances, notwithstanding anything herein to the contrary (i) automatic reinstatement of the Reinsurance Agreement and Administrative Services Agreement and the Parties respective rights and obligations thereunder, solely if and to the extent provided under the foregoing sentence, shall be the sole and exclusive remedy of the Parties and (ii) neither Party shall have any Liability under or arising out of this Agreement with respect thereto. |
2.4 Novation Endorsement . National will use its commercially reasonable efforts to deliver an assumption and novation endorsement substantially in the form attached hereto as Exhibit A (the Novation Endorsement ) to the Covered Policyholders on or as soon as practicable after the Novation Effective Date. On or promptly following the Novation Effective Date, National shall (i) post to its website the Novation Endorsement and a notice relating to the consummation of the transactions contemplated hereby in a form mutually acceptable to the Parties and (ii) use its commercially reasonable efforts to post the Novation Endorsement and the foregoing notice to the Electronic Municipal Market Access system. Notwithstanding the foregoing, in no event shall the effectiveness of this Agreement, including for the avoidance of doubt the novation, assumptions, discharges and releases effected hereby and the other agreements hereunder, be conditioned on Nationals fulfillment of its obligations under this Section 2.4.
2.5 Errors and Omissions . Inadvertent errors or omissions will not relieve any Party from liability hereunder provided that the error or omission is rectified as soon as reasonably practicable after discovery. Upon discovery of an error or omission, the discovering Party will notify the other Party. The Parties will agree to work together in good faith to resolve, consistent with the terms of this Agreement, problems, issues or disputes caused by any such error or omission.
ARTICLE III
REPRESENTATIONS AND WARRANTIES AND COVENANTS
3.1 Representations and Warranties . As of the date hereof and as of the Novation Effective Date, each Party hereby represents and warrants to the other Party as follows:
(a) | Good Standing . Such Party is duly organized, validly existing and in good standing (except, in the case of FGIC, for any adverse effect resulting from the commencement of the Proceeding) under the laws of the jurisdiction of its organization with full power and authority to execute and deliver, and to perform and observe the terms and provisions of, this Agreement. |
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(b) | Power and Authority . Such Party has all requisite power and authority to execute and deliver this Agreement as contemplated hereby and each other agreement, document, instrument or certificate to be executed by such Party as contemplated hereby or in connection with the consummation of the transactions contemplated hereby (the Documents ) and, subject to the occurrence of the Novation Effective Date, to perform its obligations under this Agreement and the Documents. In the case of National, it has all insurance and other licenses required for the consummation of the transactions contemplated hereby and the performance of its obligations under this Agreement and the Documents, except those (i) as to which the failure to be obtained by such Party would not reasonably be expected to have a Material Adverse Effect, or (ii) which will be obtained, on or prior to the Novation Effective Date. No judgment, order or regulatory action has been entered or taken that would reasonably be expected to lead to the revocation, amendment, failure to renew, limitation, suspension or restriction of any such insurance or other license. |
(c) | Authorization . Such Partys execution and delivery of, and performance of its obligations under, this Agreement and the Documents to be executed and delivered by such Party have been duly authorized by all necessary corporate action on its part (in the case of FGIC, including by the Superintendent of Financial Services of the State of New York (or his designee), as court-appointed rehabilitator of FGIC, pursuant to and as contemplated by the Rehabilitation Order). |
(d) | Enforceability . This Agreement constitutes, and each of the Documents to be executed and delivered by such Party (when so executed and delivered) will constitute, a legal, valid and binding obligation of such Party, enforceable against such Party in accordance with its respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). |
(e) | No Consent or Approval . No consent, approval, order or authorization is required to be obtained from, and no notice or filing is required to be provided or made to, any Governmental Authority by such Party in order to execute, deliver and perform its obligations under this Agreement and each of the Documents to be executed and delivered by it, except those (i) as to which the failure to be obtained, provided or made, as applicable, by such Party would not reasonably be expected to have a Material Adverse Effect or (ii) which have already been obtained, provided or made, as applicable, by such Party or, as to performance, which will be obtained, provided or made, as applicable, by such Party on or prior to the Novation Effective Date and except, as to performance, for the Court Order which must be in full force and effect on the Novation Effective Date. |
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(f) | No Conflicts . Such Partys execution and delivery of, and performance of its obligations under, this Agreement and each of the Documents to be executed and delivered by such Party does not and will not, subject to obtaining, providing or making, as applicable, the consents, approvals, orders, authorizations, notices and filings contemplated to be obtained, provided or made in Section 3.1(e) hereof or required for the Novation Effective Date to occur: (i) violate any provision of law, rule or regulation applicable to such Party or of such Partys certificate of incorporation, bylaws or other organizational documents; or (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it is a party. |
(g) | No Judgment or Order . To its knowledge, there is no judgment, order or regulatory action invalidating this Agreement or enjoining the transactions contemplated hereby. |
3.2 | Covenants . |
(a) | Rehabilitation Court Approval . Each Party agrees to use its commercially reasonable efforts to seek to facilitate the Rehabilitation Courts approval of this Agreement and the consummation of the transactions contemplated hereby. |
(b) | Transfer of Records . Promptly following the Novation Effective Date, FGIC shall transfer and deliver to National all the underwriting and surveillance files and records relating to the Covered Policies in FGICs possession or under its control to the extent that such files and records are material and such other files and records relating to the Covered Policies as may be reasonably requested by National promptly following such request (the Records ). National agrees that after such delivery, FGIC will be entitled, upon reasonable request, during normal business hours and at FGICs expense to inspect and copy the Records. Any and all correspondence, records or documents coming into the possession of FGIC after the Novation Effective Date, which directly pertain to any Covered Policy or Covered Policy Rights, will be promptly delivered to National by FGIC. |
(c) | Accounting . From and including the Novation Effective Date, National shall account for the Covered Policies as direct business of National, National shall maintain all unearned premium, contingency, loss and loss adjustment expense and other statutory reserves required with respect to the Covered Policies, and FGIC shall have no further obligations for reserving or accounting for the Covered Policies. |
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ARTICLE IV
GENERAL PROVISIONS
4.1 Termination . If the Novation Effective Date does not occur on or prior to December 31, 2013, then National shall have the option to terminate this Agreement by giving FGIC written notice of its election to terminate at any time after such date if and so long as the Novation Effective Date shall not have occurred prior to the delivery of such notice or the termination date specified in such notice. Either Party shall have the option to terminate this Agreement (by delivering written notice to the other Party) if the Plan or supplements thereto as submitted to the Rehabilitation Court (either initially, or on any subsequent submission date) and as may be modified, amended or supplemented thereafter do not include this Agreement in the form as executed by the Parties, or with such changes as the Parties may approve in writing.
4.2 Amendments and Waivers . This Agreement may not be amended, modified, supplemented or changed, and any provision hereof may not be waived or extended, without a writing signed by each Party. The waiver by any Party of any breach of any provision hereof shall be limited to its specific terms and shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure on the part of a Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies at law.
4.3 Notices and Reports . All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally by hand, when sent by facsimile transmission (with confirmation of such transmission), or one Business Day following the day sent by next day delivery service using a nationally recognized overnight courier, in each case at the following addressed and facsimile numbers (or to such other address or facsimile number as a Party may have specified by notice given to the other Party pursuant to this provision):
If to FGIC: | Financial Guaranty Insurance Company | |
125 Park Avenue | ||
New York, New York 10017 | ||
Attention : General Counsel | ||
Facsimile: (212) 312-3221 | ||
If to National: | National Public Finance Guarantee Corporation | |
113 King Street | ||
Armonk, NY 10504 | ||
Attention : General Counsel | ||
Facsimile: 914-765-3919 |
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4.4 Severability . The invalidity or unenforceability of any provision or portion hereof shall not affect the validity or enforceability of the other provisions or portions hereof, all of which shall remain in full force and effect.
4.5 Incontestability . In consideration of the mutual covenants and agreements contained herein, each Party does hereby agree that this Agreement, and each and every provision hereof, is and shall be enforceable by and between them according to its terms, and each Party does hereby agree that it shall not, directly or indirectly, contest the validity or enforceability this Agreement or any provision hereof.
4.6 Entire Agreement . This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and negotiations, both written and oral, relating thereto.
4.7 Further Assurances . Upon the terms and subject to the conditions herein, each Party agrees to use its commercially reasonable efforts to take or cause to be taken all actions, and to do or cause to be done, and to assist and cooperate with the other Party in doing, all things, in each case as are necessary, proper or advisable and in compliance with applicable law to carry out the purposes of this Agreement and the consummation of the transactions contemplated hereby. In furtherance of the foregoing, FGIC agrees to use its commercially reasonable efforts on and after the Novation Effective Date, at the reasonable request of National, to execute and deliver any instruments, consents, waivers, amendments, notices and other documents, to take any actions or refrain from taking any actions, and to make any filings, appearances or other steps before a Governmental Authority or otherwise as are necessary and appropriate and in compliance with applicable law in order to permit National to seek to exercise and enforce the Covered Policy Rights, including seeking to commence litigation or any other proceeding before a Governmental Authority in order to seek to mitigate a loss or potential loss or protect, perfect or exercise any subrogation, salvage or reimbursement rights or security interests with respect to any Covered Policy. For the avoidance of doubt, neither Party shall institute, prosecute or maintain any legal proceedings on behalf of the other Party without the prior written consent of such other Party. Upon FGICs request and from time to time, National shall reimburse FGIC for all reasonable out-of-pocket costs and expenses incurred by FGIC in connection with any activities contemplated by this Section that are undertaken or made at the request or direction of National, including the costs and expenses of defending or participating in any legal or other proceedings; provided , however , that FGIC shall use its commercially reasonable efforts to notify National if FGIC determines that, in connection with any such request or direction of National, it would expect to incur out-of-pocket costs and expenses exceeding $10,000.
4.8 Indemnification by National . The provisions of Exhibit B attached hereto are hereby incorporated into this Agreement by reference in their entirety and made a part of this Agreement as if fully set forth herein.
4.9 Costs and Expenses . Unless provided herein (including Sections 4.7 and 4.8), each Party will pay its own costs and expenses (including legal fees) incurred in connection with the negotiation, preparation and execution of this Agreement and the Documents and the consummation of the novation transaction specified herein.
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4.10 Counterparts . This Agreement may be executed in counterparts (or by counterpart signature pages), each of which shall be deemed an original and all of which constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by facsimile, email or other electronic imaging means shall be as effective as delivery of an original manually executed counterpart of this Agreement.
4.11 Parties in Interest . Nothing in this Agreement is intended or shall be construed to give any Person, other than the Parties and their successors and permitted assigns, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein.
4.12 Submission to Jurisdiction . Each Party irrevocably submits to the exclusive jurisdiction of the Rehabilitation Court for the purposes of any suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby; provided , that in the event that the Rehabilitation Court is not available, each Party irrevocably submits to the exclusive jurisdiction of any state court located in New York County in the State of New York for such purposes. Each Party agrees to commence any such action, suit or proceeding in the Rehabilitation Court or, in the event that the Rehabilitation Court is not available for such purposes, the Supreme Court of the State of New York, New York County. Each Party further agrees that service of any process, summons, notice or document by U.S. registered mail to such Partys respective address set forth above shall be effective service of process for any action, suit or proceeding in the State of New York with respect to any matters to which it has submitted to jurisdiction in this Section. Each Party irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby in such court, and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. The Parties intend the broadest possible exclusive jurisdiction of the Rehabilitation Court. Notwithstanding the foregoing, any judgment against any Party hereto may be enforced using the assistance of such courts as may be available to aid in the enforcement of judgments.
4.13 WAIVER OF RIGHT TO JURY TRIAL . EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MIGHT HAVE TO A TRIAL BY JURY IN ANY ACTION, MATTER OR PROCEEDING REGARDING THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
4.14 Binding Effect; Assignment . This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. No Party may assign or delegate all or any portion of its rights, obligations or liabilities under this Agreement without the prior written consent of the other Party, which consent
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may be given or withheld in such other Partys sole discretion; and any attempt to assign or delegate any rights, obligations or liabilities under this Agreement without such consent shall be void.
4.15 Governing Law . This Agreement shall be construed in accordance with and be governed by the law of the State of New York applicable to contracts entered into therein, without regard to principles of choice of law or conflicts of laws that might lead to the application of laws other than the laws of the State of New York.
4.16 Specific Performance . Each Party acknowledges and agrees that irreparable injury to the other Party would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be adequately compensable in damages. It is accordingly agreed that each Party shall be entitled to seek specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof and the other Party will not take action, directly or indirectly, in opposition to such Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity, nor shall such other Party seek the posting of a bond as a condition for obtaining any such relief. An application for specific performance pursuant to this Section shall not preclude such Party from seeking other relief available at law or in equity.
[ signature page follows ]
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IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first above written.
FINANCIAL GUARANTY INSURANCE COMPANY | ||||||||
By: | ||||||||
BENJAMIN M. LAWSKY | ||||||||
Superintendent of Financial Services of the State of New York, in his capacity as Rehabilitator of Financial Guaranty Insurance Company | ||||||||
By: | /s/ Peter A. Giacone | |||||||
Name: | ||||||||
Title: |
Chief Financial Officer and Agent of Benjamin M. Lawsky, Superintendent of Financial Services of the State of New York, in his capacity as Rehabilitator of Financial Guaranty Insurance Company |
|||||||
NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION | ||||||||
By: | /s/ Daniel E. McManus, Jr. | |||||||
Name: Daniel E. McManus, Jr. | ||||||||
Title: Managing Director, General Counsel And Secretary |
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Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
00010008 | Allentown City SD, PA GO 2000 | |
00010012 | Peotone CUSD #207-U IL GO 00AB | |
00010013 | 2525000Pampa (City of), TX GO | |
00010017 | Keller, TX GO Ltd Tax 99A | |
00010020 | Perry CSD, NY GO 2000 | |
00010022 | KAUAI COUNTY, HAWAII GO 2000AB | |
00010023 | Willington (Town of) CT 2000 | |
00010028 | MORIARTY MUNIC SD #8, NM GO 00 | |
00010030 | Bridgeport,ConnecticutGO 2000A | |
00010032 | Gardner USD # 231,KS GO. 2000 | |
00010033 | East Lyme (Town of), CT GO 00 | |
00010034 | Chetek SD, WI GO 2000 | |
00010035 | Campbellsport SD, WI 2000 | |
00010037 | Altoona SD, Wisconsin 2000 | |
00010038 | Sedgwick USD #260, Derby KS GO | |
00010039 | Monroe County, IL GO LT 2000A | |
00010040 | Monroe County,IL GO AltRev 00B | |
00010041 | Williamson County, TX ULT 2000 | |
00010043 | Waco, Texas GO Ltd Tax 2000 | |
00010044 | Granby (Town of), CT GO 00 | |
00010045 | Fairfield (Twp), NJ GO 2000 | |
00010047 | Federal Way SD #210, WA GO 00 | |
00010054 | De Pere (City), WI GO 2000A | |
00010058 | National Park Bd of ED, NJ 00 | |
00010059 | Stow (Town of) MA 2000 | |
00010061 | Grantsburg SD, WI GO 2000A | |
00010062 | Flemington-Raritan RSD NJ 2000 | |
00010066 | Sparta ASD, WI GO 99B | |
00010068 | Illinois State GO/Lse 1/2000 | |
00010070 | CHICAGO (CITY OF), IL GO 2000 | |
00010071 | Champaign County, IL GO 2000AB | |
00010072 | Kingman Co., KS USD #331 GO 00 | |
00010073 | Hopkins County, Kentucky GO 00 | |
00010076 | Kewaskum SD, WI GO Ref 2000 | |
00010079 | Macomb Township Bldg Auth, MI | |
00010081 | Bellevue Union SD, CA GO 99 | |
00010082 | Jefferson Township, NJ GO 2000 | |
00010084 | Upper Twp BOE, NJ GO 2000 | |
00010089 | Vicksburg Comm Schs, MI GO 00 | |
00010094 | Waxahachie, TX GO Ltd Tax 2000 | |
00010097 | Keyport (Boro of) BOE, NJ | |
00010100 | Giles County, TN GO Ser 2000 | |
00010101 | Joshua, TX GO 2000 | |
00010102 | Saginaw, Texas Ltd Tax GO 2000 | |
00010107 | Perry Community SD, IA GO 00A | |
00010109 | Lowell (City) MA GO 2000 | |
00010118 | Capistrano USD SFID No1,CA 99A | |
00010120 | Sterling (Town) MA GO | |
00010123 | Quinton Twp BOE, NJ GO 2000 | |
00010124 | Mauston SD, WI GO Ref | |
00010125 | Mount Horeb ASD, WI GO 2000 | |
00010128 | Jersey Village, TX GO 2000 | |
00010129 | Cabrillo Cmnty CD, CA GO 98B | |
00010134 | Washougal SD #112-6, WA GO 00 | |
00010138 | Johnston County, NC GO 2000 |
Policy Id |
Policy |
|
00010142 | Clinton Commun SD WI 2000 | |
00010143 | Holden, MA GOLT 2000 | |
00010144 | Valley Stream CHSD, NY GO 2000 | |
00010145 | Paris, TX Ltd Tax COO 2000 | |
00010146 | Freehold Reg. HSD, NJ GO 2000 | |
00010147 | Oshkosh (City of),WI GO 00 A/B | |
00010150 | Sunnyvale Sch Dist, CA GO 00C | |
00010152 | Penns Grove-Carneys Pt SD NJ | |
00010154 | TRENTON (CITY OF), NJ GO | |
00010155 | Galesburg, IL GO 2000 | |
00010160 | Chicago (City of), Ill GO 2000 | |
00010162 | Clark County, NV GO Ltd Tax | |
00010163 | Richardson City, TX Ltd Tax GO | |
00010164 | Hilliard City SD, OH GO 2000 | |
00010166 | Lake Local SD, OH GO 2000 | |
00010167 | Wyoming (City of) MI GOULT2000 | |
00010168 | Grapevine, TX Cert Oblig 2000 | |
00010170 | Garland, TX Ltd Tax GO/COO 00 | |
00010171 | Clinton Commun SD WI dtd4/1/00 | |
00010172 | Lakeway MUD, Texas GO 2000 | |
00010173 | Grapevine, Texas GO 2000 | |
00010177 | ABC Unified SD, CA GO 2000 B | |
00010178 | Cardinal Local SD, OH 2000 | |
00010180 | Essex County Imprv Auth, NJ GO | |
00010181 | North Attleborough, MA GO | |
00010182 | Triad Local SD, OH 2000 | |
00010184 | Northwest HarrisCtyMUD#20,TXGO | |
00010188 | Warren Twp. BOE, NJ GO 2000 | |
00010192 | Canastota CSD, NY GO 2000 | |
00010194 | Southeast Town, NY GO 2000 | |
00010202 | Lincoln Co., WI GO 2000 | |
00010203 | J. Sterling Morton HSD #201,IL | |
00010204 | East Ouachita SD, LA GO 2000 | |
00010207 | Harris County MUD #24, TX 2000 | |
00010208 | Dallas Center-Grimes CSD, IA | |
00010209 | Meadows Place, TX Ltd GO 2000 | |
00010212 | Channahon (Vlg), IL GO 2000 | |
00010213 | Colony, Texas Ltd Tax GO 2000 | |
00010217 | Stillwater (City), MN 2000D | |
00010218 | Morgan City, LA GO Series 2000 | |
00010219 | Newport, TN GO 2000 | |
00010224 | Many Sch Dist #34, LA GO Ser00 | |
00010227 | Malden (City), MA 2000 | |
00010228 | Haltom City, TX GO 2000 | |
00010229 | Santa Ana USD, CA GO Ser 2000 | |
00010231 | Sandusky (City), OH LTD | |
00010232 | Westland Building Auth,MI 2000 | |
00010234 | WESTFORD (TOWN OF), MA GO | |
00010236 | Fern Bluff MUD, TX GO Ser 2000 | |
00010238 | Roane County, TN GO 2000 | |
00010240 | Laredo, Texas GO Ser 2000 | |
00010241 | Frankfort-Schuyler CSD,NY 2000 | |
00010244 | Espanola Pub SD 45, NM GO 2000 | |
00010246 | Allen, Texas Limited Tax GO 00 | |
00010249 | Auburn, MA GO LTD |
-1-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
00010251 | Wills Point, TX GO Series 2000 | |
00010252 | Trenton Pkg Auth (GO),NJ 1999 | |
00010254 | Brookfield (Village), Ill 2000 | |
00010255 | West Bend, WI GO 2000 | |
00010256 | Little Elm (Town of),TX GO2000 | |
00010259 | Athens (City of), Texas GO 00 | |
00010260 | Wayne Highlands SD, PA GO 2000 | |
00010265 | Dudley (Town), MA GO 2000 | |
00010269 | Randolph CSD, NY GO 2000 | |
00010270 | Cape Girardeau SD 63, MO GO 00 | |
00010272 | Somerset Sch Dist, WI GO 2000A | |
00010273 | Lake Co SD(Diamond Lake)#76,IL | |
00010274 | Manitowoc County, WI GO 2000A | |
00010275 | Odessa, Texas Ltd GO 2000 | |
00010280 | Wadsworth City SD, OH GO 2000 | |
00010282 | Putnam County, TN GO 2000 | |
00010283 | Niles Twp CHSD #219, IL GO 00 | |
00010284 | Calcasieu Par SD #31, LA GO 00 | |
00010289 | Warrensville Hts. CSD,OHGO2000 | |
00010290 | Washington State GO 2000S-5 | |
00010291 | Douglass USD #396, KS GO 2000 | |
00010292 | Harris Cnty MUD #132, TX GO 00 | |
00010295 | Rowlett, Texas Ltd Tax GO 2000 | |
00010304 | Grant Com HSD #124, IL GO 00 | |
00010306 | Rialto Unified SD, CA GO 2000A | |
00010307 | Evergreen SD, CA 00GO Series C | |
00010310 | Festus Reorg. SD R-6, MO GO 00 | |
00010312 | Midland, TX Ltd Tax COO 2000 | |
00010313 | Volney (Town of), NY GO 2000 | |
00010315 | Lakewood Twp BOE, NJ GO | |
00010324 | New York City, NY GO 2000ABC | |
00010325 | New York City, NY GO 2000BCD | |
00010327 | Mokena SD #159, IL GO 2000 | |
00010328 | Benbrook, TX GO Ltd Tax 2000 | |
00010329 | Vienna Elem. SD #55, IL GO 00 | |
00010330 | Vandalia CUSD #203, IL GO 00 | |
00010333 | Freeport (Village), NYGO 2000A | |
00010334 | Freeport (Village), NYGO 2000B | |
00010335 | Loomis Union SD, CA GO Ser2000 | |
00010336 | Westfield, MA GO, dtd 5/1/00 | |
00010339 | Brazoria Cnty MUD #4, TX GO 00 | |
00010340 | Dracut (Town of) MA Ltd GO | |
00010341 | Tinley Park (Vlg), IL GO 2000 | |
00010344 | Douglas County, Nevada GO 2000 | |
00010345 | Hawthorne BOE, NJ GO 2000 | |
00010347 | Perris Union HSD, CA GO Ser A | |
00010348 | Eldorado CUSD4,IL Saline Co 00 | |
00010350 | Brownsville, Texas GO 2000A&B | |
00010353 | Summit County, OH Series 2000 | |
00010354 | Montevideo (City), MN GO 2000 | |
00010355 | Bloomfield SD #6, NM GO 2000 | |
00010358 | Westfall LSD, OH GO 00 | |
00010361 | Alisal Union SD, CA GO Ser 99A | |
00010362 | Milpitas USD, CA GO Ser. 2000 | |
00010364 | Placer UHSD, CA GO 2000 |
Policy Id |
Policy |
|
00010366 | Arlington SD No. 16 WA GO 2000 | |
00010368 | Fortuna Union HSD, CA GO 2000 | |
00010371 | Fox River Grove SD 3, IL GO 00 | |
00010372 | Crowley (City), Texas GO 2000 | |
00010375 | Pattonville R-3 SD, MO GO 2000 | |
00010376 | Brunswick County, NC GO 2000 | |
00010379 | Hewitt (City of), TX GOLT 2000 | |
00010380 | Grant Park CUSD #6, IL GO 2000 | |
00010382 | Brockton (City of), MA GOLT 00 | |
00010383 | Southampton (Vlg), NY GO 2000B | |
00010386 | Minooka (Vill.), IL GO 2000 AR | |
00010387 | San Benito (City), TX GO 2000 | |
00010389 | Palmer (Town) MA GOLT 2000 | |
00010390 | Huntley Park Dist., IL GO 2000 | |
00010391 | Plain Local SD, OH GO 2000 | |
00010393 | Elba CSD, NY GO 2000 | |
00010397 | Frankenmuth SD, Mi GO QSBLF 00 | |
00010402 | Ashland, OR GO Ser. 2000 | |
00010403 | Ashland (Town of), MA GOLT 00 | |
00010410 | Romeoville (Village) IL 2000AB | |
00010415 | Auburn (City of), NY GO 2000A | |
00010419 | Willow Springs, IL Alt GO 00 | |
00010420 | Harrison (City of), OH GOLT 00 | |
00010421 | Foxborough(Town of),MA GOLT 00 | |
00010422 | Grapevine, Texas GO 2000 | |
00010423 | Marana USD #6, Arizona GO 2000 | |
00010426 | South Kingstown (Twn), RI 2000 | |
00010427 | Ellinwood USD #355, KS GO 2000 | |
00010435 | Randolph (Town of), MA LTD | |
00010436 | Harris Cnty MUD #151, TX GO 00 | |
00010438 | Xenia, Ohio GO Lmtd Tax 00 | |
00010441 | Van Alstyne (City of),TX GO 00 | |
00010442 | Laguna Salada Union SD CA GO00 | |
00010443 | Mt. Vernon Knox Co.PubLbr,OH00 | |
00010444 | Scioto Valley Local SD,OH 2000 | |
00010446 | Yuba City USD SFID #99-1,CA GO | |
00010448 | Cascade HSD No. B, MT GO 2000 | |
00010449 | Cleveland Hill UFSD, NY 2000 | |
00010450 | Islip (Town), NY GO 00 | |
00010453 | Barren County, KY GO 2000 | |
00010454 | Tuscola CUSD #301, IL GO 2000 | |
00010455 | Washington County, MD GO 2000 | |
00010456 | Santa Barbara HSD, CA GO 2000 | |
00010457 | Woodstock (City),IL GO2000ABCD | |
00010459 | Lancaster County, PA GO 2000A | |
00010471 | Campbell City SD, OH GO 2000 | |
00010474 | Anacortes (City of), WA GO 00 | |
00010476 | Long Beach USD, CA GO 99 Ser B | |
00010478 | Baltimore, MD GO 2000 A&B | |
00010479 | Hartford (City of), CT GO 2000 | |
00010480 | Ardsley UFSD, NY GO 2000 | |
00010481 | Rockwall (City of), TX GO 2000 | |
00010484 | North Babylon UFSD, NY GO 00A | |
00010485 | North Babylon UFSD, NY GO 00B | |
00010486 | Holland CSD, New York GO 2000 |
-2-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
00010488 | Rhode Island (State Of) GO 00 | |
00010490 | Port Chester-Rye UFSD,NY GO 00 | |
00010491 | CHARLES STEWART MOTT CCD,MI GO | |
00010492 | Goddard USD#265, Kansas GO 00 | |
00010495 | TRENTON (CITY OF), NJ GO | |
00010496 | Grayslake CCSD #46, IL GO 2000 | |
00010497 | Santa Clara USD, CA GO Ser 00 | |
00010498 | Chicago CSR BOE, Il GO ULT 00A | |
00010499 | Faulkey Gully MUD, TX GO 2000 | |
00010500 | Lakewood Twp, NJ GO NJEDA 2000 | |
00010505 | Williamson-Travis Cos.MUD#1 00 | |
00010506 | Anchor Bay SD, MI GO 2000 II | |
00010507 | Marble Falls, TX Ltd GO 2000 | |
00010514 | Winters Joint USD, CA GO 2000 | |
00010517 | BurntHills-BallstonLake CSD,NY | |
00010518 | San Juan USD, CA GO Ser 2000 | |
00010520 | Orland PK SD 135 (Cook Cty),IL | |
00010526 | Medford Twp, New Jersey GO 00 | |
00010528 | Dickinson, TX Ltd Tax GO Ser00 | |
00010531 | Cardiff Sch Dist, CA GO 2000A | |
00010533 | South Glens Falls CSD, NYGO 00 | |
00010535 | Dodgeland SD, WI GO Ref. 2000 | |
00010537 | Palo Verde USD, CA GO 2000 B | |
00010546 | Toledo, Ohio GO Ltd Tax 2000 | |
00010548 | San Bruno Park SD, CA GO 2000 | |
00010549 | Jersey Village, TX GO LTX 2000 | |
00010550 | Atlanta, TX GO LTD Tax 2000 | |
00010554 | Easton (Town of), MA GO 2000 | |
00010558 | Cinnaminson (Twp) SD, NJ GO 00 | |
00010559 | Waverly Comm Sch, MI GO 2000 | |
00010561 | North Haledon Borough, NJ GO | |
00010563 | Queen Annes Co., MD GO 2000 | |
00010564 | Providence (City of), RI GO 00 | |
00010565 | Bethalto, Il GO 2000 | |
00010566 | Tinley Park Prk Dist, IL GO 00 | |
00010567 | Leander, Texas GO 2000 | |
00010568 | Marana USD #6, AZ GO Ser A 00 | |
00010572 | Montgomery Cnty MUD #46, TX 00 | |
00010573 | Athens, Ohio GO Ltd Tax 2000 | |
00010574 | Jackson County, Oregon GO 2000 | |
00010575 | Heath City SD, Ohio GO 2000 | |
00010576 | Liberty Central S.D., NY GO 00 | |
00010582 | West Mifflin Boro, PA GO 00ABC | |
00010585 | CHICAGO (CITY OF), IL GO 2000C | |
00010587 | Sonoma Valley USD, CA GO 2000 | |
00010588 | Huntington, NY GO 2000 | |
00010589 | Worcester (City) MA GO 2000 | |
00010592 | Kankakee (City), IL GO 2000A | |
00010594 | Genesee County, MI LTD Tax 00 | |
00010595 | Bridgeport, Connecticut GO 00 | |
00010597 | Grand Prairie, Texas GO 2000A | |
00010598 | Teays Valley LSD, OH GO 2000 | |
00010599 | Windfern Forest Ut Dst,TX GO00 | |
00010600 | Bedford, Texas Ltd Tax GO 2000 | |
00010601 | Saginaw, Texas Ltd Tax GO 2000 |
Policy Id |
Policy |
|
00010603 | Azle (City of), TX Ltd Tax 00 | |
00010605 | Buckeye LSD, Ohio GO 2000 | |
00010609 | Calhoun (County of), MI GO LTD | |
00010612 | Shavano Park (City), TX GO 00 | |
00010613 | Carl Sandburg CCD #518, IL 00 | |
00010614 | Pinelands Reg SD BOE, NJ GO 00 | |
00010615 | Larkspur SD, CA GO 2000 A | |
00010616 | Horsepen Bayou MUD, TX GO 2000 | |
00010618 | Reid Road MUD #1, TX GO 2000 | |
00010619 | Abbeville County, SC GO 2000 | |
00010621 | North Franklin Twp, PA GO 00 | |
00010625 | West Deptford (Twp), NJ GO 00 | |
00010626 | Willingboro (Twp of), NJ GO 00 | |
00010627 | Chaffey JT UHSD, CA GO 2000 B | |
00010630 | Washington Terrace, UT GO 2000 | |
00010633 | Salem (City), MA GOLT 2000 | |
00010634 | Beverly, MA GO 2000 | |
00010635 | North Mankato (City), MN GO00A | |
00010637 | Frisco, Texas GO Ltd Tax 2000 | |
00010639 | Lakeville, Minnesota GO 2000C | |
00010641 | Rosenberg, Texas GO 2000 | |
00010649 | Saratoga Fire Dist, CA GO 2000 | |
00010653 | Wharton, Texas Ltd Tax GO 2000 | |
00010654 | Ripon (City), WI GO 00 | |
00010655 | Massapequa Park (V), NY GO 00 | |
00010656 | East Lansing (City), MI GO 00 | |
00010657 | Gonzales Cnty, TX LtdTax GO 00 | |
00010658 | Cinco MUD #1, TX Contract Revs | |
00010659 | New Milford (Borough), NJ GO00 | |
00010660 | California State GO 2000 | |
00010661 | Waterford Jt. #1 SD,WI GO 2000 | |
00010663 | Licking Heights LSD, OH GO 00A | |
00010664 | Pittsburgh SD, PA GO 2000 | |
00010665 | Hays, Kansas GO 2000 | |
00010666 | Springfield (Twp), MI GO 00 | |
00010667 | Agua Fria UHSD#216, AZ GO 00D | |
00010673 | Albany (City of), NY GO 2000 | |
00010674 | North Dansville, NY GO 2000 | |
00010676 | South River (Borough),NJ GO 00 | |
00010677 | Cobden CUSD #17, IL GO 2000 | |
00010678 | Coudersport ASD, PA GO 2000 | |
00010679 | Anchorage, Alaska GO 2000B | |
00010682 | Yonkers, New York GO 2000AB | |
00010683 | Cleveland (City), OH GO LTD 00 | |
00010684 | Jennings SD, MO GO Ref/Imp 00 | |
00010685 | Livonia Muni Bldg Auth, MI 00 | |
00010686 | Texarkana, Texas Ltd GO 2000 | |
00010688 | Wappinger (Town), NY GO 00 | |
00010689 | Victoria, Texas LTGO Ser 2000 | |
00010690 | Bordentown Swrage Ath, NJ GO00 | |
00010691 | Woonsocket, RI GO 2000 | |
00010692 | Austin, Texas GO Ltd Tax 2000 | |
00010693 | Haltom City, Texas LTGO Ser00 | |
00010697 | Dolton (Village), IL GO 2000 | |
00010703 | Rockford (City), IL GO 2000D |
-3-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
00010704 | Woodstock, Connecticut GO 2000 | |
00010705 | Penn Hills, PA (PFA) GO 00 | |
00010706 | Bryan, Texas LTGO Series 2000A | |
00010707 | Forrestville Comm USD#221,IL00 | |
00010708 | Wellington, KS GO 2000 | |
00010710 | East Holmes Local SD, OH GO 00 | |
00010712 | Southgate (City of), MI 2000 | |
00010713 | Caswell County, NC GO 2000 | |
00010714 | Keller (City of), TX GO LT 00 | |
00010716 | Greenwood County, SC GO 2000 | |
00010717 | East Moline SD#37, IL GO 2000B | |
00010718 | Los Lunas SD #1, NM GO 2000 | |
00010725 | Stewart Manor (Vlg), NY GO 00 | |
00010726 | River Falls SD, WI GO 2000B | |
00010727 | Cattaraugus CO. NY GO 2000 | |
00010730 | Dormont (Borough), PA GO 2000 | |
00010732 | Erie County, OH GOLT 2000 | |
00010733 | Waupaca (City of), WI GO 2000 | |
00010736 | Northampton (City), MA ULT 00 | |
00010741 | Hawthorne (Borough), NJ GO 00 | |
00010743 | Madison Co Pub Lib KY GOULT 00 | |
00010749 | Fort Bend Ct WCID2 TX GOULT 00 | |
00010752 | Mesa (City of), AZ GO 2000 | |
00010754 | Fond du Lac SD, Wi GO Rfg | |
00010755 | Milford Charter Twp, MI GO | |
00010757 | Methuen (City), MA GO Ltd 2000 | |
00010759 | Fort Bend Co MUD41 TX GOULT 00 | |
00010761 | Lincoln County, NC GO 2000 | |
00010763 | Lynn (City of), MA GOLT 2000 | |
00010770 | Suffolk County, NY GO 2000 B | |
00010773 | West Linn, Oregon GO 2000 | |
00010779 | Fairview Hgts (City), IL GO 00 | |
00010782 | Wolcott (Town), CT GO 2000 | |
00010783 | Hueneme SD, California GO 00 A | |
00010791 | Brentwood Union SD, CA GO 2000 | |
00010792 | VALLIVUE SD #139, ID GO 2000 | |
00010795 | Wiseburn SD, CA GO 2000A | |
00010796 | McKinney, Texas LTGO Ser 2000 | |
00010797 | Pojoaque Valley SD No.1, NM 00 | |
00010800 | Grapevine, Texas GO & CO 2000A | |
00010804 | Burnet, TX GOLT 2000 | |
00010805 | Rockland (County), NY GO 2000 | |
00010806 | Kyle, Texas GO Ltd Tax 2000 | |
00010807 | Leesburg, Virginia GO 2000 | |
00010808 | FARMINGDALE UFSD, NY GO 2000 | |
00010809 | Mount Vernon City SD, NY GO 00 | |
00010810 | Bear Lake Schools, MI GO 2000 | |
00010811 | Mashpee (Town), MA GOLT 2000 | |
00010818 | American Fork City, UT GO 00 | |
00010821 | Alton (City), IL GO 2000B | |
00010825 | Chicago, Illinois GO 2000D | |
00010840 | Malcomson Rd Util Dist, TX 00 | |
00010844 | Norton (Town of) MA GO, 2000 | |
00010845 | Huntsville (City of), TX GO 00 | |
00010846 | Mercer Cnty Imp Auth, NJ GO 00 |
Policy Id |
Policy |
|
00010847 | Harris Cnty MUD #341, TX GO 00 | |
00010854 | St Francis (City of), MN GO | |
00010855 | Savage (City), MN GO 2000C | |
00010859 | Conroe, Texas GOLT 2000 | |
00010861 | Mifflin County, PA GO 2000 | |
00010864 | Monroe, Georgia GO Series 2000 | |
00010865 | Spokane Co Fire Dist 8 WA GO00 | |
00010867 | Temple, Texas Ltd Tax GO 2000 | |
00010868 | Randall Cnty, Texas GO 2000 | |
00010870 | Butler Area SD, PA GO 2000 | |
00010871 | Mercer Cnty Imp Auth, NJ GO 00 | |
00010872 | East St.Louis SD 189, IL G0 00 | |
00010876 | Veterans Park Dist,IL GOLT 00 | |
00010878 | Oaklyn (Boro of), NJ GO 00 | |
00010883 | Madison LSD, OH GO ULT 2000 | |
00010885 | Waunakee (Village), WI GO SerB | |
00010886 | Ledyard (Town of), CT GO 2000 | |
00010887 | Louisiana State GO 2000A | |
00010888 | Massachusetts Comwlth GO00DEFG | |
00010894 | Woodland CCSD #50, IL GO 2000 | |
00010895 | Antioch CHSD #117, IL GO 2000 | |
00010896 | Rayford Road MUD, TX GO 00B | |
00010897 | Ulster (County of), NY GO 2000 | |
00010898 | Barrington SD #220, IL GO 00 | |
00010905 | WEST UNIVERSITY PLACE TX GO 00 | |
00010907 | Claremont (City of), NH GO 00 | |
00010913 | Berkley (Twn),MA GO 2000 Lot A | |
00010914 | Clarkstown (Town), NY GO 2000 | |
00010916 | Poudre SD R-1, Colorado GO2000 | |
00010917 | Southwick, MA GO 2000 | |
00010920 | Lake Zurich CUSD #95, IL GO 00 | |
00010921 | Calumet City, Illinois GO 2000 | |
00010928 | Montgomery Cnty, Texas LTGO 00 | |
00010929 | LaPorte County, IN GO 2000 | |
00010930 | Colony, Texas Ltd Tax GO 2000A | |
00010931 | Stanwood, WA GO ULT 2000 | |
00010932 | CAROL STREAM PD, IL GO 2000C | |
00010934 | Gail Borden PLD, IL GO 2000A | |
00010936 | Allegheny Co. PA GO C-52, C-53 | |
00010937 | Easley, South Carolina GO 2000 | |
00010938 | Huntley CCSD #158, IL GO 00 | |
00010939 | Belleville SD #118, IL GO 2000 | |
00010943 | Willow Springs, IL GO 2000C | |
00010944 | Community Unit SD#100, IL 00 | |
00010945 | Smith County, TN GO ULT 2000 | |
00010946 | Maize Unified SD #266,KS GO 00 | |
00010949 | Rock Valley CCD #511, IL GO 00 | |
00010950 | Mercer Cnty Imp Auth,NJ GO 00A | |
00010953 | Ridgeland SD# 122, IL GO 2000 | |
00010956 | Central RHSD BOE, NJ GO 2000 | |
00010957 | Calumet Park (Village),IL GO00 | |
00010958 | Wayne County, IN GO 2000 | |
00010959 | Mercer Cnty Imp Auth,NJ GO 00B | |
00020015 | CALIFORNIA STATE GO 12-1-98 | |
00020016 | CALIFORNIA STATE GO 90 |
-4-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
00020022 | CALIFORNIA STATE GO 10-1-97 | |
00020073 | Fuquay-Varina, NC GO W&S Ser00 | |
00020074 | California State GO 6-1-00 | |
00020075 | California State GO 6-1-00 | |
00020083 | California State GO 6-1-00 | |
00020086 | HONOLULU (CITY & CNTY), HI-94A | |
00020087 | CALIFORNIA STATE GO 10-1-98 | |
00020091 | Licking Heights LSD, OH GO 00 | |
00020094 | California State GO 1998 | |
00020099 | New York City, NY GO 99H | |
00020100 | New York City, NY GO 99 F/G | |
00020101 | California State GO 10-1-00 | |
00020106 | CALIFORNIA STATE GO 10-1-98 | |
00020107 | McLENNAN COUNTY, TEXAS GO LT | |
00020110 | New York City, NY GO 99E | |
00020113 | New York City, NY GO 99 F/G | |
00020114 | California State GO 1998 | |
00020117 | California State GO 1998 | |
00020119 | New York City, NY GO 99H | |
00020120 | New York City, NY GO 99C | |
00020122 | New York City, NY GO 98JK | |
00020124 | California State GO 1998 | |
00020128 | NEW YORK CITY, NY GO 98G | |
00020129 | NEW YORK CITY, NY GO 98G | |
00020130 | New York City, NY GO 99 F/G | |
00020131 | California State GO 12-1-00 | |
00020132 | New York City, NY GO 99 F/G | |
00020133 | California State GO 12-1-00 | |
00020135 | California State GO 12-1-00 | |
00020136 | CALIFORNIA STATE GO 4-1-99 | |
00020138 | New York City, NY GO 99C | |
00020140 | NEW YORK CITY, NY GO 98EF | |
00020141 | New York City, NY GO 99C | |
00020143 | CALIFORNIA STATE GO 12-1-98 | |
00020144 | New York City, NY GO 99H | |
00020145 | CALIFORNIA STATE GO 12-1-98 | |
01010001 | Canon-McMillan SD, PA GO 2000 | |
01010003 | CNP Utility District, TX GO 00 | |
01010004 | Eastmont SD #206, WA GO 2001 | |
01010006 | Frisco, Texas GO Ltd Tax 2000A | |
01010007 | Monrovia Unified SD, CA GO 01B | |
01010008 | Sparta Township, NJ GO 01 | |
01010009 | Lakeway MUD, Texas GO 2000A | |
01010011 | ABC Unified SD, CA GO 2001C | |
01010013 | Smith County, TN GO ULT 2001 | |
01010014 | Harris Cnty MUD #150, TX GO 01 | |
01010016 | Conneaut Area CSD, OH GO 2000 | |
01010024 | Wallenpaupack ASD, PA GO 2001 | |
01010027 | Sparta CUSD #140, IL GO 2000 | |
01010028 | Plainfield Twp PD, IL GO 2000 | |
01010030 | CAROL STREAM PD, IL GO 2001 | |
01010032 | Laredo, Texas LTGO Ser00 & 00A | |
01010033 | Aztec Municipal SD #2,NM GO 01 | |
01010034 | Greenport (Village),NY GO 2001 | |
01010036 | Bridgewater (Town), MA GOLT 01 |
Policy Id |
Policy |
|
01010037 | Pleasanton (City of), TX GO 01 | |
01010038 | Antioch Pub Lib Dist, IL GO-AR | |
01010040 | Greenwood Pub Lib,IN GO 00 | |
01010041 | Wayne Highlands SD, PA GO 2001 | |
01010045 | Northwest Park MUD, TX GO 01 | |
01010047 | Union Beach (Boro of),NJ GO 01 | |
01010048 | Friess Lake SD, WI GO 2001 | |
01010049 | Las Virgenes USD,CA GO Ser C | |
01010050 | Plattsburgh, NY GO 2001 | |
01010051 | Juda SD, WI GO 01 | |
01010052 | Oregon SD, WI GO 01 | |
01010054 | Butler County, PA GO 00 | |
01010056 | Polk County, WI GO | |
01010059 | Batavia, New York GO 2001 | |
01010060 | Ringwood (Borough), NJ GO 2001 | |
01010062 | Lincoln SD 27, IL GO 2001 | |
01010063 | Carlyle CUSD #1, IL GO 2001 | |
01010065 | Warwick (City), RI GO 2001 | |
01010066 | Grant Com HSD #124, IL GO 01 | |
01010067 | Atwood Hammond CUSD#39,IL GO01 | |
01010069 | Fox Lake Sch Dist #114, IL GO | |
01010070 | Centennial SD#28-302Jt,OR GO01 | |
01010072 | Regional SD #16, CT GO 2001 | |
01010073 | Burnet County, TX GO 2001 | |
01010074 | Mecosta Cnty BA, MI GOLT 2001 | |
01010075 | Delano Union ESD, CA GO 2000 A | |
01010076 | East St.Louis SD 189, IL GO 01 | |
01010077 | Belle Vernon ASD,PA GO 2001ABC | |
01010079 | Serena CUSD #2, IL GO 2001 | |
01010080 | Jefferson Co Sch Dist251,ID 01 | |
01010082 | Spring Grove ASD, PA GO 2001 | |
01010084 | Rocky Point UFSD, NY GO 2001 | |
01010085 | Nottingham Cntry MUD, TX GO 01 | |
01010087 | Aspen SD No. 1 (RE), CO 01 | |
01010089 | Saline (City), MI GO Unltd 01 | |
01010091 | West Middlesex ASD, PA GO 2001 | |
01010092 | Gloucester Twp, NJ GO 2001 | |
01010093 | Dover ASD, PA GO 2001 | |
01010094 | Blue Mountain SD, PA GO 2001 | |
01010096 | Tolleson ESD #17, AZ GO Ser01A | |
01010102 | Rhode Island (State)GO 2001A&B | |
01010103 | Paradise Vly USD 69, AZ GO 01B | |
01010104 | Colleyville, Texas LTGO Ser 01 | |
01010105 | Grants/Cibola Co SD#1,NM GO 01 | |
01010111 | Freshwater Sch Dist, CA GO 01 | |
01010112 | McHenry Comm HSD #156,IL GO 01 | |
01010115 | Hillview, Kentucky GO Ser 2001 | |
01010117 | Richland Prsh SD#3, LA GO 2001 | |
01010118 | Clackamas CCD, OR GO 2001 | |
01010120 | El Paso, Texas GO Ltd Tax 2001 | |
01010122 | Haysville, KS GO 2001 | |
01010125 | Jackson Cnty.CCSD #140, IL 01 | |
01010129 | Sherwood, Oregon GO 2001 | |
01010130 | Mechanicsburg ASD, PA GO 2001 | |
01010131 | Penn Manor SD, PA GO 2001 |
-5-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
01010133 | Redmond SD No. 2J, OR GO Ser01 | |
01010134 | Buffalo, New York GO 2001 A&B | |
01010135 | Buffalo, New York GO 2001-C | |
01010136 | Penn Hills, PA GO 2001 | |
01010137 | Cook County, Illinois GO 2001A | |
01010139 | Lincoln Parish, LA GO 2001 | |
01010140 | Lake Villa CCSD 41, IL GO 2000 | |
01010144 | OFallon, Missouri GO 2001 | |
01010145 | Danville Area SD, PA GO 01 Rf | |
01010146 | Brentwood Borough SD, PA GO 01 | |
01010147 | Ascension Parish SD, LA GO2001 | |
01010152 | Linn-Benton CCD, OR GO 2001 | |
01010154 | Northwood SD, WI GO 2001 | |
01010155 | Goshen CSD, New York GO 2001 | |
01010158 | Bloomingdale (Boro), NJ GO 01 | |
01010160 | Desoto (City), TX GO LTD 2001 | |
01010162 | Iroquois Sch Dist, PA GO 2001 | |
01010164 | Iron Cnty, WI GO Ref 2001 | |
01010166 | QUEEN CREEK USD #95 AZ GO D 01 | |
01010167 | Mokena (Village), IL GO 2001 | |
01010169 | Ennis, Texas GO Ltd Tax 2001 | |
01010170 | Olathe USD #233, KS GO 2001B | |
01010172 | Peoria USD #11, Arizona GO 01 | |
01010173 | Fallsburg Central SD, NY GO 01 | |
01010177 | Metro Nash-David Ct TN GO 01AB | |
01010179 | Oshkosh (City of), WI GO 2001 | |
01010180 | Galveston County, TX GO LT 01 | |
01010181 | Taunton (City), MA GO 2001 | |
01010182 | Galveston County, TX GO ULT 01 | |
01010184 | East Stroudsburg ASD, PA GO 01 | |
01010185 | Harris Co FWSD #51, TX GO 2001 | |
01010196 | Ocean City, MD GO 2001 | |
01010197 | California State GO 3-1-01 | |
01010199 | Mansfield, TX GO Ltd Tax 2001 | |
01010200 | Gray County, Texas LTGO Ser 01 | |
01010201 | Orcutt Union SD, CA GO Ser 01C | |
01010203 | Stoughton Area SD, WI GO 2001 | |
01010204 | Pocono Mountain SD, PA GO 2001 | |
01010205 | Conewago Valley SD, PA GO 2001 | |
01010206 | Andover USD #385, KS GO 2001 | |
01010207 | Frisco, Texas GO Ltd Tax 2001 | |
01010208 | Corinth, TX GO Ltd Tax 2001 | |
01010209 | Archbold ALSD, OH Unltd GO | |
01010210 | Arlington SD #16, WA GO 2001 | |
01010213 | Wyandotte Co USD 202, KS GO 01 | |
01010216 | Hopewell Valley RSD, NJ GO | |
01010217 | Washington, DC GO 2001B | |
01010218 | Merrill (City), WI GO 2001 | |
01010219 | Cotati-Rohnert Pk USD,CA GO H | |
01010220 | Livonia Mun Bldg Auth, MI GO01 | |
01010221 | Hampton Township SD, PA GO 01 | |
01010222 | South Eastern SD, PA GO 2001 | |
01010223 | Portales Muni SD No 1,NM GO 01 | |
01010224 | North Attleborough, MA GO 2001 | |
01010233 | Flagstaff, Arizona GO 2001 |
Policy Id |
Policy |
|
01010234 | Golden Valley USD, CA GO 2001 | |
01010235 | Chicago Park District, IL Ltd GO 2001A | |
01010236 | Oak Creek-Franklin Jt.SD,WI GO | |
01010238 | Black River Local SD, OH 2001 | |
01010239 | Brooke Cnty Bd of Ed, WV GO 01 | |
01010241 | Manitowoc (City), WI GO 2001A | |
01010244 | Harris Cnty,TX GO Toll Rd 2001 | |
01010245 | Beardsley Elem SD, CA GO 2001A | |
01010250 | Sebastopol USD, CA GO Ser 2001 | |
01010252 | Norwich (City), CT GO 2001 | |
01010254 | Lafourche Hosp Dist#1,LA GO 01 | |
01010258 | Fond du Lac (City), WI 2001 | |
01010259 | Franklin (City of), WI GO | |
01010260 | Fairview Hghts (City),IL GO 01 | |
01010265 | Tipp City Ex. Vlg.SD, OH GO 01 | |
01010267 | Fairfield City SD, OH GO 2001 | |
01010268 | Cinco MUD#1,TX Contract Rev 01 | |
01010269 | Martinez Unified School District, CA GO 2001 | |
01010271 | Fort Bend County, TX UTGO 2001 | |
01010272 | Medfield (Town), MA GO 2001 | |
01010273 | Sacramento City USD, CA GO 01 | |
01010274 | Monroe(Twp) Middlesex NJ MUA | |
01010277 | Marion, Illinois, GO 2001 | |
01010281 | Apache Junction USD#43,AZ GO01 | |
01010282 | San Lorenzo Val USD,CA GO 00 A | |
01010304 | Triton Reg SD MA GO dtd 4/1/01 | |
01010306 | East Stroudsburg Area SD, PA GO 2001 AA | |
01010307 | Mishicot SD, WI GO 2001 | |
01010308 | Evergreen Union SD, CA GO 01 | |
01010309 | Lacy Twp Brd of Ed, NJ GO 2001 | |
01010313 | Salt Lake Cnty Reg Srv, UT GO 01 | |
01010315 | Brookhaven (Town of), NY GO 01 | |
01010316 | Lucas Co, OH Juv Jus GO Ltd 01 | |
01010322 | Rock Island, Illinois GO 2001 | |
01010325 | Lakota Local Sch Dist, OH 01 | |
01010327 | Tenafly BOE, NJ GO 2001 | |
01010330 | Enterprise SD, CA GO 2001 | |
01010331 | Mauston SD, WI GO 2001 | |
01010333 | Hoisington USD #431, KS GO 01 | |
01010334 | Halifax (Town of), MA GO 2001 | |
01010336 | Hamilton Local SD, OH GO 2001 | |
01010337 | Lake Worth, Texas Limited Tax GO Series 2001 | |
01010338 | Brownsville, Texas GO 2001 | |
01010339 | Washoe County SD, NV GO 2001 | |
01010340 | Brazoria Co. MUD#6 TX GOULT 01 | |
01010341 | East Muskingum LSD, OH GO 2001 | |
01010342 | TIGARD SD #23J, OREGON GO 01 | |
01010345 | Madison County, OH GO LT | |
01010346 | Matanuska-Susitna Boro,AK GO01 | |
01010348 | Racine (City) WI 2001 | |
01010350 | Northampton Township, PA GO 2001 | |
01010351 | Crestwood Local School District, OH GO 2001 | |
01010352 | Alachua Cnty Lib Dist, FL GO01 | |
01010353 | Pacific Grove USD, CA GO 2001 | |
01010355 | Liberty Union High School District, CA GO 2001 |
-6-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
01010357 | Maywood-Melrose Park School District #89, IL GO 01 | |
01010361 | Center Unified SD, CA GO Ser01 | |
01010366 | Ocean Twp BOE, NJ (Ocean Co) | |
01010367 | Waterloo Local SD, OH GO 01 | |
01010368 | Monmouth (City of), IL GO | |
01010369 | Waukegan (City), IL GO 01 | |
01010370 | Farmington, Minnesota GO 2001 B&C | |
01010371 | Baraboo (City of), WI GO 01 | |
01010373 | Newburyport, MA GO 01 | |
01010374 | Torrance County, New Mexico GO 2001 | |
01010377 | Eau Claire Area SD, WI GO 01 | |
01010378 | Wausau SD, WI GO 2001 | |
01010380 | Chandler USD #80, AZ GO 2001 | |
01010381 | Los Lunas SD #1, New Mexico GO | |
01010382 | Las Vegas, Nevada GO Limited Tax 2001 | |
01010383 | Sto-Rox SD, PA GO 2001 | |
01010384 | Port Chester (Village), NY GO 2001 A | |
01010385 | Gurnee Park Dist, IL GO 2001 (Alternate Rev.) | |
01010387 | West Babylon USFD, NY GO 01 | |
01010388 | Oswego Comm Unit SD #308, IL GO 01 | |
01010390 | Salem CHSD 600, IL GO | |
01010391 | Alexander Central School District, NY GO 2001 | |
01010392 | Amherst Exmpt Vlg SD, OH GO 01 | |
01010394 | New Bedford (City of), MA GO 01 | |
01010395 | Mifflin County School District, PA GO 2001 | |
01010396 | Fleetwood Area School District, PA GO 2001 | |
01010397 | Brunswick County, NC GO | |
01010398 | Colony, Texas Ltd Tax GO 2001 | |
01010400 | Moreland SD, CA GO 2001 | |
01010402 | Peralta CCD, CA GO 2001 | |
01010404 | Beaufort County, SC GO Series 2001 | |
01010405 | Keller (City of), TX GO Ltd 01 | |
01010407 | Georgetown, Texas GO Limited Tax 2001 | |
01010408 | Fort Bend Co. LID #2, TX GO | |
01010409 | Lake Oswego (City of), OR GO Ser 01 | |
01010410 | Mercer County, PA GO 2001 | |
01010413 | Sidney City School District, Ohio 01A&B | |
01010415 | Washoe County, NV GO LTD TX 2001 | |
01010416 | Sylvania City SD, OH GO 2001 | |
01010417 | Allen (City), TX Ltd GO Ref 01 | |
01010418 | Santa Rosa City HSD, CA GO 2001 | |
01010419 | Richland County, OH Ltd GO 01 | |
01010420 | Franklin (City of), WI GO 01 | |
01010421 | Kanabec County MN GO 01 | |
01010424 | Katy, TX GO Ltd Tax 2001 | |
01010425 | Fruitvale SD, CA GO 2001C | |
01010427 | Midland, Texas Ltd Tax GO COO Series 2001A | |
01010429 | Brick Township, NJ GO 01 | |
01010430 | Desoto (City of), TX GO Ltd 01 | |
01010431 | Lebanon Comm SD No. 9, OR GO 2001 | |
01010432 | East Lyme (Town of), CT GO | |
01010433 | Duarte USD, CA GO 98 Series C | |
01010435 | Chicago Park Dist, IL GO | |
01010436 | Hartford (City of), CT GO 01 | |
01010439 | Richardson, Texas GO Series 2001 |
Policy Id |
Policy |
|
01010440 | Washington Unified SD, CA GO 2001 Series A | |
01010441 | Lyndhurst (Twp.), NJ GO 01 | |
01010444 | Sevier County, Utah GO 2001 | |
01010445 | Greenville (City of), TX LT GO 01 | |
01010446 | Kankakee (County), Illinois GO 2001 | |
01010448 | Stoughton Area SD, WI GO | |
01010450 | Oak Lawn (Village), IL GO 01A | |
01010451 | Southeast Local School District, OH GO 2001 | |
01010452 | Shelton Sch Dist No. 309 Mason Co., WA GO ULT 01 | |
01010453 | Northport (Village), NY GO 01 | |
01010454 | Egg Harbor Township BOE, NJ GO 2001 | |
01010455 | Spirit Lake CSD, IA GO 2001 | |
01010456 | North Olmsted, OH Ltd Tx GO | |
01010457 | North Olmsted, OH unlimited tax | |
01010459 | Maywood Public Library District, IL GO | |
01010462 | Rockford (City of), IL GO 01A | |
01010463 | Springfield City SD, OH GO 01 | |
01010464 | Aurora (City of), IL GO | |
01010467 | Superior (City of), WI GO 01B | |
01010470 | Genesee Co., NY GO 01 | |
01010471 | Rockford (City of), IL GO, Series B | |
01010472 | Middle Country CSD, NY GO 01 | |
01010473 | Manhattan Beach USD, CA GO 2001A | |
01010474 | South Pasadena USD, CA GO Series D | |
01010475 | West Contra Costa USD, CA GO 2001A | |
01010476 | Hamburg Township, MI GO 01 | |
01010481 | Bethlehem CSD, NY GO 01 | |
01010485 | Southington (Town of), CT GO 01 | |
01010486 | Nevada (State of) GO 01A,B&C | |
01010487 | Peralta CCD, CA GO 2001, Elections 92E, 96A, 00A | |
01010488 | Chippewa Falls, Wisconsin GO 2001 | |
01010490 | Wilson Area SD, PA GO 01 | |
01010491 | Summit County, OH GO Limited Tax 2001 | |
01010492 | Shoreline Unified SD, CA GO 2001 | |
01010493 | Hurst, TX GO Ltd Tax 2001 | |
01010494 | Stillwater (City), OK GO 2001 | |
01010495 | Johnston County, NC GO | |
01010496 | OAK GROVE SD, CA GO 2001 | |
01010499 | Irondequoit (Town), NY GO 01 | |
01010500 | McLENNAN COUNTY, TEXAS GO LT 2001 | |
01010501 | East Providence, RI GO | |
01010503 | River Forest Park District, Illinois GO 2001 | |
01010509 | Towanda Area School District, PA GO 2001 | |
01010510 | Will Cnty, CCSD # 30-C, IL GO | |
01010511 | Conway Springs USD # 356, KS GO 2001 | |
01010513 | Valley Stream (Village), NY GO 2001 | |
01010514 | Western Wisconsin Technical College District, Wisc | |
01010515 | Canon-McMillan School District, PA GO 2001C | |
01010516 | Parkland SD, PA GO 2001 | |
01010518 | Emeral Forest Utility District, TX GO ULT | |
01010519 | Pecatonica CUSD #321, IL GO 2001 | |
01010520 | Libertyville (Village), Illinois | |
01010521 | PENDERGAST ELEM SD #92, AZ GO 2001 | |
01010522 | Mount Morris CSD, NY GO | |
01010523 | Odessa, Texas LTGO Series 2001 |
-7-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
01010524 | Rice Lake (City), Wisconsin | |
01010526 | Goffstown School District, NH GO 2001 | |
01010527 | Grant SD 110, Il GO 01 | |
01010529 | Deer Park, Texas GO 2001 | |
01010530 | Macomb Township Building Authority, MI 2001 | |
01010531 | Little Elm (Town of), TX GO 2001 | |
01010532 | Sedgwick Co. (Cheney) USD #268, KS GO 01 | |
01010533 | Verona Area SD, WI GO | |
01010534 | Monroe (City of), WI GO 2001A | |
01010535 | Rockwall County, TX LTGO Ser01 | |
01010536 | Romeoville (Village), IL 01A&B | |
01010537 | Westport (Town of), WI GO 01 | |
01010540 | Paulding Exempted Vlg SD, OH 01 | |
01010541 | Fall River, Massachusetts GO 2001 | |
01010543 | D.C. Everest ASD, WI GO 2001 | |
01010544 | New Haven, Connecticut GO 2001 A&B | |
01010545 | Ukiah Unified School District, CA GO Ser 2001 | |
01010546 | Cocalico SD, PA GO 01 | |
01010547 | Huntley Park District, IL GO | |
01010548 | Washoe County, NV GO LT 01A | |
01010549 | Pleasant Hills Auth, PA Gtd Swr Rev 01 | |
01010552 | St. Michael (City), MN GO 2001A | |
01010553 | Ypsilanti, Michigan GO 2001 | |
01010554 | Osceola Sch Dist, WI GO 2001A & B | |
01010555 | Atchison (City of), KS GO W/S Series 2001-A | |
01010557 | Colchester, Connecticut GO 2001 | |
01010560 | Lakewood City SD, OH GO 01 | |
01010563 | Warrensburg-Latham CUSD #11, IL GO 01 | |
01010564 | Maricopa USD #20, AZ GO 2001 | |
01010565 | Clark County, Nevada LTGO Series 2001 | |
01010566 | Farmington-Central CUSD #265, IL GO 2001 | |
01010567 | White Settlement, Texas LTGO Series 2001 | |
01010569 | Center Township, PA GO 2001 | |
01010570 | Montgomery County MUD #18, TX GO 2001 | |
01010572 | Elizabeth Forward SD, PA GO 01A&B | |
01010576 | McHenry Co Conserv. Dist., IL GO 01A&B | |
01010578 | Seven Hills (City of), OH GO 01 | |
01010579 | Anchorage, AL GO Series A & Ref 2001 | |
01010581 | Collinsville CUSD #10, IL GO 2001 | |
01010582 | Gibsonburg Exempted Vlg SD, OH GO 01 | |
01010585 | West Branch Local School District, OH GO 2001 | |
01010586 | Swanton Local SD, OH GO 2001 | |
01010587 | CLARENDON CNTY, SC GO | |
01010588 | Spring Valley SD, WI GO 2001 | |
01010589 | Medina, Ohio GO Ltd Tax 2001 | |
01010592 | Cary CCSD #26, IL GO 2001 | |
01010595 | Weston (Village of), WI GO 2001A | |
01010598 | LaGRANGE PARK SD #102, IL GO | |
01010600 | Marshfield (Town of), MA GO dtd 6/15 | |
01010601 | Sleepy Eye (City), MN GO 2001 | |
01010603 | Chelsea, MA GO Limited Tax 2001 | |
01010605 | Orion CUSD #223, IL GO 2001 | |
01010606 | Carteret Borough, NJ GO 01 | |
01010607 | Pennsauken Township, NJ GO 2001 | |
01010608 | Huntley CCSD #158, IL GO 2001 |
Policy Id |
Policy |
|
01010609 | Plainville (Town of), MA GO 2001 | |
01010610 | Tioga CSD, NY GO 2001 | |
01010612 | Bismarck-Henning Community Unit SD #1, IL GO 2001 | |
01010614 | Bourne (Town of), MA GO LTD 01 | |
01010615 | Hilliard City SD, OH GO 2001 | |
01010616 | Waterloo (City Of), IA GO 2001 | |
01010619 | Pandora-Gilboa Local SD, OH GO 01 | |
01010620 | Reading School District, PA 01 | |
01010622 | Louisiana State GO 2001-A | |
01010623 | Niagara Wheatfield CSD, NY GO 2001 | |
01010626 | Dyer County, Tennessee GO 01 | |
01010627 | Islip (Town of), NY GO 2001 | |
01010628 | Riverdale Local School District, OH GO 2001 | |
01010629 | Portsmouth (City of), VA GO 2001 A&B | |
01010630 | Sandusky (City), OH GOLT 2001 | |
01010632 | Hanover (Town of), MA GO 01 | |
01010634 | Cobleskill (Village), New York GO 2001 | |
01010637 | Milton (City of), WI GO dtd 6/1 | |
01010638 | Central Greene Sch Dist, PA GO SERIES 2001AB | |
01010639 | Tonawanda, New York GO 2001 | |
01010640 | Sisters School District #6, OR GO 2001 | |
01010641 | Valley CSD (Orange County), NY GO 2001 | |
01010643 | Lubbock, Texas GO - Ltd Tax COO 2001 | |
01010646 | New Milford BOE, NJ GO | |
01010647 | Dickson County, Tennessee GO 2001 | |
01010650 | Des Plaines (City), IL GO 2001 | |
01010651 | Burleson (City of), TX GO 2001 | |
01010655 | Elgin CCD 509, IL GO | |
01010657 | Livingston (Township), NJ GO 2001A | |
01010658 | Haverstraw-Stony Point CSD, NY GO 2001 | |
01010659 | Baltimore, MD GO 2001 A, B & C | |
01010660 | General McLane Area Sch Dist, PA GO 2001 A&B | |
01010661 | Weatherford, TX Limited Tax COO 2001 | |
01010662 | Paducah (city of), Kentucky | |
01010663 | West Seneca CSD, NY GO | |
01010664 | Amarillo, Texas GO - Limited Tax 2001 | |
01010669 | Lansing, KS GO | |
01010671 | Canyon Co SD # 131 (Nampa), ID GO 2001 | |
01010677 | Gaston County, NC GO | |
01010678 | New Windsor (Town), NY GO 2001 | |
01010681 | Portage, MI GOLT 2001 | |
01010683 | Sterling (Town) MA GO 01 | |
01010685 | Pharr, Texas GO Limited Tax 2001 | |
01010687 | Big Spring School District, PA GO 2001 | |
01010688 | McGUFFEY SD, PENNSYLVANIA GO 01 | |
01010691 | Moraine Park Technical College Dist, WI GO 2001 | |
01010692 | Menasha (Town of) WI GO 01 | |
01010694 | Ludlow (Town), MA GO 2001 | |
01010695 | Township of Vernon (Sussex Cnty), NJ | |
01010700 | Mattoon CUSD #2, IL GO 01 | |
01010702 | Copperas Cove, Texas LTGO Series 2001 & 2001A | |
01010706 | St. Joseph Cnty Redevelopment Dist, IN GO ULT 2001 | |
01010707 | Harris County MUD #24, TX GO 2001 | |
01010708 | Merchantville (Borough), NJ GO 2001 | |
01010709 | Derry Township Municipal Authority, PA GO 2001 |
-8-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
01010710 | Whitefish Bay (Village), WI GO 2001 | |
01010711 | McKinney, Texas LTGO 2001 | |
01010712 | New Ulm (City), Minnesota GO 2001 | |
01010715 | Bethlehem BOE, NJ GO 2001 | |
01010716 | North Mission Glen MUD, Texas GO 2001 | |
01010717 | Arbor Park SD#145, IL | |
01010719 | Gloucester County, NJ GO 01 | |
01010720 | Woodbridge (Twp), NJ GO 2001 | |
01010723 | Tamaqua Borough Auth, PA GO 2001 | |
01010728 | Watertown (City), WI GO | |
01010730 | Syosset Central School District, NY GO 2001B | |
01010731 | Waunakee (Village), WI GO 2001 | |
01010732 | Delaware Township BOE, NJ GO 2001 | |
01010733 | South Plainfield Borough BOE, NJ GO 2001 | |
01010734 | Greenwich (T) BOE, NJ GO 2001 | |
01010735 | Durand (City of), MI GO 2001 | |
01010736 | North Babylon UFSD, NY GO 2001 | |
01010737 | St. Clair County, Michigan | |
01010740 | Randolph County, IL GOLT | |
01010741 | Palmyra (Vlg), NY GO 2001 | |
01010742 | Abilene, Texas | |
01010743 | San Jose Unified School District, CA GO 2001 | |
01010744 | Manheim Twsp Gen Mun Auth, PA Gtd Lse 01 | |
01010746 | Verona (City of), WI GO 2001 | |
01010748 | Palantine CCSD #15, IL GO Ltd Tx 01 | |
01010749 | Fountain Hills USD #98, AZ GO 2001 B | |
01010750 | Wentzville R-IV School District, MO GO 2001 | |
01010752 | Upper Saucon Township, PA GO 2001 | |
01010753 | Harris County MUD #82, TX GO 01 | |
01010754 | Orchard School District, CA GO 2001A | |
01010755 | Highland CSD, IA GO | |
01010757 | Fairview Township Authority, PA 2001 | |
01010758 | Knox County, OH GO 2001 | |
01010761 | Hamlin (Town of), NY GO 01 | |
01010762 | Hartland-Lakeside Joint SD No. 3, WI GO 2001 | |
01010763 | NEW LENOX SD #122, IL GO 2001AB | |
01010764 | Warren Building Authority (City), MI GOLT 2001 | |
01010765 | Fairview Sch Dist, PA GO Series 2001 | |
01010766 | Bridgeport, Connecticut GO 2001 C&D | |
01010768 | Onondaga, NY GO 2001 | |
01010769 | Dodge Center, Minnesota GO 2001 | |
01010770 | Wilsonville, OR GO ULT 2001 | |
01010771 | Tarrytowns (Union Free SD), NY GO 2001 | |
01010774 | Cassia JT SD #151, ID GO Ser01 | |
01010775 | Rochelle Park (Twp), NJ GO 01 | |
01010779 | Camden County Imp. Auth, NJ GO 2001 | |
01010780 | Pine-Richland School District, PA GO 2001 D&E | |
01010784 | Hawaii County, Hawaii GO 2001A | |
01010785 | Saginaw Intermediate Sch Dist, MI GOLT 2001 | |
01010788 | Lawton, Oklahoma GO 2001 | |
01010789 | Pima County Flood Control District, AZ GO Ref 01 | |
01010790 | Stratford (Town of), CT GO 2001 | |
01010791 | South Park SCH Dist, PA GO 2001 | |
01010792 | Hartland Township, MI GOLT 2001 | |
01010793 | Mashpee Water Dist, MA GO 01 LOTA |
Policy Id |
Policy |
|
01010794 | Mashpee Water Dist, MA GO 01 LOT B | |
01010798 | Waukee (City), IA GO 2001B | |
01010800 | Lindenhurst Park Dist, IL GO 01A&B | |
01010801 | Harrington Park BOE, NJ GO 01 | |
01010802 | Muhlenberg School District, PA GO 2001 | |
01010803 | Central York School District, PA GO 2001 | |
01010804 | Liberty Elementary School District, CA GO 2001 | |
01010806 | Maize Unified SD #266, KS GO 2001 | |
01010813 | Delran (Township of), NJ GO 2001 | |
01010814 | Essex Co, NJ GO 2001 | |
01010815 | Essex Co, NJ GO 2001 (2) | |
01010817 | Robinson (City of), IL GO 01 | |
01010818 | Jersey City MUA, New Jersey GO 2001 | |
01010819 | Jersey City MUA, New Jersey GO 2001 Surety | |
01010821 | Fernandina Beach, FL GO 01 | |
01010823 | Alsip (Village), IL GO 01A | |
01010824 | Gloucester, Massachusetts GO 2001 | |
01010825 | St. Charles Park District, IL GO 01 | |
01010826 | WICKENBURG USD #9, AZ GO 2001 | |
01010827 | Osseo (City of), MN GO 2001A | |
01010829 | Commercial Township BOE, NJ GO 2001 | |
01010830 | Madison ESD #38, Arizona GO 2001 | |
01010831 | Upper Deerfield (Twp) BOE, NJ GO 2001 | |
01010832 | Charter Township of Redford, MI GO ULT 2001 | |
01010833 | Grapevine (City of), Texas GO 01 | |
01010834 | BEAUMONT, TX GO Ltd Tax 2001 | |
01010835 | Oxnard School District, California GO Series E | |
01010836 | Melrose Park (Vlg of), IL GO 01A | |
01010837 | Melrose Park (Vlg of), IL GO Series B | |
01010838 | BOUND BROOK (BOROUGH OF),NJ GO | |
01010839 | Crockett County, TN GO 2001 | |
01010840 | Ramapo (Town), New York GO 2001 | |
01010842 | Springfield (City), MA GOLT 2001 | |
01010844 | Rosemont (Village), IL GO 2001 | |
01010845 | Berwick Area SD, PA GO 01A&B | |
01010847 | Broken Arrow, Oklahoma GO 2001 | |
01010848 | Block House Municipal Utility District, TX GO 2001 | |
01010849 | Central Decatur Community SD, IA GO 2001A | |
01010850 | Tallmadge (City), OH GO 2001 | |
01010851 | McMinnville (City), OR | |
01010853 | Monroe County, Wisconsin GO 2001 | |
01010854 | Sherwood (Village of), WI GO 2001A | |
01010855 | Louetta North Public Util Dist, TX GO 01 | |
01010856 | GARNET VALLEY SD, PA GO 2001 | |
01010857 | Patterson Joint USD, CA GO 2001 Series A | |
01010858 | Oxford Township BOE, NJ GO 2001 | |
01010861 | Closter (Borough), New Jersey GO 2001 | |
01010862 | Mount Laurel Township, NJ GO 2001 | |
01010863 | Peoria (City of), IL GO 20001CD | |
01010864 | Fort Bend County, Texas GOLT FCWSC 01 | |
01010865 | Branchburg Twp BOE, NJ GO dtd 8/15 | |
01010866 | School Dist #23 of Calcasieu Parish, LA GO 01 | |
01010869 | Virginia (City of), MN GO 2001A&B | |
01010872 | Newbury (Town of), MA GO 2001 | |
01010873 | Rensselaer County, NY GO |
-9-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
01010878 | Hawaii State GO & Refunding 2001 Series CV & CW | |
01010879 | Westerly (Town), RI GO ULT | |
01010880 | Lafayette Yard CDC, NJ Rev Ref 01 | |
01010883 | Pleasantville Union Free SD, NY GO 2001 | |
01010884 | Hillsborough Twp., NJ GO 01 | |
01010886 | Lincoln County, Tennessee, GO Series 2001 | |
01010887 | Putnam County, Tennessee GO | |
01010888 | De Pere (City), WI GO | |
01010889 | New Prague, MN GO 01 | |
01010890 | De Soto USD No. 232, Kansas GO Series 2001 | |
01010891 | Edgerton SD, WI 01 | |
01010893 | Runnemede (Borough), NJ GO 2001 | |
01010894 | Twinsburg (City of), OH | |
01010895 | Rochelle Park BOE, NJ GO 2001 | |
01010896 | Hortonville SD, WI GO 2001 | |
01010897 | Little Egg Harbor (Twp of), NJ 01 | |
01010898 | Flower Mound (Town), TX GO LT 2001 Certs of Obl | |
01010899 | Willow Fork Drainage Dist, TX 01 | |
01010900 | MARION, ILLINOIS GO (MFT) 2001 | |
01010901 | Cedar Park, Texas GO Ltd Tax 2001 | |
01010904 | Rosemount Port Authority, MN GO 01C | |
01010905 | Industry (City of), California GO 2001 | |
01010906 | Piscataway Township, New Jersey GO 2001 | |
01010908 | Worcester (City), MA GO 2001 A&B | |
01010909 | Montgomery Cnty MUD #46, TX GO2001 | |
01010910 | Clarkstown (Town), New York GO 2001 | |
01010911 | East Peoria SD #86 IL GO 01 | |
01010913 | Angelina County, Texas GO 2001 | |
01010916 | Waynesboro Area School District, PA GO 2001 | |
01010919 | Mt. Pleasant Building Auth, MI GO 2001 | |
01010920 | Thurston Co Fire Protection Dist #3, WA GO ULT 00 | |
01010921 | Reavis Township HSD #220, IL GO 2001 | |
01010922 | Pleasant Prairie, WI GO 2001ABCD | |
01010923 | Temple City Unified School District, CA GO Ser B | |
01010927 | North Lincoln FRD No.1, OR GO | |
01010930 | Delhi (Charter Twsp. of), MI GO 01 | |
01010931 | Cuyahoga Falls, Ohio GOLT 2001 | |
01010932 | East Lansing (City), MI GO 2001B | |
01010933 | Campton Township, IL GO 2001 | |
01010936 | Belle Plaine (City), Minnesota | |
01010937 | Marengo Comm HSD #154, IL GO 2001 | |
01010938 | Traverse City ASD, Michigan GO 2001 | |
01010939 | Coshocton (City of), OH GO 01 | |
01010940 | Pembroke (Town), MA GO 2001 | |
01010942 | Long Hill (Twp), NJ GO 2001 | |
01010945 | Rowlett (City), Texas GOLT 2001 | |
01010946 | Middleburgh CSD, NY GO 2001 | |
01010947 | McKeesport Area School District, PA GO 2001 | |
01010948 | De Pere Unified SD, WI GO 2001 | |
01010951 | Dodgeland SD, WI GO 2001 | |
01010952 | Pittston Area School District, PA GO 2001 A&B | |
01010956 | Elmira (City of), NY GO | |
01010957 | Kenosha County, WI GO 01A | |
01010959 | Unicoi County, Tennessee GO | |
01010964 | Lopatcong Twp BOE, NJ GO 2001 |
Policy Id |
Policy |
|
01010967 | Sylvania City SD, OH GO 2001 | |
01010968 | Colerain (Twp of), OH GO LTX | |
01010969 | Sullivan County, NY GO 2001 | |
01010970 | West Greene SD PA GO Series 2001 | |
01010971 | Beaver Area SD, PA GO | |
01010973 | Chicago (City), Illinois GO 2001 A&B | |
01010975 | Hays County, Texas GO 2001ULT | |
01010976 | Point Pleasant Beach (Borough) BOE, NJ GO 2001 | |
01010978 | Cumberland City, WI GO 2001 | |
01010985 | Clark County School District, NV GOLT 2001C | |
01010986 | Clark County School District, NV GOLT 2001D | |
01010989 | Thief River Falls (City), MN GO 2001 | |
01010990 | Arcade (Village), NY GO 2001 | |
01010992 | Rosendale-Brandon SD, WI GO dtd 9/15/01 | |
01010993 | Monroe County, PA GO 2001 CDE&F | |
01010994 | Harbor Creek SD, PA GO 2001AB | |
01012000 | Webb County, Texas GOLT 2001 | |
01012001 | Cumberland Valley SD, PA GO 2001 | |
01012006 | Victoria, Texas Ltd Tax GO 01 | |
01012008 | South Western SD, PA GO 2001 | |
01012009 | Lampeter-Strasburg SD, PA GO 2001 | |
01012010 | Ocean City, NJ GO 2001 | |
01012012 | Willingboro Township, NJ GO 2001 | |
01012019 | Chetek School District, WI GO 2001 | |
01012020 | Oak Creek-Franklin Jt. SD, WI GO 2001 | |
01012031 | Atlantic Highlands/HRSA, NJ GO 2001 | |
01012032 | Harris County MUD #53, Texas 01 | |
01012036 | Farmington Hills Bldg Auth, MI GO 01 | |
01012037 | Sea Isle City, New Jersey GO 2001 | |
01012039 | Williamson (Cnty of), IL GO Taxable 2001A&B | |
01012040 | Middleborough (Town) MA Ltd dtd 9/15/01 | |
01012043 | Roanoke, TX GOLT | |
01012045 | Franklin-McKinley SD, CA GO 2001A | |
01012046 | Cypress Creek Utility District, TX GOULT Ser 2001 | |
01012047 | Grand Ledge (City of), MI GO LTD 2001 | |
01012049 | Sacramento City USD, California GO Series 2001 | |
01012053 | Octorara Area SD, PA GO 2001 | |
01012054 | Horry Cnty, South Carolina GO 01ABC | |
01012056 | Southwestern Ill Dev Auth (OFallon) | |
01012057 | Goodview (City of), MN GO 2001 | |
01012058 | Paris (City), TX LTX GO 2001 | |
01012061 | San Marcos (City), Texas GOLT 2001 | |
01012062 | Florida State PECO GO 2001E | |
01012063 | Evansville Cmnty SD, WI GO 2001 | |
01012067 | Freehold Township, NJ GO 2001 | |
01012068 | Addison Town, Texas GO Ltd Tax 2001 | |
01012071 | Wasco Union School District, CA GO 2001 | |
01012072 | Prosper, Texas LTGO Series 2001 | |
01012075 | Mount Laurel Fire District No. 1, New Jersey | |
01012076 | Platteville (City of), WI GO 2001 | |
01012077 | Lenox (Town), MA 2001 | |
01012078 | Westside Union School District, CA GO 2001 | |
01012079 | Toledo Sch Dist #237, WA GO 2001 | |
01012080 | Lemont (Township), IL GO 2001 | |
01012081 | Kane County, IL GO 2001 |
-10-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
01012089 | Trenton (City of), NJ GO 2001 | |
01012090 | Rochester Hills, MI GO | |
01012092 | Charter Twp of Oakland, MI | |
01012096 | Las Vegas-Clark County Lib Dist, NV GO LT 2001 | |
01012097 | Lawrence County, TN GO 2001 | |
01012098 | Rio Rancho Pub SD #94, NM GO 2001 | |
01012102 | Unadilla Valley Central SD, NY GO 2001 | |
01012103 | Murrieta Valley Unified SD, CA 2001 98 Ser B | |
01012108 | Fort Bend County LID #14, TX GO ULT 2001 | |
01012109 | Manheim Township School District, PA GO 2001A | |
01012110 | Clovis USD, California GO 2001A | |
01012112 | Gloucester Township, NJ GO 2001 | |
01012113 | Gloucester City BOE, NJ GO 2001 | |
01012116 | Elkhorn (City of), WI GO 01 | |
01012118 | Mercedes (City of), TX 2001 | |
01012119 | Henderson County, TN GO 01 Rfdg | |
01012120 | Erie County, NY GO 2001 A&B | |
01012122 | Lynn (City of), MA | |
01012123 | Romulus, MI GOLT 2001 | |
01012124 | Athens Area SD, PA GO 01 | |
01012125 | Strongsville (City), OH GO LT 2001 | |
01012129 | Rockford SD #205, Illinois GO 2001 | |
01012130 | Rossford (City), OH GOLT 2001 | |
01012132 | London City SD, OH GO 2001 | |
01012136 | Minneapolis Spec SD #1, MN GO 2001B | |
01012137 | Muncy School Dist, PA GO 2001 | |
01012138 | Brookhaven (Town of), NY GO2001B | |
01012139 | Brookhaven (Town of), NY GO2001A | |
01012140 | Cheshire Cnty, NH GO | |
01012141 | Brown City Community Schools, MI GO 2001 | |
01012145 | Warrior Run SD PA GO 2001 | |
01012146 | Walworth County Metro Swr Dist, Wisconsin GO 01 | |
01012149 | Forest Preserve Dist (Cook Cnty) IL GO 2001 LTD | |
01012151 | Belleville SD #118, IL GO 2001 | |
01012152 | Monroe County Area V-Tech Sch Auth, PA 2001 | |
01012153 | North Aurora (Vlg of), IL GO 01 | |
01012154 | Wayne County, TN GO 01- Ind.Dev.Brd. | |
01012155 | Weymouth (Town), MA GO 2001 | |
01012157 | Sartell (City), Minnesota GO 2001C | |
01012161 | Burlington (City of), WI GO 2001A | |
01012162 | West Valley School District #208, WA GO 2001 | |
01012164 | West Paterson (Boro of), NJ GO 2001 | |
01012165 | SANTA CRUZ CITY HIGH SD, CA GO 98C | |
01012166 | Hammonton Town BOE, NJ GO 2001 | |
01012171 | Tallmadge (Charter Twsp. of), MI GO 2001 | |
01012172 | Cibolo (City of), Texas GO Ltdtx | |
01012174 | Atlantic Highlands (Borough of), NJ | |
01012175 | West Bloomfield SD, MI GO 2001 | |
01012181 | Piscataway (Township of), NJ GO 2001 | |
01012182 | Plover (Village), WI GO 2001 | |
01012183 | Millville (City of) New Jersey | |
01012184 | Greene Co., TN GO 2001A | |
01012185 | Greene Co, TN GO 2001B | |
01012186 | Pampa (City of), TX GO 2001 | |
01012188 | Jersey County, IL GO 2001 |
Policy Id |
Policy |
|
01012189 | Rayford Road MUD, TX GO 2001 | |
01012191 | Mount Prospect (Vlg of), IL GO 2001 | |
01012193 | Northern Burlington Cnty Reg SD BOE, NJ GO 2001 | |
01012194 | East Granby (Town of), CT 2001 | |
01012196 | Louisville CSD, OH GO 2001 | |
01012197 | Saginaw County, Michigan GOLT 2001 | |
01012200 | Hopewell Valley RSD, NJ GO 2001 | |
01012201 | Maui County, Hawaii GO Ser 01 B&C | |
01012202 | Bethlehem Area School District, PA GO 2001 | |
01012203 | Monroe MUA (Monroe Township), NJ GO 2001 | |
01012204 | Portage County, OH GO Ltd Tax 2001 | |
01012205 | Sioux City (City of), Iowa GO 2001 | |
01012206 | Ardsley Union Free School District, NY GO 2001 | |
01012207 | Cranberry Township, PA GO Ser B&C 2001 | |
01012208 | Tioga County, New York GO 2001 | |
01012211 | Port of Houston Auth, TX GO 01AB | |
01012216 | Elm Grove (Village of), WI GO | |
01012218 | Lawrence County, TN GO | |
01012220 | Barre (Town of), MA GO | |
01012221 | Derby (City), Kansas GO 2001 | |
01012224 | Greene Community SD, IA GO 2001 | |
01012227 | Deer Valley Unified SD #97, AZ GO 2001 | |
01012228 | Port of Houston Auth, TX GO 2001A | |
01012229 | Middletown, Rhode Island GO Series 2001 | |
01012230 | Blue Earth, MN GO 01 | |
01012231 | Brentwood Union SD, CA GO Series 2001 D&E | |
01012232 | Munroe Falls (City of), OH Series 2001 A & B | |
01012235 | Quaboag Regional School District, MA GO 2001 | |
01012238 | Kutztown (Borough of), PA GO 2001A | |
01012240 | Crete, Illinois GO Series 2001A | |
01012241 | Crete, Illinois GO Series 2001B | |
01012245 | Frisco, Texas Limited Tax GO, Series 2001 | |
01012246 | Wiseburn School District, California GO Ser 2001 | |
01012247 | West Des Moines (City), IA GO 2001C | |
01012249 | Pueblo County SD #70, CO GO | |
01012250 | Pickerington Local SD, OH GO 01 | |
01012251 | North Smithfield, RI GO | |
01012252 | Catasauqua Borough, PA GO GTY | |
01012254 | Racine Unified School District, WI GO 2001 | |
01012255 | Cambria Somerset Authority, PA GO 2001 | |
01012257 | Bradley SD #61, IL LTGO 2001 | |
01012261 | Illinois State GO Illinois 2001 | |
01012262 | Clermont-Northeastern LSD, OH GO 2001 | |
01012263 | Canton (Town), CT GO 2001 | |
01012264 | Charlevoix County, MI GO 01 | |
01012268 | Arlington Heights Park District, IL GO 2001 | |
01012269 | Brockport CSD, NY GO 2001 | |
01012271 | South Haven Bldg Auth, MI Go 2001 | |
01012274 | Pearland, Texas LTGO Series 2001 | |
01012275 | Pine Valley CSD, NY GO 2001 | |
01012276 | Westmorland Union Elem SD, CA GO 2001 | |
01012277 | Pacific Cnty Pub Hosp Dist No. 2, WA GO 01 | |
01012278 | Pulaski (City of), TN GO 2001 | |
01012281 | North Mankato (City), MN GO 2001 A | |
01012282 | Pasadena (City), Texas GOLT 2001 |
-11-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01012285 | Frisco (City), Texas GOLT 2001 A&B | |
01012286 | Canal Winchester LSD OH GO 2001B | |
01012287 | Strongsville, Ohio UTGO Series 2001 | |
01012289 | Cudahy (City), WI GO 2001 | |
01012290 | Big Rapids (City of), MI GO 2001 | |
01012292 | Franklin County, TN GO ULT 2001 | |
01012293 | Erie County, Ohio GO Series 2001 | |
01012294 | Los Gatos Union SD, CA GO 2001A | |
01012295 | Flambeau School District, WI GO 2001 | |
01012296 | Grafton (Village), WI GO 2001 | |
01012297 | Conestoga Valley SD, PA GO 2001 | |
01012298 | Hillsboro City School District, Ohio UTGO Ser 2001 | |
01012299 | Jersey Shore ASD, PA GO 2001 | |
01012304 | South Park School District, PA GO 2001 C&D | |
01012305 | Freehold Regional HSD, NJ GO 2001 | |
01012307 | Elizabeth (City), New Jersey GO 2001 | |
01012308 | Sauk County, Wisconsin GO 2001 A | |
01012309 | Albany County, NY GO ULT 2001 | |
01012310 | Jordan, MN GO 2001 | |
01012311 | Falconer Central SD, NY GO 2001 | |
01012314 | Montour School District, PA GO 2001 | |
01012315 | Gladewater (City of), Texas GO 2001 | |
01012316 | Oconto City, WI GO 2001 | |
01012317 | Sidney, Ohio LTGO 2001 | |
01012318 | Mansfield Township BOE, NJ GO 2001 A&B | |
01012319 | Oyster River Cooperative SD, NH GO 2001 | |
01012320 | Las Vegas, NV LTGO 2001 | |
01012321 | Burlington (Twp), NJ GO 2001 | |
01012322 | Bellwood SD #88, IL GO 2001 | |
01012325 | McLean County, Public Building Commission | |
01012326 | American Fork City, Utah GO 2001 | |
01012329 | Robinson, Texas LTGO Series 2001 | |
01012332 | La Habra City School District, CA GO Series 2001A | |
01012335 | HUDSON COUNTY, NJ GO | |
01012336 | National Park (Borough) BOE, NJ GO 2001 | |
01012339 | Norwich City SD, NY GO 2001 | |
01012343 | Huntsville (City), Texas GOLT 2001 | |
01012344 | Northfield (Twp of), MI GO 2001 | |
01012345 | Annville-Cleona Sch Dist,PA GO 2001 | |
01012346 | Conroe, Texas GO LTX 2001 | |
01012348 | Meadowhill Regional MUD, TX GO 2001 | |
01012350 | Tacoma School District #10, WA GO 2001 | |
01012351 | Caledonia Charter Township, MI 2001 | |
01012352 | Agawam, Mass LTGO 2001 | |
01012354 | Kankakee (City of), IL | |
01012355 | Farmingdale (Village of), NY GO 2001 | |
01012356 | Grand Blanc Community Schools, MI GO 2001 | |
01012357 | North Branch (City of), MN 2001 | |
01012358 | Forest Park (City), OH GO 2001 | |
01012360 | Shreveport, Louisiana GO | |
01012361 | Dilworth (City), MN GO 2001A | |
01012362 | Dilworth (City), MN GO 2001B | |
01012364 | Haverhill (City), MA GO 2001 | |
01012365 | Belton City, MO, GO Ref 2001 | |
01012366 | Lexington County, SC GO 2001 |
Policy Id |
Policy | |
01012368 | Hewitt (City), TX GOLT 2001 | |
01012370 | Highland Heights (City of), OH GOLT 2001 | |
01012371 | Haverstraw (Town of), NY GO 2001 | |
01012372 | Blaine (City), MN GO 2001A | |
01012375 | Floral Park (Village), NY GO 2001 | |
01012376 | Remsen Central School District, NY GO | |
01012377 | Harbor Springs Public Schools | |
01012378 | Watauga County, NC GO | |
01012381 | Oyster Bay (Town of), NY GO 2001B | |
01012388 | Warner Baird District Library, MI GO 2001 | |
01012389 | Harris County WC&ID #110, TX 2001 GO ULT | |
01012390 | San Jacinto Coll Dist, TX GOLT 2001 | |
01012391 | San Jacinto Coll Dist, TX GOLT Cont Oblig 2001 | |
01012394 | Christian County, Ilinois GO 2001A (LTD)& 2001B | |
01012395 | Elizabeth (City), New Jersey GO 2001 | |
01012399 | Collinsville CUSD #10, IL GO 2001 | |
01012402 | Southern York Co. SD, PA GO | |
01012403 | Providence, Rhode Island GO | |
01012404 | Twinsburg (City of), OH LMTX GO 01 | |
01012406 | Harris County MUD No. 153, Texas GO Series 2001 | |
01012407 | Moline (City of), IL GO 01 | |
01012409 | Lancaster County, PA GO 2001 A&B | |
01012412 | Fort Bend County MUD #113, TX GO 2001 | |
01012416 | Whitman-Hanson Regional SD, MA | |
01012417 | Conemaugh Twp Area SD, PA GO 2001 | |
01012418 | Washoe County, Nevada LTGO Series 2001A | |
01012421 | Dobbs Ferry (Village), NY GO 2001 | |
01012423 | Orland Park Village, IL GO 2001 | |
01012427 | Waukegan (City), Il GO 2001A | |
01012428 | Coventry, CT GO | |
01012434 | Tinley Park (Vlg), IL GO 2001 | |
01012437 | Parma Heights (City of), OH GO LTX 2001 | |
01012440 | Canyon Cnty SD #132, ID GO 2001 | |
01012443 | Ypsilanti Community UA, Mi Twn LMTX GO 01 | |
01012448 | Rockport (City), Texas GOLT 2001 | |
01012451 | North Mission Glen MUD, TX GO 2001A | |
01012454 | Northshore Park & Rec Svc Area, WA GO ULT 2001 | |
01012455 | Queen Bee SD #16, IL GOLT 01A&B | |
01012456 | Laurens County Health Care Sys, SC GO Series 2001 | |
01012459 | Berwyn North SD #98, IL GO 2001 | |
01012460 | Park Forest Village, IL GO 2001 | |
01012461 | Rahway (City), NJ GO 2001 | |
01012464 | East Haven (Town), CT GO 2001 | |
01012465 | Vancouver School District No. 37, WA 2001 | |
01012466 | Upton Town, MA GO ULT 2001 | |
01012467 | Oxford Area SD, PA GO 2001ABC | |
01012471 | Hattiesburg, Mississippi GO Series 2001 | |
01012473 | Chicago Park Dist, IL GO Ltd 2001C | |
01012474 | Chicago Park Dist, IL GO ULT 2001D | |
01012475 | Shenango Area SD, PA GO 2001 | |
01012479 | Corona-Norco USD, CA GO 2001 | |
01012481 | West Paterson (Borough) BOE, NJ GO 2001 | |
01012482 | DENVER SD #1, CO GO | |
01012488 | Suffolk County, New York GO 2001 | |
01012489 | North Allegheny SD, PA GO 01A&B |
-12-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01012493 | East Pennsboro Area SD, PA GO 2001A | |
01012494 | Harrison School District #2, CO GO 2001 | |
01012496 | Montgomery County, TN GO 2001 | |
01012498 | Fort Bend County MUD No.1, GO, Series 2001 | |
01012502 | Prince Georges County, MD GO/COP 2001 | |
01012503 | East Richland CUSD #1, IL GO 2001 | |
01012504 | Mankato, MN GO 2001A | |
01012505 | Medina Central School District, NY GO 2001 | |
01012507 | Pullman Mem Hosp Pub Hosp Diist # 1-A, WA 01 | |
01012509 | Marlboro Central School District, NY GO 2001 | |
01012510 | Lumberton BOE, NJ GO 2001 | |
01012511 | Lewiston, ME GO 2001 | |
01012513 | AMSTERDAM ENLARGED CSD, NY GO | |
01012514 | Montgomery County, TX MUD #60 GO 2001 | |
01012515 | Davenport (City of), IA GO 2001 Series C | |
01012520 | Union Elementary School District, CA GO 2001B | |
01012521 | Baldwin City USD No. 348, Kansas GO Series 2001 | |
01012523 | Honeoye CSD, NY GO | |
01012525 | Voorhees (Twp), NJ GO 2001 | |
01012527 | Dodgeville (City), WI GO 2001 | |
01012528 | BRAZOS COUNTY, TEXAS GO 2001 GO | |
01012529 | Fargo (City), ND GO 2001B | |
01012530 | Carl Sandburg CCD #518, IL 2001A | |
01012531 | Buffalo (City), New York GO 2001-D | |
01012532 | Harrisburg Redev. Auth, PA (Harrisburg GO) 01 | |
01012533 | Illini Hosp Dist, IL GO 2001 | |
01012535 | RICHMOND, VIRGINIA GO | |
01012536 | LaVergne, TN GO ULT 2001 | |
01012538 | Hamburg Municipal Authority, PA GO 2001 | |
01012540 | Homewood-FlossmoorPkDistILAlt Ser A&B 2001 | |
01020009 | CALIFORNIA STATE GO 4-1-99 | |
01020010 | California State GO 10-1-00 | |
01020011 | California State GO 12-1-00 | |
01020013 | CALIFORNIA STATE GO 4-1-99 | |
01020020 | California State GO 10-1-00 | |
01020021 | California State GO 12-1-99 | |
01020023 | California State GO 10-1-00 | |
01020024 | California State GO 10-1-00 | |
01020025 | CALIFORNIA STATE GO 10-1-97 | |
01020026 | CALIFORNIA STATE GO 10-1-97 | |
01020029 | CALIFORNIA (STATE OF) GO 1993 | |
01020030 | CALIFORNIA STATE GO 10-1-97 | |
01020031 | CALIFORNIA STATE GO 10-1-98 | |
01020032 | CALIFORNIA STATE GO 2-1-99 | |
01020033 | CALIFORNIA STATE GO 2-1-99 | |
01020034 | California State GO 12-1-00 | |
01020035 | CALIFORNIA ST VAR PURP GO 91 | |
01020036 | Florida GO Refg PECO 2001B | |
01020039 | Washington State GO 2001 C & D | |
01020042 | New York City, NY GO 99H | |
01020049 | California State GO 12-1-00 | |
01020050 | California (State Of) GO | |
01020051 | New York City, NY GO 99H | |
01020052 | New York City, NY GO 98JK | |
01020053 | CALIFORNIA STATE GO 2-1-99 |
Policy Id |
Policy | |
01020059 | New York City,NY GO Series F&G | |
01020060 | NEW YORK CITY, NY GO 98EF | |
01020064 | New York City,NY GO Series F&G | |
01020065 | New York City,NY GO Series F&G | |
01020069 | New York City,NY GO Series F&G | |
01020071 | California State GO 1998 | |
01020073 | California State GO 6-1-00 | |
01020074 | New York City,NY GO Series F&G | |
01020077 | New York City,NY GO Series F&G | |
01020079 | New York City,NY GO Series F&G | |
01020080 | California State GO 3-1-01 | |
01020081 | New York City,NY GO Series F&G | |
01020082 | New York City, NY GO 99H | |
01020097 | NEW YORK CITY, NY GO 98EF | |
01020098 | New York City, NY GO 01 H Fix | |
01020099 | New York City, NY GO 01 H Fix | |
01020100 | New York City, NY GO 01 H Fix | |
01020105 | New York City,NY GO Series F&G | |
01020106 | New York City, NY GO 01DEF | |
01020109 | New York City, NY GO 01DEF | |
01020110 | New York City, NY GO 99H | |
01020117 | California State GO 12-1-99 | |
01020119 | California State GO 6-1-00 | |
01020120 | CALIFORNIA STATE GO 91 | |
01020121 | CALIFORNIA STATE GO 91 | |
01020122 | California (State Of) GO | |
01020123 | California State GO 12-1-00 | |
01020124 | California State GO 12-1-00 | |
01020128 | California State GO 10-1-00 | |
01020129 | CALIFORNIA ST VAR PURP GO 92 | |
01020130 | CALIFORNIA STATE GO 91 | |
01020132 | California State GO 1998 | |
01020134 | CALIFORNIA (STATE OF) GO OCT90 | |
01020135 | California State GO 3-1-01 | |
01020136 | CALIFORNIA STATE GO 10-1-98 | |
01020137 | CALIFORNIA STATE GO 12-1-98 | |
01020140 | California State GO 3-1-01 | |
01020141 | California State GO 4-1-00 | |
01020143 | California State GO 3-1-01 | |
01020144 | California State GO 3-1-01 | |
01020146 | California State GO 3-1-01 | |
01020152 | New York City, NY GO 99H | |
01020154 | New York City, NY GO 99A | |
01020157 | New York City, NY GO 01 H Fix | |
01020158 | New York City, NY GO 01 H Fix | |
01020165 | New York City, NY GO 98JK | |
01020166 | New York City, NY GO 98JK | |
01020167 | NEW YORK CITY, NY GO 98EF | |
01020169 | New York City, NY GO 01DEF | |
01020175 | Washington County, MD GO 2001 | |
01020176 | Washington County, MD GO 2001 | |
01020177 | Washington County, MD GO 2001 | |
01020178 | Washington County, MD GO 2001 | |
01020180 | New York City, NY GO 2000A | |
01020187 | Denton County, Texas Ltd GO 99 |
-13-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01020208 | Los Angeles, CA GO | |
01020251 | Florida State Bd of Ed GO 98 D | |
01020256 | Washington St GO & Lease 98C | |
01020276 | California State GO 6-1-00 | |
01020277 | CALIFORNIA STATE GO 12-1-98 | |
01020278 | California State GO 3-1-01 | |
01020280 | Byron Center Public Schools,MI 2001 | |
01020290 | New York City, NY GO 01 H Fix | |
01020297 | Washington St GO & Lease 98C | |
01020303 | Rockland County, NY GO 2001A&B | |
02010003 | Jersey City MUA, NJ GO Surety 2002 | |
02010004 | Howard-Winneshiek Community SD, IA GO 2002 | |
02010005 | Worthington City SD, OH GO01 | |
02010008 | Garnet Valley SD, PA GO 2002 | |
02010009 | Lancaster County, PA GO 2002 | |
02010014 | FALCON SD #49, COLORADO GO | |
02010016 | Longview School Dist. #122, WA GO 2002 | |
02010017 | Lackawanna County, PA GO 2002A and 2002B | |
02010018 | St. Peter ISD #508, MN GO Ref 2002A | |
02010019 | Goodhue ISD #253, MN GO 2002 | |
02010022 | LaVergne, TN GO ULT W&S Rev 2001 | |
02010023 | Penn Hills (Municipality), PA GO 2002 | |
02010026 | Riverside USD, CA GO 2002 | |
02010028 | Syracuse, New York GO 2001C | |
02010029 | Syracuse, New York GO | |
02010030 | Reading (Town), MA GO | |
02010031 | Greensburg (City), PA GO 2001 | |
02010032 | Shelton SD #309, WA GO ULT 2001 | |
02010034 | North Allegheny SD, PA GO Rfdg 2002 | |
02010035 | Monroe-Woodbury CSD, NY GO 2001 | |
02010036 | First Colony MUD No. 9, Texas GO Series 2002 | |
02010039 | Pequot Lakes ISD #186, MN GO 2002 | |
02010040 | West Milford (Township), NJ GO 2002 | |
02010041 | Trophy Club, Texas LTGO Series 2002 | |
02010042 | Prior Lake-Savage ISD #719, MN GO 2002A | |
02010043 | Cedar Rapids Community SD, IA GO 2002 | |
02010044 | Medford Area Public SD, WI GO Ref2002 | |
02010046 | Jenks, OK GO 02 | |
02010050 | Yough School District, PA GO 2001 | |
02010051 | Florida State GO PECO, 2001C | |
02010052 | Milford (Town of) MA GO, 1-15-02 | |
02010053 | Gail Borden Pub Lib Dist, IL GO 2002 | |
02010054 | Amery School District, WI GO 2002A | |
02010055 | Monticello CUSD #25, IL GO | |
02010056 | Franklin Square UFSD, NY GO 2002 | |
02010057 | Elmhurst CUSD #205, IL GO | |
02010059 | Sylvan Union Sch Dist, CA GO | |
02010060 | Patchogue, NY GO 02 | |
02010061 | Mesa (City), AZ GO 2002 | |
02010064 | Washtenaw County, MI GO 2002 | |
02010065 | Bloomsburg ASD, PA 2001 | |
02010067 | Woodbine Community School District, IA GO 2002 | |
02010068 | Howard-Suamico SD, WI GO | |
02010069 | Lower Southampton TWP,PA GO | |
02010071 | Livingston (Parish of) SD No. 22, LA |
Policy Id |
Policy | |
02010072 | Alum Rock Union ESD, CA GO 2001D | |
02010073 | Door County, WI GO ULT 2002A | |
02010074 | Lemont-Bromerek SD #113A, IL 2001 | |
02010076 | Asotin County, Washington GO 2002 | |
02010077 | Canyon Cnty SD #134, ID 2002 | |
02010078 | Bristol Borough, PA GO 2002 | |
02010079 | Muskegon County, MI GOLT 2002 | |
02010080 | Muskegon County Building Authority, MI GOLT 2002 | |
02010081 | College Community School District, IA GO 2002A | |
02010082 | College Community School District, IA GO 2002B | |
02010084 | Clinton Commun SD WI 01 | |
02010085 | Pullman Memorial Hosp Pub Hosp Dist #1-A, WA 02 | |
02010086 | Mohave Cnty Hosp Dist#1, AZ GO 2001 | |
02010088 | Shelby Elementary School District #14, MT GO 2002 | |
02010089 | Gananda Central School District, NY GO 2002 | |
02010091 | Waupaca School District, WI GO 2002 | |
02010092 | Bedford County, TN GO 2001 | |
02010094 | Taylor (City), Michigan GOLT 2002 | |
02010096 | East Richland CUSD #1, IL GO 2002 | |
02010097 | INDIANOLA COMMUNITY SD,IA GO 2002 | |
02010100 | Lake Saint Louis (City), MO GO 2002 | |
02010102 | El Paso County SD #20, CO GO | |
02010103 | Galesburg, IL GO 2001 | |
02010108 | Indian Prairie CUSD#204, IL GO 2002 | |
02010109 | Stafford, Texas GO Cert, 2002 | |
02010110 | Nicollet County, MN GO State Aid Road 02 | |
02010112 | Massachusetts Commonwealth GO 2002A | |
02010118 | Black Hawk (County), IA GO 2002 | |
02010119 | Cohoes City School District, NY GO 2002 | |
02010120 | Keystone School District, PA GO 2002 | |
02010122 | Leroy Community Park District, IL GOLT 2002A | |
02010123 | Oley Valley School District, PA GO 2002 | |
02010124 | Manhattan Beach USD, CA GO Elec2000B | |
02010125 | Oak Lawn (Village), IL GO 02 | |
02010126 | Manhattan Beach USD, CA GO 2002E | |
02010128 | Hastings (City), MN GO 2002AB | |
02010129 | Hudson Falls Central SD, NY GO 2002 | |
02010130 | West Haven (City of), CT GO 2002 | |
02010131 | Wakefield (Town), MA | |
02010134 | Murrysville (Munic.),PA GO 2001 | |
02010136 | Plain Local SD, OH GO, 2002 | |
02010137 | Moscow, Idaho GO ULT 2002 | |
02010138 | Northern Burlington County Reg SD BOE, NJ GO | |
02010139 | Dublin USD, California GO 2002 | |
02010141 | Meigs County, Tennessee GO 2002AB | |
02010142 | Jamestown Public SD No. 1, ND GO 2002 | |
02010143 | Lacey (City of), WA GOULT 2002 | |
02010145 | Greenfield (Town), MA GO 2002 | |
02010146 | Monroe County, PA GO, 2002 A&B | |
02010150 | Clinton, NJ, Bd. of Ed. GO 2001 | |
02010151 | Glenview Community Consol SD #34, IL GO 2002 | |
02010152 | Ocean Township NJ Sewer GO 2002A | |
02010153 | Berkeley County Board of Education, WV GO Ser 2002 | |
02010154 | Moosic (Borough), PA GO 2002 | |
02010155 | Peoria School Dist 150 IL GO 2002 |
-14-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
02010157 | Leavenworth, KS GO ULT 2002A | |
02010158 | St. Charles CUSD #303, IL GO | |
02010159 | Brooklyn Center SD #286, MN GO 2002 | |
02010160 | Ocean Township NJ Sewer GO 2002B | |
02010161 | Orchard Park (Town), NY 2002 | |
02010162 | Palmyra Area School District, PA GO 2002 | |
02010164 | Florida State GO PECO 2002G | |
02010165 | Mukwonago (Village), WI GO 2002 | |
02010166 | Atlantic County, NJ GO 2002 | |
02010168 | West Allegheny SD, PA GO 2002B | |
02010170 | Western Wayne Sch Dist,PA GO 2002 | |
02010171 | Hopewell Area Sch Dist, PA GO | |
02010173 | Tennessee State GO 2002A | |
02010174 | Umatilla County, OR GO 2001 | |
02010175 | Trophy Club, Texas LTGO Series 2002 | |
02010179 | Belleville Township, NJ GO 2002 | |
02010180 | Midwest City, OK GO 2002 | |
02010181 | Kent (Town of), CT GO 2002 | |
02010182 | Montgomery, IL GO 02. | |
02010183 | Bloomingdale (Vill. of) IL GO 2002 | |
02010184 | Quincy SD #172, IL GO 2002A&B | |
02010185 | Somerville (City of), MA (LT) 2002 | |
02010187 | Florida State DOT GO 2002 | |
02010188 | Inkster (City), MI GO LTD Tax (MTF Receipts) | |
02010189 | Olathe Unified School District #233, KS GO 2002 | |
02010191 | Ingham County Building Authority, MI 2002 | |
02010192 | Bath Central SD, New York GO 2002 | |
02010193 | Leavenworth, KS GO ULT | |
02010194 | Westlake MUD No. 1, TX 2002 | |
02010195 | Illinois State GO 2002 | |
02010196 | Spartanburg Sanitary Sewer Dist, SC GO 2002 | |
02010197 | McGregor ISD No. 4, MN GO 2002 | |
02010198 | St. Charles Par SD #1, LA GO 2002 | |
02010199 | New York State GO 2002A | |
02010200 | New York State GO 2002B | |
02010201 | New York State GO 2002C | |
02010205 | Oklahoma County ISD No. 89, Oklahoma GO 2002 | |
02010207 | Municipal Imp Corp Los Angeles, CA Lease 2002 F | |
02010209 | Little Chute Area Sch Dist, WI GO | |
02010210 | Raytown School District #2, MO GO 2002 | |
02010212 | Oklahoma City, Oklahoma GO 2002 | |
02010213 | Carmel Unified SD, CA GO 2002 | |
02010215 | Wicomico County, MD GOLT 2002 | |
02010217 | Sioux County, Iowa GO 2002 | |
02010219 | Essexville, MI GO 2002 | |
02010220 | Delano Union Elem SD, CA GO | |
02010222 | New Hartford (Town), NY GO 2002 | |
02010224 | Alpena (City of), MI GO 2002 | |
02010227 | St. Peters (City of), MO GO 2002 | |
02010229 | Johnson County, Illinois GO 2002 | |
02010230 | Roanoke (City), Virginia GO 2002 A&B | |
02010231 | El Centro Sch Dist, CA GO 2001 | |
02010234 | Linn-Benton Community College District, OR GO 2002 | |
02010235 | Lansing Community College, MI GOLT 2002 | |
02010236 | Ladysmith-Hawkins SD, WI 2002 |
Policy Id |
Policy | |
02010237 | Eugene School District #4J, OR 2002 | |
02010238 | West Contra Costa USD, CA GO 2002B | |
02010240 | Columbus (City of), WI GO 2002 | |
02010242 | Eastham (Town), MA GO | |
02010245 | Monroe County, NY GO 2002 | |
02010246 | Winnebago County, IL GO 2002 | |
02010247 | Oshkosh (City of), WI GO 2002B | |
02010249 | Binghamton (City), NY GO 2002 | |
02010250 | Oshkosh (City of), WI GO 2002 A | |
02010253 | Paradise Valley Unified SD #69, AZ GO 2001 | |
02010254 | Milford Central SD, NY GO 2002 | |
02010257 | Titusville ASD, PA GO 2002 | |
02010263 | Bedford (City), TX GOLT 2002 | |
02010265 | Lock Haven (City), PA GO 2002 | |
02010266 | Moline (City of), IL GO 2002A | |
02010267 | Donegal School District, PA GO 2002 | |
02010268 | Madison Central SD, NY GO 2002 | |
02010269 | Cambria Heights School District, PA GO 2002 | |
02010270 | Fort Lee (Boro of), NJ GO 2002 | |
02010271 | Novato USD, CA GO 2002 | |
02010272 | Saugatuck (Twsp of), MI GO 2002 | |
02010275 | Portola Valley School District, CA GO 2002 | |
02010276 | Bangor (City), Maine GO 2002B | |
02010277 | Palmdale School District, CA GO 2002 | |
02010278 | Galt Joint Union Elementary Sch Dist, CA GO 2002 | |
02010279 | Elizabethtown ASD, PA GO 2002 | |
02010283 | Washington USD, CA GOB 2002 | |
02010284 | Oakland USD, California GO 2002 | |
02010285 | West, Texas LTGO Series 2002 | |
02010288 | Northeastern York County SD PA GO 2002 | |
02010289 | EWING-LAWRENCE SWG AUTH, NJ GO 02 | |
02010291 | Margaretville CSD, NY GO 2002 | |
02010292 | Louisiana State GO 2002-A | |
02010293 | Menomonee Falls, WI GO 2002AB | |
02010297 | Emporia USD #253, KS GO 2002 | |
02010298 | Municipal Imp Corp of Los Angeles, CA Lease 2002G | |
02010299 | White Bear Lake ISD #624, MN GO 2002B | |
02010300 | Scio Central School District, NY GO 2002 | |
02010302 | Candor CSD, NY GO 2002 | |
02010306 | Jefferson Davis Parish SD #2, LA GO | |
02010307 | Vestal Central SD, NY GO 02 | |
02010308 | Wisconsin (State of), GO 2002A | |
02010311 | Shasta Union HSD, CA GO 2002 | |
02010312 | Coudersport Area School District, PA GO 2002 | |
02010313 | Wolcott (Town), CT GO 2002 Lot B | |
02010314 | Chanhassen (City), MN GO 2002 | |
02010315 | Moses Lake SD #161, WA GO 2001 | |
02010316 | Piatt Co Pub Bldg Comm, IL GO 2002 | |
02010319 | McGuffey SD, PA GO 2002 | |
02010322 | Pflugerville, Texas LTGO 2002 | |
02010323 | Jefferson County School District #509J, OR GO 2002 | |
02010324 | Atlantic City MUA, NJ GO 2002 | |
02010325 | Algonquin (Village), Illinois 2002A | |
02010326 | Kinnelon (Boro of), NJ GO 2002 | |
02010327 | Briarcliff Manor (Village of), NY GO 2002 |
-15-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
02010328 | Lubbock, Texas GO Ltd Tax 2002 | |
02010330 | Medford Township BOE, NJ GO 2002 | |
02010332 | Hillside (Village), IL GO 2002 | |
02010333 | Broome County, NY GO 2002 | |
02010334 | Cornell School District, PA GO 2002 | |
02010335 | Oconomowoc (Town of), WI GO 2002AB | |
02010336 | Peoria School District #150, IL GO 2002 | |
02010337 | Garrison Union Free School District, NY GO 2002 | |
02010338 | Algonquin (Village), Illinois 2002B | |
02010339 | Live Oak (City of), TX GO 2002 | |
02010340 | San Francisco Comm College Dist, CA GO 2002 | |
02010342 | Tri-Valley Local School District, OH GO 2002 | |
02010343 | Red Oak Community SD, IA GO 2002 | |
02010346 | West Bend (City of), WI GO 02 Bonds | |
02010347 | Bethlehem (City of), PA GO 2002 | |
02010348 | Bolivar-Richburg Central SD, NY GO 2002 A&B | |
02010349 | Scotch Plains Township, NJ GO 2002 | |
02010350 | Fresno (County), CA 2002 | |
02010351 | Deer Park Union Free School District, NY GO 2002 | |
02010353 | Starpoint Central School District, NY GO 2002 | |
02010354 | Allegany-Limestone CSD, NY GO 2002 | |
02010356 | Barstow USD, CA GO Election 2001 SerA | |
02010359 | Ilion Central School District, NY GO 2002 | |
02010360 | Cedar Hill I.S.D., TX GO 2002 | |
02010361 | Grand Valley Local SD, OH | |
02010362 | Palos Verdes Pen. USD, CA GO | |
02010363 | Sayreville (Borough) BOE, NJ GO 2002 | |
02010366 | Orono (Town of), ME GO 2002 | |
02010367 | Canon-McMillan SD, PA GO 2002 A&B | |
02010368 | Topsfield (Town), MA GO 02 | |
02010369 | Freeport (Village), NY GO 2002 A&B | |
02010371 | Center Moriches Union Free SD, NY GO 2002 A&B | |
02010373 | Warren County, NC GO 2002 | |
02010374 | Creston Community SD, Iowa 2002 | |
02010375 | College Station, Texas LTGO 2002 | |
02010378 | Oak Creek (City), WI GO 2002 | |
02010379 | Lake Zurich (Village of), IL GO 2002 | |
02010380 | Holland City Sch Dist, MI GO 2002 | |
02010382 | Heath (City), Ohio GOLT 2002 | |
02010384 | St. Charles (City of) IL 2002 | |
02010386 | Walnut Valley USD, CA GO Series C | |
02010387 | Sartell ISD #748, MN GO | |
02010390 | Tarrytown (Village), NY GO 2002A | |
02010391 | Colton Joint USD, CA GO 2002 | |
02010392 | Pennsbury SD, PA GO 2002 | |
02010393 | Denair Unified SD, CA GO Elec 2001 Series A | |
02010394 | Downers Grove Comm HSD No 99, IL | |
02010395 | Newman-Crows Landing USD, CA 2002 | |
02010396 | Mad River Local School District BOE, OH 2002 | |
02010397 | Clifton (City of), NJ GO 2002 | |
02010401 | Tucson, Arizona Lease Conv Ctr 2002 | |
02010402 | Tucson, Arizona Lease Conv Ctr 2002 | |
02010403 | Oriskany CSD, NY GO 2002 | |
02010404 | North Colonie CSD, NY GO 2002 | |
02010405 | Caledonia-Mumford CSD, NY GO |
Policy Id |
Policy | |
02010406 | Garfield Heights (City), OH GOLT 2002 | |
02010407 | Washingtonville Central Sch Dist, NY GO 2002 | |
02010408 | Longwood Central School District, NY GO 2002 | |
02010411 | Jackson-Brownfield Redevel Auth, MI GO LT 02 | |
02010414 | Somerdale (Borough), NJ GO 2002 | |
02010420 | Port Arthur (City), Texas GOLT 2002B | |
02010421 | Port Arthur (City), Texas GOLT 2002C | |
02010422 | Manitowoc (City), WI GO 2002A | |
02010423 | Deer Valley Unified SD #97, AZ GO 2002 | |
02010426 | Calumet Park (Village), IL GO 2002 | |
02010427 | Jefferson County, TX GOLT 2002A | |
02010428 | Willsboro Central School District, NY GO 2002 | |
02010431 | Meadville, PA GO 2002 | |
02010432 | League City (City), Texas GOLT 2002 | |
02010433 | Polk County, WI GO 02 | |
02010434 | West Bend (City of), WI GO 02 Notes | |
02010436 | Sheboygan Falls (City of), WI GO 2002 | |
02010439 | Smith County, TN GO ULT 2002 | |
02010440 | WEST CHICAGO, IL GO IDFA 02 | |
02010443 | Queen Annes County, MD GO 2002 | |
02010445 | Scio Township, MI GOLT 2002 | |
02010448 | Ausable Valley Central SD, NY GO 2002 | |
02010449 | Washington County, MD GO 2002 | |
02010452 | Jurupa Unified School District, CA GO 2002 | |
02010453 | Ocean City BOE, NJ GO 2002 | |
02010455 | Wayne County Community College, MI GOLT 2002 | |
02010457 | Modesto City Elem SD, CA GO 2002 | |
02010458 | Modesto High Sch Dist, CA GO Ser A | |
02010459 | Clinton Central SD, NY GO 2002 | |
02010460 | Marathon CSD, NY GO 2002 | |
02010461 | Los Banos Unified SD, CA GO 2002 | |
02010466 | Wilson County, NC GO 2002 | |
02010467 | Crockett County, TN GO 2002 | |
02010469 | Bolingbrook (Village of), IL GO 2002A&B | |
02010470 | Proctor ISD #704, MN GO 2002A | |
02010472 | Chemung County, NY GO 2002 | |
02010476 | Little Silver BOE, NJ GO 2002 | |
02010477 | Harris County MUD #53, TX 2002 | |
02010483 | Genesee Valley CSD at Angelica-Belmont, NY GO 2002 | |
02010484 | Mesa (City), Arizona GO 2002 | |
02010485 | Rolling Meadows (City), IL GO 2002 | |
02010488 | Attleboro (City of), MA GO LTX 2002 | |
02010489 | Grove City Area Hosp Auth, PA GO 2002 | |
02010492 | Traverse City, MI GO LTX 2002AB | |
02010493 | Eaton City SD, OH GO | |
02010494 | Lucas City, TX GO Ltd | |
02010499 | Lovington Muni SD No. 1, NM GO | |
02010500 | Wellington Unified SD #353, KS GO 2002 | |
02010501 | Florida State PECO 2002, Series B | |
02010502 | Onalaska, WI GO 2002 | |
02010503 | Portage City Building Authority, MI GOLT 2002 | |
02010504 | Leavenworth Co. USD No. 449 (Easton), KS GO 2002 | |
02010507 | Mexico Central School District, NY GO 2002 Ser A | |
02010508 | Vilas County, WI GO 2002 | |
02010509 | Mt. San Antonio Com Clg Dist, CA GO 2002 |
-16-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02010510 | Garland (City), Texas GOLT 2002 | |
02010511 | Ceres USD, CA GO (Elec 2001) 2002A | |
02010512 | Prattsburg CSD, NY GO 2002 | |
02010513 | Sidney City School District, Ohio 2002 | |
02010516 | Dansville Central School District, NY GO 2002 A&B | |
02010517 | Chula Vista Elementary SD, CA GO 2002 | |
02010522 | St. Clairsville-Richland City SD, OH GO 02 | |
02010523 | West Harris Co MUD #10, TX GO 2002 | |
02010525 | Pulaski CSD, NY GO 2002 | |
02010531 | Sharon Springs CSD, NY GO 2002 | |
02010532 | Eastside Union SD, CA GO 2002 | |
02010533 | Montgomery County, NY GO 2002 | |
02010535 | Hampton Township, PA GO 2002 A&B | |
02010536 | Warrensburg CSD, NY GO 2002 | |
02010541 | Moonachie (Boro of) BOE, NJ GO dated April 1, 2002 | |
02010542 | Leander (City), Texas GOLT 2002 | |
02010544 | Manistique, Mi GO LMTX 02 | |
02010545 | East Hartford(Town of)CT GO 2002 | |
02010548 | Benbrook, Texas GO Ltd Tax 2002 | |
02010551 | Philadelphia Redev Auth, PA 2002 | |
02010553 | Wilkinsburg SD, PA GO 2002 | |
02010557 | Ennis, Texas GO Ltd Tax 2002 | |
02010558 | Knoxville, Tennessee GO 2002 | |
02010560 | Valley Stream (Village), NY GO 2002 | |
02010561 | Tillamook County, OR GO 2002 | |
02010562 | West Fargo Public SD#6, ND GO 2002 | |
02010563 | Brockton, Mass GO 2002 A & B | |
02010564 | Summit County, OH Limited Tax GO 2002R | |
02010565 | Bloomfield (Twp), NJ GO 2002 | |
02010566 | Union Co, Il GO Pen 02 | |
02010567 | El Monte City SD, CA GO 2002B | |
02010569 | Desoto (City of), TX GO Ltd Tx 02 | |
02010570 | Desoto (City of), TX GO Ltd 02 | |
02010572 | Lorain County, OH GOLT 2002 | |
02010574 | Phoenix CSD NY GO 2002 | |
02010576 | Moorehead ISD #152, MN GO 2002 | |
02010577 | Floodwood ISD #698, MN GO 2002A | |
02010578 | Lewisville (City), Texas GOLT 2002 | |
02010579 | Jenison Pub Sch,MI GO 2002 Non-SBLF | |
02010580 | Ambridge ASD PA GO AB 02 | |
02010583 | Ringgold School District, PA GO 2002 | |
02010584 | Elgin (City of), Illinois GO 2002 | |
02010585 | Butler Area School District, PA GO 2002 ABC&D | |
02010586 | Jackson Township BOE, NJ GO 2002 | |
02010587 | Morristown (Town), NJ GO 2002B | |
02010588 | Morristown (Town), NJ GO 2002A | |
02010590 | Highline SD #401, WA GO 2002 | |
02010591 | Hammond Central SD, NY GO 2002 | |
02010593 | Beavercreek (City), OH GO 2002 | |
02010594 | Southgate (City of) Building Authority, MI 2002 | |
02010597 | Tullahoma (City), TN GO 2002 | |
02010598 | Channahon Park District IL GO Alternate Rev 2002 | |
02010600 | Abilene, (City of) TX GO & CO 2002 | |
02010601 | Brownwood, Texas LTGO 2002 | |
02010602 | Lufkin, Texas LTGO 2002 |
Policy Id |
Policy |
|
02010606 | South-Western City SD, OH GO LMTX 2002A | |
02010607 | South-Western City SD, OH GO 2002B | |
02010610 | Waxahachie, Texas GO Ltd Tax | |
02010611 | Kellogg Comm Coll, MI LTGO 2002 | |
02010612 | Gilbert (Town), AZ GO Ref 2002 | |
02010613 | Lincoln County, NC GO 2002 | |
02010614 | Santa Clarita CCD, CA 2002 | |
02010615 | Florence, Kentucky GO 2002 B | |
02010616 | Florence, Kentucky GO 2002 A | |
02010617 | Pearland, Texas LTGO 2002 | |
02010618 | Syracuse, New York GO 2002B | |
02010619 | Urbana SD #116, IL GO 2002 | |
02010623 | Grayslake Community HSD #127, IL GO 2002 A&B | |
02010624 | Methow Valley SD #350, WA (Okanogan Co.) GO ULT | |
02010628 | NORTH HEMPSTEAD (TOWN), NY GO 2002 | |
02010630 | Plattsburgh City School District, NY GO 2002 | |
02010632 | Pen Argyl Area SD, PA GO 2002 | |
02010633 | Williams Valley SD, PA GO 2002 | |
02010635 | Fremont Unif Sch Dist,CA GO 02 | |
02010636 | Mansfield, OH GOLT 02 | |
02010637 | Zion (City of), IL GO 2002 (Alt Rev) | |
02010638 | Ewing Twp, NJ GO 2002 | |
02010639 | Hancock CSD, NY 2002 | |
02010640 | Berne-Knox-Westerlo CSD, NY GO 2002 | |
02010643 | Kendall-Kane Cos. CUSD 115 (Yorkville), IL GO 02 | |
02010644 | Clifton (City) BOE NJ GO 2002 | |
02010645 | Aurora West SD #129, IL GO 2002 | |
02010646 | Aurora West SD #129, IL LTD GO 2002 | |
02010647 | Chambersburg Area SD, PA GO 2002 | |
02010650 | Fairfax Sch Dist, CA GO 2002 | |
02010651 | Gettysburg Muni Auth, PA GTD 02 | |
02010652 | Mantua Twp, NJ GO 2002 | |
02010656 | Espanola Public SD 45, NM GO 02 | |
02010657 | Sharpsville Area SD, PA GO 02 A&B | |
02010658 | Titusville ASD, PA GO 2002A | |
02010659 | Philadelphia SD, PA GO 2002B | |
02010660 | Douglas County, WI GO 2002 | |
02010661 | Huntington Beach City SD, Ca | |
02010662 | Carteret Borough, NJ G.O. 02 | |
02010666 | Hortonville SD, WI GO 02 | |
02010668 | Saddle Brook Twp BOE, NJ 2002 | |
02010669 | Summit County, Ohio GO Limited Tax 2002 | |
02010670 | Upper Scioto Valley Local SD, OH GO 2002 | |
02010671 | West Valley School District #208, WA GO 2002 | |
02010673 | Flemington Borough, NJ GO 2002 | |
02010674 | Liberty Union High School District, CA GO 2002B | |
02010675 | Liberty Union High School District, CA GO 2002A | |
02010676 | Grundy Co., IL GO 02 | |
02010678 | Silver Creek CSD, NY GO 2002 | |
02010679 | Morrisville-Eaton CSD NY GO 2002A&B | |
02010680 | Camden CSD, NY GO 02 A&B | |
02010681 | Hannibal CSD, NY GO 2002 | |
02010682 | Indian River CSD, NY Series 2002 | |
02010683 | Ilion Central School District, NY GO 2002 A & B | |
02010684 | Bunker Hill Vlg,TX LT GO 02 |
-17-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02010686 | Lakeland CSD, NY 2002 | |
02010687 | Kendall CSD, NY GO 2002 | |
02010688 | Dorchester County, MD GO 2002 | |
02010689 | Harris Co TX WC&ID #119, GO 02 | |
02010691 | Carpentersville CUSD 300, IL GO Working Cash 2002 | |
02010694 | Hobbs Municipal SD # 16, NM GO 2002 | |
02010695 | Elizabethton (City), TN GO 2002 A&B | |
02010696 | Tullahoma (City), TN GO 2002 | |
02010697 | Harrisonville R-IX SD, MO GO ULT 2002 | |
02010699 | Brick Township, NJ GO & MUA 02 | |
02010700 | Absecon (City of), NJ GO 02 | |
02010701 | Seneca Falls Central Sch Dist, NY GO 2002 A&B | |
02010702 | Miller Place UFSD, NY Ser. 02 | |
02010703 | South Side ASD, PA 2002 | |
02010704 | Sanger, Texas LTGO 2002 | |
02010705 | Greensburg Salem SD, PA GO 2002 | |
02010709 | Schenectady City SD, NY GO 02 | |
02010710 | Attica Central School District, NY GO 2002 | |
02010712 | Islip (Town of), NY GO 2002 | |
02010713 | Sodus Central School District, NY GO 2002 | |
02010714 | Oklahoma County ISD #89, OK GO 2002 Ref | |
02010715 | Great Bend Unified SD#428, KS GO 2002 | |
02010716 | Harpursville Central School District, NY GO 2002 | |
02010718 | Copenhagen SD, NY GO 02 | |
02010719 | Yorkshire-Pioneer CSD, NY GO 2002 | |
02010720 | Brunswick CSD, NY GO 2002 | |
02010721 | McGraw CSD, NY GO 02 | |
02010722 | Sherburne Cnty, MN GO 2002 | |
02010724 | New York City, NY GO 2002 DEFG | |
02010725 | Clyde-Savannah CSD, NY GO 2002 | |
02010726 | Brockport CSD, NY GO 2002 | |
02010727 | Tacoma, WA ULT GO 2002 | |
02010728 | Wilmington, Delaware GO 2002 | |
02010730 | Central York School District, PA GO 2002 | |
02010731 | Chillicothe Pub Library Dist 2002 | |
02010733 | Santa Rosa Elem SD, CA GO 2002 | |
02010735 | Greenwich CSD, NY GO 2002 | |
02010736 | Milford Central School District, NY GO 2002 | |
02010740 | Gainesville (City), TX GOLT 2002 | |
02010742 | New Haven (City of), Connecticut GO 2002B | |
02010743 | Northern Adirondack CSD at Ellenburg, NY GO 02 | |
02010744 | Bedford (City) Ohio GOLT 2002 | |
02010745 | Chateaugay Central School District, NY GO 2002 | |
02010746 | Caledonia-Mumford CSD, NY GO 2002 Refunding | |
02010747 | Green Twp BOE, NJ GO 2002 | |
02010748 | Randolph Central School District, NY GO 2002 | |
02010753 | Montgomery Cnty USD #445(Coffeyville), KS GO 2002 | |
02010754 | Harrisonburg, Virginia GO Series 2002A | |
02010755 | Harrisonburg, Virginia GO 2002B | |
02010756 | Schenevus CSD, NY GO 2002 | |
02010757 | Hamilton CSD, NY GO ULT 2002 | |
02010760 | Plano Community Library District, IL GO 2002 | |
02010761 | Brainerd ISD #181, MN GO 2002 | |
02010762 | San Mateo Cnty Comm Coll Dist,CA GO 02A | |
02010765 | Warren County, PA GO 2002 |
Policy Id |
Policy |
|
02010766 | Ada Exempted Village SD, OH GO ULT 2002 | |
02010768 | Dulce Independent SD #21, NM GO 2002 | |
02010769 | OFallon (City), IL Development Finance Auth 2002 | |
02010770 | Harrisburg Authority, PA GO SD Proj 2002 Series A | |
02010771 | Warren, MI Ltd Tax GO2002;Downtwn | |
02010772 | Heuvelton CSD, NY GO 2002 | |
02010774 | Spencer-Van Etten CSD, NY GO 2002 | |
02010778 | Lower Cape May Regional SD BOE, NJ GO 2002 | |
02010779 | Fort Plain CSD, NY GO 2002 | |
02010780 | Greene Central School District, NY GO 2002 | |
02010781 | Heartland Community College Dist #540, IL GO 2002 | |
02010782 | Gibbsboro Bd of Ed, NJ GO 2002 | |
02010784 | Galway Central School District, NY GO 2002 | |
02010785 | Bellevue SD #405, WA GO 2002 | |
02010786 | Placentia-Yorba Linda USD, CA GO 2002 | |
02010789 | Fort Cherry SD, PA GO 2002 | |
02010790 | Cairo-Durham CSD, NY GO 2002 | |
02010791 | Macomb Township, MI GO LTX 2002 | |
02010793 | Peoria (City of), IL GO | |
02010794 | Etowah W&S Authority | |
02010795 | Greenfield Union School District, CA GO 2002 A | |
02010796 | Greenfield Union School District, CA GO 2000 C | |
02010800 | Sherrill City SD, NY GO 2002 | |
02010801 | Carman-Ainsworth Community Schools, MI GO | |
02010802 | Alta Loma School Dist, CA GO 2002 | |
02010803 | Moshannon Valley SD, PA GO 2002 | |
02010807 | Wallkill CSD, NY GO 2002 | |
02010808 | Scott Cnty Schools USD #466, KS GO 2002 | |
02010809 | Geneva (City of), IL GO 2002 | |
02010810 | Brazoria Cnty MUD #4, TX GO 02 | |
02010811 | Groton CSD, NY GO 02 | |
02010814 | Edmeston CSD, NY GO 2002 | |
02010815 | Victor ESD, CA GO Series 2001 A | |
02010816 | West Haven (City of), CT GO Ref 2002 | |
02010819 | Anaheim City SD, CA GO 2002 | |
02010820 | Lyndonville CSD, NY GO 2002 | |
02010821 | Penn-Delco School District GO 2002 | |
02010822 | Bridgewater-Leonardsville CSD, NY GO 2002 | |
02010825 | Perth Amboy BOE, NJ GO | |
02010827 | Fullerton School District, CA GO 2002 | |
02010829 | Marcellus CSD, NY GO 99A | |
02010830 | Morton Road MUD, TX GO 2002 | |
02010831 | Bath Central School District, NY GO 2002 | |
02010832 | Scio Central School District, NY GO | |
02010833 | East Islip UFSD, NY GO | |
02010834 | Peru Central School District, NY GO 2002 A&B | |
02010836 | Chenango Forks CSD, NY GO 02 | |
02010837 | Canonsburg (Borough), PA GO 2002 | |
02010839 | Mojave USD SFID #1, GO ULT 2002 | |
02010840 | Ranch at Cypress Creek MUD No. 1, Texas GO Ser. 02 | |
02010841 | Plymouth (City of) MI, LT 2002 | |
02010842 | Burlington (City), Iowa GO 2002 | |
02010843 | Mars Area School Dist PA GO AB02 | |
02010844 | Morristown CSD, NY GO 2002 | |
02010845 | Trophy Club MUD |
-18-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02010846 | Jefferson CSD, NY GO 02 | |
02010847 | Massachusetts Commonwealth GO C 02 | |
02010848 | Windsor Central School District, NY GO 2002 | |
02010849 | Addison Central School District, NY GO 2002 | |
02010850 | Solanco Sch Dist, PA GO 2002 | |
02010851 | Huron County, Michigan GO 2002 | |
02010852 | Jamesville-Dewitt CSD, NY GO2002 | |
02010853 | Tinton Falls (Bororough), NJ GO 2002 | |
02010854 | Burbank Unified SD, CA GO 97C | |
02010855 | Evans-Brant CSD, NY GO Refg 2002A,B&C | |
02010856 | Franklinville CSD, NY GO 2002A&B | |
02010857 | Gloucester Twp BOE, NJ GO 2002 | |
02010860 | Springville-Griffith CSD NY GO Refg 2002 | |
02010861 | South Milwaukee SD,WI GO Ref 02 | |
02010862 | Fayetteville-Manlius CSD,NY | |
02010865 | Binghamton City SD, NY GO 2002 | |
02010866 | Greenwood CSD, NY 2002 GO | |
02010867 | Amityville Union SD, NY GO | |
02010868 | Whitestown, New York GO 2002 | |
02010869 | Westfield CSD, NY GO 2002A&B | |
02010870 | Forestville CSD, NY GO 99 | |
02010872 | Plumsted BOE NJ GO, dated June 15, 2002 | |
02010873 | Livonia Central School District, NY GO 2002 | |
02010874 | Red Oak, TX GO Ltd Tax 2002 | |
02010875 | Franklin Twp. (Gloucester Cnty), NJ | |
02010876 | Charlotte Valley CSD, NY 2002A&B GO | |
02010877 | Contra Costa CCD, CA GO 2002 | |
02010878 | EAST WILLISTON UFSD, NY GO 2002 | |
02010879 | Forest Hill, Texas GO 2002 | |
02010880 | Amsterdam Enlarged City SD, NY GO 2002 | |
02010881 | Bastrop County, Texas GO 2002 | |
02010882 | Georgetown-South Otselic Valley CSD GO 2002 | |
02010884 | Hesston Unified SD No. 460, KS | |
02010885 | Butler County, PA GO 02 FWD | |
02010886 | Central Square CSD, NY GO A&B | |
02010887 | La Mesa-Spring Valley SD, CA | |
02010889 | Schenectady City SD, NY GO 02 | |
02010890 | Honeoye CSD, NY GO 02 | |
02010891 | Johnstown City SD, NY GO 2002 | |
02010892 | Jordan-Elbridge CSD, NY GO | |
02010893 | Oklahoma City, Oklahoma GO 2002 | |
02010894 | Potsdam Central School District, NY GO 2002 | |
02010896 | Waubun-Ogema-White Earth ISD #435, MN GO 2002 | |
02010897 | East Peoria, IL GO Alternate Rev 2002A | |
02010898 | Kaneland CUSD #302 IL (Kane/Dekalb) GO 2002 | |
02010901 | Bridgeport, Connecticut GO 2002 | |
02010903 | Lakeville ISD #194, MN GO 2002 B | |
02010904 | Middle Twp BOE, NJ GO 2002 | |
02010905 | Williamson CSD, NY GO Refg 2002A&B | |
02010906 | Osseo-Fairchild SD, WI GO 2002 | |
02010908 | Washington Township BOE, NJ GO | |
02010911 | Charleroi Area SD, PA GO 02 | |
02010912 | Oakfield-Alabama CSD, NY GO 2002 | |
02010913 | Greenburgh CSD #7, NY GO 2002 | |
02010914 | Fulton City SD, NY GO 2002 |
Policy Id |
Policy |
|
02010915 | Fort Bend Co MUD 119 Ult GO 2002 | |
02010916 | Wheatland-Chili Central SD, NY GO 2002 | |
02010919 | Avon Central SD, NY GO 2002 | |
02010921 | West Irondequoit Central School District, NY 2002 | |
02010927 | Trumansburg CSD, NY GO 02A&B | |
02010929 | Canastota CSD, NY GO 02 | |
02010931 | Bainbridge-Guilford CSD, NY GO Refg 2002A&B | |
02010933 | Gurnee (Village), IL GO 2002 | |
02010935 | Darke County, OH GO 2002 | |
02010936 | Cabrillo Comm Coll Dist, CA 2002 | |
02010937 | Washington (City), PA GO 02AB | |
02010938 | Morris CSD, NY GO Ref 2002 | |
02010939 | Clinton Central SD, NY GO 2002 | |
02010940 | Redwood City SD, CA GO 2002 | |
02010942 | San Mateo Union HSD,CA GO 02B | |
02010944 | Watertown (City), WI GO 2002 | |
02010949 | Stillwater Central SD,NY GO 02 | |
02010950 | Essex County Improvement Auth, NJ (Cogen Fac GO) | |
02010951 | Johnsburg CSD, NY 2002 | |
02010953 | Aromas-San Juan USD, CA GO 2002A | |
02010954 | Montgomery Village, IL Alt Rev GO 2002 | |
02010955 | Alexandria Twp BOE, NJ GO, dated July 15, 2002 | |
02010956 | Merrick UFSD, NY GO 2002 | |
02010957 | Gouverneur CSD, NY GO Refg 2002 | |
02010958 | Hudson City SD, NY GO 2002 | |
02010959 | Letchworth CSD, NY GO 2002 | |
02010960 | Menomonee Falls, WI GO Notes 2002D | |
02010961 | Winona County, MN GO 2002 | |
02010962 | Paxton, IL GO Alt. Rev., 2002 | |
02010963 | Wilson County, TN GO ULT School Refg 2002 | |
02010964 | Wilson County, TN GO ULT Rural School Refg 2002 | |
02010967 | Hurst, TX COO GO Ltd Tax 2002 | |
02010968 | Bordentown Reg SD, NJ GO, dated July 15, 2002 | |
02010970 | Avalon (Borough of), NJ GO 2002 | |
02010971 | City-County of Butte-Silver Bow, MT 02 | |
02010972 | Mauston SD, WI GO 2002 | |
02010973 | INDIANOLA COMMUNITY SD,IA GO Refunding Bonds | |
02010974 | Salem CSD, NY GO 2002 | |
02010975 | Lumberton MUD GO ULT 2002 | |
02010978 | Penn-Delco School District GO 2002A | |
02010979 | Paramus (Boro of), NJ GO 2002 | |
02010980 | Lockport City SD, NY GO 2002 | |
02010981 | Argyle CSD, NY GO 2002 | |
02010982 | West Ottawa PS, MI GO 2002 AB | |
02010983 | North Harris Montgomery CCD, TX GOLT 2002 Bd/Ref | |
02010986 | Dickson Co, Tn | |
02010987 | Maize Unified SD #266 (Sedgewick Co), KS GO 2002 | |
02010988 | Coronado USD, CA GO 2002B (Election 1998) | |
02010989 | North Brunswick TWP BOE, NJ GO dated July 15, 2002 | |
02010991 | Mullica Twp BOE, NJ GO dated July 15, 2002 | |
02010992 | St. Charles Park District, IL GO 02A | |
02010995 | Livingston, Tennessee GO 2002 | |
02010996 | Taconic Hills CSD, NY GO 2002 | |
02010997 | Marion Central SD, NY GO Refg 2002 | |
02010999 | LA PORTE, TEXAS GO 02 |
-19-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02011000 | Sauk Centre, MN GO 02A | |
02011001 | Sauk Centre, MN GO 02B | |
02011002 | Auburn City SD, NY GO 2002ABCD | |
02011003 | Granville CSD, NY GO 2002 | |
02011004 | Southern Lehigh SD, PA GO 2002A | |
02011006 | Mount Morris CSD, NY GO 2002 | |
02011007 | Stratford (Town of), CT GO 2002 | |
02011008 | Marshall SD, WI | |
02011011 | Olean City SD, NY GO 2002 | |
02011013 | Big Lake, MN GO 2002 | |
02011014 | Island Trees UFSD, NY GO 2002 | |
02011015 | Cumberland County, NJ GO 200 | |
02011018 | Ocean Shores, WA GO 02 | |
02011019 | Muhlenberg School District, PA GO 2002A | |
02011020 | Homer SD #13 (Clairborne Prsh), LA GO 2002 | |
02011021 | Tehachapi Unified SD, CA GO 2002C | |
02011022 | West Babylon USFD, NY GO 2002 | |
02011024 | Washoe County SD, NV GO 2002B | |
02011026 | Rocklin USD, CA GO 2002 | |
02011028 | King Cnty Rural Lib Dist, WA UTGO 02 | |
02011029 | Hinsdale CSD, New York GO 2002 | |
02011030 | Meriden (City of), CT GO Taxable 02 | |
02011032 | Kings Canyon JUSD, CA GO 2002 | |
02011033 | Clear Brook City MUD, TX GO ULT 2002 | |
02011034 | Granville CSD, NY GO 2002 | |
02011036 | Onalaska, WI GO Rfdg 2002 | |
02011037 | St. Joseph, MN GO 2002 | |
02011038 | Readington (Twsp of) NJ GO 02 | |
02011039 | Central UHSD CA GO Rfg 2002 | |
02011040 | Panhandle, Texas GO 2002 | |
02011041 | Willard Pub Library, MI LTGO 2002 | |
02011042 | Gorham-Middlesex CSD, NY 02 | |
02011043 | Antietam School District, PA GO 2002AA | |
02011047 | Harrisville CSD, NY GO 2002 | |
02011048 | Saginaw City SD, MI LTGO 2002 | |
02011049 | Harris Cnty MUD #196, TX GO 2002 | |
02011050 | Oneida City SD, NY GO 02 | |
02011051 | East Irondequoit CSD, NY GO 2002ABCDE | |
02011052 | Sienna Plantation MUD #2, TX 02 | |
02011056 | Ashtabula Area CSD, OH GO ULT 2002 | |
02011057 | Lowville CSD, NY GO 2002 | |
02011058 | Keystone Oaks SD, PA GO 2002 | |
02011059 | Avoca CSD, NY GO 2002 | |
02011060 | Lighthouse Point (City), FL GO 2002 | |
02011061 | Washington State GO Series 2003A & 2003T | |
02011064 | Akron-Summit Co. Pub Lib, OH 02 | |
02011066 | Churchville-Chili CSD, NY GO 2002 | |
02011067 | Leesville SD#16 of Vernon Parish, LA GO 02 | |
02011068 | Hudson Falls Central SD, NY GO Rfdg 02 | |
02011069 | Watervliet City SD, NY 2002A | |
02011070 | New Jersey (State of) GO 02 | |
02011071 | Hidalgo County, Texas GO 2002 | |
02011073 | Temple (City of), TX LTX GO 2002 | |
02011074 | Ridgefield, NJ GO 02 | |
02011075 | Pequea Valley SD, PA GO 2002 |
Policy Id |
Policy |
|
02011076 | Huntingdon ASD, PA GO 2002 | |
02011077 | Ovilla, TX, LT Series 2002 | |
02011078 | Giles County, Tennessee GO 2002 | |
02011079 | South Barrington Park District, IL | |
02011086 | Wheelerville UFSD, NY | |
02011087 | Cambridge CSD, NY GO Refg 2002 | |
02011088 | Kendall CSD, NY GO 2002 | |
02011089 | Fayette (County of), PA GO | |
02011091 | North Washington Fire Prot Dist, CO GO 2002 | |
02011092 | Kane County, IL GO Alt Rev 2002 | |
02011094 | Palmer (Township), PA GO 2002 | |
02011095 | South Milwaukee SD,WI GO Ref 2002B | |
02011096 | Addison (Village of), IL GO Ref 02 | |
02011097 | Babylon Union Free SD, NY 2002 | |
02011101 | Festus Reorg. SD R-6, MO GO 02 | |
02011102 | Fillmore CSD, New York GO 2002 | |
02011103 | Albany County, NY GO ULT Refg 2002 | |
02011106 | Starpoint Central School District, NY GO 2002 | |
02011107 | Cinco MUD No. 1, Texas Contract Revs 2002 | |
02011108 | Holley Central SD, NY GO Refg 2002 | |
02011109 | Harris Co. MUD # 71, TX GO 2002 | |
02011110 | Woodlands Metro Center MUD, TX 2002 | |
02011111 | Lansing (Village of), IL GO 02 Ser.A | |
02011112 | Swedesboro-Woolwich SD, NJ 02 | |
02011113 | Bellaire (City of), TX GO LTX 2002A | |
02011115 | Homewood (Village of) IL GO 02 | |
02011119 | Elizabeth Forward School District, PA GO 2002 | |
02011121 | Fairfield Area SD, PA 2002 | |
02011123 | Ambridge (Borough of), PA GO 2002 | |
02011124 | Morrow (Cnty), OH Ltd Tx | |
02011125 | Lufkin, Texas GO Ltd Tx 2002 | |
02011126 | Montgomery Cnty MUD #46, TX GO2002 | |
02011127 | Pittsburgh SD, PA GO 2002 | |
02011128 | Dolton SD #148(Cook)IL GO LT 2002 | |
02011129 | San Diego USD, CA GO 02 | |
02011132 | Monmouth Reg HSD NJ | |
02011134 | Delaware (City of) Ohio Var Purp 2002 | |
02011135 | Boston, Massachusetts GO 2002B | |
02011137 | East Allegheny SD, PA GO 2002 | |
02011138 | Somerset (Boro of) Muni Auth, PA Swr Rev Ref, 2002 | |
02011139 | Harris Cnty MUD #152, TX GO 02 | |
02011141 | Normal CUSD #5, IL GO 2002 | |
02011142 | Butler (Borough), NJ G.O. Bonds 2002 | |
02011143 | Loyalsock Township SD, PA GO 2002 | |
02011144 | Twinsburg (City of), OH LMTX GO 2002 | |
02011145 | East Bloomfield CSD, NY GO 02 | |
02011148 | Horsepen Bayou MUD, TX GO ULT Refg 2002 | |
02011149 | Kingsport (City), TN GO Ref 2002A | |
02011153 | Paris (City), TX LTX GO 2002 | |
02011154 | Saucon Valley SD, PA GO Refg 2002 | |
02011155 | Ellington (Town of), CT GO 2002 | |
02011156 | Sisters School District #6, OR GO 2002 | |
02011160 | Montebello USD, CA GO Elec. of 1998, Series 2002 | |
02011161 | Arcadia SD, WI GO Ref, dated September 1, 2002 | |
02011162 | Northfield (City of), NJ GO 2002 |
-20-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02011163 | Glenwood CSD IA GO | |
02011164 | Indiana Bond Bank Taxable Severance Funding, Ser 2 | |
02011165 | Yuba City USD SFID #99-1,CA GO 2002 | |
02011166 | Littlestown Borough, PA GO 2002 | |
02011168 | Pendergast Elem SD #92, AZ GO 02 B | |
02011169 | Bloomfield Twp BOE, NJ GO 02 | |
02011170 | Rowlett (City), Texas GOLT 2002 | |
02011175 | Greater Johnstown SD, PA GO 2002 | |
02011176 | Monroe County, PA GO Notes Series A of 02 | |
02011177 | Houston (City), Texas GO LTX 2002A | |
02011179 | Saugerties CSD, NY GO Ref 2002 | |
02011181 | South Lewis CSD, NY GO 2002AB | |
02011182 | Harris Co FWSD #51, TX GO 2002 | |
02011183 | Adams County, PA GO Refg 2002 | |
02011184 | Montgomery Cnty MUD #60, TX GO 2002 | |
02011186 | Corry Area SD, PA GO Ser 2002 | |
02011190 | Mitchell Co Pub Bldg Comm, KS (Mchll. Co Hos. Prj) | |
02011191 | Mesa (City), Arizona GO 2002A | |
02011192 | Sch Dist of the City of River Rouge, MI GO 2002 | |
02011193 | Middlesex County IA (No. Brunswick) NJ GO 2002 | |
02011195 | Arnold (City), PA GO 2002 | |
02011197 | Chippewa County, WI GO Ref, dtd 9/15/02 | |
02011198 | Saugus USD, CA GO ULT 2002A | |
02011199 | Rondout Valley CSD, NY GO 2002 | |
02011201 | Monroe Twp BOE, NJ (Middlesex) 2002 | |
02011202 | Colleton County, SC GO 2002B | |
02011203 | Riverhead Central SD, NY GO 2002 | |
02011204 | Jackson County Bldg Auth. LTGO , MI | |
02011205 | Willow Springs, IL GO ULT Alt Rev 2002A | |
02011206 | Willow Springs, IL GO LTX 2002B | |
02011207 | Erie County, NY GO 2002 A&B | |
02011208 | Tuscola Cnty Sanitary Sewer Sys Ref LTGO, MI, 2002 | |
02011209 | Big Beaver Falls ASD PA GO Ref 2002 A | |
02011210 | Fort Bend County MUD #1 GO, 2002 | |
02011212 | Chilton SD, WI GO | |
02011215 | Memorial MUD, TX GO ULT 2002 | |
02011216 | Weymouth (Town), MA GO 2002 | |
02011217 | Cleveland Hill UFSD, NY GO Ref 2002 A & B | |
02011218 | Clifton-Fine CSD, NY GO Ref 2002 | |
02011219 | Union Springs CSD, NY GO Ref 2002 | |
02011220 | Martin (City of), TN GO Pub Imp Ref, 2002 | |
02011222 | Nanty-Glo Sanitary Sewer Auth, PA Gtd Swr Rev 02 | |
02011223 | Urbandale (City), IA GO 2002 | |
02011224 | Middletown Bd. of Ed., NJ 2002 | |
02011225 | Greater Latrobe School Dist Auth, PA GO Ref 2002AB | |
02011227 | Webb County, TX GOLT 2002 | |
02011231 | Bastrop (City of), TX GO 2002 | |
02011232 | San Francisco, California GO IMP 2002 | |
02011233 | Edgerton LSD, OH GO 2002 | |
02011234 | Cohoes (City of), NY GO 2002 | |
02011235 | Johnston (City), IA GO 2002B | |
02011236 | Brazoria County MUD #3, TX 2002 | |
02011237 | Patchogue-Medford USD, NY GO 2002 | |
02011238 | Van Hornesville-Owen D. Young CSD, NY GO Ref 02 | |
02011239 | West Allegheny SD, PA GO 2002D |
Policy Id |
Policy |
|
02011240 | Derry Area School District, PA GO Ref C 02 | |
02011241 | Patrick Henry LSD, OH GO 2002 | |
02011242 | Rowlett (City), Texas GOLT COB - 2002 | |
02011245 | Chichester SD, PA GO 2002 | |
02011248 | Jefferson Twp Bd of Educ, NJ GO 2002 | |
02011249 | Chambersburg (Borough of), PA GO 2002 | |
02011250 | Bismarck Public SD #1, ND GO 2002 Series B | |
02011252 | Dodge City USD #443, KS GO Ref 2002 | |
02011253 | Bridgeview (Village of), IL GO Ref 2002 | |
02011254 | Ellwood City Area SD, PA GO 2002 | |
02011255 | West Marshall CSD, IA GO Ref 2002 | |
02011256 | Oswego USD No. 504, KS GO Ref, 2002 | |
02011257 | Greencastle-Antrim SD, PA GO 2002 | |
02011258 | West Harris Co MUD #10, TX GO 2002B | |
02011259 | Lebanon (Town of), VA GO 2002ABC | |
02011260 | Oppenheim-Ephratah CSD,NY GO Ref 2002 | |
02011261 | Fort Lupton Fire Protection Dist, CO GO 2002 | |
02011262 | Albany County, NY GO Refg 2002B | |
02011263 | Lancaster (City of), TX GO LTX Ref, 2002 | |
02011264 | Newport, KY GO | |
02011265 | Las Virgenes USD, CA GO 1997 Election, Ser D 02 | |
02011266 | Huntington (Town), NY GO 2002 | |
02011268 | Lyons (Village), IL GO Alt Rev Series 2002 | |
02011269 | Sevierville, Tennessee GO 02 | |
02011270 | Dallas Center-Grimes CSD, IA GO dtd 11/01/02 | |
02011271 | Towanda Area School District, PA GO 2002 | |
02011272 | Panama Central SD, NY GO Ref 2002 | |
02011273 | Millcreek Township SD, PA GO 2002AB | |
02011274 | Fort Bend MUD #68, TX GO Ref 2002 | |
02011275 | West Mifflin ASD, PA GO 2002A&B | |
02011276 | Bensalem (Township) SD, PA GO 2002 | |
02011277 | Oconomowoc (City of), WI GO Ref 2002 | |
02011278 | Waco (City), TX GOLT Ref 2002 | |
02011280 | East Lampeter (Township), PA GO, 2002 | |
02011281 | Foothill-De Anza CCD, CA GO Ref 2002 | |
02011283 | Newburgh City SD, NY GO Ref 2002 | |
02011284 | Galena Park (City of), TX GO Ref & COO, 2002 | |
02011286 | Pasadena (City), TX GOLT 2002 | |
02011287 | Cinco MUD No. 9, TX GO Ref, 2002 | |
02011288 | West Harris MUD #11, TX GO 2002 | |
02011290 | Alsip (Village), IL GO 2002 & Taxable 2002B | |
02011291 | Chilton SD, WI GO 2002B | |
02011292 | Clovis USD, CA GO Election of 2001, Series B | |
02011293 | Bradford CSD, NY Ref GO 2002 | |
02011294 | Walton Central SD, NY GO 2002 | |
02011296 | Glen Rock Boro BOE, NJ GO 2002 | |
02011297 | Smoky Valley (McPherson Cty) USD#400, KS GO Ref 02 | |
02011298 | Johnston County, NC GO 2002A | |
02011299 | Clinton Central SD, NY GO 2002 | |
02011300 | Dauphin County, PA GO 2002A | |
02011301 | Addison (Town), TX GO LTX 2002 | |
02011302 | Cleveland Municipal SD, OH 2002 Rfd | |
02011303 | Ambridge ASD PA GO C 02 | |
02011304 | Byron-Bergen CSD, NY GO 02 | |
02011306 | Brockway Area SD, PA GO 2002 |
-21-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02011307 | Atlantic City Bd Of Ed, NJ GO 02 | |
02011308 | Queen Creek USD #95 AZ GO Ref 2002 | |
02011309 | Oregon School Bd Assoc Limited Tax Pension Ser 02 | |
02011311 | Evergreen Local SD, OH GO 2002 | |
02011313 | Edison (Township) BOE, NJ GO 2002 | |
02011314 | Emerald Isle (Town), NC GO 2002 | |
02011315 | Anoka (City of), MN GO 02A | |
02011316 | Phelps-Clinton Springs CSD, NY GO Ref 2002 | |
02011319 | Northampton Township, PA GO 2002 | |
02011320 | Johnson City CSD, NY GO Ref 2002 | |
02011322 | Westby Area SD, WI GO Ref 2002 | |
02011323 | Venango (County of), PA GO 2002 | |
02011324 | Warren County SD, PA GO 2002 | |
02011325 | Tuslaw Local SD, OH GO 2002 | |
02011326 | Union City ASD, PA GO 2002 | |
02011327 | Montgomery Cnty MUD #46, TX Refunding Bds 2002 | |
02011328 | Tuxedo UFSD, NY GO 2002 | |
02011329 | Ladysmith-Hawkins SD, WI GO Ref dated 10/1/02 | |
02011330 | Plover (Village), WI GO Ref 2002 | |
02011331 | Racine (City), WI GO 2002 | |
02011333 | North Allegheny SD, PA GO 02 | |
02011336 | Brookville ASD, PA GO 2002A | |
02011338 | Stroudsburg ASD, PA GO 2002 | |
02011339 | Upper Adams SD PA GO 2002 | |
02011340 | Blacksburg (Town of), VA GO 2002 | |
02011343 | Rahway (City) Redev Agy, NJ GO 2002 | |
02011344 | Otsego County, NY GO Ref 2002 | |
02011345 | Galveston Cnty. MUD#3, TX Rfd. 2002 | |
02011346 | Calcasieu Parish SD No. 34, LA GO Pub Imp 2002AB | |
02011347 | Mid Valley Metro Dist, CO GO Ref & Imp 2002 | |
02011350 | Borger (City of), TX GOLT 2002 | |
02011351 | South Eastern SD, PA GO Series A of 2002 | |
02011352 | Powell (City of), OH GO Var Purp, 2002 | |
02011354 | McKinney (City of), Texas GO 2002 | |
02011355 | Fleetwood Area School District, PA GO 2002 | |
02011363 | Catasauqua Area SD, PA GO 2002 | |
02011365 | Ford Heights SD No. 169, IL GO LT 2002AC | |
02011367 | Hamburg CSD, NY GO Ref 2002 | |
02011368 | Montgomery County MUD No. 67, TX Ref 2002 | |
02011371 | Bethel (Town of), CT GO 2002 | |
02011372 | Cass Lake-Bena ISD #115, MN GO 02B | |
02011373 | Hamilton County, TN GO Ref 2002 | |
02011374 | Oakland, CA GO 2002 | |
02011375 | West Liberty CSD, IA GO dtd 12/1/02 | |
02011377 | Northwest Harris Co MUD #30, TX GO 2002 | |
02011380 | Santa Ana USD, CA GO Ser 2002B | |
02011381 | Downington ASD, PA GO 2002A | |
02011382 | Ford Heights SD No. 169, IL GO LT 2002 B | |
02011383 | Pasco, WA GOULT Rfd. 2002 | |
02011384 | Pickerington Local SD, OH Ref GO 02 | |
02011387 | Perris Union HSD, CA GO 1999 Elec., Ser. B | |
02011388 | Rhode Island (State) GO 2002B | |
02011390 | Snyder County, PA GO 2002AB | |
02011391 | Franklin County, PA GO 2002 | |
02011392 | Elmira City SD, NY GO 2002 |
Policy Id |
Policy |
|
02011395 | Milford (City of), CT GO 2002 | |
02011399 | Chestnut Ridge SD, PA GO 2002 | |
02011402 | Rosemont (Village of), IL GO ULT 2002A&B | |
02011403 | Trotwood-Madison City SD, OH GO ULT 2002 | |
02011404 | Grundy Co., IL GO Ref 02 | |
02011405 | Louisville (City of), KY GO 2002B (Taxable) | |
02011406 | Louisville (City of), KY GO 2002A | |
02011408 | Mcminnville (City of), TN GO 2002 | |
02011409 | Camden County Imp. Auth, NJ GO 2002B | |
02011410 | Orland Park Village, IL GO 2002A | |
02011412 | Brandywine Heights ASD, PA GO 02 (DVRFA) | |
02011414 | Mississippi (State of) GO 2002 (4 series) | |
02011415 | Western Twps Utils Auth, MI LTGO 2002 | |
02011416 | Harrison Twp BOE, NJ GO Ref 2002 | |
02011418 | Green Tree (Boro), PA GO 2002 | |
02011419 | Keller (City of), TX GO Ref Ltd 02 | |
02011421 | Fort Bend Co MUD No. 41 TX GO ULT 2002 | |
02011423 | Ypsilanti Community UA, Mi Twn LMTX GO 02 | |
02011424 | Pattonville R-3 SD, MO GO Ref 2002 | |
02011428 | Port Chester (Village), NY GO 2002 A | |
02011429 | Sanibel (City of), FL GO 2002 | |
02011430 | Rose Tree Media SD, PA GO 2002 | |
02011431 | Brookhaven (Town of), NY GO 2002A | |
02011432 | Brookhaven (Town of), NY GO 2002B | |
02011434 | Lancaster County, PA GO 2002AB | |
02011435 | New Paltz CSD NY GO 02 | |
02011436 | Freeborn County, MN GO 02 | |
02011437 | Freeborn County, MN GO lse 02 | |
02011438 | Kenosha USD No. 1, WI GO Ref 2002 | |
02011439 | Batavia CSD, NY GO Ref 2002 | |
02011440 | Angleton-Danbury Hospital Dist, LT TX 2002 | |
02011441 | Hamburg CSD, NY GO Ref 2002 | |
02011442 | Las Vegas, NV Taxable LTGO 2002 | |
02011445 | Oil City (City of), PA GO 2002 | |
02011447 | Rye Neck UFSD NY GO 2002 | |
02011449 | Ballston Spa CSD, NY GO Ref 2002ABC | |
02011453 | New Britain (City of), CT GO Ref 2002 | |
02011454 | Webb County, TX GOLT Ref 2002 | |
02011455 | North Clarion County SD,PA GO 02 | |
02011456 | Avon Grove SD, PA GO 2002AAA | |
02011457 | Winslow Township, NJ GO 2002 | |
02011460 | Highlands Sch Dist, PA GO 2002 A&B | |
02011461 | Oak Creek (City), WI GO Ref 2002 (CABs) | |
02011462 | Firebaugh-Las Deltas USD, CA GO ULT 2002 | |
02011463 | Clinton (Township), MI GO 02 | |
02011465 | Fort Lauderdale, FL GO Ref 02 | |
02011466 | Davenport (City of), IA GO 2002 A | |
02011467 | Cicero (Town of), IL GO Ref 2002 | |
02011468 | Ceres USD, CA GO (Elec 2001) 2002B | |
02011469 | Archbold ALSD, OH GO ULT Ref 2002 | |
02011472 | West Jefferson Hills SD, PA GO 2002A | |
02011473 | Douglas (Town of), MA GO ULT | |
02011475 | Cranbury (Township of), NJ GO Imp 02 | |
02011476 | Redford Township Dist Lib, MI GO ULT 2002 | |
02011480 | Erie County, Ohio GO LT Series 2002 |
-22-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02011481 | Massachusetts Commonwealth GO E 02 | |
02011482 | Block House Municipal Utility District, TX GO 2002 | |
02011483 | Penns Manor ASD, PA GO 2002 | |
02011484 | Moreland SD, CA GO Ref 2002 | |
02011485 | Beaver Area SD, PA GO 2002 | |
02011486 | Northwest Harris County MUD #5, TX GO ULT 2002 | |
02011488 | Kingsport, TN W&S (GO) 2002 | |
02011489 | York City SD, PA GO 2002 | |
02011492 | Skippack Township (PA) GO Bonds Series 2002 | |
02011493 | New Berlin, WI Library GO 2002 | |
02011494 | Lewis Co Pub Hosp #1 (Morton), WA Ult GO 02 | |
02011495 | Aztec Municipal SD #2, NM GO 02 | |
02011496 | Upsala Area ISD #487, MN GO 02 | |
02011497 | Superior (City), WI GO 2002AB | |
02011498 | Campbell-Savona CSD, NY GO 02 | |
02011499 | Montgomery County, NY GO 2002 | |
02011501 | Winnebago & Boone Cnty CCSD#131, IL GOULT 2002 | |
02011502 | Washington State GO Ref Series R-2003B | |
02011503 | Newark Central SD, NY GO Ref 2002 | |
02011504 | Thomas Corners Fire District No. 7, NY GO 2002 | |
02011505 | Long Branch, NJ Sew Auth Rev and Rev Ref 2002 | |
02011506 | Santa Cruz Valley USD #35, AZ GO Ref 2002 | |
02011507 | Gananda CSD, NY GO Ref 2002 | |
02011510 | Oswego Comm Unit SD No. 308, IL GO 02B | |
02011511 | Bethel SD #403, WA GO 2002 | |
02011512 | Bedford (City) Ohio GOLT 2002-2 | |
02011513 | Belleville SD #118, IL GO 2002ABC | |
02011514 | Jackson County, Oregon GO Series 2002 | |
02011515 | Argenta-Oreana CUSD Number 1, IL GO 2002 | |
02011517 | Kenosha USD No. 1, WI GO 2002C | |
02011519 | David Douglas SD No. 40, OR GO Ref 2002 | |
02011520 | Alexander CSD, NY GO Ref 2002 | |
02011522 | Elsinore Valley MWD Imp Dist #U-2 GO, CA | |
02011523 | Central PA Inst of Sci & Tech (SPSBA), PA Rev 2002 | |
02011524 | Northampton Area SD, PA GO 2002 | |
02011526 | Plainville, CT GO 2002 | |
02011528 | Shoreline SD #412, WA GO 2002 | |
02011530 | Arapahoe Park and Rec Dist, CO GO 2002 | |
02011531 | Jasper-Troupsburg CSD, NY GO Ref 2002 | |
02011532 | Washington Boro BOE, NJ GO 2002 | |
02011533 | Fairport (Village of), NY GO 2002 | |
02011534 | Hazelwood SD, MO GO Ref 2002 | |
02011535 | Northampton Area SD, PA GO Ref 2002 | |
02011536 | Kyrene ESD #28, AZ GO Ref 2002 | |
02011537 | Calcasieu Parish SD No. 22, LA GO Ref 2002 | |
02011538 | Ravena-Coeymans-Selkirk CSD, NY GO 2002 | |
02011540 | Reynolds SD, PA GO 2002 | |
02011541 | Lincoln (County of), NC GO 2002A | |
02011543 | Liberty Union-Thurston LSD, OH GO ULT 2002 | |
02011544 | Oswego Comm Unit SD No. 308, IL GO 02C | |
02011546 | Westside Union School District, CA GO 2002A | |
02011547 | Lake Cnty SD#73 (Hawthorne), IL GO 2002 | |
02011548 | Southern Kern Unified SD, CA GO Bonds Series 2002A | |
02011549 | Livingston (City of), TX GO&COO 2002AB | |
02011550 | Morristown (Town), NJ GO RFD 2002 |
Policy Id |
Policy |
|
02011551 | Suffern (Village) NY GO | |
02011552 | Dinuba Unified SD, CA GO Bonds Series 2002A | |
02011553 | Delaware (City of) Ohio Swr Imp & Refund 2002 | |
02011555 | Brenham (City of), TX GOLT 2002 | |
02011556 | Richland County SD #2, SC GO Ref 2002B | |
02011557 | Dudley (Town), MA GO 2002 | |
02011558 | Franklin County, WA GO ULT 2002 | |
02011559 | Kendall County, IL GO ARS 2002AB | |
02011560 | Cocalico SD, PA GO Series B 2002 | |
02011561 | Wilson Area SD, PA GO 02 | |
02011564 | Huerfano SD RE-1 (Walsenburg), CO GO 2002 | |
02011565 | Petaluma Joint UHSD,CA GO Ref 2002 | |
02011566 | Bermudian Springs SD, PA GO 02 | |
02011567 | Fort Bend Co Levee Imp Dist #10, TX GO ULT 02A | |
02011568 | Hinsdale CCSD #181, IL GO 2002 | |
02011569 | Rutherford Bd of Ed, NJ GO Sch 2002 | |
02011571 | Mount Laurel Twp BOE, NJ GO Tax Ref 2002 | |
02011574 | Kinnelon Boro BOE, NJ GO 2002 | |
02011575 | Sayville UFSD, NY GO 2002D | |
02011577 | Pueblo SD No. 60, CO GO 02 | |
02011579 | Kern CCD, Fac Imp Dist, CA GO02 | |
02011580 | Ewing Township BOE, NJ GO Ref 2002 | |
02011587 | Matawan-Aberdeen Reg SD, NJ 2002 | |
02011590 | East Peoria (City), IL (Tazewell) GO Ref 2002B&C | |
02011591 | Chester Twp., NJ GO 2002 | |
02011592 | Vallejo City USD, CA GO 2002 | |
02011593 | Cudahy (City), WI GO 2002 | |
02011594 | Wabaunsee Cnty USD No. 330, KS GO 02 | |
02011595 | Lake Zurich (Village of), IL GO 02 | |
02011596 | Lake Zurich (Village of), IL GO 02A | |
02011598 | Barron County, Wisconsin GO 2002 | |
02011599 | North St. Paul (City). MN GO | |
02020003 | CALIFORNIA STATE GO 91 | |
02020010 | New York City, NY GO 2002 B | |
02020011 | New York City, NY GO Fiscal 2002 A9 & A11 | |
02020012 | New York City, NY GO Fiscal 2002 A9 & A11 | |
02020017 | New York City, NY GO 2002 B | |
02020018 | California State GO 2001 | |
02020024 | New York City, NY GO 2002 B | |
02020038 | California State GO 3-1-01 | |
02020040 | California State GO 3-1-01 | |
02020042 | California State GO 3-1-01 | |
02020043 | California State GO 2002 | |
02020049 | NEW YORK CITY, NY GO 97A | |
02020051 | New York City, NY GO 01DEF | |
02020062 | New York City, NY GO 2002C | |
02020116 | Massachusetts Commonwealth GO 2001D | |
02020117 | Massachusetts Commonwealth GO 2001D | |
02020118 | Union County, NJ GO 2002 | |
02020119 | Union County, NJ GO 2002 | |
02020121 | Massachusetts Commonwealth GO 2001D | |
02020138 | NEW YORK CITY, NY GO 97H | |
02020141 | Connecticut State GO 2002B&C | |
02020155 | New York City,NY GO Series F&G | |
02020156 | Massachusetts Commonwealth GO C 02 |
-23-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
02020172 | Massachusetts Commonwealth GO C 02 | |
02020181 | Massachusetts Commonwealth GO 2001D | |
02020182 | Massachusetts Comnwelth GO 01A | |
02020183 | Bowling Green, KY GO & Spec Rev 2002B & 2002C | |
02020189 | New York City, NY GO 2003 A & B | |
02020190 | New York City, NY GO 2003 A & B | |
02020191 | New York City, NY GO 2003 A & B | |
02020192 | New York City, NY GO 2003 A & B | |
02020193 | New York City, NY GO 2003 A & B | |
02020194 | New York City, NY GO 2003 A & B | |
02020195 | New York City, NY GO 2003 A & B | |
02020196 | New York City, NY GO 2003 A & B | |
02020197 | New York City, NY GO 2003 A & B | |
02020198 | New York City, NY GO 2003 A & B | |
02020199 | New York City, NY GO 2003 A & B | |
02020200 | New York City, NY GO 2003 A & B | |
02020202 | New York City, NY GO 2003 A & B | |
02020203 | New York City, NY GO 2003 A & B | |
02020204 | New York City, NY GO 2003 A & B | |
02020205 | New York City, NY GO 2003 A & B | |
02020207 | New York City, NY GO 2003 A & B | |
02020209 | New York City, NY GO 2003 A & B | |
02020213 | New York City, NY GO 2003 A & B | |
02020214 | Union County, NJ GO 2002 | |
02020218 | Massachusetts Commonwealth GO D 02 | |
02020219 | Massachusetts Commonwealth GO D 02 | |
02020220 | Massachusetts Commonwealth GO D 02 | |
02020221 | Massachusetts Commonwealth GO D 02 | |
02020222 | Washington St GO & Lease 98C | |
02020228 | New York City,NY GO Series F&G | |
02020229 | CALIFORNIA STATE GO 12-1-98 | |
02020232 | CALIFORNIA STATE GO 10-1-97 | |
02020234 | Medina (City of), OH Go Ltd Tax 01 | |
02020236 | California State GO dated 10/3/02 | |
02020238 | California State GO dated 10/1/02 | |
02020239 | Massachusetts Commonwealth GO C 02 | |
02020240 | Prince Georges Cnty, MD GO 2002 | |
02020241 | Massachusetts Commonwealth GO C 02 | |
02020258 | WEST VIRGINIA STATE GO 99B | |
02020262 | NEW JERSEY STATE, GO SER D REF | |
03010004 | Hampton Township, PA GO 2003 C | |
03010011 | East Stroudsburg ASD, PA GO 2003 | |
03010012 | Columbia Borough School District, PA GO 2002 | |
03010013 | Sulphur Parks&Recreation (LA) GO Pub Imp.Bds 2003 | |
03010014 | Lancaster SD, PA GO 2003 | |
03010015 | Long Branch, NJ Sewerage Auth Series B | |
03010016 | Dover ASD, PA GO Ser 2003 | |
03010023 | Shelton SD #309, WA GO ULT 2003 | |
03010024 | Sheboygan ASD, WI GO Ref dtd Jan. 15, 03 | |
03010025 | Arapahoe Cnty SD No. 6 (Littleton), CO GO 2002 | |
03010026 | South Lyon Com Schs, MI GO 03 | |
03010028 | Ascension Parish SD, LA GO Ref 2003 | |
03010031 | Montgomery County, NY GO 2002AB | |
03010035 | Streator Twp HSD #40 (LaSalle Co), IL GO 03 | |
03010036 | Las Vegas Valley Water Dist, NV GO LTX 2003A |
Policy Id |
Policy |
|
03010040 | North Boone CUSD No. 200, IL CABs 2002 | |
03010043 | Malcomson Road Utility District, TX ULT GO 2003 | |
03010045 | Bartlesville, Oklahoma, GO Series 2003 | |
03010046 | Independence Loc Sch Dist, OH GO 2003 | |
03010047 | Reno (City of), NV GO LTX Cap Impr Ref 2003 | |
03010049 | Rowlett (City), Texas GOLT Ref 2003 | |
03010051 | Texarkana, Texas Ltd Tx GO Ref 2003 | |
03010052 | Canton Park District, IL GO 2003 | |
03010053 | Collierville (Town), TN GO 2003 | |
03010054 | Harris Cnty Water Contr. & Imp. #155, TX Rfd 2003 | |
03010059 | Sugar Land, TX GO LT Ref 2002 | |
03010060 | Cobleskill-Richmondville CSD, NY GO 2003 | |
03010061 | Lancaster County, PA GO 2003 | |
03010062 | Avella Area SD, PA GO Ref 2003AB | |
03010063 | Sharonville (City of), OH GO LTX 2002 | |
03010066 | Westmoreland County, PA GO 2002 | |
03010067 | Decatur County, TN GO and Sch Ref 2003 | |
03010068 | West Irondequoit CSD, NY GO 2003 | |
03010069 | Palos Heights (City of), IL GO Library 2003 | |
03010071 | Henry County, TN GO Ref 2003 | |
03010074 | Phoenix ESD #1, Arizona GO Ref 2002 | |
03010075 | Grapevine (City of), Texas GO Ref & Imp 2003 | |
03010076 | Auburn City SD, NY GO 2003 | |
03010081 | Montgomery County MUD No. 9, TX GO ULT 2003 | |
03010082 | Salem (City), MA GOLT 03 | |
03010085 | Shenendehowa CSD, NY GO 2003 | |
03010086 | St. Joseph CCSD#169, IL GOULT 2002 | |
03010092 | Roslyn, Village of, NY GO 2003 | |
03010093 | Natchitoches Parish Cons SD No. 7, LA GO Ref 2003 | |
03010095 | Chester UFSD, NY GO 2003 | |
03010096 | Lower Dauphin School District, PA GO 2003 | |
03010097 | Lampeter-Strasburg SD, PA GO 2002 | |
03010098 | Pt. Wash.-Saukville SD, Wi GO 03 | |
03010099 | Sunnyvale, TX GOLT 2003 | |
03010100 | Rome (City of), NY GO 2003 | |
03010102 | Cattaraugus County, NY GO Pub Imp Ref 2003 | |
03010104 | Jackson County, WI GO 2003 | |
03010105 | Waubonsee CCD #516, IL GO 2003A | |
03010106 | Waubonsee CCD #516, IL GO 2003B | |
03010107 | Falmouth, MA GO LMTX 03 | |
03010108 | Malone Central SD, NY GO 2003 Series A and B | |
03010109 | Brookhaven (Town of), NY GO 2003 | |
03010110 | Berlin Boro BOE, NJ GO 2003 | |
03010111 | Fleetwood Area School District, PA GO 2003 | |
03010112 | Woodcreek MUD, TX W&S Syst Comb Unl & Rev 2003 | |
03010113 | Sandoval Cnty, NM, GO Bds Series 2003 | |
03010114 | Columbus Bldg. Authority GA Series 2003 A | |
03010115 | Columbus Bldg. Authority GA Series 2003 B | |
03010118 | Sumner SD No. 320, WA GO 2003 | |
03010121 | Littleton (Town of) MA GO dtd 1/15/03 | |
03010123 | Ouachita Parish SD #1, LA GO LTX 2003 | |
03010124 | Oakmont (Boro. of), PA GO 03 | |
03010125 | Palmyra ASD, PA GO 2003 | |
03010128 | Butler Area School District, PA GO 2003ABC | |
03010129 | Forks (Twp) , PA GO 2003 |
-24-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03010130 | Manheim Township School District, PA GO 2003 | |
03010132 | Jackson Township BOE, NJ GO 2003 | |
03010133 | Upper Adams SD PA GO 2003 | |
03010139 | Redding SD, CA GO 2003A | |
03010140 | Liberty (City of), TX GO LT Ref 2003 | |
03010141 | Belleville (City of), IL GO 2003 | |
03010142 | Dover Municipal Utilities Auth, NJ Sewer 03 | |
03010143 | New Iberia (City of), LA GO 2003 | |
03010147 | Plum Borough School District, PA GO 2003 | |
03010148 | John Wood CCD #539, IL GO 2003AB | |
03010149 | Salem Co Imp Auth, NJ Rev 2003 | |
03010150 | Strasburg Borough, PA GO 2003 | |
03010151 | Marquette Area PS, MI, GO Unltd Tax Ref Bds 2003 | |
03010152 | Orleans (Town of), MA GO Lmtx 03 | |
03010154 | Manhattan (Vlg), Will Cnty, IL GO 2003 | |
03010155 | Edison (Township) BOE, NJ GO Ref 2002 | |
03010156 | Canandaigua (City Of), NY GO Ref 2003 | |
03010161 | Huntley CCSD #158, IL GO 2003 | |
03010162 | Augusta (City of), ME GO Pension 2003 | |
03010163 | Wyomissing Area SD, PA GO 2002 | |
03010164 | Cottage Grove (Village), WI GO dtd 2/15/03 | |
03010166 | Lubbock (County), TX GOLT 2003 | |
03010170 | Monroe-Woodbury CSD, NY GO 2003 | |
03010171 | Folsom (City of), CA GO Ref 2003 | |
03010172 | Brick Township, NJ Pension GO 03 | |
03010173 | Roxbury Twn, NJ GO 03 | |
03010174 | Livingston (County of), MI GOLT 2003 | |
03010175 | Dickson County, TN GO Ref 2002A | |
03010177 | Hornell (City of) City SD, NY GO (Serial) 2003 | |
03010178 | Oklahoma City, Oklahoma GO 2003 | |
03010179 | Cincinnatus CSD, Cortland Cnty, NY Ref Bds 2003 | |
03010180 | Gull Lake Comm Sch, MI GO NON-SBLF | |
03010181 | Forest Park (Village of), IL GO Ref 2003 | |
03010182 | Galveston Cnty, Fresh Wtr Sply Dist No. 6 2003 | |
03010186 | Bayonne (City of), NJ GO Ref 2003 | |
03010187 | North Hempstead (Town of), NY GO 2003 | |
03010188 | Clark County SD, NV GO LTX 2003 | |
03010190 | Van Buren (Cnty), MI GO Lmtx 03 | |
03010191 | Northampton Area SD, PA Ser 2003 | |
03010192 | Clearview Reg HSD, NJ GO 2003 | |
03010193 | Deerfield CSD, Wi GO 03 | |
03010195 | Cumberland (Town of), RI GO Bds 2003 | |
03010196 | Collinsville CUSD #10, IL GO 2003 | |
03010197 | Calcasieu Parish SD #30, LA GO Ref 2003 | |
03010198 | Webb County, TX GOLT Ref 2003 | |
03010200 | Phoenixville Area School District, PA GO 2003 | |
03010201 | Sandwich (Town), MA GO 2003 | |
03010204 | Oceanside UFSD, NY Ref Serial Bonds 2003 | |
03010205 | Issaquah SD #411, WA GO 2003 | |
03010206 | Roseville (City of) SD, CA GO Elect of 2002, Ser A | |
03010207 | Teaneck Twsp BOE, NJ GO dtd 2/1/03 | |
03010208 | Wichita, Kansas GO 03 | |
03010209 | West Harrris MUD #9, Tx 03 | |
03010210 | Delano Union Elem SD, CA GO 2003C | |
03010211 | Keyport (Borough), NJ GO |
Policy Id |
Policy |
|
03010212 | Ellwood City (Borough of), PA GO A&B 2003 | |
03010213 | Blairsville-Saltsburg SD, PA GO Ref 2003AB | |
03010215 | Leon County SD, FL GO Ref 2003 | |
03010216 | Harrison Twp BOE, NJ GO Ref 2003 | |
03010217 | Bayonne (City of), NJ GO School Bds 2003 | |
03010221 | Ohio State (Pub Fac Comm), OH GO 03 | |
03010229 | Monroe Twp BOE, NJ (Middlesex) 2002B | |
03010231 | Hamburg ASD, PA GO 2003 | |
03010232 | Greater Latrobe School Auth, PA Rev 2003A | |
03010235 | Bergenfield (Boro), NJ GO Ref (Taxable) 2003 | |
03010236 | Catskill CSD, NY GO 2003 | |
03010239 | Skokie SD#69, IL GO 2003 | |
03010242 | Elmwood CUSD No. 322, IL GO 2003A & GO Ref 2003B | |
03010245 | Kearny MUA, NJ Rev Ref 2003B | |
03010246 | Marion Center Area SD, PA 2003 | |
03010247 | Northfield ISD#659, Mn GO 03 | |
03010248 | Jefferson Cnty, IL GO ARBs 2003-A & 2003-B | |
03010249 | Oroville City ESD, CA GO Elect of 2002, Ser 2003 | |
03010250 | Millcreek Township SD, PA GO 2003 | |
03010251 | Glendora Unified SD, CA 2003B | |
03010255 | Plain Local SD (Stark Cnty), OH GO 2003 | |
03010256 | Chesapeake (City of), VA GO 2003 | |
03010257 | Schaumburg Park Dist, IL GO 2003A | |
03010258 | Berwick ASD, PA GO 2003ABCDE | |
03010259 | Oshkosh (City of), WI GO 2003-A | |
03010260 | Oshkosh (City of), WI GO 2003-B | |
03010261 | Oshkosh (City of), WI GO 2003-C (taxable) | |
03010262 | Allentown City SD, PA GO 2003 | |
03010263 | North Pocono SD, PA GO 2003 | |
03010264 | Pearl Public School District, MS GO 2003 | |
03010265 | Gloucester Township, NJ GO 2003 | |
03010266 | Lower MUA (Tnship of), NJ Rev Ref 03A & Rev 03B | |
03010267 | Armstrong SD, PA GO Ref 2003 | |
03010270 | Kenosha County, WI GO 03 | |
03010271 | Lovington Muni SD No. 1, NM GO 2003 | |
03010272 | Midland Joint Buld Auth (City & Cty), MI GO Ul 03 | |
03010273 | Hanover Area SD, PA GO 2003 | |
03010274 | Fargo (City), ND GO 2003ABC | |
03010276 | Memorial Park Dist, IL GO Alt Rev 2003A | |
03010277 | Gatlinburg (City) TN Rev and Tax Ref 03 | |
03010278 | Jefferson County, NY GO 2003A&B | |
03010279 | Grimes (City), Iowa GO 2003 | |
03010282 | Lodi (Boro of) BOE, NJ GO Pension Ref 2003 | |
03010284 | Groton-Dunstable Regional SD, MA GO 2003 | |
03010285 | Zion-Benton Township HSD No. 126, IL GO LTX 2003 | |
03010286 | Aurora West SD #129, IL GO Ltd Tax 2003 | |
03010288 | Williston PSD No 1, ND GO 03 | |
03010292 | Fallbrook Union ESD, CA GO | |
03010296 | Tempe ESD #3, Arizona GO Refg 2003 | |
03010298 | Midland (City of), TX Ltd Tax GO Series 2003 | |
03010299 | Mahanoy Area Sch Dist, PA GO 02 | |
03010300 | Saratoga USD, CA GO Elect of 02, Series 2003 | |
03010301 | Jersey City, NJ GO 2003 | |
03010303 | Harris Cnty MUD #61 Wtr & Swr UnLmtd Tax 2003 | |
03010305 | Lawrence (Township) BOE, NJ GO 2003 |
-25-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03010307 | Matawan-Aberdeen Reg SD, NJ 2003 | |
03010310 | Hamilton SD, WI GO Refunding 2003 | |
03010313 | Centralia SD, CA GO | |
03010316 | Nueces County Hosp Dist, TX GO LTX Rev Fwd Ref 03 | |
03010317 | Easton Area SD, PA GO 03 | |
03010318 | Mesa (City), Arizona GO 2003 | |
03010319 | Western Wayne SD,PA GO 2003 | |
03010320 | St. Tammany Par SD #12, LA GO 2003 | |
03010321 | Montpelier Exempted Village SD, OH GO ULT 2003 | |
03010322 | Langham Creek Util Dist, TX W/S GO ULT & Rev 03 | |
03010323 | Trophy Club MUD #1, TX 03 | |
03010326 | Ewing Township BOE, NJ GO Ref 2003 | |
03010327 | Camden County Imp. Auth, NJ GO 2003 | |
03010328 | Lee (Town of), MA GO ULT 2003 | |
03010329 | Pawling (Town), NY GO ULT 2003 | |
03010330 | Clearwater USD #264, KS (Sedgwick Co.) GO 2003 | |
03010331 | Pickens County SD, SC GO 03 | |
03010332 | Reynoldsburg City SD, OH GO 03 | |
03010333 | Milford (Town of) MA GOLT, 3-15-03 | |
03010334 | Berea City SD, Ohio GO ULT 2003 | |
03010336 | Franklin-McKinley School District, CA GO Ref 2003 | |
03010337 | Schertz, Texas LTGO Series 03 | |
03010338 | Wilkes-Barre ASD, PA GO 2003 | |
03010339 | Somerset Area School District, PA GO 2003 | |
03010342 | Ferndale (City), MI GO Ref 2003 | |
03010343 | Kern Cnty Com Col District, CA GO 2003A | |
03010344 | Conewago Valley SD, PA GO 2003 | |
03010346 | Palos Verdes Peninsula USD, CA GO 00C & Ref 03 | |
03010347 | Trenton, NJ GO Sch Refg (NJ Sch Bd Act) 2003B | |
03010348 | Mount Joy Boro Auth, PA Guar Sewer GO 2003 | |
03010350 | Mount Vernon (City of), OH GO LTX 2003 | |
03010351 | Winslow Township BOE, NJ GO Tax Ref 2003 | |
03010356 | Rankin SD No. 98, IL GO 2003 | |
03010358 | Franklin Township BOE, NJ GO Ref 2003 | |
03010360 | Pittsburg USD#250 (Crawford County),KS GO 2003 | |
03010361 | Wax Lake E Drain.Dist (St. Mary Par), LA GOULT 03 | |
03010362 | College Community School District, IA GO 03 | |
03010363 | Lebanon County, PA GO 03 | |
03010364 | Ellsworth Comm SD, WI Taxable GO Ref 2003 | |
03010365 | Moline Sch Dist #40, IL GO 2003A | |
03010366 | Barker CSD, NY GO 2003 | |
03010367 | Wausau SD, WI GO Ref dtd 12/15/2002 | |
03010369 | Montgomery County MUD #18, TX GO 2003A | |
03010370 | East Windsor Reg SD, NJ GO ULT 3/1/03 | |
03010372 | Lindenhurst UFSD, NY GO Ref 2003 | |
03010374 | Washoe County SD, NV GO 2003A | |
03010378 | Belleville (City of), IL GO Series 2003A&B | |
03010379 | Millburn Twn BOE, NJ GO 03 | |
03010380 | North Polk Cmmty SD, Ia GO Ref 03 | |
03010382 | East Hampton (Village of), NY GO 2003 | |
03010383 | Hamburg ASD, PA GO Series A of 2003 | |
03010384 | West New York (Town of), NJ GO 2003 Pension | |
03010385 | Canton Charter Twp, MI GO 03 | |
03010386 | Monroe (Twp), Middlesex, NJ GO 03A | |
03010387 | Hempfield ASD, PA GO Ref 2003AB |
Policy Id |
Policy |
|
03010388 | Roane County, TN GO 2003 | |
03010389 | Manitowoc (City), WI GO 2003A&B | |
03010390 | Hermosa Beach City SD, CA GO ULT 2003 | |
03010391 | Aston (Township of), PA GO 2003 | |
03010393 | Victoria (City of), TX GO LTX Ref 2003 | |
03010394 | New York State Muni Bond Bank Agency (Troy CSD) 03 | |
03010395 | Lompoc USD, CA, Elect 2002, Ser 2003A | |
03010396 | West Chester (Boro of), PA GO Guar Univ Parking 03 | |
03010400 | Lakewood Twp BOE, NJ GO Ref 2003 | |
03010401 | Mark West USD, CA GO 03 | |
03010402 | Verona BOE, NJ GO ULT 03 | |
03010403 | Grand Prairie, Texas LTGO 03 | |
03010404 | Red Bank BOE, NJ GO 03 | |
03010405 | West Muskingum Local SD OH GO 2003 | |
03010406 | New Haven (City of), CT GO Ref 2003 | |
03010410 | East Side Union HSD, CA GO 4/3/03 (02 Elec) | |
03010411 | East Side Union HSD, CA GO (Elec 99) C | |
03010412 | Beaumont (City of), TX GO LTX 2003 | |
03010413 | Calumet Park (Village), IL GO 2003 | |
03010414 | Redevelopment Authority of the City of Meadville, | |
03010415 | Chilton SD, WI GO Ref dtd 4/15/03 | |
03010421 | Allentown (City of), PA GO 03 | |
03010422 | Lakeville, Minnesota GO 2003A | |
03010424 | Sussex County MUA, NJ Sol Wste Rev Ref (GO) 2003 | |
03010426 | Woodbury, NJ GO 03 | |
03010427 | Salinas UHSD, CA GO 2003 | |
03010428 | Pearl (City of), MS GO 2003 | |
03010430 | Belfast CSD, NY GO Ref 2002 | |
03010431 | Carteret (Borough of) BOE, NJ | |
03010433 | North Bergen (Township of), NJ Pension GO 2003 | |
03010434 | Brownsville ASD, PA GO 2003A&B | |
03010436 | Springville-Griffith CSD, NY GO 03 | |
03010437 | North Babylon UFSD, NY GO 2003ABC | |
03010438 | Savage (City), MN GO 03 A | |
03010439 | Savage (City), MN GO 03 B | |
03010441 | Dieringer SD #343, WA GO 2003 | |
03010442 | East Hartford (Town of), CT GO Ref dtd 4/1/03 | |
03010443 | Kiski Area School District, PA GO 2003 | |
03010444 | Warwick School District, PA GO 2003 | |
03010447 | St. Anthony City, MN GO 03B | |
03010449 | Itawamba Cnty SD, MS GO 2003 | |
03010450 | Waterville CSD, NY GO 03 | |
03010451 | Fort Edward UFSD, NY GO 2003 | |
03010452 | Mequon, WI GO 03A | |
03010454 | South Fayette Twp SD, PA GO 03 | |
03010457 | North Allegheny SD, PA GO Ref 2003A and GO 2003B | |
03010460 | Bethlehem (City of), PA GO 2003AB | |
03010463 | Ringgold School District, PA GO 2003 | |
03010464 | Pennridge SD, PA GO 2003A | |
03010465 | Utica (City of), NY GO 2003 | |
03010467 | Andover CSD, NY GO Serial 2003 | |
03010468 | Franklin (Town of), MA GO LTX 2003 | |
03010469 | Carlisle Area SD, PA GO 2003 | |
03010470 | Venango (County of), PA GO 2003 | |
03010471 | West Perry SD, PA GO 2003 A&AA |
-26-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03010472 | Oswego CUSD No. 308, IL GO LTX 2003AB | |
03010473 | Oregon School Bd Assoc Limited Tax Pension Ser 03 | |
03010474 | Trinity Area Sch Dist PA GO 2003 | |
03010475 | Harris Cnty MUD #162, TX GOULT | |
03010476 | Lorraine USD #328 (Ellsworth Co), KS GO 02 | |
03010485 | Manitowoc (City), WI GO 2003D | |
03010487 | Wayne Building Authority, MI GO LTX 03 | |
03010488 | Everett ASD, PA GO Ref 2003 | |
03010489 | Guernsey Cnty, OH GOLT | |
03010490 | Jefferson Co., TX Wtr Control & Imp Dist #10 GO 03 | |
03010492 | Gilroy USD GO ULT 03 | |
03010493 | Scotts Valley USD, CA GO 03 | |
03010494 | Cranberry Township, PA GO Ref 2003AB | |
03010495 | Regional SD # 15, CT GO 2003 | |
03010496 | Fairbanks North Star Borough, AK GO 2003F | |
03010498 | Green Bay (City), WI GO 03 | |
03010499 | Oregon State Intercept Program | |
03010501 | Essex County Impr Auth, NJ (Corr Fac GO) 2003AB | |
03010502 | Linden USD, CA GO Elec of 2002, Ser 2003 | |
03010503 | Toms River BOE, NJ GO 2003 | |
03010505 | Ridgway Area SD, PA GOULT 2003 | |
03010508 | Brandywine Heights ASD, PA GO 03 | |
03010509 | Racine (County), WI GO 2003B | |
03010510 | Oklahoma (County of), OK GO LT, 2003A | |
03010511 | West Contra Costa USD, CA GO(Elec 00, Ser C) 2003 | |
03010512 | Bledsoe County, TN GO Sch Ref 2003 | |
03010513 | Columbus City SD, Ohio GO ULT 2003 | |
03010514 | Fairfield County, OH GO LTX 03 | |
03010515 | Wyomissing Area SD, PA GO 2003A | |
03010516 | Aransas Cnty, TX LTX GO 2003 | |
03010517 | North Beach SD #64 (Grays Harbor Cnty), WA GO 03 | |
03010522 | Acalanes Union HSD, CA GO 2003 | |
03010523 | Knox County, IL GO 03 | |
03010524 | Cimarron MUD, TX GO 03 | |
03010525 | South Texas CCD LT GO 2003 | |
03010526 | Niskayuna (Town of), NY Public Improv Ref 2003 | |
03010528 | Southern Columbia ASD, PA GO 2003 | |
03010530 | York (County of), SC GO Ref 2003 | |
03010534 | Fort Worth (City of), TX GO 2003 | |
03010535 | Palm Springs USD, CA GO 2000 Election Series D | |
03010536 | Lawrence County, TN GO Sch Ref 2003 | |
03010537 | Chicago Park Dist, IL GO LTX 2003A | |
03010538 | Chicago Park Dist, IL GO ULT 2003B | |
03010539 | East Pennsboro ASD, PA GO 2003 | |
03010541 | Pottsville (City of), PA GO 03 | |
03010542 | Harris County WC&ID No. 1, TX GO ULT 2003 | |
03010543 | Cornwall-Lebanon SD, PA GO 2003A | |
03010544 | St. Paul ISD No. 625, MN GO 2003 B | |
03010545 | Canajoharie CSD, NY GO 2003 | |
03010546 | St. Paul ISD No. 625, MN GO 2003 C | |
03010547 | San Bernardino City USD, CA 99 Elec GO 2003C | |
03010548 | Madison (Town), WI 2003 | |
03010549 | Petaluma City ESD, CA GO Ref 2003 | |
03010550 | Auburn SD No. 408, WA GO ULT 2003 | |
03010551 | Ringgold School District, PA GO Ref 2003A |
Policy Id |
Policy |
|
03010553 | South Pasadena USD, CA GO Series 2003 | |
03010556 | Rye Brook (Village of), NY GO Public Improv 2003 | |
03010557 | Republic Cnty, KS GO 2003A | |
03010559 | Phoenixville Borough, PA GO 2003 | |
03010561 | Scarborough (Town of), ME GO 2003 | |
03010562 | Seneca Valley SD, PA GO 2003AB | |
03010564 | Bayonne MUA, NJ Swr Rev 2003A and 2003B (Txbl) | |
03010565 | Ripley CSD, NY GO 2003A | |
03010566 | Ripley CSD, NY GO 2003B | |
03010567 | Lower Windsor Twnp, PA GO 2003 | |
03010568 | Warren Consolidated SD, MI GO ULT 2003 | |
03010569 | Kingston (Township), PA GO Refg 2003 | |
03010576 | Kutztown (Borough of), PA GO 2003 | |
03010577 | West Des Moines (City), IA GO 03A | |
03010578 | Conneaut SD, PA GO (SPSBA) 03 | |
03010579 | Evans, CO GO 2003 | |
03010580 | Moore County, NC GO 2003 | |
03010582 | Watchung Hills Regional BOE, NJ GO dtd 5/1/03 | |
03010586 | Highlands SD, PA GO 2003 | |
03010588 | South Williamsport ASD, PA GO 2003 | |
03010590 | Ridley School District Auth, PA GO Rev 2003AB | |
03010592 | North Bergen BOE, NJ GO Pension Ref dtd 3/1/03 | |
03010593 | Galeton Area School District, PA GO 2003 | |
03010594 | Klein PUD, TX Wtr&Swr ULTGO 2003 | |
03010595 | Wentzville R-IV SD, MO GO 2003A | |
03010596 | St. Clair Cnty (Ira Township), MI GO LTX 2003A | |
03010597 | Connecticut State GO 2003 C | |
03010598 | Byron-Bergen CSD, NY GO 2003 | |
03010601 | Harrison (Town of), NJ GO 2003 | |
03010602 | Springfield SD #R-12, MO GO 03 (MDDP) | |
03010603 | Sequatchie County, TN GO 2003 | |
03010604 | Pittsburgh (City of), PA GO 2003 | |
03010605 | St. Clair Cnty (Ira Township), MI GO LTX 2003B | |
03010607 | Northern Highland RHSD BOE, NJ GO 03 | |
03010608 | Kronenwetter (Vlg of), WI GO Ref dtd 5/15/03 | |
03010609 | Green Brook Twp BOE, NJ GO 03 | |
03010610 | Lisbon CSD, NY GO 2003 | |
03010611 | Ontario (County of), NY GO Pub Improv 2003 | |
03010612 | Texarkana (City of), TX GO LTX Ref 2003 | |
03010613 | Crown Point CSD, NY GO 2003B | |
03010616 | Queen Creek USD No. 95, AZ GO 2003 | |
03010617 | Sonoma County, CA Txbl Pension Oblig 2003A | |
03010618 | Sonoma County, CA Txbl Pension Oblig 2003B | |
03010619 | Luzerne (County of), PA GO 2003 C | |
03010620 | Middletown ASD, PA GO 2003A | |
03010621 | Mechanicsburg ASD, PA GO 2003 | |
03010625 | Kendall County Forest Preserve Distr, IL GO 2003 | |
03010626 | Central Dauphin SD, PA GO Notes 2003A | |
03010627 | Grant Area District Library, MI ULT GO 2003 | |
03010628 | Washington State GO Various Purpose 2003 E | |
03010629 | St. Clair County, MI GO LTX 2003 | |
03010632 | Louisiana (State) GO 03A | |
03010633 | Brentwood Borough SD, PA GO 2003 | |
03010634 | Kern Cnty Taxable POBs, 2003A | |
03010636 | Huntingdon ASD, PA GO 2003 |
-27-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03010637 | Wisconsin (State of), GO 03 | |
03010639 | Northwest Harris Cnty MUD No. 10, TX ULT GO 2003 | |
03010640 | Big Spring SD, PA GO 2003 | |
03010641 | Saucon Valley SD, PA GO 2003 | |
03010642 | Chambersburg Area SD, PA GO 2003 | |
03010643 | Edgewater Boro BOE, NJ GO 03 | |
03010645 | Columbia County, WI GO 2003 | |
03010646 | Kankakee (City of), IL 2001 GO 2003AB | |
03010647 | Ontario-Montclair SD, CA GO Elec of 2002 Series A | |
03010649 | Bay City (City of), TX GO LTX Ref 2003 | |
03010650 | Menifee USD, CA GO Elec of 2002 Series A | |
03010651 | Marinette County, WI GO Ref 2003 | |
03010653 | Oklahoma (State of), OK GO 2003AB | |
03010656 | Portage, MI GO LT 03 | |
03010659 | Bradford ASD, PA GO Ref 2003 | |
03010662 | Keystone Oaks SD, PA GO Ref 2003 | |
03010663 | Evergreen Fire Protection Dist, CO GO 2003 | |
03010664 | Hendrick Hudson CSD, NY GO 2003 | |
03010665 | West Reading (Boro of), PA GO 2003 | |
03010666 | Wilmington ASD, PA GO 2003 | |
03010667 | Waterville CSD, NY GO 2003 | |
03010668 | Guilderland CSD, NY GO 2003 | |
03010669 | Skaneateles CSD, NY GO 03 | |
03010670 | South Butler County SD, PA GO 2003 | |
03010672 | DuBois ASD, PA GO 2003 | |
03010673 | West Linn-Willsonville SD No. 3Jt, OR GO 2003AB | |
03010674 | East Longmeadow (Town of), MA GO 03 | |
03010675 | Geneva City SD, NY GO 2003 | |
03010678 | Murrieta Valley Unified School District, CA GO | |
03010679 | Cumberland Valley SD, PA GO 03 | |
03010680 | Cheltenham Twp. SD, PA GO 03 | |
03010681 | Allen (City of), TX GO LTX 2003 | |
03010683 | Apache Junction Unified Sch Dist #43, AZ GO 2003 | |
03010684 | Barrington Hills (Village of), IL GO 2003 | |
03010687 | Mount Vernon City SD, NY GO 2003AB | |
03010690 | Norwell, MA GO LTX dtd. 6/15/03 | |
03010691 | Albuquerque (City), NM GO 2003C | |
03010692 | Reynolds SD, PA GO 2003B | |
03010694 | Lunenburg (Town of), MA GO dtd 6/1/03 | |
03010695 | Healdsburg USD, Sch Impr Distr #1, CA GO 03 | |
03010699 | Warren Cons SD, MI GO LTX 2003 | |
03010700 | Dayton CSD, OH GO-LT 03B | |
03010701 | Dayton CSD, OH GO-ULT 03A | |
03010706 | Northeastern York County SD, PA GO 2003AB | |
03010707 | Olympia SD #111, WA GO Ref 2003 | |
03010708 | Carson City, NV GO LTX Ref 2003 | |
03010709 | Pasadena Area CCD, CA GO Elect of 2002, Ser 2003A | |
03010710 | League City (City), TX GO LTX 2003 & 2003ABC | |
03010711 | Covina-Valley USD, CA GO Elec of 2001 Series B | |
03010712 | Camden County Imp. Auth, NJ GO Ref 03 | |
03010713 | Plum Borough SD, PA GO 2003ABC | |
03010714 | Carrollton (City of), TX GO ULT 2003 | |
03010716 | Hurst, TX COO GO LTX Rev COOs 2003 | |
03010717 | Dansville CSD, NY GO 2003 | |
03010718 | East Pennsboro ASD, PA GO 03A and 03AA |
Policy Id |
Policy |
|
03010721 | Yavapai Cnty CCD, AZ GO 03 | |
03010722 | Smethport Area SD, PA GO 2003 | |
03010723 | Patchogue-Medford UFSD, NY GO 2003A | |
03010724 | Brazoria County MUD No. 6, TX GO ULT 2003 | |
03010726 | Port Arthur (City), Texas GO LTX 2003 | |
03010727 | Fairfield ASD, PA GO 2003 | |
03010728 | Ashburnham-Westminster Reg SD, MA GO Ref 6/15/03 | |
03010731 | Wallenpaupack ASD, PA GO 2003 | |
03010732 | Montgomery County, TN GO 2003 | |
03010733 | Selinsgrove ASD, PA GO 2003B | |
03010734 | Chesapeake (City of), VA GO 2003 ABC | |
03010735 | Bridgewater-Raritan RSD BOE, NJ GO 2003 | |
03010739 | Dakota County, MN GO 03 ABC | |
03010740 | Spokane (City of), WA GO LTX and Ref 2003 | |
03010741 | Bradley Beach (Borough of) BOE, NJ GO 2003 | |
03010742 | Perth Amboy (MCIA), NJ GO 2003 | |
03010743 | Snohomish Cnty Hosp Dis #2, WA GO ULT Ref 2003 | |
03010744 | Cupertino USD, California GO 03B | |
03010746 | Washington Township BOE, NJ GO Ref 2003 | |
03010747 | Sandy Creek CSD, NY GO 2003AB | |
03010748 | Bloomington (City of), IL GO 03 | |
03010749 | Randolph CSD, NY GO 2003 | |
03010750 | Frewsburg CSD, NY GO Ref 2003B | |
03010752 | Erie County, NY GO 2003A&B | |
03010753 | Sharpsville Area SD, PA GO Ref 2003 | |
03010754 | North Andover (Town of), MA GO LTX 2003AB | |
03010757 | Lacey Twp MUA, NJ Wtr Rev Ref GO 2003A | |
03010758 | Lacey Twp MUA, NJ Wtr Rev Ref GO 2003A | |
03010759 | Elgin CCD No. 509, IL GO 2003A | |
03010760 | Bedford County, TN GO 2003 | |
03010761 | Sumter County SD #2, SC GO Ref 2003 | |
03010762 | Ripon USD, CA GO Elec of 2002 Series B | |
03010765 | Greenville CSD NY GO 03 ABCD | |
03010766 | Lacey Twp MUA, NJ Wtr Rev Ref GO 2003B | |
03010767 | Lacey Twp MUA, NJ Wtr Rev Ref GO 2003B | |
03010771 | Ellwood City Area SD, PA GO 03 | |
03010772 | Phoenixville Area School District, PA GO 2003 A? | |
03010773 | Clay County Reorg SD R-1 (Kearney), MO GO Ref 03 | |
03010774 | Harris County MUD No. 65, TX GO ULT 2003 | |
03010775 | Warwick (City), RI GO 2003 | |
03010776 | Tulpehocken Area School District, PA | |
03010777 | Paradise Valley USD #69, AZ GO Ref 03 (2nd Series) | |
03010778 | Worcester (City), MA GO 2003A | |
03010779 | Monroe (Twnp) Gloucester, NJ GO 2003 | |
03010780 | Reading School District, PA GO 2003 | |
03010781 | Coos County, OR GO Ref 2003B | |
03010782 | Allegheny County Comm College (SPSBA), PA GO 03 | |
03010785 | Flemington-Raritan RSD, NJ GO dtd 6/15/03 | |
03010786 | Federal Way SD No. 210, WA GO ULT 2003 | |
03010788 | Manheim Township School District, PA GO 2003A | |
03010789 | Greater Nanticoke ASD, PA GO 2003 | |
03010790 | Pitman (Borough of), NJ GO 2003ABC | |
03010791 | Anoka-Hennepin ISD #11, MN GO Ref 2003A | |
03010792 | Roscoe CSD, NY GO 2003 | |
03010793 | Whitehall-Coplay SD, PA GO 03 |
-28-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03010794 | Moshannon Valley SD, PA GO 2003 | |
03010795 | North Collins CSD, NY GO 2003 | |
03010796 | Harris County MUD No. 222, TX GO ULT 2003 | |
03010797 | PLAINFIELD CCSD #202, IL GO 2003 A&B | |
03010798 | Eastern Lebanon County SD, PA GO 2003AA | |
03010799 | North Schuylkill SD, PA GO 2003 | |
03010802 | Spring-Ford Area SD, PA GO 2003 | |
03010803 | Blue Ridge SD, PA GO 2003 | |
03010804 | Newark CSD, NY GO 2003 | |
03010805 | Freetown (Town of), MA GO ULT dtd 7/15/03 | |
03010806 | Princeton (City of), IL GO (Water Rev Alt Rev) 03 | |
03010807 | Rosemont (Village of), IL GO ULT Ref 2003AB | |
03010808 | Reading School District, PA GO 2003B | |
03010809 | Macedonia (City of), OH GO Var Purp 2003 | |
03010810 | Bell County, TX GO LTX 2003 Ref | |
03010811 | Kennett Consolidated SD, PA GO 2003AB | |
03010812 | Edwards-Knox CSD, NY GO 2003AB | |
03010813 | Seekonk (Town of), MA GO ULT dtd 7/15/03 | |
03010816 | Conestoga Valley SD, PA GO 2003 | |
03010817 | Laurel Highlands SD, PA GO Ref 2003 | |
03010818 | Woodmoor Wtr & San Dist, CO GO Refg 03 | |
03010820 | Tolleson (City of), AZ GO 2003 | |
03010828 | Sacramento Cnty, Ca Pension Oblig Restruct 03 | |
03010832 | Penbrook (Boro), PA GO 2003 | |
03010833 | Racine (City), WI GO Ref 2003 | |
03010834 | Chichester SD, PA GO 2003 | |
03010836 | Stratford (Town of), CT GO dtd 7/15/03 | |
03010837 | Indiana ASD, PA GO 2003 | |
03010838 | Orland Park SD 135 (Cook Cty), IL GO LTX 03AB | |
03010839 | Orland Park SD 135 (Cook Cty), IL GO Ref 03C | |
03010840 | Whitmore Lake PSD, MI GO 2003 | |
03010842 | Dayton CSD, OH GO ULT 03D | |
03010843 | Everett ASD, PA GO 2003 Series A | |
03010844 | New Brunswick Park Auth, NJ GO Guar Rev Ref 03 | |
03010845 | Warren County, NY GO 2003 | |
03010846 | Nauset Regional SD, MA GO Ref dtd 6/15/03 | |
03010847 | Montara San Dist, CA GO 2003 | |
03010848 | Van Buren (Charter Twp) LDFA, MI GO LTX 2003 | |
03010850 | Campbell Union HSD, CA GO Elec of 1999 Ser 2003 | |
03010851 | Santa Clarita Com CD, CA GO Elec of 2001, Ser 2003 | |
03010852 | Fry Road MUD, TX GO ULT Ref 2003 | |
03010853 | St. Clair ASD, PA GO 2003 | |
03010854 | Davison Comnty Schs, MI GO ULT 2003 | |
03010855 | Rocklin USD, CA GO 2003 | |
03010856 | Glendale CCD, CA GO Elect of 2002, Ser B and Ser C | |
03010857 | Butler County, PA GO 03 | |
03010858 | Neshannock Twp, PA GO ULT 03 | |
03010859 | Huntington Beach City SD, CA GO 2003A | |
03010860 | Peoria (City of), IL GO 2003A | |
03010862 | Franklin Regional SD, PA GO 2003AA | |
03010864 | District of Columbia GO 2003A | |
03010865 | Mason City SD, OH GO Ref 2003 | |
03010866 | Brewster SD No 111/203J, WA GO ULT Ref 03 | |
03010870 | Olmsted Falls City SD, OH GO Ref 2003 | |
03010871 | Wilkes-Barre (Township of), PA GO 2003 |
Policy Id |
Policy |
|
03010873 | Washington State GO Var Purpose 2004ABC | |
03010874 | Hermon (Town of), ME GO Ref 2003 | |
03010877 | Union Area School Dist, PA GO Ref 2003 | |
03010879 | North Clackamas CSD No. 12, OR GO Ref 2003 | |
03010881 | Mississippi (State of), MS Taxable GO dtd 7/15/03 | |
03010883 | New Brunswick (City of), NJ GO Ref 2003 | |
03010884 | New Brunswick (City of), NJ GO 2003 | |
03010887 | Walnut Valley USD, CA GO (Elect of 2000), 03 Ser D | |
03010888 | New Brunswick (City of), NJ GO | |
03010889 | Wooster (City of), OH GO LTX Var Purpose 2003 | |
03010890 | West Irondequoit CSD, NY GO 2003 dtd 8/15/03 | |
03010891 | Lancaster SD, PA GO 2003 Ser A (Forward) | |
03010892 | Boxford (Town of), MA GO dtd 8/15/03 | |
03010895 | Gateway School District, PA GO 2003 | |
03010897 | Myrtle Beach (City of), SC GO 03A | |
03010902 | Millis (Town of), MA GO LTX 2003 | |
03010903 | Union Twp BOE, NJ GO dtd 8/15/03 | |
03010904 | West Deptford Twsp BOE, NJ GO Ref 2003 | |
03010905 | Monroe County, PA GO Notes 2003AB | |
03010906 | Miller Place UFSD, NY GO 2003 | |
03010907 | Moline (City of), IL GO 2003A_C | |
03010908 | Waukegan (City), IL GO 2003A | |
03010909 | Moline (City of), IL GO Taxable 2003B | |
03010911 | Del Mar Coll Distr, TX GO LTX 2003 | |
03010913 | Cooperstown (Village of), NY GO 2003 | |
03010914 | Cleveland (City of), TX GO LTX 2003 | |
03010915 | Mountain View-Whisman SD, CA GO 1998 Elect Ser 03E | |
03010916 | Timberlake Improvement Dist, TX GO ULT 2003 | |
03010917 | Exeter Twp SD, PA GO 2003 | |
03010918 | West Allegheny SD, PA GO Ref 03AB | |
03010919 | Thief River Falls (City), MN GO 2003 | |
03010922 | Nutley Twp BOE (Essex Co), NJ GO dtd 8/15/03 | |
03010923 | De Soto USD No. 232, KS GO 2003A | |
03010924 | Beaver ASD, PA GO 2003C | |
03010925 | New Albany (Vlg of), OH GO LTX 2003 | |
03010926 | Bay Village (City of), OH GO LTX 2003 | |
03010927 | Anchorage (Municipality of), AK GO 2003AB | |
03010929 | Uniontown ASD, PA GO 2003 | |
03010930 | Rowlett (City), TX GO 03A | |
Rowlett (City), TX GO LTX Rev COOs 03 | ||
03010933 | Oakland Comm College, MI GO LTX Ref 2003 | |
03010934 | Medina Cnty Library Dist, OH GO ULT | |
03010935 | West Harris Co MUD No. 10, TX GO 2003 | |
03010936 | Harris County MUD #82, TX GO 03 | |
03010938 | Fort Worth (City of), TX GO Ref and Impr 2003 | |
03010939 | Grand Prairie, TX GO LTX 2003-A & COOs 2003ABC | |
03010941 | Sullivan County, NY GO 2003 | |
03010944 | Bryan (City of), TX GO LTX COOs, 2003 | |
03010946 | Weatherford (City), TX GO LTX COOs 2003 | |
03010947 | Crawford County, KS GO Ref 03A | |
03010948 | Sartell (City of), MN GO 03 | |
03010950 | Alachua County SD, FL GO Ref 2003 | |
03010951 | Anchorage, Alaska GO 2003B | |
03010955 | Eastside Union SD, CA GO 2003A | |
03010956 | Union Springs CSD, NY GO 2003 |
-29-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03010958 | Weslaco (City of), TX GO LTX 2003 | |
03010959 | Winnebago County, IL GO (Alt Rev) 2003E | |
03010960 | West Harris MUD No. 11, TX GO 2003 | |
03010961 | Pleasant Valley SD, PA GO 03AA | |
03010962 | Foothill-De Anza CCD, CA (Elect 99) GO 2003 Ser B | |
03010963 | Pittsburg USD, CA GO Ref 2003 | |
03010966 | Evergreen SD, CA GO Go Elect of 1997 03D | |
03010967 | Evergreen SD, CA GO Ref 03B | |
03010970 | Brazoria County MUD No. 3, TX Wtr/Swr Ref 2003 | |
03010971 | Lancaster County, PA GO 2003A | |
03010974 | Bellaire (City of), TX GO LTX 2003 | |
03010982 | Midd-West SD, PA GO 2003A | |
03010983 | Georgetown County, SC GO 2003A & Ref 2003B | |
03010985 | Steel Valley SD, PA GO Ref 2003ABC | |
03010986 | Rainier SD No. 307, WA GO ULT Ref 03 | |
03010987 | Waukesha, WI GO 03 | |
03010988 | Shelbyville (City of), TN W&S Rev and Tax Ref 03 | |
03010989 | West Fargo, ND GO Ref 2003D | |
03010992 | Florence (City of), AL GO 2003-B | |
03010994 | DePere USD, WI GO Ref 2003 | |
03010997 | Lucas (County of), OH GO LTX, 2003 | |
03011000 | Levittown UFSD, NY GO 2003 | |
03011001 | Austin, Texas GO Ltd Tax 03 ABCD | |
03011002 | Niles Park District, IL GO (Alt Rev) 2003B | |
03011003 | Port Chester (Village), NY GO 2003B | |
03011004 | Brea-Olinda USD, CA GO Elect of 99 Ser 03 | |
03011005 | Moline (City of), IL GO 2003D | |
03011008 | Clinton Twp BOE (Hunterdon), NJ GO Ref dtd 7/1/03 | |
03011011 | San Benito (City), TX GO 2003A | |
03011012 | Mercer Cnty Imp Auth, NJ (Mercer Cnty GO) 2003 | |
03011013 | Pittsburgh SD, PA GO 2003 | |
03011016 | Kansas City SD Bldg Corp, MO Lse Rev 2003A | |
03011018 | Melvindale (City of), MI GO LTX Ref dtd 9/1/03 | |
03011019 | Western Springs (Vlg of), IL GO (Alt Rev) 2003B | |
03011020 | Pickens County, SC GO 2003 | |
03011023 | Cromwell (Town of), CT GO 2003 | |
03011026 | Little Falls (City of), MN GO 2003D | |
03011028 | Marble Falls (City of), TX GO LTX 2003 | |
03011029 | Akron (City of), OH GO LTX 2003 | |
03011030 | Edwardsville (City of), IL GO Wtrwks Ref 2003 | |
03011031 | Lake of the Woods ISD #390, MN GO Ref 2003B | |
03011032 | South-Western City SD, OH GO Ref 03 | |
03011033 | Pleasanton USD, CA GO Ref 2003B | |
03011034 | Lower MUA (Tnship of), NJ Rev 03C & 03D | |
03011035 | Calhoun County CUSD No.40, IL GO 2003AB | |
03011037 | El Segundo USD, CA GO (Elec 2001) Ser 03 | |
03011040 | Pasadena (City), TX GO LTX 2003 | |
03011041 | Roselle Park (Borough of) Union Co, NJ GO 2003 | |
03011042 | Connecticut State GO 2003E | |
03011043 | Muskegon Comm College, MI GO LTX 03 | |
03011044 | Hilton Central SD, NY GO Bonds 2003 | |
03011045 | East Lampeter Sewer Auth, PA Guar Sewer Rev 03 | |
03011048 | Sienna Plantation MUD #2, TX GO ULT 03 | |
03011049 | Harris County WC&ID No. 119, TX GO 2003 | |
03011050 | Scotch Plains Sr Citizen Hsing Corp, NJ Rev Ref 03 |
Policy Id |
Policy |
|
03011051 | Greater Johnstown SD, PA GO 2003 | |
03011052 | Tomball (City of), TX GO LTX Tax/Rev COOs 2003 | |
03011053 | North Allegheny SD, PA GO 2003C | |
03011054 | Mokena SD #159, IL GO Ref 2003 | |
03011055 | South Side ASD, PA GO 2003 | |
03011056 | Racine (City of), WI GO Ref dtd 11/1/03 | |
03011057 | South Park SD, PA GO 2003 | |
03011058 | Racine (City of), WI GO Ref Taxable | |
03011060 | Naugatuck (Borough), CT GO 2003 | |
03011061 | Lima City SD, OH GO ULT 2003 | |
03011063 | Schaumburg Park Dist, IL GO Alt Rev 03C | |
03011064 | Schaumburg Park Dist, IL GO Ltd. Tax 03D | |
03011065 | Rio Rancho Pub SD No. 94, NM GO 2003 | |
03011066 | Block House MUD, TX GO ULT 2003A | |
03011067 | Juneau (City/Boro), AK GO 2003A | |
03011068 | Sto-Rox SD, PA GO 2003 | |
03011069 | Juneau (City/Boro), AK GO 2003B | |
03011070 | Warren County, PA GO 2003 | |
03011071 | Penn Manor SD, PA GO 2003 | |
03011074 | Fort Bend County MUD No. 2, TX GO ULT 2003 | |
03011075 | West Chicago ESD #33, IL GO Ref 2003A_B | |
03011076 | Moreland SD, CA GO (Elect of 2002) Ser B | |
03011077 | Bristol Twp SD, PA GO Ref 2003 | |
03011078 | Cattaraugus County, NY GO Pub Imp 2003 | |
03011080 | Orangeburg County, SC GO 03A and GO Ref 03B | |
03011081 | Huntington (Town), NY GO Public Impr 2003 | |
03011082 | El Paso County SD #20, CO GO 2003 (Academy) | |
03011085 | Ballston Spa CSD, NY GO 2003 | |
03011086 | Dunmore SD, PA 2002 | |
03011088 | Cherry Hill (Township), NJ GO Ref 2003 | |
03011089 | Broadview Village, IL GO 2003 | |
03011090 | Richland SD, WI GO Ref dtd 11/3/03 | |
03011092 | Mansfield (City of), TX GO 2003 | |
03011096 | Camden County Imp Auth, NJ GO Guar Lease Ref 03B | |
03011097 | Downers Grove (Village of), IL GO 2003A | |
03011098 | Norristown Area SD, PA GO 2003A | |
03011099 | Bangor ASD, PA GO 03 | |
03011100 | Wyomissing ASD, PA GO 2003B | |
03011101 | Spokane (City of), WA GO LTX 2003B | |
03011102 | Waterford (Charter Twp), MI GO LTX 2003 | |
03011104 | Cleveland (City), OH GO LTX Var Purpose 2003 | |
03011108 | Harris County MUD No. 230, TX GO ULT 2003 | |
03011109 | Dixon Unit SD No. 170, IL GO Ref 2003 | |
03011110 | Coalinga-Huron Joint USD, CA GO Ref 2003 | |
03011111 | Batavia Prk Dist, IL GO ARS 2003 | |
03011112 | Pleasant Prairie (Village of), WI GO Ref 2003 | |
03011113 | North Mission Glen MUD, TX GO 2003 | |
03011114 | Park City (City of), KS GO 2003B | |
03011116 | Liberty Central SD, NY GO 2003 | |
03011118 | Fort Bend County MUD #26, TX GO ULT 2003 | |
03011122 | Newport-Mesa USD, CA GO 2003 (Elect of 2000) | |
03011123 | Caledonia Charter Township, MI GO LTX 2003 | |
03011124 | Alvin (City of), TX GO LTX Ref 03 and COO 03 | |
03011125 | Campbell-Savona CSD, NY GO 2003 | |
03011126 | Strasburg Borough, PA GO 2003A |
-30-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
03011127 | Danvers (Town of), MA GO 2003 | |
03011128 | McKinney (City of), TX GO LTX Wtr/Swr 2003A | |
03011130 | McKinney (City of), TX GO LTX 2003 | |
03011131 | Kankakee SD No. 111, IL GO Ref 03 | |
03011133 | Merriam (City of), KS GO 2003 | |
03011134 | Kent SD No. 415, WA GO ULT 2003 | |
03011136 | Big Walnut Local SD, OH GO 2003 | |
03011137 | Weehawken Twp BOE, NJ GO Ref 2003 (Pension 03) | |
03011140 | Hinckley-Big Rock CUSD 429, IL GO LTX 03A & GO 03B | |
03011141 | Greater Nanticoke ASD, PA GO 2003A | |
03011142 | Olathe USD #233, KS GO 2003B | |
03011143 | Macomb Township Bldg Auth, MI GO LTX 2003B | |
03011144 | Robla Sch Dist, CA GO Ref 2003_2003D | |
03011148 | West Harris MUD #9, TX 2003A | |
03011149 | Tacoma SD #10, WA GO ULT 2003 | |
03011150 | Chesterfield (Charter Twp), MI GO LTX 2003 | |
03011151 | Portland Dist Library, MI Library Build GO ULT 03 | |
03011152 | Nevada GO Ltd Tax 2003I | |
03011153 | West Allegheny SD, PA GO Ref 2003CD | |
03011154 | Country Club Hills (City of), IL GO Ref 03AB | |
03011156 | Savage (City of), MN GO 2003DE & GO Ref 2003FG | |
03011157 | Pittsburgh SD, PA GO Ref 2003A | |
03011159 | Pine-Richland SD, PA GO 2003 | |
03011163 | Manchester (City of ), NH GO 03AC & GO Ref 03B | |
03011165 | Davenport (City of), IA GO 2003 B | |
03011166 | Flagstaff (City of), AZ GO Ref 2003 | |
03011169 | Metro Govt Nashville-Davidson County, TN GO 03 | |
03011170 | Travis County MUD No. 3, TX GO ULT Ref 2003 | |
03011171 | North Allegheny SD, PA GO 2003D | |
03011172 | Harris County MUD #8, TX GO ULT 2003 | |
03011177 | Clinton Twp BOE (Hunterdon), NJ GO dtd 12/1/03 | |
03011178 | Show Low USD No. 10, AZ GO Ref 2003B | |
03011179 | Napavine SD No. 14, WA GO ULT Ref 2003 | |
03011180 | Fabius-Pompey CSD, NY GO 2003 | |
03011185 | Greece Central SD, NY GO 2003 AB | |
03011190 | Weakley County, TN GO Sch. Rfd. 2003 | |
03011192 | Indiana Bond Bank Taxable Severance Funding, Ser 5 | |
03011193 | Stewart County, TN GO Ref 2003A | |
03011196 | Aransas Pass (City of), TX GO LTX 2003 | |
03011197 | Mukwonago ASD, WI GO Ref dtd 12/22/03 | |
03011198 | Washoe County SD, NV GO LTX 2003C | |
03011200 | Darien Park Dist, IL GO Ref 03C (Darien Sportsplex | |
03011201 | Kohler SD, WI GO Ref dtd 12/15/03 | |
03011203 | Pflugerville (City of), TX GO LTX 2003A | |
03011208 | Elgin SD #U-46, IL GO LTSer 03A&B | |
03011210 | Yuma SD-1, CO GO 2003 | |
03011211 | Toledo City SD, OH GO ULT 2003B | |
03011212 | Cicero SD No. 99, IL GO 2003 | |
03011213 | Kenai Peninsula Boro, AK GO 03 (Hosp Serv Area) | |
03011214 | Round Lake Area Park District, IL GO Alt Rev 03 | |
03011215 | Kitsap County, WA GO LTX 2003B | |
03011217 | Trenton (City) Park Auth, NJ Park Rev 03 (Guar) | |
03011221 | Putnam County, NY GO 2003 | |
03011222 | Kalamazoo County Bldg Auth, MI GO LTX 2003 | |
03011224 | Pleasant Prairie (Village of), WI GO Prom Notes 03 |
Policy Id |
Policy |
|
03011225 | Winchester (City of), VA GO 2003 | |
03011226 | East Hills (Inc. Vlg of), NY GO 2003 | |
03011228 | Westbrook (City of), ME GO 2003 | |
03011229 | River Dell Reg SD, NJ GO Ref 2003 | |
03011230 | Oxford (Town of), MA GO dtd 12/15/03 | |
03011231 | North Orange Cnty CCD, CA GO Elec of 2002, Ser 03 | |
03011232 | El Rancho USD, CA GO Election of 2003, Ser 2003A | |
03011233 | Southfield (City of), MI GO LTX 2003 | |
03011235 | Lan-Oak Park Dist, IL GO (Alt Rev Source) 2003 | |
03011238 | Mercer Cnty Imp Auth (Reg Sludge) ,NJ GO Ref 03 | |
03011239 | Mercer Cnty Imp Auth (Reg Sludge) ,NJ GO Ref 03 | |
03011240 | Point Pleasant, NJ GO Gen Imp 03 & GO Wtr/Swr 03 | |
03011244 | Hanover Park Park Distr, IL GO Ref (Alt Rev) 2003 | |
03020004 | New Jersey (State of) GO Series J | |
03020008 | New York City, NY GO Fiscal 2002 A9 & A11 | |
03020009 | New York City, NY GO 01 H Fix | |
03020010 | New York City, NY GO Fiscal 2002 A9 & A11 | |
03020012 | New York City, NY GO 2003 G | |
03020016 | New York City, NY GO 2003 G | |
03020019 | New York City, NY GO 2000A | |
03020022 | New York City, NY GO 2002 DEFG | |
03020025 | New Jersey (State of) GO H & I | |
03020026 | San Anselmo (Town), CA GO 03 | |
03020027 | San Anselmo (Town), CA GO 03 | |
03020028 | Houston, Tex GO Ltd Tax 99A/B | |
03020030 | NEW JERSEY STATE, GO SER D REF | |
03020032 | New York City GO 03 I | |
03020033 | New York City,NY GO Series F&G | |
03020034 | Massachusetts Commonwealth GO 03 ABC | |
03020035 | New York City GO 03 I | |
03020036 | New York City GO 03 I | |
03020037 | New York City GO 03 I | |
03020038 | New York City GO 03 I | |
03020039 | Massachusetts Commonwealth GO 2001D | |
03020042 | New Jersey (State of) GO H & I | |
03020044 | New Jersey (State of) GO Series J | |
03020053 | New Jersey (State of) GO H & I | |
03020054 | California State GO dtd 5-1-03 | |
03020055 | California State GO dtd 5-1-03 | |
03020057 | Washington State GO Various Purpose 2003 E | |
03020059 | Connecticut State GO 2003A | |
03020065 | Illinois (State) GO June of 2003 | |
03020066 | Illinois (State) GO June of 2003 | |
03020067 | Illinois (State) GO June of 2003 | |
03020073 | Washington County, MN GO 03A & GO Jail Ref 03B | |
03020076 | Metro Govt Nashville-Davidson County, TN GO 03 | |
03020077 | Oregon State, OR GO Dept Admin Services 2003 | |
04010002 | Commerce (City of), TX GO LTX Ref and Impr 03 | |
04010003 | Jeannette City SD, PA GO Ref 2003ABC | |
04010004 | William Penn SD, PA GO 2004 | |
04010006 | Vista USD, CA GO Elec of 2002, Ser 2003B | |
04010007 | Pennridge SD, PA GO 2004 | |
04010008 | Kankakee School District #111, IL GO 04 | |
04010009 | Scranton Parking Auth, PA Guar Park GO 03 | |
04010010 | Fort LeBoeuf SD, PA GO 2004 |
-31-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
04010011 | Howard-Suamico SD, WI GO Ref dtd 1/1/04 | |
04010012 | Durant Community SD, IA GO Ref dtd 1/1/04 | |
04010013 | Madison (City of), MS GO Ref 2003 | |
04010017 | Delran (Township of) Sewerage Auth, NJ GO Ref 03 | |
04010018 | Council Rock SD, PA GO 2004 | |
04010020 | Laurel County (Courthouse Renov Proj), KY GO 2004 | |
04010022 | Ridley School Dist Auth, PA GO Rev 2004AB | |
04010026 | Germantown SD, WI GO Ref dtd 1/1/04 | |
04010028 | Winslow Township BOE, NJ GO Ref 2002 | |
04010030 | Wild Rose SD, WI GO Ref 2004 | |
04010032 | Mesa (City), AZ GO Ref 2004 | |
04010035 | Riverside SD, PA GO 2004 | |
04010036 | Freeport (Village of), NY GO 2004 A&B | |
04010040 | Titus County Hosp Dist, TX GO LTX Ref 2004 | |
04010041 | Berwick ASD, PA GO 2004 | |
04010044 | Barnegat Township BOE, NJ GO Ref 2004 | |
04010049 | Carlisle Area SD, PA GO 2003A | |
04010050 | Susquehanna Community SD, PA GO 2004 | |
04010051 | Andover RSD, NJ GO Ref 2003 | |
04010053 | Monroe-Woodbury CSD, NY GO 2003 AB | |
04010054 | Clear Brook City MUD, GO ULT 2004 | |
04010055 | Maywood (Borough of), NJ GO dtd 1/15/04 | |
04010056 | Clinton Comm SD, WI GO Ref dtd 2/1/04 | |
04010057 | Oxford (City of), AL GO School Warrants 2004 | |
04010059 | Port of Seattle, WA GO LTX 2004 A | |
04010060 | Clintondale Comm Schools, MI GO ULT Ref 04 | |
04010061 | Washington County, UT GO Ref 2003 | |
04010062 | North Star SD, PA GO Ref 04 | |
04010063 | Utica City SD, NY GO 2004 | |
04010065 | San Jacinto Coll Dist, TX GO LTX & Ref 04 | |
04010066 | Bay City (City of), TX GO LTX COOs 04 (Matagorda) | |
04010067 | Louetta North PUD, TX GO ULT 2004 | |
04010070 | Kane Cnty Forest Preserve Dist, IL GO Ref 2004 | |
04010071 | Beaumont USD, CA GO Elect of 1998, Ser 2004 | |
04010072 | Warminster (Twp of), PA GO 2004 | |
04010075 | Chassell Township Schools, MI GO ULT Ref 04 | |
04010078 | Spring Hill USD No. 230, KS GO 2004 | |
04010079 | Shade-Central City SD, PA GO Ref 04 | |
04010081 | Golf (Village of), IL GO ULT 2004 | |
04010082 | Brownsville, TX GOLT 2004-A & 2004-B (AMT) | |
04010083 | Brownsville, TX C/Os 2004-A & 2004-B (AMT) | |
04010084 | Gaston County, NC GO & GO Ref 2004 | |
04010085 | Edinburg (City of), TX GO COOs 2004 | |
04010088 | Fort LeBoeuf SD, PA GO 2004C | |
04010089 | Poplar Grove (Vlg of), IL GO Alt Rev 2004 | |
04010093 | Dauphin County, PA GO Notes 04A (TaxEx) &04B (Txbl | |
04010094 | San Mateo UHSD, CA GO Elec 2000 (Series C 2004) | |
04010095 | Ellsworth Comm SD, WI GO Ref dtd 3/15/04 | |
04010096 | West Allegheny SD, PA GO Ref 2004 | |
04010097 | Somerset ASD, PA GO 2004 | |
04010102 | York City SD, PA GO 2004 | |
04010103 | Merced City SD, CA GO (Elect of 2002) Ser 2004 | |
04010104 | North Attleborough, MA GO LTX Ref dtd 3/1/04 | |
04010105 | Danbury (City of), CT GO Ref 04 | |
04010112 | Freeport (Village of), NY GO Ref 04 |
Policy Id |
Policy |
|
04010113 | Galion City SD, OH GO ULT 04 | |
04010116 | Kent City SD, OH GO ULT Library Improv 2004 | |
04010118 | Pentwater Pub Schools. MI GO ULT 04 Bldg and Site | |
04010120 | Euless (City of), TX GO Ref 2004 | |
04010121 | Neodesha USD #461, KS GO Ref 04 | |
04010123 | Kenosha (City of), WI GO Promissory Notes 2004 | |
04010125 | Grand Meadow ISD No. 495, MN GO Ref 2004 | |
04010126 | Scottsdale USD #48, AZ GO Ref 04 | |
04010128 | Montgomery County, TN GO Ref 2004 | |
04010129 | Jefferson Local SD, OH GO ULT vtd 11/4/03 | |
04010130 | Cleveland (City of), TN W&S Rev & Tax Ref 04 | |
04010131 | Alhambra ESD #68, AZ GO Ref 2004 | |
04010133 | Newhall SD, CA GO Ref 2004 | |
04010135 | Oak Lawn-Hometown SD No. 123, IL CABs 2004 | |
04010139 | Rochester (City of), NY GO 2004A | |
04010141 | Rochester (City of), NY GO 2004B | |
04010143 | Springfield SD No. 186, IL GO LTX CABs 04 | |
04010147 | Hamilton SD, WI GO Ref dtd 3-15-04 | |
04010149 | North Hempstead (Town of), NY GO 04 Ref | |
04010154 | Bernards Township BOE, NJ GO Ref 2004 | |
04010155 | Westlake City SD OH GO ULT Ref 2003 | |
04010158 | Nye County SD, NV GO LTX Ref 2004 | |
04010163 | Punxsutawney Area SD, PA GO Ref 04 | |
04010164 | Summit County, OH GO LTX Ref 04AB | |
04010165 | Fond Du Lac (City of), WI GO Prom Notes 04 | |
04010166 | Fond Du Lac (City of), WI GO Ref dtd 3/15/04 | |
04010168 | Gary Comm School Corp, IN GO 2004 | |
04010169 | Holton (City of), KS GO Ref 04A | |
04010170 | Fort Bend County MUD #23, TX GO ULT 04 | |
04010172 | Fort Bend Co. LID #11, TX GO ULT Impr Ref 04 | |
04010173 | Butler County, PA GO 04 | |
04010175 | Ansonia (City of), CT GO Ref 04 | |
04010176 | Fresno (County of), CA GO Ref 2004AB | |
04010177 | Alhambra City ESD, CA (Election of 1999) GO Ser B | |
04010178 | Middletown City SD BOE, OH GO School Impr dtd 3/1/ | |
04010179 | Mansfield (City of), TX GO Ref 2004 | |
04010181 | Kane County (Motor Fuel Tax), IL GO Ref 04 | |
04010184 | Garvey SD, CA GO Election of 2000 Ser B | |
04010185 | Bloomsburg ASD, PA GO 2004 | |
04010186 | Medford Township, NJ GO Ref 04 | |
04010191 | Kankakee (City of), IL GO 2004 | |
04010192 | Kenosha (City of), WI GO 2004B | |
04010194 | Kent (City of), WA GO LTX Ref 04 | |
04010195 | Indian Springs SD #109, IL GO LTX 2004 | |
04010201 | Dover (Township of), NJ GO 2004 | |
04010202 | Center Line (City of), MI GO ULT Ref 04 | |
04010203 | Jersey Shore ASD, PA GO 2004 | |
04010205 | Hempfield (Twp), PA GO Ref 2004 | |
04010206 | Franklin Local SD, OH GO 04A | |
04010207 | St. Charles Parish SD #1, LA GO Ref 2004 | |
04010208 | South Georgia Gvmt Svc Auth, GA ULT 04 | |
04010213 | West York ASD, PA GO 2004 | |
04010214 | Connecticut State GO Ref 2004B | |
04010217 | East St. Louis SD #189, IL GO Ref 04AB | |
04010224 | Delhi CSD, NY GO 2004 |
-32-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
04010225 | Elmont UFSD, NY GO 2004 | |
04010227 | Calcasieu Parish SD No. 30, LA GO Ref 2004A | |
04010228 | Bensalem Township, PA GO 2004 | |
04010229 | New Brunswick (City of), NJ GO Impr 04 & Ref 04 | |
04010230 | Saranac Lake CSD, NY GO Ref 04 | |
04010231 | Cook Cnty SD No. 162 (Matteson), IL GO LTX 04 | |
04010239 | Twinsburg City SD, OH GO ULT Ref 04 | |
04010240 | Westwood Reg SD BOE, NJ GO Ref 04 (Bergen Co) | |
04010241 | Hamilton SD, WI GO Ref dtd 4/15/04 | |
04010243 | Jurupa USD, CA GO (Elect of 2001) 2004 | |
04010245 | Sidney CSD, NY GO 2004 | |
04010246 | Oxford Academy and Central SD, NY GO 2004 | |
04010249 | Unadilla Valley Central SD, NY GO 2004 | |
04010250 | Webster Parish SD No. 6, LA GO School 2004 | |
04010252 | Tempe ESD #3, AZ GO Ref 2004 | |
04010253 | Cicero (Town of), IL GO Ref 04ABC | |
04010254 | Warren City SD, OH GO ULT School Impr 2004 | |
04010256 | Lancaster SD, PA GO 2004 | |
04010257 | Broome County, NY GO Ref 04 | |
04010262 | Dundee (Village), MI Local Dev Fin Auth GO LTX 04 | |
04010267 | Anoka-Hennepin ISD #11, MN GO Ref 2004B | |
04010268 | Murphy (City of), TX GO LTX 04 | |
04010280 | Timber Lane Utility District, TX GO ULT 04 | |
04010281 | Greene Cnty (Blount Cnty PBA), TN GOULT | |
04010282 | Gibraltar SD, MI GO 2004 (Q-SBLF) | |
04010285 | Warwick SD, PA GO 04 | |
04010286 | Utica City SD, NY GO 2004B | |
04010287 | Waterford-Halfmoon Union FSD, NY GO 2004 | |
04010288 | Fort Bend County, TX GO ULT & Sub Lien Toll Rd 04 | |
04010289 | Tecumseh Local SD, OH GO 04 | |
04010290 | Connecticut State GO Ref 2004C | |
04010291 | Avon Grove SD, PA GO 2004AB | |
04010294 | Duarte USD, CA GO (Elect of 1998) GO Series D | |
04010295 | Roseville City SD, CA GO (Elect of 2002) Ser B | |
04010297 | Kent (City of), WA GO ULT Ref 04 | |
04010298 | Hempfield ASD, PA GO 04A & Ref 04B | |
04010299 | Millburn CCSD #24, IL (Lake County) GO 04 | |
04010300 | Denver SD #1, CO GO 2004 Ref | |
04010301 | Licking Heights LSD, OH GO | |
04010302 | Kaneland CUSD #302, IL (Kane/DeKalb) GO 04 | |
04010304 | Jackson Local SD, OH GO ULT dtd 3/2/04 | |
04010305 | Cambria Heights SD, PA GO 2004AB | |
04010306 | Oceanside USD, CA GO (Elect of 2002), Ser D | |
04010307 | Centr Montgomery Co Area Vo-Tech, PA (SPSBA) GO 04 | |
04010308 | Monessen City SD, PA GO 04AB | |
04010309 | Frankfort CCSD #157-C, IL GO 2004 ABC | |
04010315 | Elk River ISD #728, MN GO 2004A | |
04010316 | West Kern CCD, CA GO (Election 2004) Ser 04A | |
04010318 | Rosemead SD, CA GO (Elect 2000) Ser B | |
04010319 | Denton (City of), TX GO LTX Ref 04 & COOs 04 | |
04010328 | Anaheim City SD, CA GO (Elect of 2002) Ser 2004 | |
04010330 | Olentangy Local SD, OH GO Var Purp 04AB | |
04010334 | Placentia-Yorba Linda USD, CA GO 2002 Series B | |
04010335 | Henry County SD, GA GO 2004 | |
04010347 | Huntley CCSD #158, IL GO CABs 04 |
Policy Id |
Policy |
|
04010348 | Wisconsin (State of), GO 2004 Ref, Ser 3 | |
04010349 | Buffalo (City of), NY GO 2004BC | |
04010350 | Redmond SD No. 2J, OR GO 04AB | |
04010351 | Harris Co MUD #370, TX GO 2004 | |
04010352 | Allen (City of), TX GO LTX 2004 | |
04010353 | Glens Falls (City of) City SD, NY GO 04 | |
04010358 | Baldwin Park USD, CA GO (Elect of 2002) Ser 04 | |
04010361 | Mount Morris CSD, NY GO 2004 | |
04010362 | Solvay UFSD, NY GO 2004AB | |
04010363 | Solvay UFSD, NY GO 2004AB | |
04010365 | Fabius-Pompey CSD, NY GO 2004B | |
04010367 | Wentzville R-IV SD, MO GO 2004 | |
04010368 | West Valley SD #363, WA GO ULT 2004 | |
04010372 | West Bradford Township, PA GO 04 | |
04010373 | San Bernardino County, CA GO LTX Pens Obl 04ABC | |
04010374 | Ellenville CSD, NY GO 2004 | |
04010375 | Sterling Heights (City), MI GO LTX Judgmnt Fund 04 | |
04010382 | Wissahickon SD, PA GO 2004 | |
04010383 | Kern HSD, CA GO (Elect of 1990) Ser E | |
04010389 | Oklahoma County ISD #89, OK GO 2004 | |
04010391 | Douglas County SD RE1, CO GO 04 | |
04010393 | Crete-Monee SD 201-U, IL GO CABs 04 | |
04010401 | Bayonne (HCIA), NJ GO Lse (DPW Garage Proj) 04 | |
04010403 | Lucia Mar USD, CA GO (Elect of 2004) Ser A | |
04010404 | Rolling Meadows Park Dist, IL GO 04 (ARS) | |
04010406 | Calumet City (City of), IL GO Ref 2004 | |
04010408 | Laurel Highlands SD, PA GO 2004 | |
04010410 | Central Unified SD, CA GO (Elect of 2004) Ser A | |
04010416 | San Diego County, CA POBs 04A&C | |
04010417 | Siuslaw SD No. 97-J, OR GO Ref 04 | |
04010419 | Ford Heights SD No. 169, IL GO LTX 04AB | |
04010421 | Philadelphia SD, PA GO 2004D | |
04010422 | Montebello USD, CA GO (Elect of1998) Ser 04 | |
04010423 | Colton Joint USD, CA GO (Elect of 2001) Ser B | |
04010424 | Clark County SD, NV GO LTX 04C | |
04010425 | Mt. Diablo USD, CA GO (Elect of 2002) Ser 2004 | |
04010426 | Hood Canal SD #404, WA GO ULT 2004 | |
04010427 | Oroville UHSD, CA GO (Elect of 2002), Ser B | |
04010428 | Chillicothe City SD, OH GO ULT 2004 | |
04010437 | Jefferson Co-DuBois Area Voc-Tech Sch, PA Rev 04 | |
04010438 | Byron ISD No. 531, MN GO 04A | |
04010440 | El Segundo USD, CA GO Ref 04 | |
04010442 | Kingsburg Elem SD, CA GO (Elect of 2004) Ser A | |
04010443 | Barnegat Township BOE, NJ GO dtd 7/1/04 | |
04010445 | Oxnard SD, CA GO (Elect 1997) Ser G | |
04010448 | Millstone Twp BOE, NJ GO 04 | |
04010449 | Addison SD No. 4, IL GO 2004 | |
04010451 | Mount Vernon City SD, NY GO 2004 | |
04010456 | St. Tammany Parishwide SD #12, LA GO 2004 | |
04010457 | San Rafael City HSD, CA GO (Elect of 2002) Ser B | |
04010458 | San Rafael ESD, CA GO (Elect of 2002) Ser B | |
04010459 | Pennfield Schools, MI GO 04 (Q-MSBLF) | |
04010460 | Baldwin-Whitehall SD, PA GO 2004 | |
04010462 | Rochester CSD, MI GO 2004 | |
04010463 | Arlington School Dist No. 16, WA GO Ref 04 |
-33-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
04010465 | Sparta Area Schools, MI GO 04 | |
04010470 | Owego Apalachin CSD, NY GO 04B | |
04010475 | Owego Apalachin CSD, NY GO 04A | |
04010481 | Chelsea SD, MI GO 04 | |
04010482 | Washington USD, CA GO 04A | |
04010489 | North Colonie CSD, NY GO 04 | |
04010491 | Fowlerville Comm Schools, MI GO 2004 | |
04010492 | Auburn SD No. 408, WA GO dtd 8/1/04 | |
04010493 | Atwater ESD, CA 04A | |
04010496 | Carlisle Area SD, PA GO 04A | |
04010497 | Natomas USD, CA GO (Elect of 2002) Ser 04B | |
04010498 | Fort Mill SD #4, SC GO 2004 | |
04010499 | Cicero (Town of), IL GO Ref 04 | |
04010504 | Northville Public Schools, MI GO 04 | |
04010516 | Tahoe Truckee USD (SFID #1), CA GO Elec 1999 Ser B | |
04010517 | Tahoe Truckee USD (SFID #2), CA GO Elec 1999 Ser B | |
04010518 | Schaumburg (Village of), IL GO 04B | |
04010520 | Hermiston SD #8R, OR GO Ref 04 | |
04010521 | DeSoto County SD, MS GO 04A | |
04010522 | DeSoto County SD, MS GO 04B | |
04010523 | West Contra Costa USD, CA GO (Elect 2002) Ser C | |
04010524 | Fennville Public Schools, MI GO 04 | |
04010526 | Kingsway Regional SD, NJ GO 04 | |
04010527 | Francis Howell SD, MO GO Ref 04A (MDDP) | |
04010528 | Black Horse Pike Reg SD, NJ GO Ref 04 | |
04010529 | Atchison County USD No. 409, KS GO 04 | |
04010530 | Blount County, TN GO Ref 2004A | |
04010531 | Lake Washington SD #414, WA GO Ref 04B | |
04010535 | Novi Building Authority, MI GO LTX Ref 04 | |
04010540 | Tulsa County ISD No. 1, OK GO 04B | |
04010549 | Las Vegas (City of), NV GO LTX 2004 | |
04010550 | Springfield SD, PA GO 04A | |
04010559 | Armstrong SD, PA GO 2004 | |
04010561 | Saline Area Schools, MI GO Ref 04 | |
04010563 | Burlington Twp BOE, NJ GO 2004 | |
04010564 | Golf (Village of), IL GO 04A | |
04010565 | Fairfield County, OH GO LTX 04 | |
04010570 | McGuffey School District, PA GO 04 | |
04010571 | South Park SD, PA GO 04 | |
04010572 | Jamesburg BOE, NJ GO dtd 8/1/04 | |
04010573 | Gibson County, TN GO 2004 | |
04010575 | Allegheny County Comm College (SPSBA), PA GO 2004 | |
04010579 | West Allegheny SD, PA GO 04B | |
04010580 | Daytona Beach (City of), FL GO 04 | |
04010581 | Manhasset UFSD, NY GO 04 | |
04010582 | Wichita Falls (City of), TX GO LTX Tax/Rev Ref 04 | |
04010585 | Highline SD #401, WA GO Impv & Ref 04 | |
04010586 | Plumsted Twp BOE, NJ GO Ref 04 | |
04010587 | Huntington Beach (City of), CA GO LTX Judgmnt 04 | |
04010592 | Everett (City of), MA GO Ref dtd 9/15/04 | |
04010593 | Cal-Mort SCDA (Keiro Snr Lvg), CA Rev 04 | |
04010594 | Chesterfield County SD, SC GO 04 | |
04010595 | Waunakee Comm SD, WI GO 04AB | |
04010597 | Susquehanna Twp SD, PA GO 04 | |
04010598 | Granite Shoals, TX GO LTX Comb Tax & Rev COOs 04 |
Policy Id |
Policy |
|
04010603 | Dearborn (City of), MI GO ULT Sewer 04B | |
04010604 | Paradise Valley USD #69, AZ GO Ref 04 | |
04010605 | Union ESD, CA GO (Elect of 99) Ser C | |
04010606 | Union ESD, CA 2004 GO Ref | |
04010609 | Pearl River UFSD, NY GO Ref 04AB | |
04010610 | Lenape Reg HSD BOE, NJ GO Ref 04 | |
04010611 | Blount County, TN GO Ref 2004B | |
04010613 | Jackson Local SD, OH GO ULT 04 | |
04010614 | Seneca Valley SD, PA GO 04 | |
04010626 | Pasadena USD, CA Elec GO Ref 04AB | |
04010627 | Canby SD No. 86, OR GO Ref 04 | |
04010628 | Fillmore USD, CA GO Ref 04 | |
04010633 | West Linn-Willsonville SD No. 3Jt, OR GO Ref 04 | |
04010636 | Wyoming Area SD, PA GO 2004A | |
04010637 | West Shore SD, PA GO 04A & 04AA | |
04010643 | Denver SD #1, CO GO Ref 04C | |
04010644 | Southwestern CCD, CA GO (Elect of 2000) 04A | |
04010646 | York City SD, PA GO 2004B | |
04010649 | Shippensburg Area School District, PA GO 04 | |
04010653 | Cornwall CSD, NY GO 04 | |
04010654 | Indiana Bond Bank Taxable Severance , Ser 7A 2004 | |
04010655 | Indiana Bond Bank Taxable Severance , Ser 7B 2004 | |
04010656 | Cherry Hill (Township), NJ GO 04A | |
04010658 | Moreland SD, CA GO Ref 04 | |
04010663 | Montgomery County MUD #46, TX GO ULT W&S 04 | |
04010669 | Apple Valley SD, CA (Elect of 2004) GO Ser A | |
04010670 | Dysart USD No. 89, AZ GO Ref 04 | |
04010671 | Fort Mill SD #4, SC GO Adv Ref 04B | |
04010672 | Wisconsin (State of), GO 2004 , Ser E | |
04010675 | Rockland County, NY GO Various Purp 04 | |
04010676 | Harris County MUD #26, TX | |
04010677 | Montville Township BOE, NJ Ref 04 | |
04010678 | Manalapan-Englishtown Reg BOE, NJ GO Ref 04 | |
04010682 | TPFA (Park Development), TX GO Ref 04 | |
04010689 | Ferndale Public Schools, MI GO ULT School & Ref 04 | |
04010693 | Harper Woods (City of) SD, MI GO School & Ref 04 | |
04010694 | Mississippi (State of), MS GO Cap Impr (Tax-Ex) 04 | |
04010695 | Warren Twp HSD #121, IL GO Ref 04D | |
04010696 | Mendon Community Schools, MI GO ULT 04 Q-SBLF | |
04010701 | Howell Fire District No. 2, NJ GO 04 | |
04010704 | Gateway USD, CA GO (Elect of 2002) Ser B | |
04010705 | Plymouth-Canton CS, MI GO ULT 04 (Q-SBLF) | |
04010709 | Moreland SD, CA GO Elec of 2002 Series CD | |
04010712 | Lancaster CSD, NY GO 2004 | |
04010714 | Cal-Mortgage (CHFFA) Solheim, CA Rev 04A | |
04010715 | North Schuylkill SD, PA GO 2004 | |
04010716 | Penn-Delco SD, PA GO 04A & Ref 04B | |
04010720 | Upper Saddle River (Boro of) BOE, NJ GO Ref 04 | |
04010724 | Conejo Valley USD, CA GO (Electof 1998) Ser D | |
04010727 | Penn Manor SD, PA GO 2004 | |
04010728 | Fair Lawn Borough BOE, NJ GO 04 | |
04010729 | Mayville Comm Schools, MI GO ULT 04 (Q-SBLF) | |
04010731 | Commack UFSD, NY GO 04 | |
04010733 | Bethlehem (City of), PA GO 2004 (Fed Txble) | |
04010734 | Painesville City LSD, OH GO ULT 04 |
-34-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
04010735 | Henderson (City of), NV GO LTX Sewer 04 | |
04010736 | Bath Comm Schools, MI GO ULT 04 | |
04010737 | Collinsville Area Rec Dist., Il GO Alt Rev 04 | |
04010743 | East Grand Forks (City of), MN GO Impr 04B | |
04010744 | Hamilton Twp BOE, NJ GO Ref 04 | |
04010746 | Antioch CCSD #34, IL GO LTX Ref 04 | |
04010749 | South Redford SD, MI GO Ref 05 | |
04010750 | Tumwater SD #33, WA GO ULT & Ref 04 | |
04010751 | Northwest Park MUD, TX GO 2004 | |
04010752 | Indiana Bond Bank Taxable Severance, Ser 8AB 2004 | |
04010753 | Wolcott (Town), CT GO Ref 04 | |
04010754 | Harris County MUD #153, TX GO ULT 04A | |
04010759 | Clovis USD, CA GO (Elect of 2004), Ser A | |
04010767 | Plainfield (Village), IL GO Ref 04AB | |
04010773 | El Paso County SD #20, CO GO 04B (Academy) | |
04010775 | Geneva CUSD #304 (Kane Co), IL GO 04A | |
04010778 | El Monte City SD, CA GO 04C & Ref 04 | |
04010779 | Katonah-Lewisboro UFSD, NY GO 04ABC | |
04010782 | Lewiston-Porter CSD, NY 2004 | |
04010784 | DePere USD, WI GO dtd 11/1/04 | |
04010785 | El Rancho USD, CA GO (Elect of 2003) Ser 04 | |
04010787 | Niles Twp CHSD #219, IL GO Ref 04 | |
04010790 | Indiana Bond Bank Taxable Severance, Ser 9 2004 | |
04010792 | Konocti USD, CA GO (Elect of 2004), Ser 04A | |
04010793 | Fort Bragg USD, CA GO (Elect 2003) Ser 04 | |
04010794 | Summit Cnty SD RE-1, CO GO 04B | |
04010795 | Manhattan SD 114, Will County, IL GO Cap Appr 04C | |
04010797 | Woodland CCSD #50, IL GO Ref 04 | |
04010798 | Brighton SD #27J, CO GO 2004 | |
04010799 | Lake Central School Corp, IN GO Pension 04 (Txble) | |
04010800 | Northampton Township, PA GO 05 | |
04010801 | Springfield (City of), IL GO 04AB (Txble/Tax-Ex) | |
04010804 | Minooka SD 201, Il GO Ref 04 | |
04010806 | Collinsville CUSD #10, IL GO Ref 04 | |
04010812 | Sturgis (City), MI GO LTX Build Auth 04(Hosp Proj) | |
04010813 | Lancaster SD, PA GO 2005 | |
04020001 | Oregon State, OR GO Dept Admin Services 2003 | |
04020002 | Oregon State, OR GO Dept Admin Services 2003 | |
04020003 | New Jersey (State of) GO H & I | |
04020011 | Massachusetts Commonwealth, MA GO 04B & GO Ref 04B | |
04020014 | New Jersey (State of) GO H & I | |
04020026 | California State GO 4-1-02 | |
04020035 | California State, CA GO dtd 7/1/03 | |
04020038 | Harris Cnty, TX GO ULT Road 2001 | |
04020043 | California State, CA GO dtd 2/1/04 | |
04020044 | California State, CA GO dtd 2/1/04 | |
04020057 | CALIFORNIA STATE GO 10-1-97 | |
04020058 | CALIFORNIA ST GO AUG 90 | |
04020059 | CALIFORNIA STATE GO 10-1-98 | |
04020060 | California State, CA GO dtd 6/1/04 | |
04020064 | New Jersey (State of) GO Series K 2003 | |
04020065 | New Jersey (State of) GO Series K 2003 | |
04020090 | Massachusetts Commonwealth GO D 02 | |
04020091 | Harris County,TX GO Road Ref 04B |
Policy Id |
Policy |
|
04020111 | California State, CA GO dtd 12/1/04 | |
04020112 | California State GO dtd 5-1-03 | |
04020117 | California State, CA GO dtd 12/1/04 | |
05010007 | Fort Bend County MUD #26, TX GO ULT 2005 | |
05010008 | Bethlehem CSD, NY GO Ref 05 | |
05010009 | State PSBA (Career Inst of Tech), PA GO 05 | |
05010012 | Terre Haute San Dist, IN GO 05 | |
05010013 | Acalanes Union HSD, CA GO Ref 05 | |
05010016 | Rio Grande City Consol ISD, TX GO ULT 04 | |
05010017 | Tucson (City of), AZ GO Ref 04 | |
05010018 | Allegheny County. PA GO C-57 (2005) | |
05010019 | Kutztown (Borough of), PA GO 05 | |
05010020 | Calcasieu Parish SD No. 34, LA GO Pub Impr 05 | |
05010023 | New Caney ISD, TX GO Ref 05 | |
05010027 | Hazelwood SD, MO GO 2005 (MDDP) | |
05010029 | Tulare Joint Union HSD, CA GO Elec of 2004 Ser B | |
05010030 | Klein ISD, TX GO Schoolhouse 05 | |
05010031 | Austin ISD, TX GO Ref 05 | |
05010033 | Utica Comm Schools, MI GO Bldg & Ref 05 | |
05010035 | Eagle Mountain-Saginaw ISD, TX GO Bldg & Ref 05-A | |
05010036 | Mukilteo SD No. 6, WA GO ULT Ref 05 | |
05010037 | Humble ISD, TX GO Unltd 04 | |
05010038 | Nampa (City of), ID GO 05 | |
05010039 | Penn Manor SD, PA GO 2005 | |
05010040 | Blount County, TN GO Ref 2005 | |
05010041 | Dublin City SD, OH GO ULT 2005 | |
05010043 | Frankenmuth SD, MI GO Ref 05 (Q-SBLF) | |
05010048 | Montoursville Area SD, PA GO 05 | |
05010049 | Arcadia USD, CA GO Ref (Elect of 1993) Ser 05A | |
05010051 | San Ysidro SD, CA GO Elect of 97 Series D | |
05010056 | Pittsburgh SD, PA GO Ref 05 | |
05010057 | Hawthorne SD, CA GO (Elect of 04) 05A | |
05010061 | South Eastern SD, PA GO 05 | |
05010062 | Westtown Township, PA GO Guar Swr Rev 05 | |
05010063 | Grand Ledge PS, MI GO ULT Ref 05 (Q-SBLF) | |
05010066 | Cocalico SD, PA GO 05 | |
05010067 | Wyomissing ASD, PA GO 05 | |
05010068 | Magnolia ISD, TX GO ULT & Ref 05 | |
05010071 | Charter Oak USD, CA GO (Elect of 2000) Ser 05C | |
05010073 | New Jersey State, NJ GO Ref 05 | |
05010075 | Palisades SD, PA GO 05 | |
05010076 | West York ASD, PA GO 2005 | |
05010077 | West Rusk County Cons ISD, TX GO ULT School 05 | |
05010079 | Three Rivers/Josephine Co Unit Jt SD, OR GO Ref 05 | |
05010080 | Spring ISD, GO ULT 05 | |
05010081 | Fremont Union HSD, CA GO | |
05010082 | Royse City ISD, TX GO ULT 05 | |
05010083 | Ottawa USD No. 290, KS GO Ref 2005 | |
05010087 | Imperial CCD, CA GO (Elect of 04) Ser 05 | |
05010088 | Hazelwood SD, MO GO 2005B Ref | |
05010089 | Lewisville ISD, TX GO ULT & Ref 05 | |
05010090 | Harris County WCID #155, TX Ref 05 | |
05010091 | Napoleon Comm Schools, MI GO Ref 05 (Q-SBLF) | |
05010092 | Jenkintown SD, PA GO 05A & Ref 05B | |
05010096 | Pine Hill (Boro) BOE, NJ GO Adv Ref 04 |
-35-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
05010100 | Minooka SD 201, Il GO Sch & Ref 05 | |
05010101 | Florida (State) BOE, FL PECO GO Ref 05A | |
05010102 | Zeeland Public Schools, MI GO Ref ULT 05 | |
05010113 | New Smyrna Beach (City of), FL GO 05 | |
05010114 | Chaffey Jt. UHSD, CA GO Ref 05 | |
05010115 | William Community Schools, MI 05 GO ULT | |
05010117 | Carlisle Area SD, PA GO 05 | |
05010118 | Sturgis Pub School Dist, MI GO Ref 05 (Q-SBLF) | |
05010119 | Randolph Twp SD BOE, NJ GO dtd 2/1/05 | |
05010121 | Pequea Valley SD, PA GO Ref 2005 | |
05010123 | Benjamin Logan LSD, OH GO Sch Impr Ref 05 | |
05010124 | Aurora East SD No. 131, IL GO & LTX 2005AB | |
05010125 | Newark City SD, OH GO ULT 05 | |
05010126 | North Monterey County USD, CA (Elect 2002) Ser B | |
05010127 | Ferndale (City of), MI GO Ref 2005 | |
05010128 | Santa Maria Jt UHSD, CA GO (Elect of 2004) Ser 05 | |
05010130 | Lucia Mar USD, CA GO Ref 05 | |
05010134 | Lincoln USD, CA GO (Elect of 2004) Ser 05 | |
05010136 | Somerville BOE, NJ GO 05 | |
05010137 | Sumner SD No. 320, WA GO ULT Ref 05 | |
05010140 | Madison Cnty SD, MS GO Ref 05A | |
05010143 | North Mission Glen MUD, TX GO 2005 | |
05010144 | Frazier SD, PA GO 05 | |
05010145 | Kenowa Hills Pub Sch, MI GO Ref 05 (Q-SBLF) | |
05010146 | Big Beaver Falls ASD, PA GO Ref 05 | |
05010155 | Antietam SD, PA GO 05 | |
05010156 | York City SD, PA GO 05 | |
05010157 | Warwick SD, PA GO Ref 05 | |
05010160 | Warwick Valley CSD, NY GO Ref 2005AB | |
05010163 | Denton ISD, TX GO ULT 05B | |
05010164 | State PSBA (Colonial IU No. 20), PA GO Lse Rev 05 | |
05010165 | East China SD, MI GO ULT Ref 05 (Q_SBLF) | |
05010167 | Perris UHSD, CA GO 2004 Elec, Series A & 05 Ref | |
05010169 | Philadelphia RDA, PA GO 04ABC (Neighborhood Trans) | |
05010170 | Green Bay Area PS Dist, WI GO Ref 05A&B | |
05010171 | Green Bay Area PS Dist, WI GO Ref 05B | |
05010174 | West Earl Sewer Auth, PA GO Gtd Sewer Rev 05 | |
05010175 | North Chicago (City of), IL GO 05AB | |
05010176 | Vancouver SD No. 37, WA GO ULT Ref 05 | |
05010177 | Ephrata ASD, PA GO 05 & Ref 05A | |
05010181 | Johnson Co (Gardner-Edgerton) USD #231, KS GO 05A | |
05010182 | Clark County SD, NV GO LTX Ref 05A | |
05010183 | Clark County SD, NV GO LTX Ref 05B (ARS) | |
05010184 | Hempfield ASD, PA GO Ref 05A & Ref 05B | |
05010185 | Greater Latrobe School Auth, PA GO Rev Ref 05AB | |
05010186 | Kutztown ASD, PA GO 2005 (Adv Ref) | |
05010187 | Fort Bend Co. MUD #25, TX GO ULT 2005 | |
05010188 | Randolph Twp SD BOE, NJ GO Ref dtd 3/1/05 | |
05010190 | Edmonds SD No. 15, WA GO ULT Ref 2005 | |
05010191 | Scottsdale USD #48, AZ GO Sch Impr 05A | |
05010192 | Plum Borough SD, PA GO 05AB | |
05010193 | La Mesa-Spring Valley SD, CA GO Ser B & Ref 05 | |
05010194 | Fullerton Jt Un HSD, CA, GO Elec 02, Series B | |
05010196 | Bridgeport (Borough), PA GO 05 | |
05010202 | Olentangy Local SD, OH GO Ref 05 |
Policy Id |
Policy |
|
05010204 | Harris County MUD #354, TX GO ULT Ref 05 | |
05010205 | Peoria (City of), IL GO 05A | |
05010213 | Tecumseh Pub Schools, MI GO Ref 05 Q-SBLF | |
05010214 | Conroe ISD, GO ULT 05B | |
05010216 | West University Place (City of), TX GO Ref 05 | |
05010217 | Newberg SD No. 29J, OR GO Ref 05 | |
05010218 | Dundee Community SD, MI GO Ref 05 | |
05010220 | Nevada (State of), NV GO LTX 05E | |
05010221 | Nevada (State of), NV GO LTX 05C | |
05010222 | Nevada (State of), NV GO LTX 05D | |
05010224 | Metuchen BOE, NJ GO Proj Sch dtd 3/15/05 | |
05010225 | Metuchen BOE, NJ GO Ref Sch dtd 3/15/05 | |
05010227 | Alhambra City UFSD, CA (Elect of 04) GO Ser A | |
05010228 | Navasota ISD, TX GO Sch Build 05 & Ref 05 | |
05010230 | Port Arthur ISD, TX GO Sch Bldg 05 | |
05010232 | Cal-Mortgage (CHFFA) Small Facilities, CA Rev 05A | |
05010234 | Dixon USD, CA GO (Elect 02) 05 CABS | |
05010238 | Bellefontaine City SD, OH GO ULT 05 | |
05010244 | Lincoln (City), OR GO Sewer Ref 05 | |
05010245 | Fremont (City of), CA GO (Elec of 2002) Ser B | |
05010246 | El Paso (City of), TX GO LTX Ref 05 | |
05010249 | Franklin-McKinley SD, CA (Elect of 2004) GO Ser A | |
05010252 | Fenton Area Pub Schools, MI GO ULT Ref 05 (Q-SBLF) | |
05010257 | North Brunswick TWP BOE, NJ GO dated 4/1/05 | |
05010258 | North Kingstown (Town of), RI GO Ref 05 | |
05010260 | Hoisington USD #431 (Barton Co.), KS GO Ref 05 | |
05010261 | Francis Howell SD R-III, MO GO Ref 05 (MDDP) | |
05010264 | Sierra Jt CCD #2, CA GO (Elect 04) Ser A (W Nev) | |
05010266 | Sierra Jt CCD #1, CA GO (Elect 04) Ser A (Tahoe) | |
05010267 | Lebanon CSD No. 9, OR GO Ref 05 | |
05010268 | Carl Sandburg CCD #518, IL GO Ref 05 | |
05010275 | Hampton (City of), VA GO Pub Imp 05A | |
05010279 | King County, WA GO LTX W&S Rev 05 | |
05010280 | Brownwood ISD, TX GO ULT School Bldg & Ref 05 | |
05010282 | Roseville Joint UHSD, CA GO (Elec of 2004) Ser A | |
05010283 | Madison County SD, MS GO 05 | |
05010286 | Las Vegas Valley Water Dist, NV GO LTX Ref 05A | |
05010288 | Leander ISD, TX GO ULT Bldg & Ref 05 | |
05010289 | Linn-Mar Comm SD, IA GO Ref 05AB | |
05010291 | San Jose Unified SD, CA GO (Elect of 2002) Ser B | |
05010292 | Yosemite CCD, CA GO (Elect of 2004) Ser 05 | |
05010293 | South Padre Island (Town of), TX GO 05 | |
05010294 | Upland Unified SD, CA GO (Elect of 2000) Ser 05C | |
05010295 | Norwalk-La Mirada USD, CA GO 05B & Ref 05 | |
05010297 | Peoria (City of), IL GO Ref 05B | |
05010298 | Mifflin County, PA GO ULT 05AB | |
05010299 | Placer UHSD, CA GO Ref 05 | |
05010301 | Southgate CSD, MI GO ULT Ref 05 | |
05010305 | Door County, WI GO ULT Ref 05A | |
05010307 | Shawano-Gresham SD, WI GO Ref 05 | |
05010308 | Timberlake Improve Dist, TX GO ULT 05 | |
05010309 | McKinney (City of), TX GO Tax/Ltd Pled W&S COOs 05 | |
05010310 | Haverford (Twp), PA GO 05A (Tax-Ex) & 05B (Txble) | |
05010314 | Palmer Plantation MUD No. 1, TX GO W&S Ref 05 | |
05010315 | Altmar-Parish-Williamstown CSD, NY GO Ref 05 |
-36-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
05010316 | Brookhaven (Town of), NY GO Pub Impr 05 | |
05010318 | Madera USD, CA GO (Elect of 2002) Ser 05 | |
05010319 | Napa Valley USD, CA GO (Elect of 2002) Ser 05 | |
05010323 | Johnston County, NC GO Ref 05 | |
05010325 | Dickson County, TN GO Ref 05 | |
05010333 | South Eastern SD, PA GO 05 | |
05010335 | Marion (City of), IL GO Ref 05 | |
05010336 | Pittsburgh SD, PA GO Taxable 05 | |
05010339 | Lansing USD#469 (Leavenworth), KS GO Ref & Imp 05 | |
05010340 | Rincon Valley Union ESD GO, CA (Elect 2004) Ser 05 | |
05010341 | Fowler USD, California GO (Elect of 04) 05 | |
05010342 | New Brunswick (City of), NJ GO Ref 05 | |
05010343 | New Brunswick (City of), NJ Sch Bonds Ref 05 | |
05010344 | Kingsway Reg HSD BOE, NJ GO Ref dtd 3/15/05 | |
05010345 | Madison Dist Pub Sch, MI GO Ref 05 | |
05010346 | Riverton CUSD#14, IL GO 05 | |
05010347 | Akron-Summit Co. Pub Lib, OH Ref 05 | |
05010348 | Lafourche Parish Cons SD #1, LA GO School 05 | |
05010350 | Humble ISD, TX GO ULT 05B | |
05010351 | Magnolia SD, CA GO Ref 05 | |
05010352 | Paola USD #368, KS (Miami Co) GO Ref & Impr 05 | |
05010354 | Evesham Twp BOE, NJ GO Ref 05 | |
05010358 | Victor ESD, GO (Election of 02) Ser B | |
05010360 | Lake Stevens SD No. 4, WA GO 05 | |
05010361 | Novi Building Authority, MI GO LTX Ref 05 | |
05010364 | Monticello CSD, NY GO Ref 05AB | |
05010365 | Hillsboro SD #1J, OR GO Ref 05 | |
05010367 | Clear Brook City MUD, TX GO 05 | |
05010369 | Shawnee Mission USD No. 512, KS GO Ref 05C | |
05010372 | Atlanta (City of), GA GO Ref 05A | |
05010374 | Victor ESD, GO Ref 05B | |
05010381 | Upper Darby SD, PA GO 05 | |
05010382 | West Virginia State, WV GO State Road Ref 05 | |
05010383 | Islip UFSD, NY GO Ref 2005 | |
05010384 | Oswego CUSD No. 308, IL GO LTX 05 | |
05010385 | Mainland Regional HSD, NJ Sch Ref 05 | |
05010386 | Highlands SD, PA GO Ref 2005 (Adv Ref) | |
05010387 | Souderton ASD, PA GO 05 | |
05010389 | Summit Hill SD #161, IL GO 2005 | |
05010390 | DeSoto County SD, MS GO 05 | |
05010397 | Hollywood (City of), FL GO 05 | |
05010398 | Menifee USD, CA GO (Elec of 2002) Series B | |
05010402 | Grossmont-Cuyamaca CCD, GO (Elect of 2002) 05B | |
05010410 | Johnson City CSD, NY GO 05 | |
05010412 | Rowland USD, CA GO Ref 05 | |
05010414 | Hacienda LaPuente USD CA, GO Ref 05 | |
05010415 | Moriah Central SD, NY GO Ref 05 | |
05010417 | Snohomish County, WA GO LTX Ref 05B | |
05010418 | Snohomish County, WA GO LTX 05A | |
05010419 | Arkansas Dev Fin Auth, AR GO Ref 05 | |
05010420 | Claysburg-Kimmel SD, PA GO Ref 05 | |
05010421 | Garvey SD, CA GO (Election of 04) Ser 05 | |
05010422 | Mount Pleasant ASD, PA GO Ref 05 | |
05010423 | Siren SD, WI GO Ref dtd 7/1/05 | |
05010424 | Waterloo CSD, NY GO 05 dtd 6/15/05 |
Policy Id |
Policy |
|
05010425 | Oak Valley Hosp Dist, CA GO (Elect of 04) 05 | |
05010426 | Worcester (City of), MA GO LTX Ref 05A | |
05010427 | Worcester (City of), MA GO LTX Ref 05B | |
05010429 | North Pocono SD, PA GO 2005 | |
05010430 | Goose Creek Consol ISD, TX GO ULT Schoolhouse 05 | |
05010431 | Wayne CSD, NY GO Sch Dist 05 | |
05010434 | Campton Township, IL GO 05B | |
05010435 | Lamar SD, MS GO 05 | |
05010436 | Timber Lane Util Dist, TX GO ULT 05A | |
05010438 | Goodyear (City of), AZ GO 2005 | |
05010441 | Tucson (City of), AZ GO 05-E | |
05010443 | Beverly Hills USD, CA GO Refunding 05 | |
05010444 | Cook County SD No. 162 (Matteson), IL GO Ref 05 | |
05010445 | Homer Twp, IL GO Open Space Ref 05 | |
05010446 | Brazoria MUD No. 26, TX GO 05 | |
05010447 | Erie County Convention Center Auth, PA GO 05 | |
05010448 | Erie County Convention Center Auth, PA GO 05 | |
05010452 | Rome (City of) City SD, NY GO Ref 05 | |
05010456 | Anaheim City SD, CA GO Ref 05 | |
05010461 | Everett ASD, PA GO 2005AB | |
05010462 | Bristol Twp SD, PA GO 2005 | |
05010472 | Denver SD #1, CO GO Ref 05A | |
05010479 | Brazoria County MUD No. 3, TX Wtr/Swr Rev 05 | |
05010480 | Linn-Mar Comm SD, IA GO Ref 05A | |
05010481 | Douglass USD #396, KS GO Ref 05 | |
05010482 | Herkimer Cntrl SD, NY GO Ref 05 | |
05010483 | Highlands Ranch Metro Dist No. 1, CO GO Ref 05 | |
05010484 | Highlands Ranch Metro Dist No. 4, CO GO Ref 05 | |
05010485 | Highlands Ranch Metro Dist No. 2, CO GO Ref 05 | |
05010486 | Highlands Ranch Metro Dist No. 3, CO GO Ref 05 | |
05010489 | Cal Mortgage (AIDS Healthcare), CA Rev 05A | |
05010490 | Galesburg-Augusta Comm Sch, MI GO Ref 2005 | |
05010491 | Miami-Dade County, FL GO Bldg Better Comm Prog 05 | |
05010492 | Midland CCD, TX GO LTX 05 | |
05010493 | Pawtucket (City of), RI GO dtd 7/1/05 | |
05010494 | Cotati-Rohnert Park USD, CA GO Crossover Ref 05AB | |
05010500 | Brookville ASD, PA GO 05 | |
05010501 | Johnston County, NC GO Pub Impr 05 | |
05010506 | Hempfield ASD, PA GO 05C | |
05010510 | Three Village Central SD, NY GO Ref 05 | |
05010512 | Spokane (City of), WA GO LTX 05AB | |
05010513 | Spokane (City of), WA GO Ref 05 | |
05010516 | Southwestern CCD, CA GO Ref 05B | |
05010517 | Sun Prairie (City of), WI GO 05C | |
05010521 | Temple City Unified School District, CA GO Ref 05 | |
05010526 | Spring Hill USD No. 230, KS GO 2005 | |
05010527 | Berkeley USD, CA GO (Elect of 00) 05 | |
05010528 | Livermore Valley Jt USD, CA GO (Elect of 99) 05 | |
05010530 | Jefferson Local SD, OH GO Sch Fac Const & Impr 05 | |
05010531 | Biloxi Public School District, Ms GO 2005 | |
05010538 | Oceanside (City), CA GO LTX POB 05 | |
05010539 | Seneca Valley SD, PA GO 05 | |
05010540 | Oxford Area SD, PA GO 2005AB | |
05010542 | West De Pere SD, WI GO Ref 05A | |
05010551 | Hoffman Estates (Village of), IL GO 05 A (Taxable) |
-37-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
05010553 | Fort Bend MUD No. 118, TX GO 05 | |
05010554 | Hartland Township, MI GO LTX 05A (Livingston Co) | |
05010555 | Hartland Township, MI GO LTX 05B (Livingston Co) | |
05010559 | East Meadow UFSD, NY GO 05 | |
05010560 | Lake Placid CSD, NY GO Ref 05 | |
05010561 | Pine (County of), MN GO Jail 05A | |
05010562 | Gilroy USD, CA GO (Elect of 02) 05 | |
05010563 | Fort Bend County MUD #23, TX GO ULT 05 | |
05010569 | Newport MUD, TX GO Wwks & Swr Sys Rev 05 | |
05010572 | Calumet City (City of), IL GO Ref 2005 | |
05010574 | Hunters Glen MUD, TX GO ULT 05 | |
05010575 | New Lenox SD #122, IL GO Ref 2005AB | |
05010577 | Oshkosh (City of), WI GO Ref 05-D | |
05010578 | Milford Charter Twp, MI GO Library & Police Ref 05 | |
05010583 | Hamilton Township, NJ (Mercer) GO 2005 | |
05010584 | Hamilton Township, NJ (Mercer) Swr GO 2005 | |
05010585 | Jefferson ESD, CA GO (Elect of 2001) Ser 2005 | |
05010586 | Wilson SD, PA GO 05 | |
05010587 | Hopewell Area Sch Dist, PA GO 2005B | |
05010588 | Hopewell Area Sch Dist, PA GO 2005A | |
05010589 | Coachella Valley USD, CA GO (Elect of 05) Ser A | |
05010595 | Schenectady City SD, NY GO 05 | |
05010598 | Central Bucks SD, PA GO ULT 05A | |
05010601 | Haddon Twp. BOE, NJ GO ULT Ref 2005 | |
05010604 | El Paso (City of), TX GO LTX 05 | |
05010605 | Punxsutawney Area SD, PA GO 05 | |
05010609 | Huntington Beach City SD, CA GO ULT Ref 2005 | |
05010611 | Wantagh UFSD, NY GO ULT 2005 | |
05010615 | Union County Impr Auth, NJ GO ULT 2005 | |
05010618 | Anchorage (Municipality of), AK GO 05F | |
05010619 | Licking Valley LSD, OH GO ULT Ref dtd 9/22/05 | |
05010622 | Alamo Comm Coll Dist, TX GO LTX 05 | |
05010623 | Pierce County, WA LTX GO 2005 | |
05010624 | Maury County, TN GO ULT dtd 9/1/05 | |
05010626 | Aurora West SD #129, IL GO Ref 2005A | |
05010627 | Aurora West SD #129, IL GO LTX Ref 05B | |
05010628 | Mattoon CUSD #2, IL GO Ref 2005 | |
05010629 | South Lyon Comm Schools, MI GO Ref 05 Ser II | |
05010630 | Foothill-De Anza CCD, CA GO (Elect 99) 05C & Ref | |
05010631 | Guadalupe County, TX GO LTX Ref 2005 | |
05010632 | Fort Bend County LID #14, TX GO ULT Ref 05 | |
05010633 | Newtown (Twp of), PA GO 2005 | |
05010635 | Union Springs CSD, NY GO 2005 | |
05010639 | Birmingham SD, MI GO ULT Ref 2005 | |
05010640 | Washington Court House CSD, OH GO 2005 | |
05010641 | Mt. Lebanon SD, PA GO 2005 | |
05010653 | Waubonsee CCD #516, IL GO 05DE | |
05010654 | Marana USD #6, AZ GO Ref 2005 | |
05010656 | Sweetwater (City of), TX GO LTX Ref 05 | |
05010660 | St. Charles CUSD #303, IL GO LTX 05C | |
05010669 | North Mission Glen MUD, TX GO 2005A | |
05010670 | London City SD, OH GO Adv Ref 2005 | |
05010674 | Perkiomen Valley SD, PA GO Adv Ref 05AA | |
05010675 | Washington TWP MUA, NJ GO Ref 2005 | |
05010676 | Washington TWP MUA, NJ GO Ref 2005 |
Policy Id |
Policy |
|
05010680 | San Angelo, TX GO LTX Comb Tax & Rev COOs 05 | |
05010683 | Standish-Sterling CS, MI GO Ref 2005 (Q-SBLF) | |
05010687 | West Contra Costa USD, CA GO (Elect 2002) Ser D | |
05010690 | Galveston County WC&ID #12, TX GO 2005 | |
05010700 | Malden (City of), MA GO dtd 10/15/05 | |
05010708 | State PSBA (Career Inst of Tech), PA GO 05A | |
05010712 | Peoria USD No. 11, AZ GO 2nd Ser 2005 | |
05010713 | Wyoming (City of), MI GO LTX 05 | |
05010715 | Rio Hondo CCD, CA GO Ref (Elect 2004) Ser 05A | |
05010717 | West Kern CCD, CA GO Ref 2005 | |
05010718 | Livingston Co, MI GO LTX Ref 05 (Brighton Twp Swr) | |
05010719 | Poplar Grove (Vlg of), IL GO Alt Rev 05AB | |
05010721 | Lakota Local School Dist, OH GO ULT Ref 05A | |
05010723 | Winchester (City of), VA GO 2005 | |
05010727 | Mason City SD, OH GO ULT Ref 2005 | |
05010731 | Pottstown SD, PA GO 2005 | |
05010733 | Kauai County, HI GO 2005A | |
05010735 | Manteca USD, CA GO Ref 2005 | |
05010736 | Palm Springs USD, CA GO Ref 2005 | |
05010737 | Bucks County Tech Sch Auth, PA GO 2005 | |
05010738 | Indianapolis Lcl Pub Imp Bond Bank, IN GO Ref 05D | |
05010739 | Blind Brook-Rye UFSD, NY GO 05 | |
05010740 | Attleboro (City of), MA GO dtd 11/15/05 | |
05010741 | Erie County, PA GO Ref 2005ABC | |
05010742 | Ulster County, NY GO 2005A | |
05010744 | Honolulu (City and County), HI GO 05EF | |
05010746 | Connecticut (State of), CT GO 05D | |
05010747 | Wyandotte USD#204 (Bonner Springs), KS GO Ref 05A | |
05010750 | Long Beach CCD, CA GO (Elect 02) 2005B & Ref 2005C | |
05010751 | Los Gatos Union SD, CA GO (Elect 2001) Ser C | |
05010757 | Grapevine-Colleyville ISD, TX GO Ref 2005-A | |
05010766 | Ovid-Elsie Area Schools, MI GO Ref 2005 (Q-SBLF) | |
05010768 | Barrow County, GA GO 05 | |
05010775 | Cecil County, MD GO Ref 2005 | |
05010784 | Alum Rock Union ESD, CA GO Ref 2005 | |
05010785 | Warren Twp HSD #121, IL GO Ref 05 | |
05010786 | Newark City SD, OH GO ULT Series 05A | |
05010795 | Tacoma Metro Park District, WA GO Ref 2005 | |
05010796 | Calexico USD, CA GO (Elect of 2004) Ser B | |
05010797 | Gilbert USD No. 41, AZ GO 2005A | |
05010800 | Webutuck CSD, NY GO 2005 | |
05010802 | Tacoma SD #10, WA GO 05B | |
05010805 | El Monte City SD, CA GO (Elect 04) A Ref 05 | |
05010806 | Simi Valley USD, CA GO (Elect of 2004) Ser 05B | |
05010808 | Carson City, NV GO LTX 2005A | |
05010822 | Cleveland County Sanitary Dist, NC GO Ref 2005 | |
05010823 | West Windsor-Plainsboro RSD, NJ GO Ref dtd 12/1/05 | |
05010825 | Ramapo Indian Hills Reg HSD (BOE), NJ GO Ref 05 | |
05010845 | Peralta CCD (OPEB) Bonds, CA | |
05010847 | Davenport (City of), IA GO 05A | |
05010848 | Peralta CCD (OPEB) Bonds, CA | |
05020008 | California State, CA GO dtd 2/1/04 | |
05020016 | California State, CA GO dtd 11-1-03 | |
05020017 | California State, CA GO dtd 3-1-05 | |
05020018 | New York (City of), NY GO 2005 Series J, K and L |
-38-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
05020021 | Illinois State, IL GO Oct 03A & Var Rate Oct 03B | |
05020022 | New York (City of), NY GO 2005 Series J, K and L | |
05020023 | New York (City of), NY GO 2003J | |
05020024 | New York City,NY GO Series F&G | |
05020025 | New York City, NY GO 2002 DEFG | |
05020026 | New York City, NY GO 2003 CDE | |
05020027 | New York (City of), NY GO 05DE | |
05020028 | New York (City of), NY GO 2005 Series M | |
05020029 | New York (City of), NY GO 2005 Series G, H and I | |
05020030 | New York (City of), NY GO 2005 Series M and N | |
05020031 | New York (City of), NY GO 2005 Series M and N | |
05020032 | New York (City of), NY GO 2005 Series M and N | |
05020033 | New York (City of), NY GO 2005 Series M and N | |
05020034 | New York (City of), NY GO 2005 Series M and N | |
05020035 | New York (City of), NY GO 2005 Series J, K and L | |
05020036 | New York (City of), NY GO 2005 Series M and N | |
05020037 | New York (City of), NY GO 2005 Series J, K and L | |
05020038 | New York (City of), NY GO 2005 Series M and N | |
05020039 | New York (City of), NY GO 2005 Series G, H and I | |
05020040 | New York (City of), NY GO 2005 Series J, K and L | |
05020041 | New York (City of), NY GO 2005 Series M and N | |
05020042 | New York (City of), NY GO 2005 Series M and N | |
05020043 | New York (City of), NY GO 2004 AB | |
05020044 | New York (City of), NY GO 05DE | |
05020045 | New York (City of), NY GO 2005 Series G, H and I | |
05020046 | Dept of Veterans Affairs, CA GO Portion 05 | |
05020047 | New York (City of), NY GO 04 Series I | |
05020048 | New York (City of), NY GO 2005 Ser O, P & Q | |
05020049 | New York (City of), NY GO 2005 Ser O, P & Q | |
05020050 | New York (City of), NY GO 04D | |
05020051 | New York (City of), NY GO 2005 Ser O, P & Q | |
05020053 | Concord Township, PA GO 05 | |
05020056 | Massachusetts Commonwealth, MA GO 04A & GO Ref 04A | |
05020058 | New York (City of), NY GO 06ABCD | |
05020059 | New York (City of), NY GO 06ABCD | |
05020060 | New York (City of), NY GO 06ABCD | |
05020061 | New York (City of), NY GO 06ABCD | |
05020062 | New York (City of), NY GO 04 Series I | |
05020065 | New York (City of), NY GO Fiscal 06 Ser E Sub E-1 | |
05020066 | Carpentersville CUSD No. 300, IL GO ULT | |
05020067 | New York (City of), NY GO 2005 Series G, H and I | |
05020068 | New York (City of), NY GO 04G | |
05020069 | New York (City of), NY GO 04 Series I | |
05020070 | New York (City of), NY GO Fiscal 06 Ser F-1 & F-2 | |
05020071 | New York (City of), NY GO Fiscal 06 Ser F-1 & F-2 | |
05020072 | Massachusetts Commnwlth, MA GO LTX Consol Loan 05B | |
05020074 | New York (City of), NY GO 2005 Ser M & N | |
05020075 | New York (City of), NY GO 2005 Ser O, P & Q | |
05020076 | Connecticut State GO Ref 2004C | |
06010001 | San Antonio (City of),TX GO LTX Forward Ref 06 | |
06010004 | Pottstown SD, PA GO Adv Ref 2006 | |
06010005 | Monterey Peninsula CCD, CA GO Ref 05 | |
06010006 | Central Bucks SD, PA GO ULT Ref 2006 | |
06010007 | Barbers Hill ISD, TX GO ULT 06 |
Policy Id |
Policy |
|
06010009 | Colton Joint USD, CA GO (Elect of 2001) Ser C | |
06010010 | Tolleson Union HSD No. 214, AZ GO (Proj 03) 2006B | |
06010011 | Montour SD, PA GO 05 | |
06010012 | San Jose USD, CA GO Ref 2005 | |
06010013 | London City SD, OH GO Ref 2006 | |
06010014 | Chicago Park Dist, IL GO LTX Ref 2006AB | |
06010017 | Newark City SD, OH GO ULT Ref 05 | |
06010019 | Chicago Park Dist, IL GO ULT Ref 2006CD | |
06010023 | Harris County WCID #155, TX Ref 06 | |
06010024 | Spring Creek Util Dist, TX GO ULT 2006 | |
06010035 | Yuma UHSD #70, AZ GO Proj 05, Ser A (2006) | |
06010037 | North Pocono SD, PA GO 06 | |
06010038 | Johnston CSD, IA GO dtd 2/1/06 | |
06010041 | Brazoria MUD No. 26, TX GO 06 | |
06010042 | Wilmington (City of), DE GO 2006 A-1 & A-2 | |
06010044 | Bendle Public Schools, MI GO 2006 | |
06010045 | Charter Oak USD, CA GO Ref (Elect 00) Ser 06DE | |
06010046 | Harris Cnty MUD No. 132, TX GO ULT 06 | |
06010057 | Kenosha USD No. 1, WI GO dtd 2/1/06 | |
06010060 | Ephrata ASD, PA GO 06 | |
06010061 | Council Rock SD, PA GO 2006 | |
06010062 | Clark County, NV GO LTX Ref 06 | |
06010064 | West Windsor-Plainsboro RSD, NJ GO Ref 2006 | |
06010065 | Adirondack CSD (Oneida Co), NY Ref 05AB | |
06010067 | Bethel SD #403, WA GO Ref 06 | |
06010068 | Stockton USD, CA GO (Elect 05) Ser 06 | |
06010069 | Grove City Area Hosp Auth, PA GO Guar 2006 | |
06010076 | Nordonia Hills CSD, OH GO Ref 2006 | |
06010082 | Penn Manor SD, PA GO 2006A | |
06010087 | Richland County SD No. 2, SC GO 05A | |
06010093 | Richland SD Project, PA (SPSBA) Lease Rev 05 | |
06010095 | Lacey Township BOE, NJ GO Ref 06 | |
06010096 | Kyrene ESD #28, AZ GO (Proj 05) Ser A (2006) | |
06010099 | Greater Cleveland RTA, OH GO LTX Ref 2006 | |
06010101 | Asotin County, WA GO ULT Ref 2006 | |
06010102 | Bonsall USD, CA GO 06 | |
06010103 | Upper Makefield (Twp of), PA GO 2006 | |
06010104 | Mesa USD No. 4, AZ GO (Proj 05) Ser A (2006) | |
06010107 | Prescott USD No. 1, AZ GO (Proj 04) Ser 06B | |
06010108 | Kutztown (Borough of), PA GO 2006 | |
06010109 | DePere USD, WI GO dtd 3/15/06 | |
06010110 | Las Vegas (City of), NV GO LTX Ref 2006A | |
06010121 | Wellington Unified SD #353, KS GO Ref 2006 | |
06010123 | St. Vrain Valley SD No. RE-1J, CO GO Ref 2006 | |
06010127 | Lucia Mar USD, CA GO Ref 2006 | |
06010128 | Franklin-McKinley SD, CA GO Ref 2006 | |
06010134 | Wisconsin (State of), WI GO 2006A | |
06010138 | Ipswich (Town of), MA GO LTX Ref dtd 3/15/06 | |
06010141 | New York State, NY GO 2006A (Tax-Exempt) | |
06010143 | Adams County SD #12, CO GO 2006B | |
06010144 | Fredonia Central SD, NY GO Ref 2006 | |
06010146 | Tucson USD No. 1, AZ GO Ref 2006 | |
06010151 | Schuylkill Valley SD, PA GO 2006AB | |
06010164 | Carteret County, NC GO 2006 | |
06010165 | Rayford Road MUD, TX GO 2006A |
-39-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
06010166 | Castro Valley USD, CA GO (Elect of 05) Ser 06 | |
06010167 | Northtown MUD, TX GO ULT 2006 | |
06010171 | Miami Trace LSD, OH GO ULT 2006 | |
06010172 | Apache Jnctn USD #43, AZ GO (Proj 04) Ser B (2006) | |
06010176 | New Haven USD, CA GO (Elect 03) Ser B CABs | |
06010183 | La Verne (City of), CA GO LTX POBs Ref 2006 | |
06010189 | Lubbock (City of), TX Tax/WWks Sys Surplus COOs 06 | |
06010191 | Harris Co. MUD No. 120, TX GO ULT Ref 2006 | |
06010192 | Georgetown (City of), TX GO LTX & COOs 2006 | |
06010207 | Edmonds SD No. 15, WA GO 2006 | |
06010208 | Napa Valley USD, CA GO (Elect 02) Ser 06 | |
06010213 | Woodstock CUSD #200, IL GO 2006AB | |
06010214 | Lubbock (City of), TX GO LTX Ref 2006 | |
06010218 | Penn Manor SD, PA GO 06 | |
06010220 | Pearland (City of), TX GO LTX Ref 2006 | |
06010225 | Firebaugh-Las Deltas USD, CA GO Ref 2006 | |
06010227 | Cinco MUD No. 1, TX GO Contract Rev 2006A | |
06010232 | Eatonville SD No. 404, WA GO 2006 | |
06010237 | El Monte UHSD, CA GO Ref 2006 | |
06010240 | Minooka CHSD No. 111, IL GO 2006 | |
06010241 | Lubbock (City of), TX GO LTX 2006 | |
06010246 | Wentzville R-IV SD, MO GO 2006 | |
06010248 | San Jose USD, CA GO (Elect 02, Ser C) 2006 | |
06010256 | Spencerport CSD, NY GO Ref 2006 | |
06010262 | West Seneca CSD, NY GO 2006 | |
06010267 | Mesa (City of), AZ GO Ref 2006 | |
06010273 | Newark Valley CSD, NY GO 2006A | |
06010277 | Everett SD No. 2, WA GO ULT 2006 | |
06010278 | Harris County MUD #53, TX GO ULT 2006 | |
06010289 | Roseville Joint UHSD (Elect 04), CA GO ULT 06B | |
06010291 | Trussville (City of), AL GO Warrants 2006AB | |
06010294 | McCall-Donnelly Jt SD No.421, ID GO ULT 06 | |
06010295 | San Gorgonio Memorial HC District, CA ULT GO 06A | |
06010296 | Monticello CSD, NY GO 2006 | |
06010297 | West De Pere SD, WI GO 06A | |
06010299 | Bassett USD, CA GO (Elect 04) Ser 06BC | |
06010303 | Frisco (City of), TX GO LTX 06 | |
06010304 | Frisco (City of), TX COOs 06 | |
06010306 | Farrell ASD, PA GO Ref 06 | |
06010311 | Piedmont City USD, CA GO Elect of 2006 Ser B | |
06010319 | Natomas USD, CA GO (Elect of 2006) Ser 2006 | |
06010325 | Saugus USD, CA GO Ref 2006 | |
06010328 | Anchorage (Municipality of), AK GO Ref 06AB | |
06010329 | Anchorage (Municipality of), AK GO Ref 06AB | |
06010330 | Anchorage (Municipality of), AK GO Ref 06AB | |
06010332 | Renn Road MUD, TX GO 2006 | |
06010336 | Kirtland LSD, OH GO 2006 | |
06010346 | Renton SD No. 403, WA GO ULT 2006 | |
06010353 | Sierra Sands USD, CA GO (Elect 06) Ser 06A | |
06010354 | Brandywine Heights ASD, PA GO Ref 2006 | |
06010360 | Eanes ISD, TX GO 2006 | |
06010362 | Solano County CCD, CA GO (Elect 02) Ser 06B | |
06010363 | Mount Vernon SD #320, WA GO Ref 06 | |
06010365 | Bellwood (Village of), IL GO Ref 2006A | |
06010366 | Prosper (Town of), TX GO LTX & COO 06 |
Policy Id |
Policy |
|
06010367 | Byron USD, CA GO (Elect 06) Ser 2006A | |
06010368 | Camden Cnty Imp Auth, NJ GO Guar Swr Rev Ref 06AB | |
06010372 | Eastport-South Manor CHSD, NY GO Ref 06 | |
06010374 | Butler County, OH GO LTX 2006 | |
06010377 | El Camino CCD, CA GO (Elect 02) Ser 2006B | |
06010379 | Michigan State, GO 2006AB | |
06010381 | Juneau (City and Borough), AK GO ULT 06B | |
06010382 | Juneau (City and Borough), AK GO ULT 06C | |
06010392 | Cincinnati City SD, OH GO Ref 2006 | |
06010393 | Newburgh City SD, NY GO 2006A | |
06010395 | Woodhaven-Brownstown SD, MI GO Ref 06B (Q-SBLF) | |
06010400 | Camden Cnty Imp Auth, NJ GO Guar Swr Rev Ref 06A | |
06010406 | Marion (City of), IL GO Ref 2006 | |
06010408 | Garfield Heights CSD, OH GO Ref 2006 | |
06010412 | Texas Trans Comm, TX GO Mobility Fund 06-A | |
06010414 | South Lyon Comm Schools, MI GO Ref 06 | |
06010416 | Norristown Area SD, PA GO Ref 06 | |
06010421 | Westlake MUD No. 1, TX 2006 | |
06010425 | West Virginia State, WV GO Ref 06 | |
06010428 | Sachem CSD, NY GO Ref 2006 | |
06010429 | San Francisco (City & County of), CA GO Ref 06-R1 | |
06010431 | Kettering City SD, OH GO Ref 2006 | |
06010434 | Suffolk County, NY GO 2006B | |
06010441 | Norfolk (City of), VA GO Cap Impr & Ref 06 | |
06010443 | Sachem CSD, NY GO Ref 2006B | |
06010445 | Haverhill (City of), MA GO LTX dtd 11/1/06 | |
06010450 | Eaton Community City SD, OH GO Ref 2006 | |
06010451 | Kingsbridge MUD, TX GO Ref 2006 | |
06010452 | Chino Valley USD, CA GO (Elect 02) Ser 2006D | |
06010466 | Franconia Sewer Auth, PA Gtd Rev 2006 | |
06010477 | Bass Lake JUESD, CA GO (Elect 06) Ser 06 | |
06010497 | Mansfield Township BOE, NJ GO Ref 2006 | |
06010499 | Bonita USD, CA GO (Elect 04) Ser B | |
06010503 | Canton (City of), OH GO LTX 2006 | |
06010507 | Chillicothe City SD, OH GO Ref 2006 | |
06010510 | Brecksville-Broadview Heights CSD, OH GO Ref 06 | |
07010004 | Muhlenberg SD, PA GO LTX Ref 2007 A&AA | |
07010006 | Dearborn SD, MI GO Ref 2007 (Q-SBLF) | |
07010012 | Clackamas CCD, OR GO Ref 2007 | |
07010018 | Lewisville ISD, TX GO ULT Ref 2007 | |
07010019 | Central Bucks SD, PA GO Ref 2007 | |
07010022 | Bensalem Twp SD, PA GO LTX 2007 | |
07010023 | Lincoln-Way CHSD #210, IL GO 2007 | |
07010024 | West Harris Co MUD No. 10, TX GO Ref 2007 | |
07010028 | Pima County, AZ GO 2007 | |
07010029 | Denton Co Fresh Water Supply Dist #6, TX GO Ref 07 | |
07010031 | Abington SD, PA GO LTX Ref 2007 | |
07010033 | Lincoln Park SD, MI GO Ref 2007 (Q-SBLF) | |
07010035 | Walton County, GA GO & Sales Tax 2007 | |
07010041 | Kentwood Pub Schools, MI GO ULT Ref 07 | |
07010042 | Mingus UHSD #4, AZ GO Sch Impr 07 | |
07010043 | North Syracuse CSD, NY GO Ref 2007 | |
07010044 | Washington State, WA GO Var Purp 07C | |
07010045 | Santa Monica CCD, CA GO Ref 2007ABC | |
07010048 | Niagara Wheatfield CSD, NY GO 07 |
-40-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
07010049 | Bonneville & Bingham Jt SD#93, ID GO 07 | |
07010050 | Kalamazoo Public Schools, MI GO Ref 07 | |
07010053 | Clark County SD, NV GO LTX Ref 07A | |
07010054 | Plainfield CCSD No. 202, IL GO Sch Build 07 | |
07010058 | Albany (City of), OR GO Ref 07 | |
07010061 | El Paso (City of), TX GO Ref 07 | |
07010062 | Lansing USD#469 (Leavenworth), KS GO Ref 07 | |
07010065 | Big Spring (City of), TX GO 07 | |
07010069 | Big Spring (City of), TX GO 07 | |
07010079 | Boulder Valley SD #RE-2, CO GO 07 | |
07010080 | Mesa USD No. 4, AZ GO (Proj 05) Ser B (2007) | |
07010081 | Plainfield CCSD No. 202, IL GO Ref 07A | |
07010083 | William Floyd UFSD, NY GO Ref 07 | |
07010084 | Banning USD, CA GO (Elec 06) Ser A | |
07010085 | Grosse Pointe Pub Sch Sys, MI GO Ref 07 | |
07010086 | Harborfields CSD, NY GO Ref 07 | |
07010092 | West Branch LSD, OH GO ULT Ref 07 | |
07010093 | Washington Union SD, CA GO Ref 2007 | |
07010094 | Mendon Comm Schools, MI GO ULT Ref 07 | |
07010096 | New York State, NY GO 07A | |
07010097 | Boston (City of), MA GO 07A | |
07010098 | Brentwood Union SD, CA GO ULT Ref 07 | |
07010099 | Brentwood Union SD, CA GO (Elec 03) Ser C | |
07010100 | Alamo CCD, TX GO LTX 07 | |
07010101 | Bryan (City of), TX GO LTX COOs 07 | |
07010104 | Spring Hill USD No. 230, KS GO Ref 07 | |
07010106 | Dublin City SD, OH GO ULT Ref 07 | |
07010112 | North Brunswick (Twp of), NJ GO Ref 07 | |
07010113 | Cherokee Co School System, GA GO 07A & Ref 07B | |
07010114 | Phoenix ESD #1, AZ GO (Proj 06) Ser A (07) | |
07010116 | Harris County MUD No. 154, TX GO ULT 07 | |
07010118 | Shaker Heights City SD, OH GO School Impr & Ref 07 | |
07010126 | Long Hill (Twp of), NJ GO Ref 07 | |
07010135 | Litchfield Elem SD No. 79, AZ GO (Proj 06) Ser 07A | |
07010143 | Andover USD No. 385, KS GO Ref & Impr 07 | |
07010144 | Mendocino USD, CA GO (Elec 06) Ser 07 | |
07010145 | Cleveland (City of), OH GO LTX 07AB | |
07010146 | Ypsilanti Comm Util Auth, MI GO LTX Ref 2007 | |
07010147 | Casa Grande Union HSD #82, AZ GO (Proj 06) Ser 07A | |
07010148 | Cleveland (City of), OH GO LTX 07C | |
07010149 | Sumner Co, TN GO School 07 | |
07010157 | Willistown (Twnsp of), PA GO 2007 | |
07010159 | Warrensville Heights CSD, OH GO Ref 2007 | |
07010160 | Wyoming Pub Schools, MI GO ULT 07 | |
07010161 | Campbell Union HSD, CA GO (Elect 06) Ser 07A | |
07010163 | Tonganoxie USD No. 464, KS GO Ref 07A | |
07010164 | Emporia USD No. 253 (Lyon Co), KS GO Ref 07 | |
07010173 | Illinois (State of), IL GO 2007 | |
07010174 | Dysart USD No. 89, AZ GO (Proj 06) Ser 07A | |
07010175 | Sonoma Valley USD, CA GO Ref 07 | |
07010176 | South Brunswick (Twns of) BOE, NJ GO 2007 | |
07010177 | South Brunswick (Twp of) BOE, NJ GO 2007AA | |
07010180 | Anchorage (Municipality of), AK GO Ref 07 A&B | |
07010183 | Philadelphia SD, PA GO 2007A | |
07010187 | Jefferson Union HSD, CA GO (Election 2006) A |
Policy Id |
Policy |
|
07010190 | Escondido Union SD, CA GO Ref 2007B | |
07010192 | Paulding Co, GA GO Conservation & Courthouse 07 | |
07010193 | Grand Prairie ISD, TX GO Ref 2007 | |
07010194 | Escondido Union SD, CA GO Ref 2007A | |
07010197 | Memphis (City of), TN GO Impr 07A | |
07010202 | Chicago (City of), IL GO Ref 07A & Taxable 07B | |
07010205 | St. Lawrence (Co of), NY GO PIB 07 | |
07010207 | San Lorenzo USD, CA GO (Elec 04) Ser B | |
07010212 | Massachusetts Commnwlth, MA GO 2007A | |
07010219 | Napa Valley USD, CA GO (Elect 06) Ser 07 | |
07010221 | Mesa (City of), AZ GO 07 | |
07010232 | Mount Clemens Comm SD, MI GO Ref 07 | |
07010238 | Neshaminy SD, PA GO 07AB | |
07010239 | Wallingford-Swarthmore SD, PA GO 07A | |
07010240 | Oklahoma Co ISD No. 89 (Oklahoma CSD), OK GO 07 | |
07010245 | Oxford Area SD, PA GO 2007 | |
07010246 | Berea City SD, OH GO LTX Energy Conserv Impr 07 | |
07010247 | Syracuse (City of), NY GO School Bonds Ser 2007A | |
07010248 | District of Columbia, DC GO 07A | |
07010250 | Union-Endicott CSD, NY GO 07 | |
07010253 | Bend-La Pine Admin SD No. 1, OR GO 07 | |
07010254 | Marcellus CSD, NY GO 2007 | |
07010256 | Pulaski CSD, NY GO 2007A | |
07010264 | Ashland SD No. 5 (Jackson Co), OR GO 07 | |
07010274 | Mt. Pleasant Pub Sch, MI GO Build 07 | |
07010276 | Kane Co Forest Preserve Dist, IL GO 07 | |
07010278 | Huntington Beach UHSD, CA GO (Elec 04) Ser 07 | |
07010281 | Montgomery Co MUD No. 46, TX GO W&S 07 | |
07010282 | Berkeley USD, CA GO (Elect of 00) 2007 | |
07010283 | Galt Joint Union HSD, CA GO (Elect 05) Ser B | |
07010284 | San Juan USD, CA GO (Elec 02) Ser 07 | |
07010291 | California State, CA GO Var Purp dtd 6/28/07 | |
07010296 | Fort Bend (County of) MUD No.26, TX GO 2007 | |
07010306 | Chambersburg ASD, PA GO 07 | |
07010307 | San Marcos CISD, TX GO 2007 | |
07010308 | Orange Co, NY GO Var Purp 07 | |
07010309 | Caddo Parish, LA GO 2007 | |
07010310 | Kendall County Forest Preserve Distr, IL GO 2007 | |
07010311 | Indian Prairie CUSD No. 204, IL GO 07A | |
07010312 | Kern HSD, CA GO (Elect 04) Ser C | |
07010313 | Nevada (State of), NV GO LTX 07B | |
07010314 | Schenectady City SD, NY GO 2007 | |
07010317 | Northeastern York SD, PA GO ULT 2007A | |
07010318 | Northeastern York SD, PA GO LTX 2007B | |
07010319 | Everett SD No. 2, WA GO ULT Ref 07 | |
07010327 | Northlake (City of), IL GO 07 | |
07010328 | Longview (City of), TX GO LTX 07 | |
07010331 | Oakland USD, CA GO Ref 07 | |
07010332 | Johnston (Co of), NC GO PIB 07 | |
07010334 | Bethlehem CSD, NY GO 07B | |
07010343 | Waco (City of), TX GO LTX 2007 | |
07010344 | Oswego CUSD No. 308, IL GO Ref 2007A | |
07010345 | Lakewood City SD, OH GO Construction 07 | |
07010346 | Berwyn (City of), IL GO 2007AB | |
07010350 | Buckeye UHSD No. 201, AZ GO (Proj 02 & 06) Ser 07 |
-41-
Schedule 1
List of Covered Policies
Policy Id |
Policy |
|
07010351 | Henderson (City of), NV GO LTX Water/Sewer Ref 07 | |
07010352 | Contra Costa CCD, CA GO (Elect 06) 2007 | |
07010353 | Varner Creek Util Dist, TX GO ULT 07 | |
07010354 | Ridgeland (City of), MS GO PIB 07A | |
07010355 | Ridgeland (City of), MS GO PIB 07B | |
07010356 | Marion County, IL GO Alt Rev Ref 07 Priv Plcmnt | |
07010361 | Menomonee Falls SD, WI GO dtd 09/01/07 | |
07010362 | Wiseburn SD, CA GO (Elec 07) Ser 07A | |
07010368 | Ellis (County of), TX GO LTX 2007 | |
07010369 | Washington Central SD No. 51, IL GO Ref 2007 | |
07010377 | Sun Prairie ASD, WI GO Ref dtd 8/7/07 | |
07010378 | Tucson USD No. 1, AZ GO (Proj 04) Ser C (2007) | |
07010379 | Florence USD No. 1, AZ GO (Proj 06) Ser 2007A | |
07010383 | Natomas USD, CA GO (Elect of 2006) CIB 2007 | |
07010384 | Natomas USD, CA GO (Elect of 2006) CAB 2007 | |
07010389 | Fort LeBoeuf SD, PA GO Ref 07 | |
07010390 | Lafourche Parish Cons SD #1, LA GO School 07 | |
07010391 | Fond Du Lac (City of), WI GO Ref dtd:10/1/07 | |
07010392 | Jackson PSD, MS GO 2007 | |
07010393 | Higley USD No. 60, AZ GO (Proj of 06) Ser 07B | |
07010400 | Huron City SD, OH GO 07 | |
07010401 | Oyster Bay-East Norwich CSD NY GO 2007 | |
07010405 | River Valley LSD, OH GO 07 | |
07010406 | Richland County SD No. 1, SC GO 2007A | |
07010407 | Livingston Twp. BOE, NJ GO 2007 | |
07010408 | Oak Lawn HSD No. 229, IL GO Taxable 07AB | |
07010411 | Council Rock SD, PA GO 2007 | |
07010412 | Santa Monica-Malibu USD, CA GO Elec 06 Ser A | |
07010413 | Licking Heights LSD, OH GO Ref 2007 | |
07010422 | Los Angeles CCD (Elec 01), CA GO 2007A | |
07010427 | Harris County MUD No. 104, TX GO 2007 | |
07010435 | Exeter (Twp of), PA GO 2007A | |
07010436 | Seneca Valley SD, PA GO LTX 2007A | |
07010438 | Sidney City SD, OH GO Ref 2007 | |
07010439 | California State, CA GO Var Purp dtd 11/01/07 | |
07010440 | Red Lion SD, PA GO LTX 2007 | |
07010444 | East Stroudsburg ASD, PA GO LTX Series 2007A | |
07010445 | Imperial CCD, CA GO (Elect of 04) Ser 2007C CIBs | |
07010446 | Imperial CCD, CA GO (Elect of 04) Ser 2007C CABs | |
07010451 | Long Beach CCD, CA GO (Elect 02) 2007D | |
07010463 | Deer Lakes SD, PA GO Ref LTX 2007 | |
07010464 | Tracy Joint USD, CA GO (Elect 06) 2007 | |
07010466 | Rutherford County, TN GO 2007 | |
07010474 | Federal Way SD No. 210, WA GO 2007 | |
07010475 | Genesee Co. (Brownfield RDA), MI GO LTX 2007 | |
07010476 | Jersey City MUA, NJ Sewer Rev Ref 07 | |
07010478 | California State, CA GO Var Purp dtd 11/01/07 | |
07010492 | Morton Road MUD, TX GO 2007 | |
84020017 | Sears Tax Exempt Investment Tr | |
84020108 | Sears Tax-Exempt Investment Tr | |
85010162 | Town of Huntington, Suffolk Co | |
85010258 | Town of Babylon, New York | |
85010262 | Village of Assining, Westchest | |
85020009 | The Municipal Bond Trust- Insu | |
85020011 | Municipal Investment Trust Fun |
Policy Id |
Policy |
|
85020065 | E.F. Hutton Tax Exempt Trust, | |
85020069 | Municipal Trust Fund Seventeen | |
85020092 | Municipal Investment Trust Fun | |
86010036 | Town of Huntington, Suffolk Co | |
86010052 | Town of North Hempstead, Nassa | |
86020001 | Sears Tax-Exempt | |
86020004 | E.F. Hutton Tax Exempt Trust, | |
86020019 | Sears Tax-Exempt Investment Tr | |
86020037 | Sears Tax-Exempt Investment Tr | |
86020043 | Sears Tax-Exempt Investment Tr | |
87010011 | Board of Education of The Stro | |
87010120 | Town of Huntington, Suffolk Co | |
87010123 | McKinney Independent School Di | |
87010188 | City of Shreveport, State of L | |
87020003 | Sears Tax-Exempt Investment Tr | |
87040057 | The City of New York | |
87990003 | CHICAGO SCHOOL FINANCE AUTHORI | |
88040022 | P.M.-Mulit.Rev.Strms in policy | |
88040121 | The City of New York ( New Yor | |
89010022 | Essex County NJ GO 89A TAXABLE | |
89010067 | GENERAL BROWN CENTRAL SD,NY GO | |
89010167 | VOORHEESVILLE CSD, NY GO 89 | |
89010202 | WALLKILL, NY GO SER 89 B | |
89010239 | HUNTINGTON, NEW YORK GO 89B | |
89010264 | ARLINGTON HEIGHTS SD #25,IL GO | |
89010276 | PALATINE VILLAGE, IL GO SER 89 | |
89020329 | OLD BRIDGE MUA, NJ 89 | |
90010034 | Camden Co, NJ MUA Rfdg 90 | |
90010100 | WASHINGTONVILLE CSD, NY GO 90 | |
90010117 | WOLCOTT, CONNECTICUT GO 1990 | |
90010140 | WAPPINGERS CENTRAL SD,NY GO 90 | |
90010148 | EAST LAMPETER SWR AUTH,PA GO90 | |
90010149 | BROOKHAVEN, NEW YORK, GO 1990 | |
90010183 | POUGHKEEPSIE CITY, NY GO 90A,B | |
90010186 | MOUNT VERNON, NEW YORK GO 1990 | |
90010188 | CARROLL ISD, TEXAS GO 90 & 90A | |
90010234 | PHOENIXVILLE BOROUGH, PA GO 90 | |
90010272 | Camden County Municipal Util90 | |
90010273 | Camden County Municipal Util90 | |
91010054 | THORNTON, COLORADO GO SER 91 | |
91010105 | BRANFORD, CONNECTICUT GO 1991 | |
91010120 | CHANDLER ARIZONA GO, SER 1991 | |
91010126 | SOUTH ORANGETOWN CSD, NY GO 91 | |
91010129 | SCHENECTADY, NEW YORK GO 1991 | |
91010138 | ONTEORA CENTRAL SD, NY GO 1991 | |
91010140 | CHEEKTOWAGA-MARYVALE SD, NY GO | |
91010143 | BENSALEM TWP SD, PA GO SER 91F | |
91010160 | BALTIMORE MARYLAND, GO SER 91C | |
91010171 | STAFFORD, CONNECTICUT GO 1991 | |
91010183 | Warwick Valley Cntl SD NY GO91 | |
91010193 | ONTARIO COUNTY, NEW YORK GO 91 | |
91010195 | WASHINGTONVILLE CSD, NY GO 91 | |
91010226 | JACKSON TWP BD OF ED, NJ GO 91 | |
91010277 | CROWLEY ISD, TEXAS GO 91 | |
91010291 | HUDSON COUNTY, NEW JERSEY GO |
-42-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
91010297 | ROCKLIN USD, CALIFORNIA GO 91 | |
91010305 | IDAHO FALLS,IDAHO GO & ELEC 91 | |
91010315 | CATTARAUGUS CNTY, NY GO 1991 B | |
91010316 | GRISWOLD, CONNECTICUT GO 1991 | |
91010330 | HAMPDEN TWNSP,PA SEW AUTH GO91 | |
91010331 | Pawling Central S.D., NY GO 91 | |
91010348 | ATLANTIC CNTY IMP AUTH, NJ GO | |
91010356 | Guilderland, Town of G.O. 91 | |
91010366 | Pottstown Sewer Auth, PA Ser91 | |
91010394 | KEARNY MUNIC UTIL AUTH,NJ GO91 | |
91010397 | SALISBURY TWP SD, PA GO 91A,AA | |
91010403 | ST. LAWRENCE COUNTY, NY GO 91 | |
91010407 | MAPLE SHADE TWP,NJ GO TAXEXMPT | |
91010412 | WATERTOWN, NEW YORK GO SER 91 | |
91010413 | WASHINGTON COUNTY, NY GO 1991 | |
91010414 | CHICHESTER SCH DIS,PA GO 91A&B | |
91010466 | BUFFALO (CITY OF),NY GO 91 REF | |
91010470 | Carlisle (Borough of),PA GO 91 | |
91010486 | WYOMING COUNTY, NY GO 91 | |
91010503 | CLARK CNTY SD, NV GO 91 B REF | |
91010538 | CAMDEN CNTY, NJ MUA 91 A | |
91010539 | CAMDEN CNTY, NJ MUA 91 B | |
92010006 | GULL LAKE COMM SCHS, MI GO 91 | |
92010007 | Lancaster Parking Auth., PA 91 | |
92010012 | AMHERST, NEW YORK GO 91 | |
92010018 | ERIE COUNTY, NEW YORK GO 92 | |
92010029 | COLD SPRING ISD #750, MN GO 92 | |
92010064 | LIVE OAK, TX GO 92 LTD TAX | |
92010078 | North Richland Hills, TX GO 92 | |
92010088 | WARWICK VALLEY CSD, NY GO 92 | |
92010128 | Lower Moreland, PA Twshp 92 | |
92010164 | Washington Cnty Auth, PA GO 92 | |
92010170 | UPPER DUBLIN TOWNSHIP,PA GO 92 | |
92010177 | Exeter Twp Sch Dist, PA GO 92 | |
92010221 | NORTHEASTERN YORK CNTY SD,PA92 | |
92010280 | PITTSBURGH (CITY), PA GO 92 A | |
92010308 | SOUTH PARK SCH DIST, PA GO 92 | |
92010309 | Reeths-Puffer Schs MI GO 92REF | |
92010365 | ARLINGTON HGHTS SD #25,IL GO92 | |
92010381 | Romulus Comm SD, MI GO 92 CABs | |
92010422 | TUCSON USD NO.1, ARIZONA GO 92 | |
92010453 | CHEMUNG COUNTY, NY GO 92 A&B | |
92010456 | SIERRA VISTA USD#68,AZ GO92REF | |
92010458 | BERKS COUNTY, PA GO REF SER 92 | |
92010502 | St Clair Cty Pub Buld Com GO92 | |
92010506 | NORTHEASTRN YORK CNTY SD,PA 92 | |
92010507 | MEDINA CITY SCH DIST, OH GO 92 | |
92010509 | Tucson (City of), AZ GO Ref92 | |
92010539 | WEST OTTAWA PUB SCHL, MI GO 92 | |
92010545 | Kyrene Elem SD #28 AZ GO Ser92 | |
92010555 | ROCKVILLE CENTRE (VLG),NY GO92 | |
92010563 | GUILDERLAND (TOWN OF), NY GO92 | |
92010565 | Lowell Area Schools, MI GO 92 | |
92010574 | COOK COUNTY, IL GO 92C | |
92010581 | WATERTOWN (CITY), NY GO 92 ABC |
Policy Id |
Policy | |
92010582 | EASTON (CITY OF), PA GO 92 | |
92010583 | NEW WINDSOR (TOWN OF), NY GO92 | |
92010645 | NORTH HEMPSTEAD,NY GO 92AB REF | |
92010653 | CAMDEN COUNTY MUA, NJ GO 92A | |
92010657 | CAMDEN COUNTY MUA, NJ GO 92B | |
92010673 | LIVONIA PUB SCHLS, MI GO 92-II | |
92010682 | NAUGATUCK (BOROUGH), CT GO 92 | |
92010692 | HARLEM SCH DIST #122, IL GO 92 | |
92010701 | CALIFORNIA (STATE OF) GO NOV92 | |
92010707 | ESSEX COUNTY, NJ GO 92 REF | |
92010711 | Miami (City of), FL GO Ref S92 | |
92010712 | GIRARD SCHOOL DISTRICT,PA GO92 | |
92010714 | Chandler (City of),AZ GO 92Ref | |
92010756 | Freeport Sch Dist #145 IL GO92 | |
92020128 | NEW YORK CITY GO 92 (VARIABLE) | |
92020129 | NEW YORK CITY GO 92 (VARIABLE) | |
92020266 | CALIFORNIA STATE GO 91 | |
93010044 | HURON VALLEY SD, MI GO 93 REF | |
93010074 | ST LOUIS PUB SCH DST, MO GO 93 | |
93010112 | LaGRANGE PARK SD #102,IL GO 93 | |
93010122 | WASHINGTON SD, PA GO 93A & B | |
93010172 | NORTH BERGEN MUA, NJ SWR GO 93 | |
93010223 | CLARKSTON COMM SCHLS, MI GO 93 | |
93010247 | ONTARIO COUNTY, NY GO 93 REF | |
93010257 | Rochester Comm SD, MI GO 93REF | |
93010261 | OYSTER BAY (TOWN OF),NY GO 93 | |
93010284 | ROMULUS COMM SCHLS,MI GO 93REF | |
93010287 | MUKILTEO SCH DIST #6, WA GO 93 | |
93010288 | HUDSON LOCAL SD, OH GO 93 REF | |
93010302 | LAUREL HIGHLANDS SD, PA GO 93 | |
93010305 | YONKERS (CITY OF),NY GO 93 REF | |
93010307 | BLOOMINGDALE PSD #16, MI GO 93 | |
93010312 | COLUMBUS CITY SD, OH GO 93 REF | |
93010320 | NORTHSHORE SD #417,WA GO 93REF | |
93010334 | HAWAII COUNTY, HI GO 93 REF | |
93010346 | PENINSULA SD #401, WA GO 93REF | |
93010347 | CHICAGO (CITY OF), IL GO 93 | |
93010353 | SOUTH HAVEN PUB SCHLS,MI GO 93 | |
93010365 | GAINESVILLE, GA GO 93 REF | |
93010380 | ALBANY COUNTY, NY GO 93 REF | |
93010418 | MOHAVE UNION HSD#30, AZ GO 93 | |
93010447 | ERIE COUNTY HOSP AUTH,PA GO 93 | |
93010459 | HOMEWOOD-FLOSSMOOR SD233,IL 93 | |
93010460 | FEDERAL WAY SD #210, WA GO 93 | |
93010471 | TEMPE ELEM SD #3, AZ GO 93 | |
93010484 | CHASKA ISD #112, MN GO 93B | |
93010485 | NEW BRUNSWICK PKG AUTH,NJ GO93 | |
93010509 | TUCSON USD #1, ARIZONA GO 1993 | |
93010511 | NORTH POCONO SCH DIST,PA GO 93 | |
93010514 | CASTAIC UNION SD, CA GO 93A | |
93010541 | JACKSONVILLE (CITY OF),TX GO93 | |
93010563 | BALTIMORE, MARYLAND GO SER 93C | |
93010575 | ROSEMONT (VLG OF), IL GO 93AB | |
93010604 | EUREKA UN SCH DIST, CA GO 93A | |
93010618 | GENEVA COMM USD #304, IL GO 93 |
-43-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
93010628 | HAWORTH BOROUGH, NJ GO REF 93 | |
93010646 | NASSAU COUNTY,NY GO 9/1/93 REF | |
93010647 | LONG BEACH (CITY OF), NY GO 93 | |
93010659 | MASSACHUSETTS CWLTH GO REF 93C | |
93010698 | TUCSON, ARIZONA GO REF SER 93 | |
93010700 | LEBANON SCHOOL DIST.,PA. GO 93 | |
93010716 | BABYLON (TOWN OF), NY GO 93A | |
93010724 | WESTMORELAND CNTY, PA GO 93F/G | |
93010750 | East Side Union HSD, CA GO 93 | |
93010758 | POMPANO BEACH, FL GO 93 REF | |
93010772 | ADELANTO SCHOOL DIST, CA GO 93 | |
93010776 | SARATOGA SPRINGS CSD, NY GO 93 | |
93010778 | BERKS COUNTY, PA GO 93B REF | |
93010780 | Chandler (City of), AZ GO 93 | |
93010781 | ALGONAC COMM SCH,MI GO UNLTD93 | |
93010802 | MILWAUKEE COUNTY, WI GO 93A | |
93010823 | Webster Cent SD, NY GO 93 | |
93010830 | HOPEWELL TOWNSHIP, NJ GO 93REF | |
93010857 | KYRENE ELEM SD #28, AZ GO 93C | |
93010871 | WARREN CONS SCHS, MI GO REF 93 | |
93010884 | Monroe Twnshp(Bd of Ed)NJ GO93 | |
93010923 | FRANCIS HOWELL SD, MO GO 93REF | |
93010924 | WILMINGTON, DELAWARE GO REF93B | |
93010938 | CHICAGO HEIGHTS, IL GO 93 A&B | |
93020180 | MA BAY TRANS AUTH, GO 93A REF | |
93020224 | ROSEVILLE CITY SD, CA GO 92A | |
94010023 | MAUI COUNTY, HI GO REF 93 F&G | |
94010049 | ROCHESTER (CITY OF), MI GO 94 | |
94010051 | CATALINA FTHLLS USD#16,AZ GO94 | |
94010063 | NASSAU COUNTY, NY 94 GO REF | |
94010064 | WESTBROOK (TOWN OF), CT GO 94 | |
94010096 | COTTONWOOD-OAK CRK ESD6,AZ 93A | |
94010097 | DELAWARE CITY SD, OH GO 94A&B | |
94010117 | SOUTH AMBOY, NJ GO SER 94 | |
94010123 | PICKERINGTON LOCAL SD,OH GO 94 | |
94010125 | PARADISE VALLEY USD #69,AZ 94E | |
94010161 | PLEASANT PLAINS CUSD#8,IL GO94 | |
94010219 | CHANDLER USD #80, AZ GO 94 REF | |
94010230 | WAYNE CNTY BLDG AUTH,MI 94 REF | |
94010234 | Southampton (Twp) SD, NJ GO 94 | |
94010250 | Rockland (County of), NY 94 | |
94010266 | Littleton ESD#65,AZ Rfdg GO 94 | |
94010279 | TUCSON (CITY),AZ GO 84-G(1994) | |
94010291 | EAST LAMPETER SWR AUTH,PA GO94 | |
94010301 | Northwestern Local SD,OH GO 94 | |
94010336 | Adelanto Sch Dist, CA GO 94B | |
94010365 | Homer Twp Fire Dist, IL GO 94 | |
94010367 | Penn Yan Central SD, NY GO 94 | |
94010368 | Totowa (Borough), NJ GO 94 | |
94010374 | Maplewood-Richmond SD, MO GO94 | |
94010382 | Dundee Comm USD #300, IL GO 94 | |
94010416 | Exeter Twp SD, PA GO 94 Ref | |
94010418 | Tucson USD No. 1, AZ GO Ser 94 | |
94010421 | Twin Valley Sch Dist, OH GO 94 | |
94010440 | Mars Area Sch Dist,PA GO 94ABC |
Policy Id |
Policy | |
94010441 | BLACK RIVER LOCAL SD 1994 | |
94010462 | California (State Of) GO | |
94010466 | Rockville Centre(Vlg),NY GO 94 | |
94010493 | Santa Cruz Vlly USD#35,AZ GO94 | |
94010506 | Closter (Boro) Bd of Ed, NJ 94 | |
94010511 | Fort Bend Co. LID #2, TX GO 94 | |
94010521 | Goldsboro (City),NC 94 2nd Ser | |
94010539 | LAURENS COUNTY, SC GO 94 | |
94010543 | Kent County, DE GO 94 | |
94010555 | PLEASANTVILLE (City of), NJ 94 | |
94010571 | Wayland Union SD, MI GO ULT 94 | |
94010574 | SELINSGROVE AREA SD, PA GO 94 | |
94010594 | Napoleon Comm Schools, MI GO94 | |
94010615 | Chandler (City of), AZ GO 94 | |
94010618 | California (State Of) GO 94 | |
94010623 | VALLEY VIEW SD, PA GO 94 | |
94020002 | HARRIS COUNTY, TEXAS GO ULT 93 | |
94020007 | HARRIS CNTY FLOD CNTL DISTGO93 | |
94020083 | CALIFORNIA (STATE OF) GO 1993 | |
94020096 | California (State) Var Purp GO | |
94020097 | CALIFORNIA ST VAR PURP GO 92 | |
94020098 | California (State) Var Purp GO | |
94020099 | California (State) Var Purp GO | |
94020127 | CALIFORNIA ST VAR PURP GO 92 | |
94020131 | CALIFORNIA ST VAR PURP GO 91 | |
94020135 | CALIFORNIA STATE GO 91 | |
94020137 | CALIFORNIA (STATE OF) GO NOV92 | |
94020143 | CALIFORNIA ST VAR PURP GO 91 | |
94020158 | CALIFORNIA ST GO AUG 90 | |
94020211 | CALIFORNIA (STATE OF) GO 1993 | |
94020228 | CALIFORNIA (STATE OF) GO 1993 | |
94020271 | California (State) Var Purp GO | |
94020276 | California (State) Var Purp GO | |
94020278 | California (State) Var Purp GO | |
94020306 | HARRIS CNTY FLOD CNTL DISTGO93 | |
94020339 | HARRIS CNTY, TX-ROAD & REF 93 | |
94020340 | HARRIS CNTY FLOD CNTL DISTGO93 | |
94020376 | MASSACHUSETTS CMNWLTH GO 93A/B | |
95010012 | Burlington-Edison SD#100,WA 95 | |
95010023 | Riverbank ESD, CA GO 93 Ser B | |
95010045 | Camp Verde USD No.28, AZ GO 94 | |
95010068 | HAZLETON AREA SCH DIST,PA GO95 | |
95010069 | St Francois CSD R-III,MO GO 95 | |
95010087 | CASTAIC UNION SCH DIST, CA 93B | |
95010097 | Eastern Local SD BOE, OH GO 95 | |
95010104 | KINGS LOCAL SCH DIST, OH GO 95 | |
95010124 | Baltimore, MD GO REF 1995 A&B | |
95010141 | Lebanon (Township) BOE, SD 95 | |
95010154 | Orchard SD, California GO 95 A | |
95010158 | CHEEKTOWAGA TOWN OF, NY GO 95 | |
95010176 | Mona Shores Public Schools, MI | |
95010183 | Rensselaer County, NY GO 1995 | |
95010185 | BOWLING GREEN CITY SD,OH GO 95 | |
95010194 | BERKLEY SCHOOL DIST, MI GO 95 | |
95010209 | JAMUL-DULZURA USD, CA GO 95 A |
-44-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
95010215 | MONROE COUNTY, NY GO SER 1995 | |
95010222 | Sayville UFSD, NY GO 1995 | |
95010231 | ROSEVILLE JOINT UHSD, CA GO95B | |
95010250 | Glen Cove (City of), NY GO 95A | |
95010259 | Peekskill City SD, NY Go 1995 | |
95010264 | HASTINGS-ON-HDSN UFSD,NY GO95B | |
95010283 | LINCOLN CNTY SCH DIST, OR GO95 | |
95010284 | QUEENSBURY (TOWN OF), NY GO95A | |
95010321 | CAMERON COUNTY, TX ULT GO 95 | |
95010326 | Pleasanton USD, CA GO 95 Ser K | |
95010352 | HEMPSTEAD (TOWN), NY GO 95 A/B | |
95010376 | Old Adobe Union SD, CA GO 1995 | |
95010377 | EUREKA UN SCH DIST, CA GO 95B | |
95010386 | LA CANADA UNIF SD, CA GO 95 | |
95010390 | DELAWARE CITY SD, OH GO 1995 | |
95010397 | TRAVIS CNTY,TX WC&ID #10 GO 95 | |
95010399 | LOCKPORT TWP HSD #205, IL GO95 | |
95010400 | WARREN COUNTY, NC GO SER 95 | |
95010404 | SPARKS, NEVADA GO 1995 Ref | |
95010423 | MASON CITY SCH DIST, OH GO 95 | |
95010458 | Northshore SD #417, WA GO 1995 | |
95010467 | FREMONT PUB SCH, MI GO 1995 | |
95010496 | WOODBURN SD #103, OREGON GO 95 | |
95010499 | FERNDALE PUBLIC SCHLS, MI GO95 | |
95010507 | CATTARAUGUS CNTY, NY GO 95A,B | |
95010508 | Marshall (City of), TX GO 1995 | |
95010510 | Camden County, MUA NJ GO 1995 | |
95010512 | PULLMAN SCH DIST #267, WA GO95 | |
95010518 | Anchorage (Municip),AK GO95REF | |
95010529 | PAW PAW PUBLIC SCHOOLS,MI GO95 | |
95010560 | Illinois State GO Ser Dec 1995 | |
95010601 | Enumclaw School District #216 | |
95010611 | YORK (CITY), PA GO 95 A&B TXBL | |
95010612 | Lemont-Bromberek SD#113A,IL 95 | |
95010614 | South River Borough BOE, NJ GO | |
95010615 | CORONA, CALIFORNIA GO SER 95 | |
95010618 | Mundelein SD #75, IL GO Ser 95 | |
95010619 | Niles (Village of), IL GO | |
95020041 | HONOLULU (CITY & CNTY),HI-93 B | |
95020060 | NEW JERSEY STATE, GO SER D REF | |
95020083 | HONOLULU (CITY & CNTY), HI-93A | |
95020090 | HONOLULU (CITY & CNTY),HI-93 B | |
95020091 | HONOLULU (CITY & CNTY),HI-93 B | |
95020093 | HONOLULU (CITY & CNTY), HI-94A | |
95020094 | HONOLULU (CITY & CNTY), HI-94A | |
95020095 | HONOLULU (CITY & CNTY), HI-94A | |
95020128 | California (State) Var Purp GO | |
95020129 | CALIFORNIA (STATE OF) GO 1993 | |
95020133 | California (State Of) GO 95 | |
95020134 | California (State Of) GO 95 | |
95020135 | California (State Of) GO 95 | |
95020136 | California (State Of) GO 95 | |
95020138 | CALIFORNIA ST, GO VAR PURP 92 | |
95020142 | California (State) Var Purp GO | |
95020143 | CALIFORNIA (STATE OF) GO 1993 |
Policy Id |
Policy | |
95020145 | FAIRFIELD CITY SD, OHIO GO 94 | |
95020147 | FAIRFIELD CITY SD, OHIO GO 94 | |
95020187 | HONOLULU (CITY & CNTY), HI-93A | |
95020202 | Massachusetts Commonwealth GO | |
95020203 | Massachusetts Commonwealth GO | |
95020204 | Massachusetts Commonwealth GO | |
95020213 | HONOLULU (CITY & CNTY), HI-94A | |
95020219 | HONOLULU (CITY & CNTY),HI-93 B | |
95020245 | Connecticut State GO & Lease | |
95020253 | Hawaii State GO-1992 BY & BZ | |
95020254 | Hawaii State GO-1992 BY & BZ | |
95020255 | Hawaii State GO-1992 BY & BZ | |
95020257 | HAWAII STATE, GO 93 CA & CB | |
95020259 | Hawaii State GO-1993 CH & CI | |
95020271 | Hawaii State GO CC & CD | |
95020277 | Connecticut State GO & Lease | |
95020368 | Massachusetts Bay Trans 91 A | |
95020370 | MASS BAY TRANS AUTH GO 94A&B | |
95020373 | SURRY COUNTY, NC GO PUB IMP 95 | |
95020378 | California (State Of) GO | |
95020380 | CALIFORNIA (STATE OF) GO 1993 | |
95020381 | California (State Of) GO | |
95020390 | CALIFORNIA (STATE OF) GO 1993 | |
95020392 | CALIFORNIA (STATE OF) GO 1993 | |
96010004 | Fillmore USD, CA GO Ref Ser 96 | |
96010007 | Issaquah, Washington, GO | |
96010009 | Chicago Park Dist, IL GO Ref96 | |
96010011 | East Ridge, Tennessee 1995 B | |
96010016 | PECAN GROVE MUD, TX GO 1995 | |
96010017 | Burnet County, TX GO LTD TX 95 | |
96010037 | SALIDA UNION SD, CA GO 1996 | |
96010038 | PUYALLUP SD #3, WA GO 1996 | |
96010039 | TUMWATER SCH DIST #33, WA GOAB | |
96010060 | HILLIARD CITY SD, OH GO 96 A | |
96010061 | ROCHESTER (CITY OF), NY GO96B | |
96010083 | Manhattan Beach USD, CA GO 96 | |
96010084 | INDIAN LAKE LOC SD, OH GO 96 | |
96010087 | WOODSTOCK SD #200, IL GO 1996 | |
96010092 | NORTH KITSAP SD #400, WA GO 96 | |
96010105 | AUBURN (CITY OF), NY GO 96 | |
96010113 | MOLALLA RIVER SD #35, OR GO 96 | |
96010145 | DADE CO,FL GO (METRO F&R DIST) | |
96010168 | West Valley SD #363, WA GO 96 | |
96010182 | Nooksack Vly SD #506, WA GO 96 | |
96010186 | PORT OF ASTORIA, OREGON GO 96 | |
96010193 | BEAVERCREEK LOC SD, OH GO 96 | |
96010218 | East Valley SD#361, WA GO 96 | |
96010226 | GARRETT COUNTY, MD GO 1996 | |
96010230 | ST CHARLES CITY S.D.,MO GO 96 | |
96010237 | Bennett Valley USD, CA GO 96 | |
96010244 | APACHE JUNCTION USD#43,AZ GO96 | |
96010250 | Calistoga Joint USD, CA GO 95A | |
96010268 | Baltimore (City Of), MD GO 96B | |
96010274 | WEST VIRGINIA STATE GO 1996 | |
96010285 | WASHINGTON COUNTY, MD GO 96A/B |
-45-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
96010295 | Glen Cove (City of), NY GO 96 | |
96010337 | LEMONT PUBLIC LIB DIST,IL GO96 | |
96010350 | Monroe SD #103, WA GO Ser 96 | |
96010356 | COLLINGSWOOD, NJ GO 96 | |
96010357 | ROCKVILLE CENTRE(Vil)NYGO96A&B | |
96010363 | WOONSOCKET (CITY OF), RI GO 96 | |
96010366 | LaSalle County SD#122 IL GO 96 | |
96010393 | COOK COUNTY, ILLINOIS GO 96 | |
96010395 | Islip (Town of) NY GO 96 A&B | |
96010406 | WEST MIFFLIN SWR AUTH GTD,PA96 | |
96010411 | Windsor Unified SD, CA GO 96 | |
96010419 | Suffolk County, New York GO96B | |
96010424 | Lake Worth, Florida GO Ser 96 | |
96010432 | KEYES UNION SD,CALIFORNIA GO96 | |
96010436 | Patterson Joint USD, CA GO 96A | |
96010437 | Waubonsee CCD No.516, IL. | |
96010440 | Genesee Co. NY GO 96 | |
96010444 | Meriden (City of), CT GO 96 | |
96010456 | JACKSON TOWNSHIP, NJ GO 96 A&B | |
96010467 | Baldwin Park USD, CA GO Ser 96 | |
96010476 | Mint Hill (Town of), NC GO 96 | |
96010479 | IRVING FLOOD CNTRL DST,TX GO96 | |
96010484 | DESOTO (CITY OF), TX GO LTD 96 | |
96010496 | Lincoln Park (Borough)NJ GO 96 | |
96010497 | Azle (City of), TX Ltd 1996 | |
96010502 | Campbell Union SD, CA GO 96 | |
96010510 | Stark County OH GO LTDTX 96 | |
96010515 | Highland Local SD OH GO 96 | |
96010534 | Humble (City of), TX Ltd 1996 | |
96010556 | GRAPEVINE (City), TEXAS Ltd 96 | |
96010565 | KINGS MOUNTAIN, NC GO 1996 | |
96010577 | SOUTHINGTON (TOWN OF) CT GO 96 | |
96010583 | Nashua (City of), NH GO 96 | |
96010584 | Sugar Land Texas, GO 1996A | |
96010596 | SOUTH RIVER (BOROUGH),NJ GO 96 | |
96010606 | TERRE HAUTE SAN DIST, IN GO96 | |
96010610 | CADILLAC ASD, MI GO 96 | |
96010619 | Nassau County, New York GO96W | |
96010620 | Camden County,NJ MUA GO 2nd 96 | |
96010627 | LUCAS COUNTY, OHIO LTDTX GO 96 | |
96010628 | Arcadia USD, CA GO 1993 Ser C | |
96010631 | Chandler, AZ GO 1996B | |
96010645 | WEST OTTOWA PS MI (GO) 96 | |
96010649 | CAMERON COUNTY, TX GO 96C,D | |
96010653 | AUBURN (CITY OF), NY GO 96C | |
96010659 | Pflugerville (City),TX Ltd 96A | |
96010665 | PEMBERTON (TWP OF), NJ GO 96 | |
96010666 | JACKSON TOWNSHIP, NJ GO 1996 | |
96010673 | MANCHESTER TOWNSHIP, NJ GO 96 | |
96010676 | Laurel, Maryland GO Ref 96 A | |
96010681 | Shoreline SD #412, WA GO 1996C | |
96010683 | Willoughby(City of)OHLTDTXGO96 | |
96010693 | Shoreline SD#412,WA GO 11/1/96 | |
96010695 | Harris Cnty MUD #102, TX GO 96 | |
96010698 | Kearny Muni Util Auth GO 1996 |
Policy Id |
Policy | |
96010702 | Hawaii State GO 1996 Series CM | |
96010706 | Waxahachie, Texas GO Ltd Tx 96 | |
96010707 | Benton County, TN GO Sch Bonds | |
96010708 | Burke County, NC GO Series 96A | |
96010709 | Burke County, NC GO Ser 96 | |
96010713 | NORTH CHICAGO, ILLINOIS GO 96 | |
96010716 | WEST VIRGINIA STATE GO 1996D | |
96010722 | HUDSON CNTY IMPR AUTH,NJ GO 96 | |
96020003 | ST CHARLES CITY SD, MO GO95REF | |
96020004 | ST CHARLES CITY SD, MO GO95REF | |
96020008 | Mill Valley Sch Dist,CA GO 94C | |
96020009 | Mill Valley Sch Dist,CA GO 94C | |
96020010 | Mill Valley Sch Dist,CA GO 94C | |
96020011 | Hawaii State GO-1993 CH & CI | |
96020012 | California (State Of) GO | |
96020021 | HONOLULU (CITY & CNTY),HI-93 B | |
96020027 | Hawaii State GO 1996 Series CL | |
96020034 | California (State Of) GO Ref | |
96020036 | California (State Of) GO Ref | |
96020039 | California (State Of) GO | |
96020052 | CONNECTICUT STATE GO SER 1990A | |
96020056 | MASS BAY TRANS AUTH GO 94A&B | |
96020057 | MASS BAY TRANS AUTH GO 94A&B | |
96020059 | CONNECTICUT STATE GO SER 1990A | |
96020074 | California (State Of) GO Ref | |
96020076 | California (State Of) GO Ref | |
96020091 | California (State Of) GO Ref | |
96020098 | California (State Of) GO | |
96020099 | California (State Of) GO | |
96020108 | South Pasadena USD, CA GO 96A | |
96020111 | NEW YORK CITY, NY GO 97E | |
96020112 | NEW YORK CITY, NY GO 97E | |
96020116 | NEW YORK CITY, NY GO 96 H,I&J | |
96020117 | NEW YORK CITY, NY GO 97E | |
96020143 | HAWAII STATE, GO 93 CA & CB | |
96020144 | California (State Of) GO | |
97010004 | Harbor Creek SD, PA GO 96A&B | |
97010008 | SOLEDAD USD, CALIFORNIA GO 97 | |
97010009 | Thompson SD #R2-J, CO GO 1996 | |
97010010 | COLLEGE STATION, TX GO 1996 | |
97010015 | ST. LUCIE CNTY P&A AUTH, FL GO | |
97010020 | LAS VEGAS (CITY OF), NV GO 97 | |
97010022 | BOWIE COUNTY, TEXAS GO 1996 | |
97010025 | Lake County SD 79 (Fremont) 96 | |
97010026 | Anamosa CSD, IA Ser 1997A | |
97010029 | Mokena Comm.Park Dist.IL GO 97 | |
97010031 | Healdsburg Unified SD, CA GO96 | |
97010043 | Luzerne County, PA GO 97 | |
97010052 | North Hills Sch Dist, PA GO 97 | |
97010053 | Sequim SD #323, WA GO Ser 97 | |
97010060 | West Boylston (Town) MA GO 97 | |
97010062 | KENOSHA COUNTY, WI GO 1997 A | |
97010067 | GARRETT COUNTY, MARYLAND GO 97 | |
97010069 | Belleville (City of), IL GO 97 | |
97010073 | Brazos River Authority, Ser 97 |
-46-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
97010077 | Humboldt USD #22,Arizona GO97C | |
97010078 | ROCKFORD (CITY OF), IL GO 97AB | |
97010080 | Cotati-Rohnert Park USD, CA GO | |
97010092 | Flagstaff, Arizona GO 1997 | |
97010093 | Illinois (State of) GO 97 | |
97010098 | NORTH HEMPSTEAD(TOWN) NY GO 97 | |
97010101 | Elko, Nevada GO Ltd Tax Ref 97 | |
97010109 | Nassau County, New York GO97 X | |
97010113 | Dennis (Town of) MA GOULT 97 | |
97010124 | San Jacinto USD, CA GO 1997 A | |
97010130 | Klamath County, OR GO 97 A&B | |
97010136 | Roseland (Borough of) NJ GO 97 | |
97010140 | Detroit/Wayne Cnty Stad, Mi 97 | |
97010151 | Hawaii State GO 1997 Ser CN,CO | |
97010153 | California State GO, 3-1-97 | |
97010154 | Finneytown Local SD OH GO 97 | |
97010162 | Sun Prairie, WI GO Series 1997 | |
97010173 | Claymont City SD OH GO 97 | |
97010178 | Cary CCSD #26 IL GO 97 | |
97010179 | Elizabeth Forward SD, PA 97AB | |
97010194 | McKeesport Area SD PA GO 97AB | |
97010196 | Madeira CSD, Oh GO ULT 97 | |
97010198 | Angelina Cnty, TX GO Ltd Tx 97 | |
97010201 | Apex, North Carolina GO 1997 | |
97010206 | PENN HILLS, PENNSYLVANIA GO 97 | |
97010210 | Anderson, South Carolina GO 97 | |
97010213 | FOLSOM (CITY OF),CA GO97 Ser D | |
97010214 | ROWLETT TEXAS, GO 97 | |
97010218 | Lakeway, TX Ltd 97 | |
97010222 | McMINNVILLE SD #40, OR GO 1997 | |
97010232 | NORFOLK, VIRGINIA GO 97 (AMT) | |
97010245 | Essexville-Hampton PS MI GO 97 | |
97010246 | Pflugerville, TX GO Ltd Tx 97 | |
97010247 | Westmoreland County, PA GO 97 | |
97010260 | St Clair Co Pub Bldg IL GO 97 | |
97010264 | Carson City, Nevada GO 1997C | |
97010266 | Hampton Township, PA GO 1997 | |
97010268 | Cicero Sch Dist #99, IL GO 97 | |
97010270 | YOUGH SCH DIST, PA GO 1997B | |
97010271 | Gurnee Sch Dist #56 IL GO 97 | |
97010276 | Flower Mound, TX GO Ltd Tax 97 | |
97010283 | HEMPSTEAD (VILLAGE), NY GO97A | |
97010286 | Crowley (City of), LA GO Ser97 | |
97010287 | FONTANA USD, CALIFORNIA GO 97 | |
97010290 | SYCAMORE SD #427, IL GO 1997 | |
97010296 | Peoria School Dist 150 ILGO 97 | |
97010316 | Monroe SD #103, WA GO 1997 | |
97010322 | Ukiah USD, CA GO 1997 | |
97010323 | Smithfield (Town of) RI GO 97 | |
97010324 | Johnson City, TN GO 1997 | |
97010335 | Frisco,TX GO Ltd COO 97Taxable | |
97010343 | Fillmore USD, CA GO | |
97010345 | Mount Shasta USD, CA GO 97 A | |
97010346 | Glen Ellyn SD#41, IL GO 97 | |
97010349 | Prairie Grove SD46, Il GO97 |
Policy Id |
Policy | |
97010353 | Baltimore (City), MD GO 1997B | |
97010359 | South Bay Union SD, CA 1997A | |
97010360 | PINER-OLIVET UNION ESD,CA GO97 | |
97010367 | KEARNY (CITY OF), NJ GO Ref 97 | |
97010376 | Decatur Pub Bldg Comm, IL 1997 | |
97010379 | Tahoma SD #409, WA GO 1997 | |
97010384 | PINEY CREEK METRO DIST,CO GO97 | |
97010389 | Safford USD NO. 1 AZ Series97A | |
97010392 | Petersburg, Virginia GO 1997 | |
97010399 | Show Low Unified SD No. 10 AZ | |
97010400 | Lucia Mar USD, CA GO 97 | |
97010408 | Redwood City ESD, CA GO 1997 | |
97010409 | QUAKER VALLEY SD, PA GO 97AB | |
97010411 | Rockford PS MI GO 97 | |
97010417 | Du Quoin CUSD #300 IL GO 97 | |
97010425 | Steilacoom HSD #1, WA GO 97 | |
97010426 | Nassau County, New York GO97WY | |
97010435 | Illinois State GO 97 | |
97010440 | Georgetown Co., SC GO 97 | |
97010441 | Fair Lawn (Borough of),NJ GO97 | |
97010446 | Massachusetts (Cmnwelth)GO97AB | |
97010452 | OSSINING VILLAGE, NY GO 97 | |
97010454 | Hampton Bays UFSD NY GO 97 | |
97010459 | Wiseburn SD, CA GO 97A | |
97010468 | Nassau County, New York GO97A | |
97010476 | Cuyahoga Falls, OH LTD 97 | |
97010480 | Santa Clara USD, CA GO Ser 97 | |
97010482 | Benicia Unified SD, CA GO 97AB | |
97010484 | Burbank Unified SD, CA GO 97A | |
97010485 | Mansfield (Town of) MA LTDGO97 | |
97010501 | Glendale USD, CA GO 97 | |
97010502 | Reynoldsburg City SD, OH GO 97 | |
97010505 | Reno (City of), NV GO 97B | |
97010506 | Watertown (Town), MA 97 | |
97010507 | CLOVIS USD, CA GO Ser. E&F | |
97010514 | Northeastern Clntn CSD,NY GO97 | |
97010523 | Missouri City, Texas GO 1997 | |
97010527 | CHINO VALLEY USD #51, AZ GO 97 | |
97010534 | S. Huntington UFSD NY 1997 | |
97010542 | Azle (City of), TX Ltd 1997 | |
97010547 | Medway, MA GO ULTD 97 | |
97010550 | Little Falls City SD, NY GO | |
97010558 | Alpine Union SD, CA GO 1997A | |
97010561 | ARKANSAS STATE GO 1997B | |
97010562 | WANTAGH UFSD, NY GO 97 | |
97010563 | Clark Township, NJ GO 97 | |
97010577 | Sulphur Springs, Texas GO 97 | |
97010578 | PECAN GROVE MUD, TEXAS GO 97 | |
97010588 | ROMEO COMM SD, MI GO 97 | |
97010590 | Wilmington, NC GO Series 1997A | |
97010591 | Wilmington, NC GO Series 1997B | |
97010596 | GLOUCESTER COUNTY, NJ GO 97 | |
97010598 | West Mifflin Boro, PA GO 97ABC | |
97010599 | ARLINGTON HTS PK,IL GOLT 97B | |
97010600 | ARLINGTON HTS PK,IL GO 97CDE |
-47-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
97010602 | Yonkers, New York GO 97 C | |
97010608 | Wayland Union SD, MI GO 97 REF | |
97010609 | Woodway (City of), TX GO 97 | |
97010612 | Carlsbad USD, CA GO 97 | |
97010614 | Moon Area Sch Dist, PA 1997 | |
97010619 | Hawaii State GO 97 Ser CP & CQ | |
97010625 | Boulder Vally SD #RE-2,CO GO97 | |
97010630 | WALLKILL (TOWN OF), NY GO 97 | |
97010631 | Rochester (City of), NY GO 97 | |
97010633 | Ansonia (City Of), CT GO 97 | |
97010644 | Bernalillo Mun SD#1, NM GO 97 | |
97010645 | BOLINGBROOK, ILLINOIS GO 97 | |
97010647 | Erie County, New York GO 97 A | |
97010649 | Enumclaw S.D. #216, WA GO 97 | |
97010654 | Belle Vernon Area SD, PA GO97A | |
97010668 | Honolulu, Hawaii GO 1997 A,B, | |
97010672 | South Lake Schools MI GO 97 | |
97010673 | Springfield SD #19, Oregon | |
97010674 | Snoqualmie Vly SD #410, WA GO | |
97010675 | BEDFORD COUNTY, VIRGINIA GO 97 | |
97010677 | HAZLETON AREA SD, PA GO 97ABC | |
97010678 | YORK COUNTY, PA (REDEV AUTH) | |
97010681 | Spokane Co Fire Dist 9,WA GO97 | |
97010682 | Liberty Local Sch Dist, OH 97 | |
97010683 | Lake Jackson, Texas GO 97 | |
97010684 | Alisal Union SD, CA GO 97 | |
97010685 | Carson City, Nevada GO 11-1-97 | |
97010693 | NEW YORK CITY, NY GO 98D | |
97010696 | CORINTH, TEXAS GO 1997 | |
97010698 | LLAGE, IL GO 97 | |
97010699 | WEST LINN-WILSONVILLE SD,OR GO | |
97010700 | Bainbridge Isl SD#303,WA GO97B | |
97010702 | LITCHFIELD ELEM SD#79,AZ GO97B | |
97010703 | HILLIARD CITY SD, OH GO 97 | |
97010704 | Saratoga USD, CA GO 97 Ser. A | |
97010707 | TOWN OF WOODSTOCK, NY GO 97 | |
97010711 | Shaler Area SD, PA GO, 97 A&B | |
97010719 | Isle of Wight Cnty, VA GO 97B | |
97010721 | Piqua City SD OH GO 97 | |
97010726 | Tucson USD NO. 1, AZ GO 1997 | |
97010732 | TOLEDO (CITY OF),OH GOLT 97AB | |
97010733 | Suffolk County, New York GO97B | |
97010735 | Green, Oh LMTX GO 97 | |
97010736 | LAS VEGAS, NEVADA GO 1997A | |
97010738 | Taunton, Ma LMTX GO 97 | |
97010742 | Camden Cnty Impr Auth, NJ 97A | |
97010745 | Chicago Park Dist, IL GO 97 | |
97010746 | King Cnty Fire Dist #26, WA GO | |
97010748 | South Allegheny SD PA GO 97AB | |
97010749 | GLADEWATER, TEXAS GO 1997 | |
97010756 | Clearview Regl HSD, NJ GO 97 | |
97010760 | Anderson CO, SC GO Series 1997 | |
97010768 | SWEETWATER, TEXAS GO 1997 | |
97010771 | Niles (Village of), IL GO 97 | |
97010775 | UNIVERSAL CITY, TEXAS GO 1997 |
Policy Id |
Policy | |
97010785 | Portsmouth (City of),VA GO 97A | |
97010787 | TRENTON (CITY OF), NJ GO 1997 | |
97010789 | Albany (City of), NY GO 97 | |
97010792 | HAMMONTON, NEW JERSEY GO 97 | |
97010800 | ST Clair Co Pub Bldg IL GO 97C | |
97010801 | Henry County, Il GO 97 | |
97010809 | Scotland County, NC GO 97 | |
97010817 | NEW HAVEN, CT GO dtd. 12/15/97 | |
97010818 | NEW HAVEN, CT GO dtd 12/30/97 | |
97020005 | Willoughby (City)OH LTDTXGO 90 | |
97020007 | California (State Of) GO | |
97020012 | WEST VIRGINIA STATE GO 1996D,E | |
97020014 | WEST VIRGINIA STATE GO 1996D,E | |
97020015 | WEST VIRGINIA STATE GO 1996D,E | |
97020033 | Hawaii State GO-1992 BY & BZ | |
97020082 | WISCONSIN (STATE OF) GO, 97 A | |
97020090 | Massachusetts St Cllge Blg 94A | |
97020128 | HAWAII STATE, GO 93 CA & CB | |
97020159 | HONOLULU (CITY & CNTY),HI-93 B | |
97020161 | HONOLULU (CITY & CNTY), HI-93A | |
97020168 | CALIFORNIA STATE GO 10-1-97 | |
97020169 | CALIFORNIA STATE GO 10-1-97 | |
97020172 | CALIFORNIA STATE GO 10-1-97 | |
97020173 | NEW YORK CITY, NY GO 98D | |
97020188 | NEW YORK CITY, NY GO 98EF | |
98010011 | ESSEX COUNTY, NJ GO 97A | |
98010017 | Maple Park CUSD #302 IL GO 98 | |
98010021 | MILLCREEK TWP SD, PA GO 98A/B | |
98010028 | ST. CLOUD (CITY OF),MN GO 98A | |
98010033 | Alum Rock Union ESD, CA GO 98 | |
98010037 | Burlington-Edison SD#100,WA 98 | |
98010040 | Schertz (City of), TX GO 98 | |
98010041 | SWEETWATER, TEXAS GO 1998 | |
98010044 | EVERETT SCHOOL DIST #2,WA GO98 | |
98010053 | Orange, MA 1/15/98 Series B | |
98010054 | Marion ISD, IA Series 1998 | |
98010055 | S Local Sch Dis, OH ULTD GO 98 | |
98010056 | COLONY (CITY OF THE), TX GO 98 | |
98010057 | Douglas County SD Re1,CO GO98A | |
98010058 | DeKalb CUSD #428, IL Ser 1998 | |
98010060 | Otsego PS, Mi Q-SBLF GO 98 | |
98010067 | Washington ESD #6,AZ GO01-1-98 | |
98010069 | San Jacinto USD, CA GO 1998B | |
98010071 | Hopewell Twp BOE, NJ GO 98 Rfd | |
98010072 | Hartford (City of), CT GO 98 | |
98010073 | Camden County Imp Auth,NJ 98AB | |
98010075 | Brighton SD #27J, CO GO 98 | |
98010079 | Ripley-Union-Lewis-Hunt SD OH | |
98010084 | RICHLAND HILLS, TEXAS GO 1998 | |
98010088 | Mineola (City of), TX COO 98 | |
98010089 | FERN RIDGE SD #28J,OREGON GO98 | |
98010092 | Barron Area SD, WI GO 98 | |
98010093 | Suffolk County, New York GO98A | |
98010099 | Hampton Bays UFSD NY GO 98 | |
98010103 | Gardner USD #231, KS GO 98-A |
-48-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98010107 | Tucson, AZ GO & Lease Ref 98 | |
98010109 | Port of Beaumont Nav Dist, TX | |
98010110 | Port of Beaumont Nav Dist, TX | |
98010112 | Worthington City SD, OH ULT 98 | |
98010113 | BUFFALO, NEW YORK GO 98ABCF | |
98010119 | PIPER USD #203, KANSAS GO 98A | |
98010130 | SOMERSET COUNTY, PA GO 98 | |
98010131 | Tahoma SD #409, WA GO 1998 | |
98010132 | Pittsburgh (City of)PA GOTax98 | |
98010136 | Nauset Regional SD, MA GO 98 | |
98010139 | ALTON, ILLINOIS GO 98 | |
98010140 | Douglas Co Fire Dist#2,WA GO98 | |
98010143 | Highland Village, TX GO Ltd 98 | |
98010150 | Butler Area Sch Dist, PA 98ABC | |
98010152 | GREATER CLEVELAND RTA,OH LTX98 | |
98010157 | DEARBORN SCH DIST, MI GO 98 | |
98010158 | TOMBALL TEXAS GO 1998 | |
98010160 | South Pasadena USD,CA GO Ser B | |
98010161 | MARANA USD #6, AZ GO SER 1998 | |
98010162 | WEST ALLIS (CITY OF), WI GO98C | |
98010169 | Dublin City SD, OH GO 98 | |
98010171 | Post Falls, Idaho GO 98 | |
98010177 | Campbell USD, CA GO Ref Ser 98 | |
98010182 | Lewiston, Maine GO 98A | |
98010183 | Lewiston, Maine GO 98B | |
98010184 | Wanaque Val Reg Swr Auth, 98 | |
98010191 | California State GO 1998 | |
98010192 | TOLEDO (CITY OF), OH GOLT 98AB | |
98010193 | Sugar Land, TX Ltd Tax GO 98 | |
98010205 | Nyack UFSD, NY GO 98 A & B | |
98010206 | WEST VIRGINIA STATE GO 98A | |
98010208 | WEST VIRGINIA STATE GO 98B | |
98010210 | Glen Ellyn SD#41, IL 1998 | |
98010211 | Jefferson Cnty SD R-1, CO GO98 | |
98010212 | Manhattan Beach USD, CA GO 97 | |
98010216 | PARKLAND SCH DIST, PA GO 98 | |
98010217 | Kent City SD, OH GOULT 98 | |
98010220 | Cy-Champ PUD, TX GO (MUD) 98 | |
98010221 | Nassau County, New York GO98Y | |
98010224 | North Canton City SD, OH 98 | |
98010225 | Harmony Union SD, CA GO Ser 98 | |
98010226 | Leslie PS, Mi GO 98 | |
98010231 | Barberton City Schs, OH GO 98 | |
98010233 | ST LOUIS PUB SD, MO GO REF 98 | |
98010243 | Tewksbury (Town of), MA GO 98 | |
98010244 | Greenwood Lake UFSD, NY 1998 | |
98010247 | Bradford Area SD, PA GO 1998 | |
98010260 | Cumberland Cnty, NC GO Ref 98 | |
98010261 | Cumberland County, NC GO 98 | |
98010262 | Porter Cnty Lib Dist, IN GO 98 | |
98010263 | Medina City SD, OH GO 98 | |
98010264 | GILBERT (TOWN), AZ GO 1998 | |
98010268 | Eastside Union SD, CA GO 98A | |
98010276 | King City Jt. UHSD, CA GO 1998 | |
98010280 | Northwest Loc SD,OH (Ham Co)98 |
Policy Id |
Policy | |
98010281 | BRICK TOWNSHIP, NJ GO & MUA | |
98010282 | Lafayette, Colorado GO 98 | |
98010292 | Riverdale Joint USD, CA GO 98 | |
98010293 | NEW YORK CITY, NY GO 98H | |
98010294 | Mercer Cty Imp Auth, NJ 98ABC | |
98010300 | ONEIDA COUNTY, NEW YORK GO 98 | |
98010322 | Clarkstown Town of, NY G.O. 98 | |
98010325 | DUNCANVILLE, TEXAS GO 1998 | |
98010334 | SELAH SCH DIST #119, WA GO 98 | |
98010335 | Mesa, AZ GO 1998 | |
98010350 | OLD BRIDGE TWP, NJ GO 98 | |
98010353 | Canal Winchester LSD OH GO 98 | |
98010354 | New Haven USD, CA GO 1998B | |
98010363 | CLARK CNTY, NV GO 98A LVCVA | |
98010368 | Pendleton SD #16R, Oregon GO | |
98010376 | Denton (City of), TX Ltd GO 98 | |
98010377 | Sturbridge (Town), MA LTX GO98 | |
98010380 | Albany, Oregon GO 98 | |
98010384 | LAKE HAVASU USD #1, AZ GO 1998 | |
98010390 | Kinnelon BOE, NJ dtd 4/1/98 | |
98010393 | Logan Township, PA GO 98 | |
98010395 | Glen Cove (City of), NY GO 98 | |
98010396 | Randolph County, NC GO 98 Ref | |
98010397 | EAST HAMPTON (TOWN), NY GO 98 | |
98010401 | Ojai USD, California GO Ser A | |
98010402 | Olathe USD #233, KS GO 98 A | |
98010404 | WEATHERLY AREA SD, PA GO 98 | |
98010412 | STROUDSBURG AREA SD, PA GO 98 | |
98010417 | PENN CAMBRIA SD, PA GO 1997AB | |
98010419 | Maui County, HI GO 98 A,B&C | |
98010423 | BEND-LA PINE ASD #1, OR GO 98 | |
98010425 | TAHOE TRUCKEE USD, CA GO 98 | |
98010427 | Benicia Unified SD, CA GO 1998 | |
98010428 | Rio Elementary SD, CA GO 97 A | |
98010430 | Huntington UFSD, NY GO 98 | |
98010431 | Onalaska, WI GO 98A | |
98010432 | Columbia Gorge CCD, OR GO 98 | |
98010436 | Leon Valley, TX GOLT Series 98 | |
98010439 | Wadsworth City SD OH 98 | |
98010442 | HORSEPEN BAYOU MUD, TEXAS GO98 | |
98010444 | Brazoria Cnty, TX GO Ltd Tx 98 | |
98010446 | Clinton (City of), TN 98 | |
98010447 | Livonia (City of) MI GO LTX 98 | |
98010450 | Central Islip UFSD NY GO 98 | |
98010453 | Mead SD #354, Washington GO 98 | |
98010454 | Hendersonville, NC GO 1998 | |
98010464 | WARRENTON, OREGON GO 1998 | |
98010465 | Ocean Township NJ Sewer GO 98C | |
98010467 | Surry Cnty, NC GO Ref Ser 98 | |
98010468 | Edmonds SD #15, WA GO Ser 98 | |
98010481 | FALLBROOK UN HIGH SD, CA GO 98 | |
98010490 | ATTLEBORO (CITY OF), MA GO 98 | |
98010492 | Harris Cnty MUD #102, TX GO 98 | |
98010493 | Dexter Community Schools,MI GO | |
98010495 | ISAAC ESD #5, AZ GO 1998B |
-49-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98010499 | Lakota Local Sch Dist, OH 98 | |
98010501 | South Suburban Pk&Rec,CO GO 98 | |
98010503 | LAREDO, TEXAS LTD TAX GO 98 | |
98010505 | Baltimore (City Of), MD GO 98 | |
98010518 | SOUTHLAKE (City of), TX GO 98 | |
98010520 | Paw Paw Pub Schools MI GO 98 | |
98010524 | St. Johns Pub Schools MI GO 98 | |
98010526 | San Angelo, Texas GO Ltd TX 98 | |
98010528 | MANALAPAN-ENGLISHTOWN RSD,NJ98 | |
98010529 | Parma, (City) Ohio | |
98010538 | Benicia, CA (97 Wstwtr) GO 98B | |
98010545 | GARDNER, KANSAS GO 1998A | |
98010546 | GARDNER, KANSAS GO 1998B | |
98010549 | Newberg Sch Dist #29Jt,OR GO98 | |
98010555 | ARKANSAS STATE GO 1998A | |
98010561 | Tully CSD NY GO 98 | |
98010565 | VICTOR CENTRAL SD, NY GO 98 | |
98010570 | Northshore SD #417,WA GO 98A&B | |
98010571 | East Meadow UFSD, NY GO 98 | |
98010572 | Glen Cove (City of), NY GO 98 | |
98010573 | Greenville CSD NY GO 98 | |
98010577 | Chemung County, NY GO ULTD 98 | |
98010583 | North East SD, PA GO 98 | |
98010584 | LAKEWAY MUD, TEXAS GO 98 | |
98010586 | El Paso County, TX GO REF 98 | |
98010596 | CLIFTON, NEW JERSEY GO 98 | |
98010599 | Avondale ESD #44, AZ GO 98 A | |
98010605 | Mercer Co Imp Auth 1998C | |
98010607 | Peoria, Arizona GO Ser A 1998 | |
98010608 | Peoria, Arizona GO Ser B 1998 | |
98010610 | San Juan Capistrano, CA GO 98 | |
98010611 | AGUA FRIA UHSD#216, AZ GO 98A | |
98010612 | ABINGTON (Town of), MA GO | |
98010615 | Easthampton, MA dtd 7/1/98 | |
98010618 | Norfolk, Virginia GO 98 | |
98010620 | BLOOMFIELD SD #6, NM GO 1998 | |
98010621 | Deming SD #1, NM GO Ser 7/1/98 | |
98010622 | Johnson City, TN GO 1998 | |
98010625 | Ripley-Union-Lewis-HuntSD OH98 | |
98010627 | McFarland Sch Dist, WI GO 98 | |
98010631 | Nederland Fire PD, CO GO 98 | |
98010632 | Stroudsburg (Borough) PA GO 98 | |
98010636 | Montville Township, NJ 1998 | |
98010639 | Newark, Oh GO Lmtx 98 | |
98010641 | Seneca County, OH GO LTX 98 | |
98010642 | Rescue Union SD, CA GO 98 | |
98010645 | East Stroudsburg ASD PAGO 98AA | |
98010646 | Riverside Beaver Co.SD PA GO98 | |
98010647 | La Conner SD No. 311, WA GO 98 | |
98010651 | Greenfield Union ESD, CA GO 98 | |
98010652 | Coleman, TX GO Limited Tx 1998 | |
98010654 | NEVADA STATE GO, 1998A,B,C,D | |
98010655 | WEST VIRGINIA STATE GO Rd Bd98 | |
98010661 | San Ramon Vly USD, CA GO 98 A | |
98010662 | Tukwila SD #406, WA GO Ref 98 |
Policy Id |
Policy | |
98010667 | Pleasant Plains CUSD #8, IL 98 | |
98010669 | Odessa, Texas Ltd GO Ser 98 | |
98010672 | MACON COUNTY, TENNESSEE GO 98 | |
98010674 | Wood County, OH LTGO 1998 | |
98010676 | Valley Park SD MO 98 | |
98010677 | Chatham (Town of) MA LTD GO 98 | |
98010680 | Upper Allen Twp, PA GO 1998 | |
98010683 | TOLEDO (CITY OF), OH GOLT 98 | |
98010689 | Laguna Salada USD,CA GO Ser98B | |
98010690 | MARSING JOINT SD #363, ID GO98 | |
98010695 | TOLEDO (CITY OF), OH GOLT 98 | |
98010696 | Fort Loramie Local SD, OH 1998 | |
98010702 | Shrewsbury Bd of Ed, NJ GO | |
98010703 | Suffolk County, NY GO 98 AEF | |
98010704 | Rhode Island (State Of) GO 98A | |
98010709 | Maui County, Hawaii GO 98 C | |
98010712 | ROCK ISLAND CO PUB BLDG COM 98 | |
98010713 | Firebaugh Las Dlts USD,CA GO98 | |
98010715 | Angleton, Texas GO Ltd Tax 98 | |
98010720 | Harris Co WC&ID #119, GO 1998 | |
98010727 | Shawano County, WI GO 98 | |
98010729 | Lawrence BOE NJ GO 98 | |
98010730 | Grapevine, Texas GO Ltd Tax 98 | |
98010732 | Nassau County, N Y GO 98Z | |
98010735 | Temple City USD, CA GO 98 | |
98010736 | Nassau County, New York GO 98B | |
98010737 | Montebello USD, CA GO 1998 | |
98010740 | HUDSON COUNTY, NJ GO 98 | |
98010743 | Chico USD, California GO 98 A | |
98010747 | Thomaston(Village of),NY CO 98 | |
98010749 | STRATFORD (TOWN OF), CT PEN 98 | |
98010754 | Burbank Unified SD, CA GO 97 B | |
98010756 | Kingsburg Joint UHSD, CA GO 98 | |
98010758 | Chino Vly USD #51, AZ GO 98 A | |
98010763 | Moscow, Idaho GO Ser 98 | |
98010764 | East Haddam (Town of), CT GO98 | |
98010765 | MURRIETA VALLEY USD, CA GO 98 | |
98010767 | Francis Howell SD, MO GO 98 | |
98010768 | Gadsden ISD #16, NM GO Ser 98 | |
98010774 | Soledad USD, California GO 98B | |
98010776 | Lakeside Joint SD, CA GO 98 A | |
98010779 | Hanford Elem Sch Dist, CA GO98 | |
98010782 | SUNNYSIDE USD #12, AZ GO 1998 | |
98010784 | Bellmore UFSD, NY GO 98 | |
98010785 | SOMERSET COUNTY, PA GO 1998C | |
98010786 | Genesee Co. NY GO 98 | |
98010787 | TUALATIN HILLS PK/REC,OR GO 98 | |
98010789 | TAYLOR, TEXAS GO 1998 | |
98010796 | Berkeley USD, CA GO 98 Rfd | |
98010799 | Rocklin USD, California GO 98 | |
98010801 | Los Angeles, California GO 98 | |
98010803 | Mercer Co Imp Auth 98 (Golf)NJ | |
98010811 | Jamul-Dulzura UESD, CA GO 98A | |
98010814 | South Whittier ESD, CA GO 98 A | |
98010815 | Southbridge Town, MA GO LTX 98 |
-50-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98010817 | Agawam, MA dtd. 9/1/98 | |
98010820 | Northview Pub Schools MI GO 98 | |
98010821 | Fremont Unif Sch Dist,CA GO 98 | |
98010824 | WOODBURN SD #103, OREGON GO 98 | |
98010826 | Town of Pittsford, NY, Ser.98 | |
98010829 | ROCKVILLE CENTRE,NY GO 98 | |
98010831 | Council Rock SD, PA GO 98 | |
98010833 | Middletown (Twnshp) PA GO 98 | |
98010838 | NEEDLES USD, CALIFORNIA GO 98 | |
98010839 | COOK COUNTY, ILLINOIS GO 98A | |
98010840 | EPHRATA AREA SD, PA GO 98 | |
98010842 | Sturgeon Bay, WI GO 98 | |
98010843 | Palo Verde Unified SD,CA GO98A | |
98010844 | Humboldt USD #22, Arizona GO98 | |
98010847 | Hawthorne SD, CA GO 97 Ser B | |
98010850 | Columbus Sch Dist, WI GO 98 | |
98010860 | Methuen (Town of) MA GO LMTX98 | |
98010861 | East Tawas (City of), MI GO | |
98010865 | Marana USD #6, AZ GO Ref 98 | |
98010868 | Bemus Point CSD, NY GO | |
98010869 | Bay Shore UFSD NY GO | |
98010871 | Summit County, OH 98A | |
98010872 | CLARK COUNTY, NEVADA GO 1998 | |
98010873 | South Huntington UFSD,NY GO 98 | |
98010875 | SELMA USD, CALIFORNIA GO 98 | |
98010881 | RIVER PLACE MUD, TEXAS GO 1998 | |
98010883 | Washington TWP MUA, NJ GO 98AB | |
98010884 | Washington TWP MUA, NJ GO 98AB | |
98010885 | Washington TWP MUA, NJ GO 98AB | |
98010887 | Elmwood Park Vill, IL GO UT 98 | |
98010889 | Richland County OH Ltd GO 98 | |
98010891 | Norton (Town of) MA GO Ltd 98 | |
98010892 | GLENDALE UN HSD #205, AZ GO 98 | |
98010894 | Lindenwold, NJ GO 98 | |
98010896 | Watertown USD, WI GO 98 | |
98010900 | COLLINGSWOOD, NJ GO 98A | |
98010903 | Peoria USD #11, Arizona GO 98C | |
98010910 | Mississippi State GO 98 U&C | |
98010913 | PEORIA (CITY OF), IL GO 98C | |
98010914 | Miller Place UFSD, NY Ser. 98 | |
98010915 | Madison ESD #38, Arizona GO 98 | |
98010917 | ALPENA PUB. SCHS., MI GO 98 | |
98010922 | Mercedes, Texas Ltd Tax GO 98 | |
98010926 | Cornwall CSD (NY), Series 1998 | |
98010927 | WAPPINGERS CSD, NY GO 98 | |
98010930 | Amherst, Oh Lmtx GO 98 | |
98010931 | Georgetown (Town) MA LTDGO 98C | |
98010935 | Spotswood (Borough), NJ GO 98 | |
98010936 | Athens Cnty, Oh LTD | |
98010939 | Osborn Elem SD #8, AZ GO 1998 | |
98010942 | Chicago CSR BOE, Il GO ULT98AB | |
98010943 | Spring Lake Pub School MI GO98 | |
98010944 | North Davis Cty SwrDist,UTGO98 | |
98010946 | Floral Park-Bellerose UFSD, 98 | |
98010947 | Ansonia (City Of), CT GO 98 |
Policy Id |
Policy | |
98010948 | Millbury, MA dtd 10/15/98 | |
98010949 | CARSON CITY, NEVADA GO 1998A | |
98010952 | Berwick (Town), ME GO 98 | |
98010953 | Pompton Lakes, NJ MUA 1998 D | |
98010954 | Lennox SD, CA GO 98 | |
98010955 | ENNIS (CITY OF) TEXAS GO LTX98 | |
98010958 | Waterloo CUSD 5, IL GO 98 | |
98010960 | Sevierville, Tennessee GO 98 | |
98010969 | Lancaster, PA GO 98 | |
98010971 | Edwardsburg Public Schools 98 | |
98010973 | Waupun SD, WI 98 | |
98010978 | South Chicago Heights, Ill | |
98010979 | Fraser, MI GO 98 | |
98010980 | Clinton (Township), MI GO 98 | |
98010985 | Caldwell, Texas Ltd Tax GO 98 | |
98010991 | Southern Montgy Co MUD,TX GO98 | |
98010993 | Erie County, New York GO 98 | |
98010995 | Central Valley S.D.#356, WA 98 | |
98010997 | Webster Central SD, NY GO 98 | |
98011001 | Geneva (City of), IL GO 98 | |
98011003 | CAROL STREAM PARK DIST,IL GO98 | |
98011005 | Wyoming City SD, Oh GO 98B | |
98011009 | South Whidbey SD #206,WA GO 98 | |
98011014 | Mississippi State GO | |
98011024 | Goodyear, Arizona GO Series 98 | |
98011026 | Kittitas Co Pub HD No. 1, WA98 | |
98011027 | Hamilton Comm Schs, MI GO 1998 | |
98011032 | North Brunswick (Twp) NJ GO 98 | |
98011037 | Conroe, Texas CO 98 | |
98011038 | Matanuska-Susitna Boro,AKGO98A | |
98011039 | E. Cent Jr Coll Dist MO GO 98 | |
98011040 | Westmoreland County, PA GO 98 | |
98011043 | BEAVER COUNTY, PA GO 98 | |
98011044 | Kent SD #415, Washington GO 98 | |
98011048 | Hartford (City of), CT GO | |
98011050 | ATLANTA, GEORGIA GO 1998 | |
98011051 | Bordentown (Twp), NJ GO 98 | |
98011053 | GREATER CLEVE. RTA,OH LTDGO98R | |
98011058 | Black Horse Pike RSD NJ GO 98 | |
98011059 | LAS VEGAS, NV GO Limited 98AB | |
98011060 | Essexville-Hampton PS, Mi 98 | |
98011061 | Wasco County, OR GO Rfdg 98 | |
98011065 | BENSALEM (TOWNSHIP), PA GO 98 | |
98011066 | BENSALEM TWP S D, PA GO 98 | |
98011067 | Grant County, IN GO 1998 | |
98011071 | Indian Prairie CUSD#204, IL98B | |
98011073 | BRICK TOWNSHIP, NJ MUA 1998 | |
98011075 | Miami-Dade Cnty, Florida GO 98 | |
98011076 | Ypsilanti Sch. Dist. MI GO 98 | |
98011077 | New Haven Unif SD, CA GO 98C | |
98011078 | Wisconsin HeightsSD,WI 12/1/98 | |
98011079 | Maple Shade Township, NJ GO 98 | |
98011081 | Mass Bay Trans Auth MA GO 98BC | |
98011082 | El Rancho USD, CA GO 98A | |
98011083 | College Place, WA GO 98 |
-51-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98011084 | Yakima Sch Dist #7, WA GO 1998 | |
98011087 | Harris Cnty MUD #55, TX GO 98 | |
98011090 | N. CLACKAMAS SD #12, OR GO 98 | |
98011092 | LAREDO, TEXAS LTD TAX GO 98REF | |
98011093 | MARION CNTY, FL LTD AD VALOR98 | |
98011097 | Wicomico County, MD GO 1998 | |
98011098 | Bensenville, IL GO (AltRev)98A | |
98011101 | Cave Creek USD #93, AZ GO 98 | |
98011103 | CLARK COUNTY, NEVADA GO 98A&B | |
98011104 | Ashland (Town of) MA GO 98 | |
98011105 | Ware (Town of), MA GO 98 | |
98011107 | Stanwood SD No. 401, WA GO 98 | |
98011110 | Allegany-Limestone CSD,NY GO98 | |
98011111 | Metamora #122 (Taze/Wood), IL | |
98011112 | Washoe County Sch Dist,NV GO98 | |
98011115 | Suffolk County, New York 98C | |
98011116 | WEST WINDSOR-PLAINSB.SD,NJ 98 | |
98011117 | Southwick, MA dtd 12/15/98 | |
98011118 | Chili (Town of) NY GO 98 | |
98011119 | Chicago Park Dist IL GO 98ARfg | |
98011120 | Lake County SD No. 103, IL 98 | |
98011123 | Hastings Area Sch Sys, MI GO98 | |
98011124 | PRESCOTT, ARIZONA GO 1998 | |
98011126 | Johnsburg CUSD 12 IL GO 98 | |
98011129 | Dakota Comm Unit SD 201, IL 98 | |
98011136 | Merriam, Kansas GO 98A & 98C | |
98011137 | South Redford SD MI GO 98 | |
98011142 | Sussex, Wisconsin GO 1998 | |
98011145 | SOUTH ORANGETOWN CSD, NYGO 98A | |
98011147 | Cuyahoga Falls, OH LTD 98 | |
98011152 | MCHENRY COMM CONS SD #15,IL GO | |
98011153 | Suttons Bay PS, Mi GO 98Q-SBLF | |
98011155 | Community Unit SD #5,IL GO 98B | |
98011156 | West Bloomfield SD GO 98 Rfd | |
98011157 | Erie County, Ohio LTD TX 98 | |
98011158 | CALIFORNIA STATE GO 12-1-98 | |
98011159 | Murphysboro CUSD #186, IL 98 | |
98011162 | Highland City, Utah GO 1998 | |
98011164 | Uxbridge (Twn), MA GOULT 98 | |
98011165 | HAMILTON TWP(ATLANTIC),NJ GO98 | |
98011166 | Tolleson UHSD #214, AZ GO 98 | |
98011167 | PHILADELPHIA, PA GO 98 RFD | |
98011168 | Huntley CCSD 158 IL GO 98 | |
98011170 | Overton County, TN GO 98 | |
98011171 | Ossining UFSD, NY GO 98 | |
98011172 | East Quogue UFSD NY GO 98 | |
98011173 | Dayton (City) Ohio 98 | |
98011177 | CASA GRANDE ESD #4, AZ GO 1998 | |
98011179 | Wood County, OH Sewer (GO) 98 | |
98011182 | Mayfield City School District, | |
98011183 | Polo Comm Unit SD #222, IL 98 | |
98011185 | Leesburg, Virginia GO Ser 1998 | |
98011186 | Ann Arbor, Mi GO LMTX B.A. 98 | |
98011187 | DYERSBURG (CITY OF), TN GO 98 | |
98011188 | Woonsocket (City of), RI GO 98 |
Policy Id |
Policy | |
98011190 | Scotland County, NC GO 98 | |
98011191 | North Kingstown, RI GO 98A | |
98020007 | NEW YORK CITY, NY GO 98EF | |
98020013 | NEW YORK CITY, NY GO 98EF | |
98020021 | NEW YORK CITY, NY GO 98EF | |
98020022 | New York City, NY GO 98C | |
98020031 | New York City, NY GO 98C | |
98020033 | CALIFORNIA STATE GO 10-1-97 | |
98020034 | California State GO 1998 | |
98020035 | California State GO 1998 | |
98020036 | California State GO 1998 | |
98020037 | California State GO 1998 | |
98020038 | Hillsboro SD #1J, OR GO Ref 98 | |
98020041 | Hawaii State GO 1996 Series CL | |
98020042 | CALIFORNIA STATE GO 10-1-97 | |
98020047 | Hawaii State GO 1996 Series CL | |
98020048 | Hawaii State GO-1993 CH & CI | |
98020051 | NEW YORK CITY, NY GO 96FG | |
98020054 | NEW YORK CITY, NY GO 98H | |
98020055 | NEW YORK CITY, NY GO 98H | |
98020056 | NEW YORK CITY, NY GO 98H | |
98020061 | NEW YORK CITY, NY GO 98H | |
98020062 | NEW YORK CITY, NY GO 98H | |
98020063 | NEW YORK CITY, NY GO 98H | |
98020064 | NEW YORK CITY, NY GO 98H | |
98020067 | Hawaii State GO 93 CC & CD | |
98020081 | Hawaii State GO-1992 BY & BZ | |
98020089 | Hawaii State GO-1993 CH & CI | |
98020096 | NEW YORK CITY, NY GO 98EF | |
98020100 | New York City, NY GO 98JK | |
98020101 | New York City, NY GO 98JK | |
98020102 | New York City, NY GO 98JK | |
98020103 | New York City, NY GO 98JK | |
98020104 | New York City, NY GO 98JK | |
98020106 | New York City, NY GO 98JK | |
98020108 | New York City, NY GO 98JK | |
98020109 | New York City, NY GO 98JK | |
98020110 | SANTA MONICA-MALIBU USD,CAGO98 | |
98020111 | SANTA MONICA-MALIBU USD,CAGO98 | |
98020113 | NEW YORK CITY, NY GO 98H | |
98020115 | New York City, NY GO 98JK | |
98020116 | NEW YORK CITY, NY GO 98EF | |
98020117 | New York City, NY GO 98JK | |
98020118 | New York City, NY GO 99A | |
98020119 | New York City, NY GO 99A | |
98020120 | New York City, NY GO 99A | |
98020121 | New York City, NY GO 99A | |
98020127 | New York City, NY GO 99A | |
98020129 | New York City, NY GO 99A | |
98020131 | New York City, NY GO 99A | |
98020134 | New York City, NY GO 99A | |
98020135 | New York City, NY GO 99A | |
98020136 | New York City, NY GO 99A | |
98020139 | New York City, NY GO 99A | |
98020144 | California State GO 1998 |
-52-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98020147 | New York City, NY GO 99C | |
98020148 | New York City, NY GO 99C | |
98020150 | New York City, NY GO 99C | |
98020151 | New York City, NY GO 99D | |
98020152 | NEW YORK CITY, NY GO 98EF | |
98020153 | New York City, NY GO 99C | |
98020154 | NEW YORK CITY, NY GO 98D | |
98020160 | New York City, NY GO 98JK | |
98020164 | New York City, NY GO 99D | |
98020166 | New York City, NY GO 99D | |
98020167 | New York City, NY GO 99C | |
98020168 | New York City, NY GO 99C | |
98020169 | New York City, NY GO 99C | |
98020170 | New York City, NY GO 99A | |
98020172 | New York City, NY GO 99C | |
98020175 | New York City, NY GO 99D | |
98020179 | NEW YORK CITY, NY GO 98G | |
98020181 | NEW YORK CITY, NY GO 97E | |
98020222 | Florida State Bd of Ed GO 98 D | |
99010003 | Stanwood SD No. 401, WA GO 99 | |
99010005 | Kandiyohi County, MN GO 99 | |
99010007 | Franklin Reg SD, PA GO 99A | |
99010014 | BENSALEM TWP S D, PA GO 99 | |
99010027 | New Brunswick Park Auth,NJ GO | |
99010038 | North Marion SD No 15,OR GO 99 | |
99010041 | Keller (City of),TX GO Ltd 98B | |
99010042 | Portland, Town of, CT GO 99 | |
99010045 | Orting SD #344, WA GO Ser. 99 | |
99010046 | DENVER SD #1, CO GO 99 | |
99010047 | East Side UHSD, CA GO 99 | |
99010051 | Scotland County, NC GO 99 | |
99010052 | Sagemeadow Util Dist, TX GO 99 | |
99010053 | Dublin City SD, OH GO ULT 99 | |
99010056 | Skokie-Fairview SD #72,IL GO99 | |
99010058 | Brick TWSP BOE, NJ GO 99 | |
99010060 | Allegany-Limestone CSD,NY GO99 | |
99010062 | Bunker Hill Vl,TX Ltd Tax GO98 | |
99010063 | Philomath SD #17J, OR GO 1999 | |
99010067 | Arcola Township, Ill 99 | |
99010068 | Tinley Park CCSD #146, IL GO99 | |
99010070 | East Hartford (Town) CT GO 99 | |
99010071 | MOORESTOWN TWP BOE, NJ GO 99 | |
99010072 | Sparta ASD, WI GO 99A | |
99010074 | WAUPACA SD, WI GO 99 | |
99010075 | MADISON LOCAL SCH,OH GO 1999 | |
99010076 | ALPENA PUBLIC SCHLS, MI GO 99 | |
99010077 | Ball-CHATHAM CUSD #5, IL GO 99 | |
99010078 | El Paso, TX GO Ref Ltd Tax 99 | |
99010080 | Bunker Hill Vlg,TX Ltd Tax 99 | |
99010082 | RICHMOND COMM SCHOOLS, MI 1999 | |
99010083 | Northampton MUD, TX GO 99 | |
99010084 | Cowley Cnty USD #470, KS GO 99 | |
99010086 | St. Helens SD#502, OR GO Ser99 | |
99010087 | Pflugerville, Texas GO 1999 | |
99010088 | Lakeview Comm. Sch. MI GO 99 |
Policy Id |
Policy | |
99010089 | Rockwall (City of), TX GO 99 | |
99010090 | Batavia Pub Lib Dist IL GO 99 | |
99010091 | Florida State GO 99A | |
99010092 | Weslaco, Texas Ltd Tax GO 98 | |
99010093 | Espanola Public SD 45,NM GO 99 | |
99010096 | Westville SD2 (Vermilion)IL 99 | |
99010097 | Orangeburg Cty Fire, SC GO 99 | |
99010098 | PENNSAUKEN TWP BOE,NJ GO 1999 | |
99010099 | Troutdale, OR GO 99 | |
99010100 | Harker Heights, TX LTGO 99 | |
99010101 | Jefferson School District, WI | |
99010105 | Moline Sch Dist #40, IL GO 9 | |
99010107 | Stafford Township, NJ GO 99 | |
99010109 | Powell, OH GO ULT 1999 | |
99010113 | Bridgeport, Texas Ltd Tax GO99 | |
99010115 | Sussex County, NJ GO 99 | |
99010118 | Stafford Township, NJ GO 99Rfg | |
99010119 | BISMARCK PUB SD #1, ND GO 1999 | |
99010121 | NEW HAVEN, CONNECTICUT GO 99AB | |
99010122 | Morton Grove (Village),IL GO99 | |
99010123 | Council Rock SD, PA GO 99 | |
99010127 | Flemington-Raritan RSD NJ GO98 | |
99010132 | Huntington UFSD, NY GO 99 | |
99010135 | Wallenpaupack ASD, PA GO 99 | |
99010139 | BERKLEY SCHOOL DIST, MI GO 98 | |
99010140 | Burrell SD, PA GO 98 Rfdg | |
99010141 | Tewksbury (Town of), MA GO 99 | |
99010144 | Hastings Area Sch Sys, MI GO99 | |
99010146 | KALAMAZOO CITY SD, MI GO 99 | |
99010147 | LINCOLN COUNTY, NC GO Ser. 99 | |
99010148 | Ridgefield Park (Village) | |
99010155 | Hopkins Pub Sch, MI GO 99 | |
99010156 | Shreveport, LA GO Ref Ser 99 | |
99010157 | Willamina Fire Dist., OR GO 99 | |
99010158 | Plattsburgh City SD, NY GO 99 | |
99010159 | Sulphur Springs, TX GO Ltd 99 | |
99010160 | Anchorage, Alaska GO 1999 | |
99010162 | ROCKFORD (CITY OF), IL GO 99 | |
99010164 | Bradley Cnty, Tennessee GO 99 | |
99010165 | SMITHFIELD CITY, UTAH GO 1999 | |
99010168 | Kinnelon BOE, NJ dtd 2/1/99 | |
99010169 | Chicago CSR BOE, Il GO ULT 99A | |
99010170 | Rose Tree Media SD, PA GO 99 | |
99010173 | Willamalane Prk & Rec Dist, OR | |
99010177 | Oshkosh (City of),WI GO 99ABC | |
99010178 | Pleasant Valley SD, PA GO 99 | |
99010179 | Evesham Twp BOE, NJ GO 99 | |
99010180 | MEIGS COUNTY, TENNESSEE GO 99 | |
99010185 | South Colonie CSD, NY GO 99 | |
99010186 | Anchor Bay SD, MI GO 99 | |
99010188 | Wild Rose SD, WI GO | |
99010193 | Blue Ridge CUSD#18, IL | |
99010196 | Reynoldsburg, OH GO 99 | |
99010197 | Chicago Park Dist IL LTDGO 99A | |
99010198 | Chicago Park Dist, IL ALTGO99B |
-53-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99010199 | HOLLY AREA SCH DIST, MI GO 99 | |
99010200 | SPRING HILL USD #230, KS GO 98 | |
99010201 | Cornerstones MUD, TX GO 99 | |
99010202 | Westside Union SD, CA GO 99 | |
99010203 | Rochester SD #3A, Il GO 99 | |
99010204 | MONTOUR SD, PA GO99 | |
99010205 | Ocean Twp. BOE, NJ GO 98 | |
99010207 | Chicago PBC, Il BOE GO 99B | |
99010209 | Lincoln-Way CHSD#210,IL IDA GO | |
99010210 | Ojai USD, California GO Ser97B | |
99010213 | Newport, OR GO Ser. 99 | |
99010216 | Tillamook County, OR GO 1999 | |
99010217 | Klamath County, Oregon GO 99 | |
99010218 | CALIFORNIA STATE GO 2-1-99 | |
99010219 | Kinnikinnick CCSD131, Il GO 99 | |
99010220 | Caledonia Comm School MI GO 98 | |
99010221 | CLEAR LAKE C.WTR AUTH,TX GO 99 | |
99010224 | Sussex County, NJ GO 99 Rfdg | |
99010226 | Mt. Zion CUSD #3 IL GO 99 | |
99010227 | Allegany-Limestone CSD,NY GO99 | |
99010228 | Lake Jackson, TX GO Ltd Tax 99 | |
99010230 | GRAPEVINE, TEXAS GO 1999 | |
99010234 | St. George, Utah GO 1999 | |
99010236 | Crawford Central SD, PA GO 99 | |
99010238 | Spring Lake Pub School,MI GO99 | |
99010239 | Fort Bend Co. LID #2, TX GO 99 | |
99010240 | Massapequa UFSD, NY GO 99A | |
99010242 | Matanuska-Susitna Boro,AKGO99A | |
99010243 | Lemon Grove SD, CA GO 99 Ser A | |
99010245 | Terrell, Texas GO LTX 99 | |
99010246 | Ellington (Town of), CT GO 99 | |
99010247 | Omro SD, WI GO 99 | |
99010248 | CLARK COUNTY, NEVADA GO99A,B,C | |
99010250 | CHICAGO (CITY OF), IL GO 1999 | |
99010251 | West Hills CCD, CA GO Ser 99A | |
99010252 | Wyoming Public Schls, MI GO 99 | |
99010253 | Washington State GO R-99A | |
99010254 | Brooklyn, Oh Lmtx GO 99 | |
99010259 | Evergreen SD #114, WA GO 1999 | |
99010260 | North Attleborough, MA LTDGO99 | |
99010261 | Lyons SD103, Il GO Lmtx | |
99010262 | Southwest Licking LSD, OH GO99 | |
99010263 | Harris County MUD #360,TX GO99 | |
99010264 | Albany, Oregon GO Series 1999 | |
99010265 | Stearns County, MN GO 1999 | |
99010267 | Shawano (City of), WI GO 99 | |
99010268 | Hart Public Schools, Mi GO99 | |
99010269 | SULLIVAN COUNTY, NY GO 99 | |
99010271 | Spring Cove SD, PA GO 99A&B | |
99010272 | Shreveport, LA GO Series 1999 | |
99010275 | Dobbs Ferry (Village),NY GO 99 | |
99010276 | WASHOE COUNTY, NV GO 1999 B | |
99010277 | Pilot Point, TX GO/COO 99 | |
99010279 | East Detroit Pub Sch, MI GO 99 | |
99010282 | Wappingers CSD, NY GO 99 |
Policy Id |
Policy | |
99010283 | Butler Cnty USD #205, KS GO 99 | |
99010284 | Fremont, OH GO LMTX 1999 | |
99010286 | East Ouachita SD, LA GO 1999 | |
99010287 | Illinois State GO 99 | |
99010293 | Plaquemines Parish, LA, GO 99 | |
99010294 | Penn (Twn), Pa GO 99 | |
99010298 | Bethel Park, PA GO 1999AB | |
99010299 | Santa Cruz, California GO 99B | |
99010301 | Platteville (City of),WI GO 99 | |
99010302 | Sweetwater, Texas Ltd GO 1999A | |
99010304 | Montgomery, IL Alt. Rev. 99A&B | |
99010305 | Anchorage, Alaska GO Series99A | |
99010307 | Eagle Cnty SD Re.50J, CO GO 99 | |
99010308 | Washington Cnty TN GO 1999A | |
99010311 | Honolulu, Hawaii GO 99A,B,C | |
99010312 | Honolulu, Hawaii GO 99D | |
99010313 | CHICAGO (CITY OF),IL GO99 911 | |
99010320 | Kenosha (City of) WI GO 99A | |
99010321 | LACKAWANNA COUNTY, PA GO 1999 | |
99010322 | Ridley School District PA GO99 | |
99010325 | Ossining UFSD, NY GO 99 | |
99010326 | Edmonds SD #15, WA GO 1999 | |
99010327 | Biddeford, ME GO 99 | |
99010328 | St. Peters (City of), MO GO 99 | |
99010329 | Dorchester County, SC GO 1999 | |
99010330 | San Angelo, TX GO Ltd Tx Ref99 | |
99010332 | Triton Reg SD MA GO 99 | |
99010335 | North Brunswick(Twp) GO 4/1/99 | |
99010337 | Ohio Township, PA GO 1999 | |
99010338 | Francis Howell SD, MO GO 99 | |
99010339 | Bastrop, TX GO 99 | |
99010341 | COOK COUNTY,IL GO99AB | |
99010343 | Elyria, OH GO Limited Tax 99 | |
99010346 | Onondaga Central SD, NY GO 99 | |
99010348 | Moreland SD, CA GO 1999 F | |
99010351 | TOMS RIVER (BOE Regl), NJ 99 | |
99010352 | Douglas County SD Re1, CO GO99 | |
99010353 | Heyworth CUSD #4, IL GO 99 | |
99010354 | NORTH HEMPSTEAD(TOWN), NY GO99 | |
99010357 | Newburyport, MA GO 99 | |
99010360 | Hueneme SD, California GO 97 B | |
99010361 | Dracut (Town of) MA Ltd GO 99 | |
99010363 | Penn Cambria SD, PA GO 99 | |
99010364 | GIRARD SCH DIST, PA GO 99A/B | |
99010365 | Wadsworth City SD, OH GO 99 | |
99010367 | SOUTHWEST LOCAL SD, OH GO 99 | |
99010368 | Lodi, NJ GO 99 | |
99010373 | Charles Stewart MottCC,MI GO99 | |
99010376 | Pittsgrove Twp BoE, NJ 99 | |
99010377 | Jenison Public Schools,MI GO99 | |
99010380 | Taconic Hills CSD, NY GO 99 | |
99010382 | Perry Comm.SD, IA GO Ref 99A | |
99010385 | Keller, TX GO Refg LT 1999 | |
99010386 | Maui County, HI GO 1999 Ser A | |
99010388 | Worth (Village) IL ALT GO 99A |
-54-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99010389 | Worth (Village), IL Ltd GO 99B | |
99010390 | Dudley-Charlton RSD MA GO 99A | |
99010392 | Dudley-Charlton RSD MA GO 99B | |
99010395 | Pine River Area Sch,MI QSBLF99 | |
99010397 | Kyrene ElementarySD#28,AZ GO99 | |
99010398 | SOUTHWEST LOCAL SD, OH GO 99B | |
99010399 | Penn Hills, PA GO 99 | |
99010400 | Columbia County, OR GO 1999 | |
99010403 | Lake County CCSD #24,IL GO 99B | |
99010408 | Fredericksburg, TX GO Ltd Tx99 | |
99010410 | Fairfield County, OH GO 99 | |
99010411 | San Diego Unified SD, CA GO 99 | |
99010416 | Somerdale Bd Of Ed, NJ GO 99 | |
99010417 | Pine Hill (Boro) BOE, NJ GO 99 | |
99010418 | Palmyra (Vlg), NY GO 99 | |
99010419 | Kenosha (City of) WI GO 99C | |
99010420 | Will Co Forest Prsv Dist, 99AB | |
99010421 | Colleyville, TX COO Ltd Tax 99 | |
99010422 | Wheeling (Village),IL GO 99A&B | |
99010423 | Oak Park SD #97, IL GO 99 | |
99010425 | Otsego County, NY GO Ref 99 | |
99010426 | WEST VIRGINIA STATE GO 99A | |
99010427 | Champaign County, IL GO 99 | |
99010430 | Aurora West SD #129, IL GO 99 | |
99010432 | HARRIS COUNTY MUD #6, TX Ser99 | |
99010434 | Ross Valley SD, CA GO ULT 1999 | |
99010435 | BEAUMONT, TX GO Ltd Tax 1999 | |
99010436 | Regional SD #14, CT GO 99 | |
99010437 | Southgate CSD, MI GO 99 QSBLF | |
99010439 | Memphis CS, Mi GO Q-SBLF 99 | |
99010440 | Ravenna Pub Sch, MI GO 99 | |
99010442 | Lancaster Sch. Dist., CA GO 99 | |
99010443 | Yonkers, New York GO 99B & 99C | |
99010446 | Neoga CUSD #3(Cumberland),IL99 | |
99010448 | Fond du Lac SD, Wi GO 99 | |
99010450 | Santa Monica-Malibu USD,CAGO99 | |
99010451 | Cypress-Klein UD, Texas Ser 99 | |
99010453 | Somonauk CUSD #432, IL GO 99 | |
99010463 | Monroe (Township), NJ GO 1999 | |
99010467 | Rockford (City), IL GO 99 ABC | |
99010468 | Northvale (Boro) NJ GO 1999 | |
99010471 | Dallas (City of), OR GO 99 | |
99010473 | Tri Valley CUSD #3, Ill GO 99 | |
99010474 | St Clair County, IL GO 1999 | |
99010475 | Hopatcong (Boro of), NJ GO 99 | |
99010477 | Alwood CUSD #225, IL GO | |
99010481 | Highland (Charter Twp),MI GO99 | |
99010482 | Williamsburg County, SC GO 99 | |
99010483 | CHEEKTOWAGA (TOWN OF),NY GO 99 | |
99010486 | Fort Dodge, IA GO 99 | |
99010487 | SUMMIT HILL S.D. #161,IL GO 99 | |
99010490 | BILMA PUB UTIL DIST, TEXAS GO | |
99010491 | Cleveland, Tennessee GO Ser 99 | |
99010492 | DULUTH (CITY OF), MN GO 99CD | |
99010494 | Homer Twp, Il GO 99 |
Policy Id |
Policy | |
99010495 | Washington County, MD GO 1999 | |
99010498 | Olentangy LSD, OH GO 1999 | |
99010500 | Rio Elementary SD, CA GO 97 B | |
99010502 | Cecil County, Maryland GO 99 | |
99010503 | Rio Elementary SD, CA GO 97 C | |
99010505 | Earlville CUSD#9, Il GO ULT 99 | |
99010506 | LANCASTER SCH DIST, PA GO 99 | |
99010508 | Chippewa Hills SD,MI GO 99 | |
99010509 | Albion CSD, NY GO 99 | |
99010510 | Ela Area Pub Lib Dist, IL GO99 | |
99010514 | Haverhill (City of), MA GO 99 | |
99010520 | Marlborough (City), MA GO 99 | |
99010521 | East Providence, RI GO 99 | |
99010523 | Illinois State GO 1999 | |
99010524 | Rancocas Valley RHSD, NJ GO 99 | |
99010526 | North Hanover (Twp), NJ GO 99 | |
99010527 | Lansing (Village of)ILGO99Rfdg | |
99010528 | Baden (Borough) PA GO 99 Rfdg | |
99010529 | Horry County, SC GO Series 99 | |
99010531 | Urbana SD #116, IL GO 1999C | |
99010532 | Chrisman CSD#6, Il GO 99 | |
99010535 | Connecticut St GO & Lease 99A | |
99010538 | Hutchinson, Kansas GO 99 | |
99010539 | Genoa Area LSD OH GO 99 | |
99010541 | Highland CUSD #5, IL GO 99 | |
99010542 | Windham, Conn. GO 99 | |
99010543 | East Windsor (Twp), NJ GO 99 | |
99010544 | WASHINGTON UNION HSD, CA GO 99 | |
99010545 | HADLEY, MASSACHUSETTS GO 99 | |
99010548 | Woodbridge (Twp), NJ GO 99 | |
99010549 | Coachella Val Wtr Dist54 Ser99 | |
99010550 | Coachella Val Wtr Dist55 Ser99 | |
99010551 | Coachella Val Wtr Dist58 Ser99 | |
99010552 | Sag Harbor (Vill of), NY GO 99 | |
99010553 | WILLITS USD, CA GO 1999 | |
99010554 | Windham School Dist, NH GO 99 | |
99010558 | Dumont (Boro), NJ GO 99 | |
99010559 | Rock Island Cnty, Ill GO 99 | |
99010560 | WEBB COUNTY, TEXAS GO 1999 | |
99010561 | Danvers, MA LTD GO 99 | |
99010563 | Prairie State CD 515, Il GO | |
99010566 | LOGAN TWP SCH DIST, NJ GO 99 | |
99010570 | Maricopa USD #20, AZ GO Ser99B | |
99010571 | Keller (City of), TX COO LT 99 | |
99010574 | Bridgewater (T),MA LTX 7/15/99 | |
99010575 | Peotone CUSD #207-U IL GO 99 | |
99010576 | Lindenhurst UFSD, NY GO 99 | |
99010577 | Alta Loma Sch Dist, CA GO 99A | |
99010580 | Hudson, MA GO LT dtd 7/15/99 | |
99010581 | LAREDO, TEXAS GO SER 1999 | |
99010582 | Clark County SD, NV GO 1999B | |
99010584 | Madison Dist Pub Sch,MIGORef99 | |
99010586 | Toledo (City of), OH GOLT 99 | |
99010587 | Woburn (City), MA GO 99 | |
99010589 | Norfolk, Virginia GO 1999 |
-55-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99010591 | North Las Vegas, NV GO 1999 | |
99010597 | Pontiac City SD, MI GO 99 | |
99010598 | North Colonie CSD, NY GO 99 | |
99010606 | Medina City SD, OH GO 99 | |
99010607 | Zeeland Public Schools, MI 99 | |
99010608 | GARDNER, KANSAS GO 1999A | |
99010609 | Clark County SD, NV GO 1999A | |
99010611 | Visalia Unified SD, CA GO 99 A | |
99010614 | Southern Platte FirePD,MO GO99 | |
99010618 | Tehachapi Unified SD, CA GO99A | |
99010619 | Sugar Land, TX Ltd Tax GO 99 | |
99010620 | Winslow Twp BOE, NJ GO 99 | |
99010621 | Levittown UFSD, NY GO 99 | |
99010622 | South Pasadena USD, CA GO 99C | |
99010623 | Montabella Comm Schs, MI GO 99 | |
99010624 | Calhoun CSD#40, IL GO ULT 99 | |
99010625 | Fairview Park, OH GO LTD 99 | |
99010627 | Gloucester (City of) MA GO 99 | |
99010628 | OAK GROVE SD, CA GO 1999 CABS | |
99010629 | Merced Union High SD CA GO 99A | |
99010634 | Sherrard CUSD #200, IL GO 99 | |
99010635 | Walla Walla SD#140, WA GO 1999 | |
99010637 | Gloucester Twp BOE, NJ GO 99 | |
99010638 | Rocklin USD, CA GO 99 CIBs | |
99010640 | Springboro (City)OH GO 99A&B | |
99010644 | Brownsville, TX Ltd Tax GO99AB | |
99010645 | Blount County, TN GO Ser 1999 | |
99010647 | Bergenfield (Boro) NJ GO 99 | |
99010648 | Bellmead, Texas GO 1999 | |
99010650 | Genesee Co., NY GO 99 | |
99010651 | Tempe UHSD #213, AZ GO Ser 99B | |
99010652 | Cleveland (City), OH GO LTD 99 | |
99010653 | San Bernardino City USD, CA GO | |
99010655 | Clarkstown (Town), NY GO 99 | |
99010659 | Mendota Twp. HSD #280, IL 99 | |
99010660 | LAREDO, TEXAS GO 1999A & B | |
99010661 | Mauston SD, WI GO | |
99010662 | Butterfield Park Dist, IL GO | |
99010673 | Wiseburn SD, CA GO 99 | |
99010675 | Northville (Township of) MI | |
99010678 | Raritan (Twp of), NJ GO 1999 | |
99010681 | Laurens County SD #55, SC GO | |
99010684 | Carson City, NV Ltd Tax GO 99A | |
99010685 | Carson City, NV Ltd Tax GO 99B | |
99010687 | Evergreen Local SD, OH GO 99 | |
99010689 | Camden County Imp Auth,NJ 99 | |
99010696 | Bedford (City) OH 99 | |
99010697 | Union County, NC GO Ser 99 A&B | |
99010698 | Kiel Area SD WI GO 99 | |
99010699 | Brownsville, TX Ltd Tax GO 99B | |
99010700 | Lake Tahoe USD, CA GO 99A | |
99010703 | Baldwin UFSD, NY GO 99 | |
99010704 | Gadsden ISD #16, NM GO 1999 | |
99010705 | Union County, NC GO Ser 99 B | |
99010706 | Agawam, MA dtd 9/1/99 |
Policy Id |
Policy | |
99010708 | Carl Sandburg CCD #518, Il 99A | |
99010710 | Apache Junction USD #43, AZ GO | |
99010711 | Flower Mound, TX GOLT/COO 1999 | |
99010712 | Kimberly Area SD, WI GO 99 | |
99010713 | Suffolk County, N Y GO 99B | |
99010715 | Gaylord (City), MI GO 99 | |
99010716 | McLennan Jr. College, TX 99 | |
99010719 | Copperas Cove (City), TX LTD99 | |
99010720 | Park City, Utah GO 1999 | |
99010721 | Brunswick City SD, OH 1999 | |
99010722 | Avon Lake City SD, OH GO 99 | |
99010724 | Long Creek Twp,IL Bond Bank 99 | |
99010726 | Richmond, TX GO Series II 1999 | |
99010728 | TORRINGTON (CITY OF), CT GO 99 | |
99010731 | Springfield (City) OH 1999 | |
99010733 | Rhode Island (State Of) GO 99A | |
99010734 | East Meadow UFSD, NY GO 99 | |
99010735 | Huron City SD, OH GO 99 | |
99010739 | Lexington Cnty SD #4, SC GO 99 | |
99010740 | Port Jervis, NY GO 99 | |
99010741 | Myrtle Beach, SC GO 99 | |
99010744 | Nevada St GO Col Rvr Comm 99A | |
99010745 | Inglewood Unified SD, CA GO99A | |
99010748 | Calumet (City of), IL GO 99B | |
99010756 | Plainfield (City), NJ GO 99 | |
99010761 | Sun Prairie Area SD, WI GO 99 | |
99010762 | Erie County, Ohio LTD TX 99 | |
99010763 | Manhattan Beach USD, CA GO 99C | |
99010764 | Lake In The Hills (Vlg of), IL | |
99010771 | Erie County, New York GO 99 | |
99010773 | Defiance (Co.) OH LTD 99 | |
99010777 | Streetsboro, OH Series 1999 | |
99010780 | Richwood, TX Ltd Tax 99 | |
99010782 | Centerville, OH GO Ltd Tax 99 | |
99010784 | Brea Olinda USD, CA GO Ser 99A | |
99010787 | Richland County, OH Ltd GO 99 | |
99010791 | Monona Grove SD, WI GO 99 | |
99010792 | Lamont SD, CA GO 1999 Series A | |
99010793 | The County of Marion, IL GO 99 | |
99010795 | Chicago Park Dist, IL Aq+Mu 99 | |
99010798 | Pima County, Arizona GO Ser 99 | |
99010801 | Middletown (City of)OH GOLTD99 | |
99010802 | Incline Vg Gen ImpDist,NV GO99 | |
99010803 | Arnold (City), PA | |
99010804 | Tuckahoe UFSD, NY GO 99 | |
99010805 | Wylie, TX LT GO 1999 | |
99010806 | Tahoe Truckee USDSFID1,CA GO99 | |
99010807 | Tahoe Truckee USDSFID2,CA GO99 | |
99010809 | Hillsboro, IL GO (Alt Rev) 99 | |
99010814 | Las Vegas, Nevada GO Ltd Tax | |
99010818 | Northampton (City), MA GOLT 99 | |
99010821 | Illinois State GO Series 10/99 | |
99010822 | Clinton (County), IL GO 99 | |
99010824 | Troy City SD, NY GO 99 | |
99010825 | Lima (City), OH LTD GO 99 |
-56-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99010827 | Leander (City) TX 99 | |
99010828 | Summit County, OH 99 | |
99010830 | Elko, Nevada GO Ltd Tax 99 A&B | |
99010839 | MONTGOMERY CNTY MUD#47,TXGO99 | |
99010840 | Chichester SD, PA GO 99 | |
99010841 | Anchor Bay SD, MI GO 99I | |
99010844 | Marion County, Tennessee GO 99 | |
99010847 | California State GO 10-1-99 | |
99010849 | Washington Cnty, TN GO 99B | |
99010852 | Charleroi Area SD, PA GO 99 | |
99010854 | Berlin (Town of), MA GO 99 | |
99010855 | Rockland (County of), NY GO 99 | |
99010856 | Hamilton Co. CUSD #10, IL 99 | |
99010857 | Florida State Bd of Ed GO 99C | |
99010858 | Dalton-Nunda CSD, NY GO 99 | |
99010859 | Norway-Vulcan Area School MI | |
99010860 | Romulus Comm Schs, MI GO 99 | |
99010864 | Bayville (Vlg) NY GO 99 | |
99010865 | Voorhees (Twp), NJ GO 99 | |
99010869 | Cranston, RI GO 99 | |
99010870 | Holyoke (City of), MA GOLT 99 | |
99010873 | Berrien Sprgs Pub Sch, MI GO99 | |
99010875 | Canton Bldg Auth (Twp), MI GO | |
99010876 | Kaleva Norman Dickson SD,MI GO | |
99010877 | Manistee Area Pub Schs, MI GO | |
99010878 | Delanco (Township) NJ GO 99 | |
99010879 | Chicago (City of), IL GO 99 | |
99010880 | Miami-Dade County,Florida GO99 | |
99010881 | Centreville Pub Schls, MI GO99 | |
99010882 | Boyne City Pub.Schools,MI GO99 | |
99010883 | Canon-McMillan SD, PA GO 99 | |
99010884 | Ketchikan Gateway Bor,AK GO 99 | |
99010889 | Shreveport, LA GO Series 99A | |
99010891 | HILTON HEAD ISLAND, SC GO 99A | |
99010893 | Brimley Area Schools, MI GO 99 | |
99010894 | Jonesville Comm. Sch, MI GO 99 | |
99010895 | Ipswich (Town) MA GO LTD | |
99010896 | St. Michael (City), MN GO 99 | |
99010898 | Mesa, AZ GO 1999 | |
99010901 | Comstock Park PS, MI GO 99 | |
99010906 | Kingston (Town), MA GOLT 99 | |
99010910 | Johnson & Union Cos CUSD 1, IL | |
99010916 | Geneva (City of), IL GO 99 | |
99010919 | Eastern York SD, GO 99 | |
99010923 | Derry Coop SD, NH dtd 11/15/99 | |
99010927 | Mount Olive TWP, NJ GO 99 | |
99010928 | Allentown City SD, PA GO 99AB | |
99010929 | Vernon (Twp) BOE, NJ GO 99 | |
99010931 | SUNNYSIDE USD #12, AZ GO 99 | |
99010934 | OXFORD, CONNECTICUT GO 99 | |
99010937 | Clementon, NJ GO 1999 | |
99010939 | Uniondale Union Free SD, NY 99 | |
99010940 | Northwestern MI Coll GO 99 | |
99010942 | Holliston (Town), MA GO 99 | |
99010947 | Oak Lawn (Village), IL GO 99 |
Policy Id |
Policy | |
99010950 | Quincy, Illinois GO 99 | |
99010951 | Tempe ESD #3, AZ GO Ser E (99) | |
99010955 | Mercer Co Imp Auth Pkg,NJ 99AB | |
99010956 | Clear Brook City MUD, TX GO 99 | |
99010957 | Burrillville (Town), RI GO 99 | |
99010960 | Colony, Texas Ltd Tax GO Ser99 | |
99010962 | Waxahachie, TX GO Ltd Tax 99 | |
99010966 | Upper Saddle River BOE, NJ GO | |
99010967 | South Brunswick Twp BOE, NJ 99 | |
99010968 | Middleborough (Town) MA GO A | |
99010971 | Barnegat (Twp), NJ GO 99 | |
99010972 | Littleton (Town of) MA 99 LMTX | |
99010973 | Salem County, NJ GO 99 | |
99010975 | Wicomico County Maryland GO 99 | |
99010976 | Lumberton, NJ GO 99 | |
99010980 | Willow Springs,IL Alt Rev GO99 | |
99010984 | Northport Pub. Sch., MI GO 99 | |
99010985 | Union Elementary SD, CA GO 99A | |
99010988 | St Clair County, MI LTD | |
99010991 | Amphitheater USD #10, AZ GO 99 | |
99010993 | Lancaster County, SC GO 99 | |
99010994 | Merrimac (Town), MA GO 99 | |
99010996 | Mercer Co Imp Auth ArenaNJ 99A | |
99010998 | Billerica (Town), MA GOLT 99 | |
99011000 | Suffolk County, NY GO 99C | |
99011001 | Mount Kisco (Vlg), NY GO 99 | |
99020002 | Florida State Bd of Ed GO 98 D | |
99020007 | New York City, NY GO 98JK | |
99020008 | New York City, NY GO 99E | |
99020009 | New York City, NY GO 99E | |
99020010 | New York City, NY GO 99E | |
99020011 | New York City, NY GO 99E | |
99020012 | New York City, NY GO 99E | |
99020013 | New York City, NY GO 99E | |
99020014 | New York City, NY GO 99E | |
99020016 | NEW YORK CITY, NY GO 98EF | |
99020020 | New York City, NY GO 99 F/G | |
99020021 | New York City, NY GO 99 F/G | |
99020022 | New York City, NY GO 99 F/G | |
99020023 | New York City, NY GO 99 F/G | |
99020024 | New York City, NY GO 99 F/G | |
99020025 | New York City, NY GO 99E | |
99020026 | New York City, NY GO 99E | |
99020027 | New York City, NY GO 99E | |
99020029 | New York City, NY GO 99 F/G | |
99020030 | New York City, NY GO 99E | |
99020031 | New York City, NY GO 99 F/G | |
99020032 | New York City, NY GO 99E | |
99020033 | New York City, NY GO 98JK | |
99020035 | New York City, NY GO 99E | |
99020037 | New York City, NY GO 99 F/G | |
99020038 | New York City, NY GO 99 F/G | |
99020039 | New York City, NY GO 98C | |
99020040 | New York City, NY GO 99E | |
99020044 | New York City, NY GO 99 F/G |
-57-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99020045 | New York City, NY GO 99 F/G | |
99020047 | NEW YORK CITY, NY GO 98EF | |
99020048 | New York City, NY GO 99 F/G | |
99020049 | New York City, NY GO 99 F/G | |
99020050 | NEW YORK CITY, NY GO 97B,C,&D | |
99020052 | New York City, NY GO 99 F/G | |
99020054 | New York City, NY GO 99E | |
99020062 | CALIFORNIA STATE GO 12-1-98 | |
99020073 | CALIFORNIA STATE GO 10-1-97 | |
99020086 | CALIFORNIA STATE GO 4-1-99 | |
99020089 | New York City, NY GO 99H | |
99020091 | New York City, NY GO 99I | |
99020092 | New York City, NY GO 99I | |
99020105 | NEW YORK CITY, NY GO 98EF | |
99020133 | New York City, NY GO 99J | |
99020135 | New York City, NY GO 99J | |
99020136 | New York City, NY GO 99I | |
99020140 | New York City, NY GO 99KL | |
99020141 | NEW YORK CITY, NY GO 98EF | |
99020142 | New York City, NY GO 99H | |
99020148 | New York City, NY GO 99KL | |
99020155 | NEW YORK CITY, NY GO 98EF | |
99020160 | New York City, NY GO 99J | |
99020163 | New York City, NY GO 99H | |
99020164 | New York City, NY GO 99 F/G | |
99020166 | Los Gatos-Srtga JUHSD,CA GO98A | |
99020168 | New York City, NY GO 99 F/G | |
99020171 | North Charleston, SC GO Ser 99 | |
99020172 | North Charleston, SC GO Ser 99 | |
99020179 | NEW YORK CITY, NY GO 98EF | |
99020216 | New York City, NY GO 99 F/G | |
99020217 | New York City, NY GO 99 F/G | |
99020227 | New York City, NY GO 99KL | |
99020230 | NEW YORK CITY, NY GO 98D | |
99020231 | New York City, NY GO 99H | |
99020244 | Connecticut St GO & Lease 99B | |
99020245 | New York City, NY GO 99A | |
99020253 | New York City, NY GO 99E | |
99020255 | New York City, NY GO 99H | |
99020263 | NEW YORK CITY, NY GO 98D | |
99020266 | NEW YORK CITY, NY GO 98EF | |
99020267 | New York City, NY GO 98JK | |
99020271 | NEW YORK CITY, NY GO 98AB | |
99020272 | NEW YORK CITY, NY GO 98D | |
99020278 | Los Angeles, California GO 98 | |
93010199 | Grand Rapids, MI Wtr System 92 | |
94010451 | ORANGE & ROCKLAND UTIL, FWD 94 | |
00010001 | Beaufort-Jasp Co W&S Rev 2000 | |
00010002 | Beaufort-Jasp Co W&S Rev 2000 | |
00010024 | Beaufort-Jasp Co W&S SRF93 Sur | |
00010025 | Beaufort-Jasp Co W&S Sur SFR96 | |
00010026 | Beaufort-Jasp Co WS SRF98A Sur | |
00010027 | Beaufort-Jasp Co WS SRF98B Sur | |
00010063 | Florida State BOE Lottery 99A | |
00010064 | Florida State BOE Lottery 99A |
Policy Id |
Policy | |
00010067 | Miami-Dade Co Exp Auth FL 2000 | |
00010069 | Beaufort-Jasp W&S, SC Sur 00B | |
00010075 | Chandler, AZ Water & Sewer 00 | |
00010080 | Univ of Ill South Campus 2000B | |
00010087 | Jacksonville Prt Au,FL Apt00AB | |
00010091 | Boulder Co.,CO Sls&Use Tax00AB | |
00010092 | Boulder Co.,CO Sls&Use Tax00AB | |
00010093 | Kansas City, MO Wtr Rev 2000A | |
00010111 | Florida Dept. of Tran. 2000A | |
00010113 | Albany, NY Muni Wtr Auth 1999A | |
00010116 | Galveston, TX Wtr & Swr Rev 00 | |
00010130 | Colorado Wtr Res Dev Auth 00A | |
00010135 | Paris, TX Wtr/Swr Rev 2000 | |
00010137 | New York LGAC Sales Tax Surety | |
00010151 | Dallas/Ft Worth Intl Arpt 00A | |
00010159 | Tucson, AZ St&Hwy Jr Lien 2000 | |
00010161 | ESCONDIDO, CA WTR REV COPS 00 | |
00010175 | Florida St BOE Lottery 2000A | |
00010176 | Florida St BOE Lottery 2000A | |
00010179 | UNIV. OF CONNECTICUT G0 2000 | |
00010196 | DADE CNTY, FL AVIATN REV 00A&B | |
00010197 | Maine Turnpike Authority Rev00 | |
00010200 | Maine Turnpike Authority Rev00 | |
00010221 | Port of Oakland, CA Rev 2000K | |
00010222 | Atlanta, GA. Airport Rev 00ABC | |
00010223 | Atlanta, GA. Airport Rev 00ABC | |
00010225 | Atlanta, GA. Arpt Sr. Surety | |
00010226 | Atlanta, GA Air. Rev 2000C For | |
00010235 | Columbia Cnty, GA Wtr&SwrSer00 | |
00010237 | FLORIDA PRSRV 2000,DOC STAMP00 | |
00010263 | College Station, TX Util 2000 | |
00010277 | Surprise AZ MuniPropCo Sltx 00 | |
00010278 | Surprise AZ MuniPropCo Sltx 00 | |
00010279 | Beaufort-Jasp W&S, SC Sur 00C | |
00010287 | Westview ElementarySBC IN 2000 | |
00010288 | Upper Trinity Reg WtrRev TX00B | |
00010298 | Clinton Ctl Sch Blg Corp,IN 00 | |
00010300 | Pompano Beach, FL Wtr & Swr 00 | |
00010303 | Minneapolis-St.Paul ArptRev 00 | |
00010314 | Upper Trinity RegWtrRev,TX 00A | |
00010317 | Fresno, CA Sewer 2000A Sub. | |
00010318 | Shreveport, LA W&S Rev 2000A | |
00010326 | Rhode Island EDC (Arpt) 00AB | |
00010349 | Hawaii - Airport Sys Rev 1999A | |
00010360 | Phoenix Cv Imp Corp Wstewtr 00 | |
00010388 | Knox Middle SBC, In Lease 2000 | |
00010392 | Des Moines, IA Parking 00AB | |
00010394 | Florida St BOE Lottery 2000B | |
00010395 | Florida St BOE Lottery 2000B | |
00010396 | Daytona Beach, FL W/S SSGFC 00 | |
00010398 | Arizona Brd of Regents (ASU)00 | |
00010399 | Sacramento Reg. CSD, CA 2000AB | |
00010404 | Trinity Rvr 10Mile Creek TX 00 | |
00010409 | Univ of WV-Sys Rev Marshall00B | |
00010412 | Fl Brd of Reg (U of FL) Hsg 00 |
-58-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
00010413 | Fl Brd of Reg (U of FL) Hsg 00 | |
00010416 | Martin County, FL Wtr/Swr Sys | |
00010424 | Hollywood, FL Non-Ad V SSGFC00 | |
00010429 | Glendale, Arizona W&S Rev 2000 | |
00010430 | Glendale, Arizona W&S Rev 2000 | |
00010432 | Tulsa Airports Improv Trust00A | |
00010433 | Tulsa Airports Improv Trust00A | |
00010462 | Peoria, AZ W&S Rev Series 2000 | |
00010463 | Peoria, AZ W&S Rev Series 2000 | |
00010465 | Milwaukee Co WI Arprt Rev 00A | |
00010468 | Brownsburg Comm Sch Corp,IN 00 | |
00010472 | Henry Co Wtr Swr Auth, GA 2000 | |
00010487 | Wichita, KS Wtr/Sew KDFA Loan | |
00010489 | Wichita, KS Wtr/Sew KDFA Loan | |
00010493 | Fountain Hills,AZ MPC Excise00 | |
00010494 | Fountain Hills,AZ MPC Excise00 | |
00010503 | Peoria (City of), AZ WIFA00-02 | |
00010512 | North Harris Mntg CCD,TX Rev00 | |
00010513 | North Harris Mntg CCD,TX Rev00 | |
00010521 | New York ST Thruwy Auth 2000B | |
00010525 | Tucson, Arizona Wtr Sys Rev 00 | |
00010527 | William Paterson Univ 2000A | |
00010536 | Gladstone, MO Wtr & Swr 2000 | |
00010541 | Florida St BOE Lottery 2000C | |
00010542 | Florida St BOE Lottery 2000C | |
00010551 | Houston, TX Water & Sewer 00 B | |
00010560 | Palm Beach Co, FL Non-Ad Vl 00 | |
00010577 | Beaumont, TX Wtr & Swr Rev 00 | |
00010578 | Beaumont, TX Wtr & Swr Rev 00 | |
00010580 | Regional Trans Auth, LA Sur 91 | |
00010591 | Phoenix, AZ Excise Tax Sub. 00 | |
00010617 | Connecticut SpeclTax 2nd Ln 00 | |
00010628 | Riverton, UT Wtr Rev Ref 2000B | |
00010632 | Melbourne (City of), FL WS 00A | |
00010643 | Portland, OR SWR SYS Rev 2000A | |
00010651 | Concord Cmty Sch BldCrp,INLS00 | |
00010668 | Citrus Heights Wtr Dist, CA 00 | |
00010669 | Hendersonville UD,TN Wtr & Swr | |
00010670 | Hendersonville UD,TN Wtr & Swr | |
00010680 | Pinellas Cnty, FL Sales Tax 00 | |
00010681 | Pinellas Cnty, FL Sales Tax 00 | |
00010698 | Stafford EDC, TX Sales Tax 00 | |
00010699 | Stafford EDC, TX Sales Tax 00 | |
00010709 | Winter Springs,FL Wtr & Swr 00 | |
00010715 | Rowan Univ, NJ (NJEFA) GO 00B | |
00010719 | Mandeville, LA Sales Tax 2000 | |
00010724 | West Ouachita PSD, LA SlsTax00 | |
00010734 | GRAND VALLEY UNIVERSITY, MI 00 | |
00010735 | Orlando-Orange Co Exp,FLjrsrty | |
00010744 | Mesa, Arizona Utlt. Sys. Rev00 | |
00010745 | Mesa, Arizona Utlt. Sys. Rev00 | |
00010747 | Lafayette, LA Sales Tax 2000A | |
00010748 | Lafayette, LA Sales Tax 2000B | |
00010751 | McKinney, TX Wtr&Swr Rev Ser00 | |
00010762 | Richmond, VA Metro Auth 00 |
Policy Id |
Policy | |
00010765 | Long Beach (Port of), CA 2000A | |
00010766 | Miami Beach, FL Stormwtr Rev00 | |
00010767 | Miami Beach, FL Stormwtr Rev00 | |
00010768 | Portage, Indiana Lease 2000 | |
00010777 | Grand Rapids, MI Wtr Sys Rev00 | |
00010789 | Eastern Michigan Univ Ser B 00 | |
00010790 | Grand Rapids, MI Wtr Sys Rev00 | |
00010799 | Boise, ID Airport Rev COP 2000 | |
00010801 | Houston Arpt Sys,TX Rev 2000Sy | |
00010802 | Boise, ID Airport Rev COP 2000 | |
00010812 | Beaufort-Jasp Co WS SC Sur 00D | |
00010815 | Houston Arpt, TX Rev CP 2000Sy | |
00010820 | Shelby Court BC, IN Lease 00 | |
00010826 | Lawrence Fire St. Corp, IN 00 | |
00010831 | Port St. Lucie, FL Gas Tax 00 | |
00010832 | Port St. Lucie, FL Gas Tax 00 | |
00010834 | Tyler (City of), TX Wtr&Swr 00 | |
00010841 | Tyler (City of), TX Wtr&Swr 00 | |
00010851 | Los Angeles CMTA PropC SlsTx00 | |
00010856 | Gallup, NM Sales Tax 2000 | |
00010857 | Gallup, NM Sales Tax 2000 | |
00010862 | Terrebonne Parish, LA ST-2000 | |
00010869 | Lakeland, FL (SSGFC) Non-Ad 00 | |
00010873 | Albany, GA Water Rev 2000 | |
00010875 | Bowling Green St.U,OH Gnrct 00 | |
00010877 | Florida Dept of Transpor 2000B | |
00010889 | DASNY CUNY 2nd Res 2000B | |
00010890 | DASNY CUNY 4th Res 2000A | |
00010899 | Albany, GA Water Rev 2000 | |
00010901 | Iowa City, IA Water Revenue | |
00010908 | San Francisco, CA Arpt 26A&26 | |
00010910 | Regional Trans Dist,CO SlsTx00 | |
00010911 | Regional Trans Dist,CO SlsTx00 | |
00010924 | Marshall, TX Wtr & Swr 2000 | |
00010947 | Albany County Arport Auth, NY | |
00010952 | North Montgomery HSBC, IN 00 | |
00010954 | Westmoreland Co MA, PA W&S 00A | |
00010955 | Santa Rosa Co, FL Exc Tax 2000 | |
00020001 | STATE UNIV/DASNY, NY LEASE 93A | |
00020018 | San Francisco BART,Sales Tax98 | |
00020034 | MASS WATER RESOURCES 1993 C | |
00020038 | Wisconsin (State)Motor Veh 98A | |
00020041 | New York, NY Muni Wtr Auth 98D | |
00020042 | San Francisco BART,Sales Tax98 | |
00020043 | DASNY CUNY Cons 3rd Res 98-1 | |
00020044 | DASNY CUNY Cons 3rd Res 98-1 | |
00020061 | STATE UNIV/DASNY, NY LEASE 93A | |
00020068 | Sacramento Reg. CSD, CA 2000AB | |
00020076 | Mass Port Authority 98ABC Sr | |
00020081 | Illinois (State), SalesTax 97Y | |
00020127 | New York City TFA 98C | |
00020139 | Long Beach (Port of), CA 2000A | |
01010012 | Avon 2000 Sch Bldg Corp, IN 01 | |
01010015 | North Montgomery HSBC, IN 01 | |
01010017 | Westmoreland Cnty MA,PA 01A |
-59-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01010021 | University Central FL, Hsg 00 | |
01010022 | University Central FL, Hsg 00 | |
01010026 | Jacksonville Elec FL W&S 2001A | |
01010043 | Colorado Wtr Res Dev Auth 01A | |
01010053 | Hollywood, FL Non-Ad Vlm | |
01010068 | Pleasant Grove, UT Gas Tx 01 | |
01010081 | Fayette County, Indiana 2001 | |
01010086 | Suffolk Cnty Water Auth, NY 01 | |
01010101 | Franklin Twp S B C, IN 2001 | |
01010108 | Chandler, AZ Wtr & Swr 2001 | |
01010109 | Reg Trans Auth,IL SLS TX 01B | |
01010110 | Reg Trans Auth,IL SLS TX 01B | |
01010116 | Chandler, AZ Street&Hwy Rev 01 | |
01010123 | Cucamonga County, CA Water 00 | |
01010124 | Cucamonga County, CA Water 00 | |
01010126 | Raleigh-Durham NC Arpt Rev 01A | |
01010127 | Raleigh-Durham NC Arpt Rev 01A | |
01010168 | New York ST Thruwy Auth 2001A | |
01010171 | Allegheny Cnty Port Spl Rev 01 | |
01010186 | Houston Arpt Rental Car Fac 01 | |
01010187 | Houston Arpt Rental Car Fac 01 | |
01010194 | Colleyville, TX Drain Revs 01 | |
01010195 | Colleyville, TX Drain Revs 01 | |
01010229 | Connecticut-Bradley Intl Arpt | |
01010232 | Tucson, Arizona Water Sys 01A | |
01010237 | Eastern Municipal Water Dist01 | |
01010243 | Port of Portland, Or 01 15CD | |
01010246 | Passaic County, NJ GO | |
01010251 | Grapevine, Tx Wtr&Swr Rev 01 | |
01010255 | Pima County, AZ Sewer 2001 | |
01010263 | West Ouachita PSD,LA SlsTax 01 | |
01010270 | Port of Portland, OR 2001 15AB | |
01010278 | Rowan Univ.(NJEFA), NJ 01B | |
01010279 | Rowan University, NJ 01C | |
01010305 | Pima County, AZ Sewer 2001 | |
01010314 | Oro Valley Municipal Property Corp, AZ 2001 | |
01010317 | Jacksonville, FL Sales Tx 2001 | |
01010318 | Regional Transportation Auth, IL Sales Tax 2001A | |
01010319 | Norfolk, VA GARB 2001A&B | |
01010320 | Regional Transportation Auth, IL Sales Tax 2001A | |
01010321 | Metro Nashville Arpt,TN 2001A | |
01010323 | Metro Nashville Arpt,TN 2001A | |
01010324 | Elwood Middle School Building Corporation, IN 2001 | |
01010328 | San Antonio, TX Water Rev 2001 | |
01010329 | San Antonio, TX Water Rev 2001 | |
01010343 | Fairfield-Suisun SD,CA Swr 01 | |
01010356 | Dallas Co WC&ID 6,TX W&S Rev01 | |
01010359 | Lauderhill, Florida Sales Tax 2001 | |
01010362 | Farmington, Mn RDA Lse 01A | |
01010364 | Harrisburg, PA Water Auth 01A | |
01010376 | Wa-Nee Middle SBC, In Lease 2001 | |
01010379 | Cincinnati (Univ. of), OH GO 01 | |
01010393 | Greene County, AR Sales Tax 2001 | |
01010399 | Tallahassee, FL Consolidated Utility Systems 2001 | |
01010401 | Upper Trinity Regional Water District, Texas 2001 |
Policy Id |
Policy | |
01010423 | Gresham, Oregon Stormwater Rev 2001 | |
01010426 | Penn Turnpike Com Series S | |
01010434 | Osceola County Sch Dist, FL Sales Tax 2001 | |
01010438 | Ocala, FL W&S Rev 2001 | |
01010465 | Bergen Co Util Auth, NJ | |
01010469 | Hawaii - Airport Sys Rev | |
01010478 | Palm Beach Cnty, FL Non-Ad Vlm Series 2001 | |
01010480 | Palm Beach Cnty, FL Non-Ad Vlm Series 2001 | |
01010484 | Porter Township HSBC, Indiana | |
01010498 | Valparaiso MS Bldg Corp, IN 01 | |
01010502 | Detroit (City of), MI Water | |
01010504 | Minneapolis-St.Paul ArptRev,MN | |
01010505 | Minneapolis-St.Paul ArptRev,MN | |
01010506 | Detroit (City of), MI Water | |
01010508 | Detroit (City of), MI Water Second Lien 01 | |
01010525 | Laredo, Texas Sales Tax 2001-Sports Venue | |
01010538 | Round Rock Transp Sys Dev Corp, TX Sales Tax 2001 | |
01010539 | Round Rock Transp Sys Dev Corp, TX Sales Tax 2001 | |
01010542 | Lafayette Redev Auth, IN Lse 01B | |
01010556 | North Richland Hills, TX Sales Tax 2001 | |
01010558 | University of Massachusetts GO | |
01010559 | University of Massachusetts GO | |
01010575 | Miami-Dade Co. Exp Auth, FL 01 | |
01010584 | Marshall Univ, WV Hsg & Parking 2001A | |
01010596 | Cucamonga County, CA Water 2001 | |
01010597 | Cucamonga County, CA Water 2001 | |
01010624 | Phoenix Civic Improvement Corp, AZ Wastewater 2001 | |
01010625 | Town Center Imp Dist, TX Sales/Hotel Tax 2001 | |
01010631 | KANSAS CITY METRO Com College, MO LEASE | |
01010633 | Washington Terrace (City), Utah W&S 2001 | |
01010642 | Ferris St Univ Brd of Trustees, MI Gen Rev 2001 | |
01010644 | Marion County, FL Utility System Rev 2001 | |
01010645 | Marion County, FL Utility System Rev 2001 | |
01010652 | Burleson, TX Waterwrks & Sewer 2001 | |
01010653 | Burleson 4A Economic Devel Corp., TX Sls Tx 01 | |
01010654 | Burleson Community Serv Dev Corp., TX Sls Tx 01 | |
01010666 | Valparaiso MS Bldg Corp, IN 01B | |
01010668 | Univ of Illinois 2001B+C | |
01010672 | San Francisco, CA Intl Arpt Issue 27B | |
01010673 | Seattle, WA Drainage &Wstewtr 2001 | |
01010674 | Seattle, WA Drainage &Wstewtr 2001 | |
01010675 | Denver, CO - Arpt Sys Rev 2001AB | |
01010676 | Georgetown, SC W&S Rev SRF Loan (Surety) 2001 | |
01010682 | Jasper Economic Dev Corp, TX Sls Tx 01 | |
01010696 | Logansport High School Building Corporation, Ind | |
01010697 | Escambia County Utilities Authority, FL W&S 2001 | |
01010698 | Escambia County Utilities Authority, FL W&S 2001 | |
01010699 | Tucson, Arizona Water Sys Rev 2000-A (2001) | |
01010705 | Brevard County, FL Tourist Development Tax Ser 01 | |
01010713 | Philadelphia, PA - Arpt Rev 01A | |
01010714 | Philadelphia, PA - Arpt Rev 01B | |
01010722 | West University Place, TX Wtr & Swr Rev, Ser 2001A | |
01010724 | Palm Bay, Florida W&S 2001 | |
01010726 | Palm Bay, Florida W&S 2001 Surety | |
01010738 | New York City TFA 2002A |
-60-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01010747 | West University Place, Texas Wtr & Swr Rev, 2001B | |
01010767 | Venice (City) Fl Sales Tax 2001 | |
01010776 | Univ. of California Rev Bonds Series M | |
01010781 | Florida State BOE Lottery Ser 2001B | |
01010782 | Florida State BOE Lottery Ser 2001B | |
01010786 | Charlotte County, FL Water & Sewer 2001 | |
01010787 | Charlotte County, FL Water & Sewer 2001 | |
01010797 | Cadillac (City of), MI Wtr/Swr 2001 | |
01010809 | Tri-County School Corporation, Indiana 2001 | |
01010810 | Imperial (City), CA Wastewater 2001 | |
01010811 | Imperial (City), California Water 2001 | |
01010816 | Delaware County Reg Wtr Auth, PA Swr Rev 01 | |
01010820 | Richland-Bean Blossom 2000 SBC, Indiana | |
01010828 | San Jose, CA - Airport Rev 2001A | |
01010841 | Tampa Bay Wtr Auth, FL Rev 01 | |
01010846 | Northeast Sullivan Multi-Sch Bldg Corp, IN | |
01010852 | Shelby East SBC IN 2001 | |
01010860 | Riverside, Ca. Water Rev. 2001 | |
01010867 | Tippecanoe Cnty Middle Sch Bldg Corp,IN Lease 2001 | |
01010876 | Neptune Beach (City), Florida W&S 2001 | |
01010877 | Phoenix Civic Imprv Corp, AZ Water System Rev 01 | |
01010881 | Clean Water Services, Oregon 2001 | |
01010882 | Clean Water Services, Oregon 2001 | |
01010892 | Henry Cnty Gov Cntr BC, In Lse RFG 2001 | |
01010902 | NORTHERN ILLINOIS UNIV AUX REV 2001 | |
01010912 | Appleton (City), WI W&S Rev 01 | |
01010914 | INDIAN RIVER CNTY, FL SLS TAX 2001 | |
01010915 | INDIAN RIVER CNTY, FL SLS TAX 2001 | |
01010924 | Ocala, FL Water & Sewer Rev Refg 2001A | |
01010925 | Ocala, FL Water & Sewer Rev Refg 2001A | |
01010926 | Cleveland Heights (City of), OH Non-advlrn Rev 01A | |
01010935 | Petoskey (City), MI Wtr. & Swr. 2001 | |
01010941 | BATON ROUGE, LOUISIANA SLS TAX Series 2001A | |
01010944 | Miller County, Missouri Lease 2001 | |
01010950 | Parker Water and Sanitation District, CO W&S 2001 | |
01010960 | Kearns Imprvmnt Dist, UT Sewer 2001 | |
01010966 | East Baton Rouge Parish, LA Sales Tax Series 2001 | |
01010972 | Jeffersonville-Clark Co Bldg Auth, IN Lease GO 01 | |
01010977 | Penn Turnpike Com Series T | |
01010984 | Cass County, MO Lease | |
01010987 | East Maine School District #63, IL GOLT 2001 | |
01010988 | East Maine School District #63, IL GOLT | |
01012003 | Panama City, Florida Public Service Tax 2001 | |
01012005 | San Antonio, TX - Airport Rev Series 2001 | |
01012007 | Passaic County, New Jersey GO 2001 | |
01012015 | Grand Prairie (City), Texas Sales Tax 2001 | |
01012016 | Grand Prairie (City), Texas Sales Tax 2001 | |
01012023 | Panama City, FL Public Service Tax 2001 - Surety | |
01012033 | Idaho University 2001 | |
01012034 | Idaho University 2001 - Surety | |
01012060 | Perry Twp MSD (PTMBC of 1996), IN Lease 2001 | |
01012064 | Oak Park (Village), Illinois W&S 2001 | |
01012069 | Martin County, FL Wtr/Swr Sys 01 | |
01012070 | Martin County, FL Wtr/Swr Sys 01 | |
01012082 | Wichita, Kansas Watr & Sewer |
Policy Id |
Policy | |
01012083 | Wichita, Kansas Watr & Sewer | |
01012111 | League City, Texas W&S GCWA 2001 | |
01012126 | New Jersey Educ Facil Auth (Montclair), NJ 2001F | |
01012127 | New Jersey Educ Facil Auth (Montclair), NJ 2001F | |
01012131 | Tippecanoe County GBC, IN Lease 2001 | |
01012134 | Merrillville Multi-School BC, IN GO Lease 2001 | |
01012135 | Northern Wells CSBC, IN LSE 2001 | |
01012148 | Hillsborough County, FL CIT, Rev 2001 A&B | |
01012150 | Hillsborough County, FL CIT, Rev 2001 A - Surety | |
01012156 | Hillsborough County, FL CIT, Rev 2001 B - Surety | |
01012158 | Port of Seattle, WA Rev. 2001ABCD | |
01012159 | Port of Seattle, WA Rev. 2001ABCD | |
01012160 | Port of Seattle, WA Rev. 2001ABCD | |
01012170 | Tacoma (City), WA Sewer 2001A | |
01012178 | Detroit, MI Sewer Disposal 2001A | |
01012179 | Detroit, MI Sewer Disposal 2001B | |
01012180 | Detroit, MI Sewer Disposal 2001C-2 | |
01012190 | Tampa Bay Regional Water Authority, FL 2001B | |
01012199 | Detroit, MI Sewer Disposal Second Lien 2001E | |
01012210 | Lakeland, FL (SSGFC) Non-Ad Valorem 2001 | |
01012214 | Seminole County, FL SLS TX 2001 | |
01012215 | Seminole County, FL SLS TX 2001 | |
01012222 | Tallahassee,FL SlsTax&Gtd Entitl,2001 | |
01012223 | Tallahassee,FL SlsTax&Gtd Entitl,2001 | |
01012225 | Univ. of California Rev Bonds Series N | |
01012226 | Northern Kentucky Wtr Dist Rev 2001A | |
01012233 | Elwood (City), Indiana | |
01012234 | Norfolk, Va Water Revenue 2001 | |
01012236 | Norfolk, Va Water Revenue 2001 | |
01012239 | Columbia, SC Water/Sewer Sys Surety 01 | |
01012258 | Brevard County, FL Sales Tax 2001 | |
01012259 | Brevard County, FL Sales Tax 2001 | |
01012270 | Sunman Dearborn ISBC, IN 2001 | |
01012279 | Pearland, Texas Water & Sewer Revs | |
01012283 | Seattle, WA Water System Revs 2001 | |
01012284 | Seattle, WA Water System Revs 2001 | |
01012291 | Webster Groves, (City) MO LSE 2001 | |
01012301 | Fort Pierce (City of), FL 2001 | |
01012302 | Fort Pierce (City of), FL 2001 | |
01012303 | Passaic Valley Wtr Comm, NJ W&S 2001 A&B Surety | |
01012323 | South Gate Utility Auth, CA 2001 REV | |
01012324 | Houston (City), Texas Airport System 2001A | |
01012327 | King County, WA Sewer Rev 2001 | |
01012330 | Tacoma, WA Water System 2001 | |
01012331 | Philadelphia, PA | |
01012333 | Apopka, FL Water & Sewer Rev 2001 & Refunding | |
01012338 | Iowa City, Iowa Sewer 2001 | |
01012340 | Apopka, FL Water & Sewer Rev 2001 & Refunding | |
01012342 | Washington School District, MO Lease 2001 | |
01012349 | Metropolitan Transportation Authority,NY DTF 2001A | |
01012353 | Kankakee (City of), IL 2001A Sr Lien | |
01012367 | Chesapeake Bay Bridge/Tunnel, VA Rev 2001 | |
01012369 | Seacoast Util. Auth, FL 2001 | |
01012382 | Delaware Transportation Authority 2001 | |
01012383 | Westmoreland County MA, PA W&S 2001 Surety |
-61-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01012384 | Wichita, Kansas Water & Sewer 2001 | |
01012385 | Wichita, Kansas Water & Sewer 2001 | |
01012386 | Tri-Creek South Nichols SBC, IN LSE | |
01012392 | Chesapeake Bay Brdg/Tunnel, VA 2001 JR | |
01012396 | Alabama University Gen Fee Rev 2001 | |
01012405 | Nassau County, FL Gas Tax 2001 | |
01012410 | Virgin Valley Water District, NV Rev 2001 | |
01012411 | Virgin Valley Water District, NV Rev 2001 | |
01012419 | Midlothian Comm Dev Corp, Texas Sales Tax Ser 2001 | |
01012422 | Knoxville (City), TN Wastewater 2001A | |
01012425 | Escambia County Utilities Authority, FL W&S 2001B | |
01012426 | Escambia County Utilities Authority, FL W&S 2001B | |
01012430 | Lafayette, Louisiana Sales Tax 2001A | |
01012431 | Lafayette, Louisiana Sales Tax 2001B | |
01012433 | South Central Conn Regl Wtr Auth. Surety | |
01012439 | Battle Creek (City of), MI WstWtr Rev 2001 | |
01012441 | SUNY Lease Rev (DASNY) 2001 | |
01012445 | Lehigh County Authority, PA Water 2001 | |
01012446 | Fountain Hills, AZ MPC Rev 2001 | |
01012447 | Fountain Hills, AZ MPC Rev 2001 | |
01012450 | Pearland, Texas Water & Sewer Revs 2001 | |
01012457 | Nevada Univ & Comm. Clg System REV 01A | |
01012478 | Lawrence County, In Lease | |
01012483 | Dallas/Ft Worth Intl Arpt 01A | |
01012484 | Dallas/Ft Worth Intl Arpt 01A | |
01012485 | Boone-Florence Wtr Commis, KY WTR REV 01 | |
01012486 | Conway (City of), AR Water 2001 | |
01012490 | Alabama Univ@Birmingham,GenRev2001 | |
01012491 | Excelsior Springs, MO GO&Lease | |
01012499 | Morgan State University, MD 2001 | |
01012508 | Warrensburg (City), MO Lease 2001 | |
01012518 | Tulsa Arpts Improv Trust, OK 01AB | |
01012519 | Tulsa Arpts Improv Trust, OK 01AB | |
01020003 | New York City TFA 98B | |
01020004 | New York City TFA 98C | |
01020006 | New York City TFA 2000B | |
01020012 | New York City TFA 98B | |
01020037 | New York City TFA 99B | |
01020046 | New York City TFA 98C | |
01020048 | San Francisco BART,Sales Tax98 | |
01020061 | New York City TFA 98B | |
01020062 | New York City TFA 98B | |
01020063 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020068 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020083 | New York City TFA 98B | |
01020085 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020088 | New York City TFA 98C | |
01020089 | New York City TFA FY98 A | |
01020090 | MASS WATER RESOURCES 1993 C | |
01020091 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020092 | New York City TFA 98B | |
01020093 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020095 | New York City TFA 98B | |
01020101 | Mass Port Auth,Rev Bonds 98D/E | |
01020102 | Los Angeles Dept Wtr&Pwr 01WTR |
Policy Id |
Policy | |
01020103 | Mass Port Auth,Rev Bonds 98D/E | |
01020107 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020108 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020111 | New York City TFA 98C | |
01020114 | New York City TFA 98C | |
01020116 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020148 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020151 | New York City TFA 99B | |
01020153 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020155 | New York, NY Muni Wtr | |
01020159 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020164 | Bay Area TA CA Toll Rev 01B | |
01020168 | Charlotte, NC Wtr & Swr Rev | |
01020174 | New York, NY Muni Wtr 2001C,D&E | |
01020179 | New York City TFA 98B | |
01020182 | New York, NY Muni Wtr 2001C,D&E | |
01020184 | New York, NY Muni Wtr 2002A | |
01020185 | New York, NY Muni Wtr 2002A | |
01020186 | New York, NY Muni Wtr 2001C,D&E | |
01020188 | New York, NY Muni Wtr 2001C,D&E | |
01020189 | New York City TFA 98B | |
01020190 | New York City TFA 2002A | |
01020191 | New York City TFA 2002A | |
01020192 | New York City TFA 2002A | |
01020193 | New York, NY Muni Wtr 2002A | |
01020195 | New York, NY Muni Wtr 2002A | |
01020197 | New York, NY Muni Wtr 2002A | |
01020199 | New York City TFA 98C | |
01020200 | New York City TFA 98B | |
01020201 | New York, NY Muni Wtr 2002A | |
01020202 | Mass Port Auth,Rev Bonds 98D/E | |
01020206 | New York, NY Muni Wtr 02BC | |
01020209 | New York, NY Muni Wtr 02BC | |
01020210 | New York, NY Muni Wtr 02BC | |
01020211 | New York City Muni Wtr 2001B | |
01020213 | New York, NY Muni Wtr 02BC | |
01020214 | New York, NY Muni Wtr 02BC | |
01020215 | Port Authority of NY and NJ 124 Ser (2001) | |
01020216 | New York, NY Muni Wtr 02BC | |
01020217 | Port Authority of NY and NJ 124 Ser (2001) | |
01020218 | New York, NY Muni Wtr 02BC | |
01020219 | New York, NY Muni Wtr 2002A | |
01020220 | New York, NY Muni Wtr 02BC | |
01020221 | Port Authority of NY and NJ 124 Ser (2001) | |
01020222 | New York, NY Muni Wtr 02 D,E,F | |
01020223 | Port Authority of NY and NJ 124 Ser (2001) | |
01020224 | Port Authority of NY and NJ 124 Ser (2001) | |
01020225 | Port Authority of NY and NJ 124 Ser (2001) | |
01020226 | Los Angeles Dept Wtr&Pwr 01WTR | |
01020227 | Port Authority of NY and NJ 124 Ser (2001) | |
01020228 | New York St ThruwayAuth-Toll E | |
01020232 | Port Authority of NY and NJ 124 Ser (2001) | |
01020236 | New York, NY Muni Wtr 02 D,E,F | |
01020238 | New York, NY Muni Wtr 2002A | |
01020239 | New York, NY Muni Wtr 02 D,E,F |
-62-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
01020241 | New York, NY Muni Wtr 2002A | |
01020242 | New York, NY Muni Wtr 02 D,E,F | |
01020250 | Univ. of California Rev Bonds Series N | |
01020262 | New York City TFA | |
01020264 | Triborough Bridge Special | |
01020265 | New York City TFA 99B | |
01020269 | New York, NY Muni Wtr 02 D,E,F | |
01020270 | New York, NY Muni Wtr 02 D,E,F | |
01020271 | Sacramento Co, CA SD 1 Sewer00 | |
01020273 | New York, NY Muni Wtr 02 D,E,F | |
01020281 | New York City TFA 98C | |
01020285 | Port Authority of NY and NJ | |
01020287 | New York, NY Muni Wtr 02 D,E,F | |
01020288 | New York, NY Muni Wtr 2001C,D&E | |
01020291 | New York, NY Muni Wtr 2001C,D&E | |
01020292 | New York, NY Muni Wtr 2001C,D&E | |
01020294 | New York, NY Muni Wtr | |
01020295 | Port Authority of NY/NJ 122 | |
01020296 | Port Authority of NY/NJ 122 | |
01020301 | Port Authority of NY/NJ 122 | |
01020304 | New York City TFA 99B | |
02010002 | Boynton Beach, FL Wtr & Swr 2002 FWD | |
02010006 | Tucson (City), AZ Water System Revenue 2002 | |
02010007 | North Penn Water Authority | |
02010012 | Cleburne 4B Economic Dev Corp, Texas Series 2002 | |
02010013 | Cleburne 4B Economic Dev Corp, Texas Series 2001 | |
02010015 | West Clark Sch Bldg Corp, IN 02 | |
02010020 | Gautier Utility Dist, MS Comb Util Rev 02 | |
02010021 | Gautier Utility Dist, MS Comb Util Rev 02 | |
02010025 | Richmond, VA Metro Auth 02 | |
02010033 | Ball State University, IN Rev Student Fee 2001 K | |
02010045 | Public Util Dist. #1 of Snohomish CO, WA Rev 02 | |
02010047 | Collier County, Florida Sales Tax Series 2001 | |
02010048 | Collier County, Florida Sales Tax Series 2001 | |
02010049 | Zionsville Comm. Sch. Corp., IN GO lease 2002 | |
02010062 | Mesa, Arizona Utility System 2002 | |
02010063 | Mesa, Arizona Utility System 2002 | |
02010075 | Pima County, AZ St&Hwy 2002 | |
02010093 | Mesa, AZ Street & Highway Rev 2002 | |
02010099 | Regional Trans Dist, CO Sls Tax 2001 | |
02010101 | West Virginia Pkwy 2002 | |
02010105 | Florida St BOR, Univ Sys Mand Fee 2001 | |
02010106 | Florida St BOR, Univ Sys Mand Fee 2001 | |
02010107 | Mobile Alabama Water & Sewer 2002 | |
02010111 | North Texas Muni Wtr Dist, TX REV 02 -Trinity East | |
02010113 | Boise State Univ, ID 2002 | |
02010114 | Boise State Univ, ID 2002 | |
02010116 | Mesa (City of), AZ Ref Utility System 02 | |
02010117 | Mesa (City of), AZ Ref Utility System 02 | |
02010132 | Palo Alto, CA Utility Rev 2002A (Water & Gas) | |
02010140 | East Cocalico Township Auth, PA Wtr Rev 2002 | |
02010149 | Northern KY Wtr Dist (fna Kenton Co. KY WD) 02A | |
02010176 | Stockton-East Water District, CA W&S 2002 | |
02010177 | Stockton-East Water District, CA W&S 2002 | |
02010186 | Univ of Conn Spec Obli Stu Fee Rev Ref 2002A |
Policy Id |
Policy | |
02010203 | El Paso (City), TX W&S 2002 | |
02010206 | Tampa, Florida Non-Ad Vlm Series 2002A | |
02010211 | Monroe City Sch Dist, LA Sales Tax 2002 | |
02010225 | Winter Haven, FL Sales Tax Rev 2002 | |
02010226 | Winter Haven, FL Sales Tax Rev 2002 | |
02010232 | West Sacramento Financing Authority, CA Water 2002 | |
02010243 | North Hudson Sewerage Auth Rev 2002A | |
02010256 | Sugar Land 4B Corporation, TX Sales Tax 2002 | |
02010259 | Colorado University Auxiliary Rev | |
02010261 | West Sacramento Financing Authority, CA Water 2002 | |
02010262 | Pennsylvania (Commonwealth) GO 2002 | |
02010281 | Tampa-Hillsborough (State of Florida) Exprswy 2002 | |
02010282 | Tampa-Hillsborough (State of Florida) Exprswy 2002 | |
02010286 | New York State DASNY-SUNY GO/Lease 2002A | |
02010287 | Eastern Michigan Univ Brd of Rgnts, MI Gen Rev 02 | |
02010295 | Sammamish Plateau WtrSwr Dist 2002 | |
02010309 | San Antonio, TX - Airport PFC & Jr Lien GARB 2002 | |
02010310 | San Antonio, TX - Airport Rev GARB 2002 | |
02010317 | Tacoma (City), WA Sewer Rev 2002 | |
02010320 | Eastern Michigan Univ Brd of Rgnts 2002B | |
02010331 | University & Community College Sys, NV Rev 2002A | |
02010345 | Bates County, Missouri COP 2002 | |
02010364 | Kalamazoo (City of), MI Water System | |
02010377 | Phoenix, AZ Water System Rev | |
02010385 | Nacogdoches, TX Wtr & Swr 2002 | |
02010388 | Arlington (City of), TX Wtr & Swr 2002 | |
02010415 | Little Elm (Town of), TX 2002 REV | |
02010416 | Valparaiso Multi Sch Bldg Corp, IN 2002 | |
02010417 | Jacksonville (City), FL Excise Tax 2001B | |
02010419 | Boone Cons Pub Wtr Sup Dist #1, MO Rev | |
02010429 | Brazos River Auth, TX (Lake Granbury) REV 2002 | |
02010430 | Brazos River Auth, TX (Lake Granbury) REV 2002 | |
02010435 | Orange Park FL W&S 2002 Rfdg | |
02010437 | Illinois (State), Sales Tax Build Illinois 2002 | |
02010438 | Illinois (State), Sales Tax 2002 | |
02010441 | Monroe (City), LA Sales Tax 2002 | |
02010442 | Monroe (City), LA Sales Tax 2002 | |
02010446 | Orange Park FL W&S 2002 Rfdg | |
02010447 | Jacksonville (City), FL Excise Tax 2001B | |
02010450 | Denver (City and County), CO WstWtr 2002 | |
02010451 | Denver (City and County), CO WstWtr 2002 | |
02010456 | PASCO COUNTY, FL GAS TAX 02 | |
02010462 | Stockton-East Water Dist, CA W&S 2002B | |
02010463 | Stockton-East Water Dist, CA W&S 2002B | |
02010464 | Westmoreland County Community College, PA | |
02010468 | Jacksonville Elec Auth, FL W&S | |
02010473 | Florida State BOE Lottery 2002 | |
02010474 | Florida State BOE Lottery 2002 | |
02010478 | Anderson (City of), SC Wtr & Swr 2002 | |
02010479 | Anderson (City of), SC Wtr & Swr 2002 | |
02010481 | St. Cloud, Florida Sales Tax, Series 2002 | |
02010482 | St. Cloud, Florida Sales Tax, Series 2002 | |
02010491 | New York City TFA 2002C | |
02010496 | Goshen Community Schools, IN Lease 2002 | |
02010498 | Gulfport, MS (MS Dev. Bank) Wtr & Swr 02 |
-63-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
02010505 | Reno, NV Hotel & Sales Tax 2002 | |
02010506 | Reno, NV Hotel & Sales Tax 2002 | |
02010518 | Phoenix, Az Airport 2002 Senior Lien | |
02010519 | Phoenix, Az Airport 2002 Senior Lien | |
02010526 | Oklahoma St Bd of Reg (Colvin) 2002 | |
02010527 | Oklahoma St Bd of Reg (Colvin) 2002 | |
02010529 | Houston Area Water Corp, TX 2002 | |
02010530 | Northern Wells CSBC, IN LSE 02 | |
02010537 | Baltimore (City), MD Wastewater Sub Lien 2002C | |
02010540 | Los Angeles, CA Wastewater Sys Revs 2002A | |
02010543 | Carmel (City), IN Waterworks 2002 | |
02010546 | Charleston (College of), SC 2002A | |
02010547 | Charleston (College of), SC 2002A | |
02010552 | Baltimore (City), MD Wastewater Sr Lien 2002 A&B | |
02010554 | Kansas City, MO Wtr Sys 2002C | |
02010555 | Kansas City (City of), MO Wtr Sys 2002C | |
02010592 | California Department Wtr-Central Valley 2002 X | |
02010595 | Baltimore (City), MD Water Senior Lien 2002 A&B | |
02010596 | Baltimore (City), MD Water Subordinate Lien 2002C | |
02010603 | Dickson County Water Authority, TN W&S 2002 | |
02010604 | Dickson County Water Authority, TN W&S 2002 | |
02010605 | Daytona Beach, FL Wtr/Swr Refg 2002B | |
02010621 | Miami-Dade County, Florida GARB 2002 | |
02010625 | Massachusetts Special Oblig. Gas Tax 2002A | |
02010626 | Massachusetts Special Oblig. Gas Tax 2002A | |
02010631 | Butler County Community College, PA 2002 | |
02010648 | Montgomery Co, MD Bethesda 2002 | |
02010649 | Montgomery Co, MD (Silver) 2002 | |
02010653 | Phoenix (City), AZ Street & Hwy Jr Lien 2002 | |
02010654 | Lawrenceburg SBC, IN 2002 | |
02010655 | Board of Reg. of Tx Wms Univ 02 | |
02010663 | Tamarac, FL Sales Tax 2002 | |
02010664 | Tamarac, FL Sales Tax 2002 | |
02010677 | Washoe County Airport Authority, NV 2002 | |
02010692 | Pennsylvania Sub Water Company 2002 | |
02010706 | Osceola Cnty, FL Hotel/Motel 2002 | |
02010707 | Osceola Cnty, FL Hotel/Motel 2002 | |
02010711 | Metro Washington DC Arpt 2002AB | |
02010729 | MTA Transportation Rev 2002 | |
02010732 | Arizona Board of Regents (ASU) | |
02010737 | St. Charles (City), MO Lse 02 | |
02010739 | St. Charles (City), MO Lse 02 | |
02010741 | University of Massachusetts GO 2002C | |
02010749 | San Bruno Wastewater, CA 02 | |
02010750 | San Bruno Wastewater, CA 02 | |
02010751 | MTA Transportation Rev 2002 50 bp | |
02010752 | MTA Transportation Rev 2002 58BP | |
02010758 | Port Authority of NY & NJ 126th Ser 2002 | |
02010767 | Indiana State Office Bldg Commission Lease 2002 | |
02010775 | West Lafayette Bldg Corp, IN 2002 | |
02010776 | New Jersey Ed Fac Auth(College of New Jersey), NJ | |
02010777 | New Jersey Ed Fac Auth(College of New Jersey), NJ | |
02010797 | Colorado Water Res & Pwr Dev Auth, CO 2002A | |
02010798 | Montgomery Co, MD (Bethesda) 2002A | |
02010799 | Montgomery Co, MD (Bethesda) 2002A |
Policy Id |
Policy | |
02010804 | Cache County, UT Sales Tax 2002 | |
02010805 | Cache County, UT Sales Tax 2002 | |
02010806 | Vigo County Mtg Rev Bonds, Ind 2002 | |
02010812 | HAWAII (UNIVERSITY OF) SYS REV 02 | |
02010813 | Portage Twp Multi-Sch BldgCorp,IN2002 | |
02010817 | MTA Service Contract 2002A | |
02010818 | Merto Pier & Expo Auth, IL Sls Tx | |
02010826 | Baltimore, MD Parking Sys Fac 2002 | |
02010828 | Jacksonville, FL Gtd Entitlement 2002 | |
02010838 | Clarksville HS Bldg Corp, IN | |
02010858 | Polk County, Florida Sales Tax Series 2002 | |
02010859 | Polk County, Florida Sales Tax Series 2002 | |
02010883 | Tucson (City), Arizona Wtr Sys 2000-B (2002) | |
02010888 | Metropolitan Transportantion Auth, 2002B | |
02010899 | Avondale, AZ Excise Tax 2002 | |
02010900 | Avondale, AZ Excise Tax 2002 | |
02010907 | Univ. of California, Rev Bonds Series 2002 O | |
02010909 | Univ. of California Rev Bonds, Series P 2002 | |
02010917 | Charleston (College of), SC 2002B | |
02010918 | Charleston (College of), SC 2002B | |
02010923 | Pike Twnship Multi-School Build Corp. Ind | |
02010925 | Regional Transportation Authority, IL Sls Tx 2002B | |
02010926 | Regional Transportation Authority, IL Sls Tx 2002B | |
02010930 | Temple(City) TX W&S Rev 2002 | |
02010941 | Clearwater, FL W&S Rev 2002 | |
02010943 | Greencastle Multi-Sch Bldg Corp, IN 2002 | |
02010945 | Clarksburg, WV Water Rfdg 2002 | |
02010946 | Trinity River/Fort Worth W&S 02 | |
02010947 | Florida State BOE Lottery 2002 | |
02010948 | Florida State BOE Lottery 2002 | |
02010976 | Melbourne (City of), FL WtrSwr 2002A | |
02010984 | New Jersey Turnpike Auth Rev 02 | |
02010985 | Detroit, MI Wayne Co. Airport 2002CD | |
02010990 | Alaska, University of 2002 Series K | |
02010993 | Port of Oakland, CA Rev 2000LM | |
02010998 | Contra Costa Tran Auth, CA Sales Tax 02A | |
02011005 | Bradford City, PA Wtr Auth Rfd 02 | |
02011010 | New Mexico State Univ, NM Rev Bonds, 2002 | |
02011012 | Contra Costa Tran Auth, CA Sales Tax 02A | |
02011016 | Charleston (College of), SC 2002C | |
02011017 | Charleston (College of), SC 2002C | |
02011023 | North Texas Univ Bd of Reg, TX 2002 | |
02011025 | Port of Seattle, WA Rev. | |
02011031 | Arizona BD of Regents NAU 2002 | |
02011044 | Melbourne (City of), FL WtrSwr 2002B | |
02011045 | Allegheny Cnty Airport Rev 02 | |
02011046 | Allegheny Cnty Airport Rev 02 | |
02011053 | Lanesville Comm SBC, IN Lease Ref 2002 | |
02011055 | Hammond Multi-School Bldg Corp, IN Lease | |
02011065 | Escondido, CA Wtr Rev COPS 02 | |
02011081 | Mount Pleasant, SC Wtr & Swr 2002 | |
02011082 | Mount Pleasant, SC Wtr & Swr 2002 | |
02011083 | Mount Pleasant, SC W&S 02 Surety Only | |
02011084 | Mount Pleasant, SC W&S 02 Surety Only | |
02011085 | Mount Pleasant, SC W&S 02 Surety Only |
-64-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
02011093 | Port of New Orleans, LA Rev 2002 | |
02011099 | Oxford W&S, AL 02 | |
02011105 | Florissant (City of), MO Lease (COP) 2002 | |
02011117 | Melbourne (City of), FL WtrSwr 02C | |
02011118 | Miami-Dade Co. Exp Auth, FL 2002 | |
02011130 | Fairmont State College, WV, Lease Revenue | |
02011131 | Fairmont State College 2002B (Student fee) | |
02011146 | Dallas Area Rapid Transit, TX Sr Lien Sales Tax 02 | |
02011157 | Cowlitz County, WA Special Sew Rev Ref, 2002 | |
02011158 | Cowlitz County, WA Special Sew Rev Ref, 2002 | |
02011159 | Monroe (City), LA Sales Tax Jr Lien 2002A | |
02011172 | Galveston, TX Hotel/Motel 2002A | |
02011173 | Galveston, TX Hotel/Motel 2002B | |
02011174 | University & Community College Sys, NV Rev 2002B&C | |
02011178 | Columbia (City of), MO Sew Sys Rev Rev, 2002 | |
02011180 | Brevard Cnty, FL Util Rev 2002 | |
02011187 | Jackson, MS Water & Sewer 2002 | |
02011188 | Jackson, MS Water & Sewer 2002 | |
02011194 | Hammond Multi-School Building Corp, IN Lease | |
02011196 | Oxford W&S, AL Ref 2002 | |
02011200 | New York State DASNY-SUNY GO/Lease 2002 | |
02011211 | Monroe (City), LA Sales Tax Jr Lien 2002A | |
02011213 | Mesa (City of), AZ Utility System Rev Ref 2002A | |
02011214 | Mesa (City of), AZ Utility System Rev Ref 2002A | |
02011221 | Mount Vernon, WA swr ser 2002 | |
02011226 | Port Canaveral,FL Port Revenue 2002 A&B | |
02011229 | Clay School Bldg Corp, IN | |
02011243 | Hallsdale-Powell UD, TN Wtrwks & Swr Rev Ref 02AB | |
02011244 | Hallsdale-Powell UD, TN Wtrwks & Swr Rev Ref 02AB | |
02011246 | Greene County Building Corporation, IN 2002 | |
02011279 | Calif Depart Wtr-Central Valley Series Z 02 | |
02011282 | Denver, CO - Arpt Sys Rev Refunding Bonds 2002E | |
02011285 | Tippecanoe Valley Middle Sch Corp, IN Lease Ref 02 | |
02011295 | Fordham University, NY (DASNY) 2002 | |
02011310 | Ramapo College (NJEFA) Lease Rev Bds 2002H, I & J | |
02011312 | Wisconsin (State) Motor Veh Reg 2002A | |
02011317 | South Blount County Util Dist, TN Wtrwrks Rev 2002 | |
02011318 | South Blount County Util Dist, TN Wtrwrks Rev 2002 | |
02011321 | Pennsylvania (Commonwealth) GO 2002 Ref | |
02011335 | North Montgomery HSBC, IN 02 (CABs) | |
02011337 | Jacksonville Elec Auth, FL W&S 2002C | |
02011341 | Sarasota (County), FL Utility Sys Ref Rev 2002C | |
02011342 | Sarasota (County), FL Utility Sys Ref Rev 2002C | |
02011353 | McKinney, TX Wtr&Swr Rev Ser 02 | |
02011356 | Orange County, FL Sales Tax Rev & Refg 2002A&B | |
02011359 | Sebring, FL wtr & swr 2002 | |
02011360 | Sebring, FL wtr & swr 2002 | |
02011361 | Altamonte Springs, FL Wtr&Swr Rev.Rfd.2002 | |
02011362 | Petoskey (City), MI W&S Rev Ref 2002 | |
02011369 | Florida Forever Doc Stamp 2002B | |
02011376 | New York City TFA 2003C | |
02011378 | Miami, FL Non-Ad Vlm Tax Refg Bds Ser C | |
02011379 | Miami, FL Non-Ad Vlm Tax Refg Bds Ser C | |
02011385 | Board of Regents Uni. of (OK),Student Housing 2002 | |
02011394 | Board of Regents Uni. of (OK),Student Housing 2002 |
Policy Id |
Policy | |
02011396 | Texas Public Finance Auth (TPFA), TX Rev Ref 2002 | |
02011397 | Greensburg School Build Corp, IN 1st Mtg 2002 | |
02011401 | Passaic Valley Wtr Com, NJ W&S 02 A&B Surety | |
02011407 | Cleveland (City), Ohio Waterworks 2002 K | |
02011411 | Bend (City of), OR Sewer Rev 02 | |
02011413 | Bend (City of), OR Sewer Rev 02 | |
02011417 | North Texas Univ Bd of Reg, TX Rev 2002A | |
02011426 | Rutgers State Univ GO, NJ 2002 | |
02011443 | Port of Seattle, WA, subordinate. rev., 2002 | |
02011444 | Port of Seattle, WA, subordinate. rev., 2002 | |
02011458 | Cleveland (City), Ohio Waterworks 2002 L | |
02011464 | Rowan Univ. (NJEFA), NJ Rev 2002K | |
02011471 | Arkansas University (Fayetteville) Rev 2002 | |
02011477 | Elsinore Valley MWD, CA W&S 2002A | |
02011478 | Elsinore Valley MWD, CA W&S 2002A | |
02011479 | Kansas City Metro Jr College Dist, MO COPs 02 | |
02011490 | Alabama University Gen Rev 2002 | |
02011508 | Jacksonville (City), FL Sales Tax Ref & Imp Rev 02 | |
02011509 | Jacksonville (City), FL Sales Tax Ref & Imp Rev 02 | |
02011516 | NYS Personal Income Tax (NYS Urban Dev Corp.) 02 | |
02011521 | Michigan City Area-Wide School Bldg Corp 2002, IN | |
02011525 | Bossier City (City of), LA Sales Tax 2002 | |
02011527 | Seattle (City), WA Drainage &Wstewtr Rev & Ref 02 | |
02011529 | Seattle (City), WA Drainage &Wstewtr Rev (Srty) 02 | |
02011545 | NYS Environmental Fac Corp State PIT Rev 2002A | |
02011562 | NYS Environmental Fac Corp State PIT Rev 2002B | |
02011570 | Contra Costa Water Auth, CA Rev Rfd 2002A | |
02011572 | Los Angeles Dept of Arpts 02A | |
02011578 | Lousiana PFCA (Med Cntr) State Lse 02 | |
02011581 | Nevada Irrigation Dist, CA Rev Cert. Ref 02 | |
02011582 | Nevada Irrigation Dist, CA Rev Cert. Ref 02 | |
02011588 | Bethesda Water Supply Corporation, TX Wtr & Swr 02 | |
02011589 | Bethesda Water Supply Corporation, TX Wtr & Swr 02 | |
02020001 | SUNY Lease Rev (DASNY) 2001 | |
02020002 | Port Authority of NY and NJ 124 Ser (2001) | |
02020005 | New York City TFA 2002B | |
02020006 | New York City TFA 98B | |
02020008 | New York City TFA 98C | |
02020009 | New York City TFA 2002B | |
02020013 | New York City TFA 99B | |
02020016 | New York City TFA 98C | |
02020021 | Triborough Bridge Special | |
02020022 | Triborough Bridge Special | |
02020023 | Triborough Bridge General Purpose Rev 2001A | |
02020025 | Triborough Bridge General Purpose Rev 2001A | |
02020026 | Triborough Bridge General Purpose Rev 2001A | |
02020027 | Triborough Bridge General Purpose Rev 2001A | |
02020028 | Triborough Bridge General Purpose Rev 2001A | |
02020030 | Triborough Bridge General Purpose Rev 2001A | |
02020031 | Triborough Bridge General Purpose Rev 2001A | |
02020032 | Triborough Bridge General Purpose Rev 2001A | |
02020033 | Triborough Bridge General Purpose Rev 2001A | |
02020034 | Triborough Bridge General Purpose Rev 2001A | |
02020035 | Triborough Bridge General Purpose Rev 2001A | |
02020036 | Triborough Bridge General Purpose Rev 2001A |
-65-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
02020037 | Triborough Bridge General Purpose Rev 2001A | |
02020041 | Triborough Bridge General Purpose Rev 2001A | |
02020045 | Triborough Bridge General Purpose Rev 2001A | |
02020052 | Metropolitan Water District CA | |
02020053 | Triborough Bridge General Purpose Rev 2001A | |
02020056 | Triborough Bridge General Purpose | |
02020057 | Triborough Bridge General Purpose | |
02020058 | Triborough Bridge General Purpose | |
02020059 | Triborough Bridge General Purpose Rev 2001A | |
02020060 | Triborough Bridge General Purpose Rev 2001A | |
02020061 | New York City TFA 2002B | |
02020063 | New York, NY Muni Wtr 2001C,D&E | |
02020064 | New York City TFA 2002B | |
02020065 | New York City TFA 2002B | |
02020068 | Triborough Bridge General Purpose Rev 2001A | |
02020069 | Los Angeles Dept Wtr&Pwr 01WTR | |
02020070 | New York City TFA 98C | |
02020071 | Triborough Bridge General Purpose | |
02020072 | Los Angeles Dept Wtr&Pwr 01WTR | |
02020073 | Triborough Bridge General Purpose Rev 2001A | |
02020074 | Triborough Bridge General Purpose | |
02020075 | Triborough Bridge General Purpose | |
02020076 | New York, NY Muni Wtr 02BC | |
02020077 | Triborough Bridge General Purpose | |
02020078 | Triborough Bridge General Purpose | |
02020081 | Triborough Bridge General Purpose | |
02020083 | Triborough Bridge General Purpose Rev 2001A | |
02020088 | Triborough Bridge General Purpose Rev 2001A | |
02020090 | Triborough Bridge General Purpose | |
02020091 | Triborough Bridge General Purpose | |
02020093 | Triborough Bridge General Purpose Rev 2001A | |
02020094 | Port Authority of NY/NJ 122 | |
02020095 | Triborough Bridge General Purpose Rev 2001A | |
02020096 | New York City TFA 99B | |
02020097 | Triborough Bridge General Purpose Rev 2001A | |
02020098 | Triborough Bridge General Purpose Rev 2001A | |
02020099 | New York City TFA 99B | |
02020101 | New York City TFA 99B | |
02020103 | New York City TFA 99B | |
02020104 | Triborough Bridge General Purpose Rev 2001A | |
02020106 | Triborough Bridge General Purpose Rev 2001A | |
02020107 | New York City TFA 2001B | |
02020108 | MTA Transportation Rev 2002 | |
02020110 | MTA Transportation Rev 2002 | |
02020112 | MTA Transportation Rev 2002 | |
02020114 | New York City TFA 99B | |
02020115 | Colorado University Enterprise Rev 2002B&C | |
02020122 | Triborough Bridge General Purpose | |
02020123 | STATE UNIV/DASNY, NY LEASE 93B | |
02020124 | DASNY STATE APPROP (SUNY), 90A | |
02020125 | MTA Service Contract 2002A | |
02020126 | MTA Service Contract 2002A | |
02020127 | STATE UNIV/DASNY, NY LEASE 93A | |
02020129 | MTA Service Contract 2002A | |
02020130 | Triborough Bridge General Purpose Rev 2001A |
Policy Id |
Policy | |
02020132 | MTA Service Contract 2002A | |
02020133 | MTA Service Contract 2002A | |
02020134 | MTA Service Contract 2002A | |
02020135 | MTA Service Contract 2002A | |
02020136 | Triborough Bridge General Purpose Rev 2001A | |
02020137 | MTA Service Contract 2002A | |
02020140 | Triborough Bridge General Purpose Rev 2001A | |
02020142 | New York City TFA 2003A | |
02020143 | Triborough Bridge General Purpose Rev 2001A | |
02020144 | New York City TFA 99B | |
02020145 | New York, NY Muni Wtr 2003A | |
02020146 | New York, NY Muni Wtr 2003A | |
02020147 | New York, NY Muni Wtr 2003A | |
02020150 | MTA Service Contract 2002A | |
02020151 | New York, NY Muni Wtr 2003A | |
02020152 | New York City TFA 98B | |
02020153 | Metropolitan Transportantion Auth, 2002B | |
02020154 | New York, NY Muni Wtr 2003A | |
02020157 | New York, NY Muni Wtr 2003A | |
02020158 | New York, NY Muni Wtr 02 D,E,F | |
02020159 | New York City TFA 99 | |
02020160 | New York City TFA 99 | |
02020161 | New York City TFA 99 | |
02020162 | New York City TFA 1999A&B | |
02020163 | New York City TFA 1999A&B | |
02020164 | New York City TFA 99 | |
02020165 | New York City TFA 1999A&B | |
02020166 | New York City TFA 1999A&B | |
02020167 | New York City TFA 99 | |
02020168 | New York City TFA 99 | |
02020169 | New York City TFA 1999A&B | |
02020171 | New York City TFA 1999A&B | |
02020173 | New York City TFA 99 | |
02020175 | New York City TFA 99 | |
02020176 | New York City TFA 99 | |
02020177 | New York, NY Muni Wtr 2003A | |
02020178 | New York City TFA 99 | |
02020179 | New York City TFA 99 | |
02020180 | New York City TFA 99 | |
02020184 | New York City TFA 1999A&B | |
02020185 | STATE UNIV/DASNY, NY LEASE 93B | |
02020186 | New York City TFA 98C | |
02020187 | New York City TFA 1999A&B | |
02020188 | MTA Service Contract 2002A | |
02020210 | San Francisco BART,Sales Tax98 | |
02020224 | New York City TFA 2003B | |
02020225 | New York City TFA 2003A | |
02020226 | New York State DASNY-SUNY GO/Lease 2002 | |
02020227 | New York, NY Muni Wtr 2003A | |
02020230 | New York State DASNY-SUNY GO/Lease 2002 | |
02020231 | New York State DASNY-SUNY GO/Lease 2002 | |
02020233 | STATE UNIV/DASNY, NY LEASE 93B | |
02020237 | New York City TFA 99B | |
02020242 | STATE UNIV/DASNY, NY LEASE 93A | |
02020243 | New Jersey Turnpike Auth 91 C |
-66-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
02020244 | Triborough Bridge General Purpose Rev 2001A | |
02020245 | Bay Area TA CA Toll Rev 01B | |
02020247 | New York Thruway Auth. State Lease 2002 | |
02020248 | New Jersey Turnpike Auth 91 C | |
02020249 | Alabama Pub Sch & Coll Auth99D | |
02020251 | New Jersey Turnpike Auth 91 C | |
02020252 | New York City TFA 99 | |
02020253 | New York City TFA 2003A | |
02020254 | New York City TFA 2003A | |
02020266 | DASNY New York St Personal Income Tax | |
02020267 | DASNY New York St Personal Income Tax | |
02020268 | DASNY New York St Personal Income Tax | |
02020269 | DASNY New York St Personal Income Tax | |
02020270 | DASNY New York St Personal Income Tax | |
02020272 | DASNY New York St Personal Income Tax | |
02020273 | DASNY New York St Personal Income Tax | |
02020274 | DASNY New York St Personal Income Tax | |
02020275 | DASNY New York St Personal Income Tax | |
03010006 | Calif Depart Wtr-Central Valley Series AA fwrd | |
03010008 | Westmoreland County MA, PA W&S | |
03010017 | Osceola County, FL Gas Tax Rev Ref 2003 | |
03010019 | Michigan City Area-Wide School Bldg Corp 2003, IN | |
03010020 | Lafayette, LA Sales Tax 2003A | |
03010021 | Lafayette, LA Sales Tax 2003B | |
03010034 | Fox Chapel Auth, PA Water Rev Ref 2003 | |
03010037 | Garrett (City of), IN Sewage Rev 2002A | |
03010038 | Los Angeles Dept of Wtr&Pwr Wtr Rev 2003A | |
03010039 | DASNY New York St Personal Income Tax 2003B | |
03010044 | Metro Pier & Expo Auth, IL 2002 | |
03010055 | Northwest Wtr Comm, IL Wtr Rev Ref 03 (Frd Dlvry) | |
03010056 | Prescott Valley Twn MPC, AZ Exc Tax 2003 | |
03010057 | Oakland Rdv Agy, CA (Cntrl Dist Prj) Sub TABs 2002 | |
03010058 | Oakland Rdv Agy, CA (Cntrl Dist Prj) Sub TABs 2002 | |
03010064 | Ojai Valley Sanitary Dist, CA Wastewater Rev 02 | |
03010065 | Ojai Valley Sanitary Dist, CA Wastewater Rev 02 | |
03010070 | Geary County, KS (Geary County PBC) | |
03010072 | Morgan State University, MD 2003 AB | |
03010073 | Central Michigan University, MI Rev 2002 | |
03010078 | University Maine Sys Rev 2003 | |
03010079 | California State Univ Systemwide Rev 03 | |
03010087 | Riverton, UT Wtr Rev Ref 2003 | |
03010088 | Riverton, UT Wtr Rev Ref 2003 | |
03010089 | Riverton, UT Wtr Rev Rfdg-2000B standalone surety | |
03010090 | Thomasville City, NC Rev 2003 | |
03010091 | Thomasville City, NC Rev 2003 | |
03010119 | San Francisco, CA Intl Arpt Series 29A&B | |
03010120 | San Francisco, CA Intl Arpt Series 29A&B | |
03010126 | Southern Illinois University, Rev 2003A | |
03010127 | Grandview (City of), MO COPs 2003 | |
03010131 | Simi Valley CDA, CA TAB 2003 | |
03010134 | Burlingame Fin Auth, CA Wtr Rev 03 | |
03010135 | Burlingame Fin Auth, CA Wtr Rev 03 | |
03010136 | Burlingame Fin Auth, CA Swr Rev 03 | |
03010153 | Passaic Valley Swr Comm, NJ Sewer Rev 03F | |
03010157 | Kansas City, MO Airport Rev 2003AB |
Policy Id |
Policy | |
03010158 | Kansas City, MO Airport Rev 2003AB | |
03010159 | Kansas City, MO Airport Rev 2003B surety | |
03010168 | Beaufort-Jasp Co W&S Auth, Rev 2003 Surety | |
03010169 | Beaufort-Jasp Co W&S Auth, Rev 2003 Surety Request | |
03010176 | Hobart & William Smith Colleges, Series 2003 | |
03010183 | South Gate Utility Authority,CA | |
03010184 | Wichita, Kansas Wtr & Sewer 2003 | |
03010185 | Wichita, Kansas Wtr & Sewer 2003 | |
03010189 | Upper Trinity Regional Water District, TX 2003 | |
03010199 | Brownsburg 1999 Sch Bldg Corp, IN Series 2003 | |
03010202 | Fairmont State College, WV Student Act Rev 2003B | |
03010203 | Fairmont State College, WV 2003A Coll Fac Rev | |
03010222 | San Francisco Redev. Proj TABS Series A,B & C | |
03010223 | San Francisco Redev. Proj TABS Series A,B & C | |
03010224 | SAN FRANCISCO REDEV PROJ, TABs 2003B (Surety) | |
03010225 | SAN FRANCISCO REDEV PROJ, TABs 2003C (Surety) | |
03010233 | SAN FRANCISCO REDEV PROJ, TABs 2003B (Surety) | |
03010237 | Lake Central Multi-Dist SBC, IN Lease Ref 2003 | |
03010243 | Indiana University, IN Student Fee, Series O | |
03010244 | Illinois Univ Board of Trustees, COP 2003 | |
03010268 | Polk County, FL Wtr./Swr. Sys 2003 | |
03010269 | Polk County, FL Wtr./Swr. Sys 2003 | |
03010280 | Cache County, UT Sales Tax Series 2003 | |
03010281 | Cache County, UT Sales Tax Series 2003 | |
03010283 | Triborough Bridge Subord Rev 2003 | |
03010290 | Kansas City, MO Airport Rev 2003B surety | |
03010291 | Haubstadt/Owensville SBC, In Lse Ref 03 | |
03010293 | North Dakota Bld Auth, ND Rev Ref 2003A | |
03010294 | Calif Depart Wtr-Central Valley Series Y 03 | |
03010295 | Eastern Michigan Univ Brd of Rgnts, MI Gen Rev 03A | |
03010297 | SAN FRANCISCO REDEV PROJ, TABs 2003C (Surety) | |
03010302 | Kansas City Metro Jr College Dist, MO COPs 03A | |
03010304 | Mesa, AZ Street & Highway Rev Ref 2003 | |
03010306 | Lafayette County, MO Lsehold Rev 03 (Justice Cntr) | |
03010308 | Mesa (City of), AZ Utility Sys Rev 03 | |
03010309 | Santa Clara Val Wtr, COP Sr 03A | |
03010324 | Monroe (City), LA Sales Tax Bonds Series 2003 | |
03010325 | Monroe (City), LA Sales Tax Bonds Series 2003 | |
03010340 | Arkansas Dev Fin. Auth, AK (Corr. Fac. Rev.) 2003A | |
03010341 | Arkansas Dev Fin. Auth, AK (Corr. Fac. Rev.) 2003A | |
03010349 | Mesa (City of), AZ Utility Sys Rev Surety 2003 | |
03010352 | Cucamonga County Water Dist, Ca COPS 2003 | |
03010353 | Cucamonga County, CA Water 2003 | |
03010354 | Deer Creek Drainage, PA Swr Rev 2003 | |
03010355 | Deer Creek Drainage, PA Swr Rev 2003 | |
03010357 | Fairfield, CA Water Rev Refg 2003 | |
03010359 | Shreveport, LA W&S Rev Ref 2003A | |
03010368 | Univ of Redlands (CEFA), CA Rev 2003 | |
03010373 | New Palestine Sch Bldg Corp, IN Lease 03 | |
03010375 | Cincinnati (Univ. of), OH GO 2003C | |
03010376 | Florida DEP Save Our Coast Sales Tax 2003A | |
03010377 | Pepperdine University, CA | |
03010381 | New York State DASNY-SUNY GO/Lease Surety | |
03010392 | Oxnard Finance Auth, CA Sewer Rev Ref 2003 | |
03010397 | Fort Myers (City), FL W&S Utility 2003A |
-67-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
03010398 | Fort Myers (City), FL W&S Utility 2003A | |
03010407 | State BOE (John C. Calhoun), AL Tuition Rev 2003A | |
03010408 | Fernandina Beach, Fl Utili Rev Ser 2003 | |
03010409 | Fernandina Beach, Fl Utili Rev Ser 2003 | |
03010417 | Franklin Cnty Pub- Wtr Dist, Mo Rev Bnds 03A | |
03010418 | Franklin Cnty Pub- Wtr Dist, Mo COPs 03B | |
03010419 | Franklin Cnty Pub- Wtr Dist, Mo Rfg CoPs 03C | |
03010432 | Greencastle Middle School Bldg Corp, 2003 | |
03010435 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010445 | Fresno, CA Water System 2003A | |
03010446 | Fresno, CA Water System 2003A | |
03010455 | King County, WA Sewer Rev Ref 2003 | |
03010456 | King County, WA Sewer Rev Ref 2003 | |
03010461 | Oklahoma Dept Corrections (ODFA), OK Lease Rev 03 | |
03010462 | Oklahoma Dept Corrections (ODFA), OK Lease Rev 03 | |
03010466 | New York City TFA 2003E | |
03010477 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010478 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010479 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010480 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010483 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010484 | DASNY- CUNY 3rd, 4th, 5th Res 2002 | |
03010486 | Prince William Cty,VA WtrSwr 2003 | |
03010491 | Ohio State Bldg Auth Wrk Comp Fac Lease 2003A Ref | |
03010497 | Hernando Co, Florida W&S Ref 2003 | |
03010504 | Winchester (City of), KY Rev 03 | |
03010519 | Clearfield City, UT Sales Tax Rev 2003 | |
03010520 | Clearfield City, UT Sales Tax Rev 2003 | |
03010521 | Simmons College (Mass HEFA) Priv Hghr Ed Rev 2003F | |
03010529 | Decatur Twp IN Mid Sch Bldg Corp 1st Mtg Ref 2003 | |
03010531 | Regional Transportation Authority, IL Sls Tx 03AC | |
03010532 | Regional Transportation Authority, IL Sls Tx 03AC | |
03010533 | Regional Transportation Auth, IL Sls Tx 03C Surety | |
03010540 | Cass County, MI GO Trans Fund 03 | |
03010552 | Cleveland State Univ, OH Gen Receipt 03A | |
03010554 | Blue River Valley Sch Build Corp, IN 1st mrtg 2003 | |
03010558 | Appalachian St Univ, BOG Univ of NC, NC Rev 2003 | |
03010563 | New Jersey City Univ, NJ Rev | |
03010570 | San Marcos Pub Fac Auth CA Proj Area 1 TAB | |
03010571 | San Marcos Pub Fac Auth CA Proj Area 1 TAB | |
03010572 | San Marcos Pub Fac Auth, CA 03 TAB Proj Area No. 2 | |
03010573 | San Marcos Pub Fac Auth, CA 03 TAB Proj Area No. 2 | |
03010574 | Azle (City of),TX Wtr & Swr Rev Ref 2003 | |
03010581 | University of Arizona, Series 2003 | |
03010584 | Florida Preservation 2000 Surety | |
03010587 | Leon County, FL Cap Impr Rev 2003A & 2003B (Txbl) | |
03010589 | Leon County, FL Cap Impr Rev 2003A & 2003B (Txbl) | |
03010591 | Port Authority of NY & NJ 130th Ser 2002 | |
03010599 | MTA Transportation Rev 2003 Series A | |
03010600 | Noblesville SE Pub Lib Bldg Corp, IN 1st Mrtg 2003 | |
03010606 | Washington Terrace (City), Utah W&S 2001 Surety | |
03010614 | Florida Forever Doc Stamp 2003A | |
03010615 | Florida Forever Doc Stamp 2003A | |
03010622 | Santa Ana Comm Redev Agency So Main, CA TABs 03AB | |
03010623 | Santa Ana Comm Redev Agency So Main, CA TABs 03AB |
Policy Id |
Policy | |
03010624 | Drew Univ, NJ NJEFA Rev 2003C | |
03010630 | Miami-Dade County, FL GARB 2003 A-F | |
03010631 | Miami-Dade County, FL GARB 2003 A-F | |
03010644 | Avondale (City of) Muni Dev Corp, AZ Exc Tax 2003 | |
03010652 | Connecticut Hlth & Educ Fac Auth, CT Rev Series E | |
03010657 | Pennsylvania (Commonwealth) GO 2nd Series 2003 | |
03010658 | Univ of Redlands (CEFA), CA Rev 2003B | |
03010660 | Baltimore (City), MD Wastewater Sr Lien 2003 A | |
03010661 | Baltimore (City), MD Water Senior Lien 2003 | |
03010671 | Avondale (City of) Muni Dev Corp, AZ Exc Tax 2003 | |
03010676 | Shreveport, LA W&S Rev Ref 2003B | |
03010677 | Hammond Multi-School Bldg Corp, IN Lease 03A | |
03010685 | Passaic (County of), NJ GO dtd 6/1/03 | |
03010688 | Volusia County, FL Wtr/Sew 03 Ref | |
03010689 | Volusia County, FL Wtr/Sew 03 Ref | |
03010693 | Miami-Dade Cnty SD, FL COP 2003D | |
03010696 | Sanibel (City of), FL Sewer Ulty Rev Ref 03 | |
03010697 | Sanibel (City of), FL Sewer Ulty Rev Ref 03 | |
03010703 | Duquesne Univ, PA Rev 2003 | |
03010704 | St. Peters (City of), MO Wtr/Swr Rev 2003 | |
03010705 | St. Peters (City of), MO Wtr/Swr Rev 2003 | |
03010720 | Univ/CC Sys, NV Rev (UNLV Dorm/UNR Park) 03B | |
03010737 | Cherokee Co W&S Auth, GA 2003 | |
03010738 | Cherokee Co W&S Auth, GA 2003 | |
03010745 | Jacksonville Airport Auth, FL Rev Ref 2003 | |
03010751 | Hillsborough Cnty, FL Sales Tax 2003 Fwd Swap | |
03010755 | Escambia County Utilities Authority, FL W&S 2003 | |
03010756 | Escambia County Utilities Authority, FL W&S 2003 | |
03010763 | Univ of Arkansas (Fort Smith), AR Rev 2003 | |
03010764 | Univ of Arkansas (Fort Smith), AR Rev 2003 | |
03010768 | Hillsborough County, Florida Utility Series 2003 | |
03010769 | Hillsborough County, Florida Utility Series 2003 | |
03010770 | Chandler, AZ W&S Senior Lien Rev 2003 | |
03010783 | Northern Kentucky Wtr Dist Rev 03 | |
03010784 | Milwaukee (City of), WI Sewer Sys Rev 2003 S4 | |
03010787 | New Jersey Turnpike Auth Rev 2003A | |
03010800 | Villanova Univ (Delaware Cnty Auth), PA Rev Ref 03 | |
03010801 | Broward County, FL Airport Rev Ref 2003K | |
03010814 | Key West (City of), FL Swr Sys Rev Ref 2003 | |
03010815 | Key West (City of), FL Swr Sys Rev Ref 2003 | |
03010821 | Bloomington (City of), IN Waterworks Rev Ref 2003 | |
03010822 | Bloomington (City of), IN Waterworks Rev Ref 2003 | |
03010823 | Bloomington (City of), IN Waterworks Rev SRF 2003A | |
03010825 | Deer Creek Drainage, PA Swr Rev Ref 2003A | |
03010826 | Deer Creek Drainage, PA Swr Rev Ref 2003A | |
03010829 | Bloomington (City of), IN Waterworks Rev SRF 2003B | |
03010830 | Clifton Park Wtr Auth, NY Rev Ref 2003A | |
03010831 | Clifton Park Wtr Auth, NY Rev Ref 2003A | |
03010835 | Rutgers State Univ GO, NJ GO Ref 2003C | |
03010849 | Arvada (City of), CO Sales/Use Tax Ref Rev 03 | |
03010867 | MTA Transportation Rev 2003 Series B | |
03010868 | Stuart, Fl - Pub Util Rev Rfdg 2003 | |
03010869 | Stuart, Fl - Pub Util Rev Rfdg 2003 | |
03010872 | Jacksonville Airport Auth, FL Rev Fwd Swap 03 | |
03010875 | Washington, DC Wtr/Swr Auth 2003 |
-68-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
03010876 | Washington, DC Wtr/Swr Auth 2003 | |
03010880 | Univ of Ill South Campus 2003A | |
03010882 | New Jersey (Lease) Econ Devel Auth 2003F | |
03010885 | Manchester (City of), NH Water Rev 2003 | |
03010893 | Lancaster County W&S District, SC 1999 Surety | |
03010894 | Lancaster County W&S District, SC 2003 | |
03010898 | Rogers (City of), AR Sales and Use Rev 2003 | |
03010899 | Rogers (City of), AR Sales and Use Rev 2003 | |
03010900 | Pasadena (City of), CA Water Rev Ref 2003 | |
03010901 | Turlock (City), CA (Pub Fin Auth) Swr Rev 2003A | |
03010910 | Orange County, CA Wtr Dist Rev COPs 2003B | |
03010920 | Florida St Ed Sys (FL Atlantic Univ), Hsg Rev 03 | |
03010921 | Florida St Ed Sys (FL Atlantic Univ), Hsg Rev 03 | |
03010928 | Arizona School Facilities Board COPs 2003B | |
03010931 | Yorba Linda Wtr Dist, CA Wtr Rev COP 2003 | |
03010932 | Yorba Linda Wtr Dist, CA Wtr Rev COP 2003 | |
03010940 | New York City TFA Future Tax Secured 2004A | |
03010942 | Alamo Comm Coll Dist, TX Comb Fee Rev Ref 2003 | |
03010943 | Alamo Comm Coll Dist, TX Comb Fee Rev Ref 2003 | |
03010945 | Valparaiso Middle Sch Bldg Corp, IN Ref Bds 2003 | |
03010952 | Metropolitan Water Dist, CA Rev 03, Ser B-1 & B-2 | |
03010953 | Metropolitan Water Dist, CA Rev 03, Ser B-1 & B-2 | |
03010954 | St. Petersburg (City of) ,FL Excise Tx Ref Rev 02 | |
03010968 | Metro Washington DC Arpt 2003 B | |
03010969 | Metro Washington DC Arpt 2003 B | |
03010978 | Plainfield (Town of), IN Wtrwrks Rev 2003 | |
03010979 | Plainfield (Town of), IN Wtrwrks Rev 2003 | |
03010980 | Plainfield (Town), IN Swgwks Rev 2003A & Ref 2003B | |
03010981 | Plainfield (Town), IN Swgwks Rev 2003A & Ref 2003B | |
03010984 | Oregon (State of) Dept. of Admin COPs 2003C | |
03010990 | Project 7 Water Authority, Co 03 Ref | |
03010991 | Project 7 Water Authority, Co 03 Ref | |
03010995 | Metro Washington, D.C. Arpts 2003C | |
03010996 | Metro Washington DC Arpt 2003 A | |
03010998 | Gilbert (Town), AZ Street/Hghwy Rev (Proj 2003) 03 | |
03011006 | North Harris Cnty. Reg. Wtr. Auth., TX Rev. 2003 | |
03011007 | Kean University, NJ Revenue Bds 2003D | |
03011009 | North Harris Cnty. Reg. Wtr. Auth., TX Rev. 2003 | |
03011010 | Eureka (City of) Redevl Agency, CA Ref TABs 03 | |
03011015 | Kansas City SD, MO Bldg Corp Lease Rev 2003B Appr. | |
03011017 | Columbus, OH, Reg Airport 2003 | |
03011024 | Norristown Muni Wst Auth, PA Swr Rev 2003 | |
03011025 | Acton MUD, TX Util Rev & Ref 2003 | |
03011038 | Rhode Island EDC (Arpt) 03A | |
03011039 | Rhode Island EDC (Arpt) 03A | |
03011046 | Hillsboro (City of), OR Wtr Rev 2003 | |
03011047 | Hillsboro (City of), OR Wtr Rev 2003 | |
03011059 | Colorado Water Res/Pwr Dev Auth, CO (Clifton) 03 | |
03011062 | Vermont State Colleges, VT Rev 2003 | |
03011072 | Albany (City of), OR Water Rev and Ref 2003 | |
03011073 | Albany (City of), OR Water Rev and Ref 2003 | |
03011083 | Rowan Univ. (NJEFA), NJ Rev 2003I & 2003J | |
03011087 | Indiana SOBC Lease 03 B (Evansville St Hospital) | |
03011091 | Cape Girardeau County, MO Lease COPs 2003 | |
03011093 | Upper Mohawk Reg Water Fin Auth Rev 03 |
Policy Id |
Policy | |
03011094 | Mansfield Park Fac Dev Corp, TX Sales Tax Rev 03 | |
03011095 | Mansfield Park Fac Dev Corp, TX Sales Tax Rev 03 | |
03011105 | Carson City, NV Hghwy Rev (Motor Veh Fuel Tax) 03 | |
03011106 | Colorado Water Res & Pwr Dev Auth, CO 2003A | |
03011107 | Colorado Water Res/Pwr Dev Auth, CO (Eaton) Rev 03 | |
03011115 | Hammond Multi-School Bldg Corp, IN Lease 03B | |
03011117 | Los Banos (City), CA Rev Ref COPs 03 (93 Swr Proj) | |
03011119 | Metro Nashville Arpt Auth,TN Rev 03B | |
03011120 | Metro Nashville Arpt Auth,TN Rev 03B | |
03011121 | Wisconsin (State) Motor Veh Reg 2003A | |
03011129 | McKinney (City of), TX Wtrwks/Swr Sys Rev 2003 | |
03011135 | Northern Arizona Univ, AZ Rev 2003 | |
03011138 | El Dorado Irrigation Dist (EID), CA Rev COPs 2003A | |
03011139 | El Dorado Irrigation Dist (EID), CA Rev COPs 2003A | |
03011145 | Castle Rock (Town of), CO W&S Enterprise Rev 03 | |
03011146 | Castle Rock (Town of), CO W&S Enterprise Rev 03 | |
03011155 | Connecticut (State of), CT Special Tax Transp 03B | |
03011158 | Univ of North Alabama, AL Gen Fee (sub) Rev 2003 | |
03011160 | Kansas State DOT Highway Rev Ref 2003AB | |
03011161 | Alaska (Univ of), AK Gen Rev 2003L | |
03011162 | Alaska (Univ of), AK Gen Rev 2003L | |
03011168 | Shreveport (City of), LA W&S Rev Ref 2003C | |
03011181 | Chino Hills (City of), CA Water Sys Ref COPs 2003 | |
03011182 | Chino Hills (City of), CA Water Sys Ref COPs 2003 | |
03011183 | Norman Utilities Auth, OK Util Rev Ref 03 | |
03011184 | Norman Utilities Auth, OK Util Rev Ref 03 | |
03011186 | SUNY (DASNY), NY Lease Rev 03BC | |
03011187 | SUNY (DASNY), NY Lease Rev 03A | |
03011188 | Butte-Silver Bow, MT Water 2003 | |
03011189 | Butte-Silver Bow, MT Water 2003 | |
03011191 | Columbus State Comm College, OH Rev 03 | |
03011204 | Atlanta (City of), GA Airport Rev Ref 2003RF-D | |
03011205 | Atlanta (City of), GA Airport Rev Ref 2003RF-D | |
03011206 | Arcata (City), CA Jt PFA Rev Ref TAB 2003 | |
03011209 | Monroe County Comm School Corp, IN Rev 1st Mort 03 | |
03011216 | Lansing, MI Sewer Rev Rfd 2003 | |
03011218 | Lancaster Redev Agy, CA Comb Redev Proj Hsg 04 | |
03011219 | Lancaster Fin Agy, CA TABS Projs Res & Amar 2004 | |
03011220 | Sacramento Cnty PFA, CA TABs Series 2003AB | |
03011223 | Yakima (City of), WA W&S Rev 2003AB | |
03011227 | San Jose (City of) RDA, CA Merged Area TABs 2003 | |
03011234 | Fairfield SBC, IN Lease Rev 2003 | |
03011241 | Alabama PS & College Auth, AL Cap Impr Rev 03 | |
03011242 | Sacramento Cnty PFA, CA TABs Series 2003B | |
03020011 | New York City TFA 98B | |
03020013 | New York City TFA 98B | |
03020014 | Triborough Bridge General Purpose 2002B | |
03020015 | MTA Transportation Rev 2002 46BP | |
03020023 | MTA Transportation Rev 2002 46BP | |
03020031 | NYS Personal Income Tax (NYS UDC) 03A-1/A-2 | |
03020040 | MTA Transportation Rev 2002 46BP | |
03020047 | MTA Transportation Rev 2002E | |
03020056 | MTA Transportation Rev 2002 46BP | |
03020062 | DASNY New York St Personal Income Tax | |
03020064 | Los Angeles Dept Wtr&Pwr 01WTR |
-69-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
03020068 | New York City TFA 98B | |
03020069 | New York City TFA 98B | |
03020070 | New York City TFA 98B | |
03020074 | New York City TFA 98B | |
03020075 | New York City TFA 98B | |
03020078 | Alabama PS & College Auth, AL Cap Impr Rev 03 | |
04010005 | Brandeis University, MA Rev Series K | |
04010014 | Castle Rock (Town of) CO W&S Enterprise Rev 04 | |
04010015 | Castle Rock (Town of) CO W&S Enterprise Rev 04 | |
04010016 | Akron (City of), OH Income Tax Rev 2004A | |
04010021 | Wayne State Univ, MI Gen Rev 2003B | |
04010023 | Akron (City of), OH Income Tax Rev 2004B | |
04010024 | Santa Clara Valley Wtr Dist, CA Ref COPs 04A | |
04010025 | Santa Clara Valley Wtr Dist, CA Ref COPs 04A | |
04010027 | Miss State Univ EBC, MS Rev 04 (Power Generation) | |
04010029 | San Dieguito Water Dist, CA Wtr Rev Ref 2003 | |
04010033 | Mesa (City of), AZ Utility Sys Rev Ref 2004 | |
04010034 | Mesa (City of), AZ Street & Highway Rev Ref 2004 | |
04010037 | Honolulu (City&Cnty of), HI Wtr Sys Rev 04A | |
04010038 | Honolulu (City&Cnty of), HI Wtr Sys Rev 04A | |
04010039 | William Paterson Univ (NJEFA), NJ Rev 2004 A | |
04010042 | Muscle Shoals (City) Utl Bd, AL Wtr&Swr Rev Ref 04 | |
04010043 | Muscle Shoals (City) Utl Bd, AL Wtr&Swr Rev Ref 04 | |
04010045 | York College, PA Rev 2003 | |
04010047 | Ramapo College (NJEFA), NJ Rev 2003H | |
04010048 | Port Authority of NY & NJ 133rd & 134th Cons. Bds | |
04010052 | Kansas City, KS (Wyandotte)Swr Loans (Jr Lien) 03 | |
04010064 | Louisville & Jefferson Metro Swr Dist, KY Rev 04A | |
04010068 | Vancouver (City of), WA W&S Rev Ref 2003 | |
04010073 | Tampa Bay Regional Water Authority, FL 2004 Ref | |
04010074 | Boise State Univ, ID General Rev 2004 | |
04010076 | DASNY Dept of Health, NY Rev Ref 2004 | |
04010080 | San Francisco Redev Proj, TABs 1993B Surety | |
04010087 | Univ of Akron, OH Gen Receipts 2004 | |
04010090 | Cincinnati/Hamilton Co Conven Auth, OH Hotel Tx 04 | |
04010091 | Cincinnati/Hamilton Co Conven Auth, OH Hotel Tx 04 | |
04010092 | Cincinnati/Hamilton Co Conv Auth, OH Hotel Jr Lien | |
04010098 | Virgin Valley Water District, NV Wtr Rev Ref 2004 | |
04010099 | Virgin Valley Water District, NV Wtr Rev Ref 2004 | |
04010100 | Palm Beach Cnty, FL Non-Ad Vlm Rev Ref 2004 | |
04010101 | Palm Beach Cnty, FL Non-Ad Vlm Rev Ref 2004 | |
04010106 | Dearborn (City of), MI Sewage Disp Rev Ref 04 | |
04010107 | Arkansas St Univ (Jonesboro), AR Housing Rev 2004 | |
04010108 | Arkansas St Univ (Jonesboro), AR Housing Rev 2004 | |
04010109 | Arkansas St Univ (Jonesboro), AR Stud Fee Rev 2004 | |
04010110 | Arkansas St Univ (Jonesboro), AR Stud Fee Rev 2004 | |
04010111 | Long Beach (Port of), CA 04 AB | |
04010115 | Provo (City of), UT Sales Tax Rev 04 (Taxable) | |
04010117 | Harris County, TX Toll RD Sr Lien Rev & Ref 04A | |
04010122 | Indiana SOBC, IN Lease Rev 2004 ABC | |
04010124 | Manitowoc Public Utilities, WI Electric Rev 2004A | |
04010127 | California (State Of) GARVEEs, CA 04A | |
04010132 | Metropolitan Transpotation Authority, NY DTF2004A | |
04010134 | Wildlife Conservation Society, 2004 | |
04010136 | Mountains RCA Assesm Dist No. 1, CA Rev 04 |
Policy Id |
Policy | |
04010137 | Mountains RCA Assessment Dist No. 2, CA Rev 04 | |
04010138 | Indiana SOBC, IN Lease Rev 2004B | |
04010140 | Indiana SOBC, IN Lease Rev 2004C | |
04010142 | Bergen County Utilities Authority, NJ Wtr Rev2004A | |
04010144 | Northeastern State University (OK BOR), OK Rev 04 | |
04010145 | Northeastern State University (OK BOR), OK Rev 04 | |
04010146 | Boston University (Mass Development Finance Auth) | |
04010148 | Gary Comm School Corp, IN 1st Mrtg 2004 | |
04010150 | Penta Career Center, OH Lease Rev COPs dtd 3/1/04 | |
04010151 | Tulsa Intl Air, OK Gen Rev 04 (Improvement Trust) | |
04010152 | Tulsa Intl Air, OK Gen Rev 04 (Improvement Trust) | |
04010157 | KDFA (Kansas Projects), KS Rev 04A | |
04010159 | Duquesne University, PA Rev Student Hous 2004 | |
04010160 | Duquesne Univ, PA Rev Student Hous 2004 | |
04010167 | Fond du Lac (City of), WI Waterworks Sys Rev 04 | |
04010171 | Fond du Lac (City of), WI Sewer Sys Rev 04 | |
04010174 | Arizona School Facilities Board COPs 2003C forward | |
04010180 | Mansfield (City of), TX W&S Rev Ref 04 | |
04010182 | Sevier County MBA, UT Rev 04 | |
04010183 | Nogales MDA, AZ Muni Fac Rev 04A & 04B (Taxable) | |
04010187 | Nogales MDA, AZ Muni Fac Rev 04A & 04B (Taxable) | |
04010188 | Jacksonville Elec Auth, FL W&S Sr Lien Rev Ref04AB | |
04010189 | Jacksonville Elec Auth, FL W&S Sub Lien Rev 04A | |
04010190 | Jacksonville Elec Auth, FL W&S Sub Lien Rev 04A | |
04010193 | Nevada Real Property Corporation COPs Rev 04 | |
04010196 | Fletcher Allen Health Care04 | |
04010198 | Stockton RDA (Events Center), CA Rev 04 | |
04010204 | Richland-Bean Blossom 2000 SBC, IN 1st Mrtg 04 | |
04010209 | Florida State Univ, FL Hsg Rev 2004A | |
04010210 | Florida State Univ, FL Hsg Rev 2004A | |
04010215 | Scottsdale Preserve Auth, Excise Rev Ref 04 | |
04010216 | Univ of North Dakota, ND Aux Fac Rev 04 | |
04010218 | Riverton (City of), UT Wtr Rev Ref 2004 | |
04010219 | Riverton (City of), UT Wtr Rev Ref 2004 | |
04010220 | Santa Rosa (City of), CA Wastewater Rev 04B | |
04010222 | CenterPt Engy Houston Elect (Gulf Coast ), TX 04 | |
04010223 | CenterPt Energy Houston Elect (Brazos), TX Ref 04A | |
04010226 | Port St. Lucie (City), FL Gas Tax Ref & Imp Rev 04 | |
04010232 | San Francisco Redev Proj, TABs 2004 A | |
04010233 | San Francisco Redev Proj, TABs 2004 A | |
04010236 | Univ of South Alabama, AL Rev 04 | |
04010237 | Miami-Dade Co, FL Airport Rev 04ABC | |
04010238 | Miami-Dade Co, FL Airport Rev 04ABC | |
04010242 | Colorado DOT TRANS, CO Rev 2004AB | |
04010244 | Southmont SBC, IN 1st Mrtg 2004 | |
04010247 | Harris County, TX Toll RD Sr Lien Rev & Ref 04B-1 | |
04010248 | Harris County, TX Toll RD Sr Lien Rev & Ref 04B-2 | |
04010255 | Palm Beach County SD, FL COPs 2004A | |
04010259 | Centennial Water & Sani Dist, CO Rev and Ref 04 | |
04010260 | Centennial Water & Sani Dist, CO Rev and Ref 04 | |
04010263 | Alabama Power, AL Sr. Unsecured 04 (Taxable) | |
04010264 | Birmingham (City of), AL W&S Rev 04AB | |
04010265 | Miami-Dade Co, FL Cap Asset Acquis MUNI-CPI 04A | |
04010266 | Miami-Dade Co, FL Cap Asset Acquis MUNI-CPI 04A | |
04010269 | Chelan Hydro Cons System (PUD #1), WA Rev 04 |
-70-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
04010270 | Chelan Hydro Cons System (PUD #1), WA Rev 04 | |
04010271 | Chelan Hydro Cons System (PUD #1), WA Rev 04B | |
04010272 | Chelan Hydro Cons System (PUD #1), WA Rev 04B | |
04010273 | Chelan Hydro Cons System (PUD #1), WA Rev 04C | |
04010274 | Chelan Hydro Cons System (PUD #1), WA Rev 04C | |
04010275 | Chelan Hydro Cons System (PUD #1), WA Rev 04E | |
04010276 | Chelan Hydro Cons System (PUD #1), WA Rev 04E | |
04010278 | South Ogden City, UT Sales Tax Rev & Ref 04 | |
04010279 | South Ogden City, UT Sales Tax Rev & Ref 04 | |
04010283 | Southwest Parke Comm SBC, IN Lease Rev 2004 | |
04010284 | Skidmore College (DASNY), NY Insured Rev 2004 | |
04010303 | California (State of) Econ. Recovery Bonds, 2004 | |
04010310 | Sacramento (SMUD), CA Elec Rev 04T | |
04010311 | Phoenix (City of), AZ Cons Car Rental Fac Rev | |
04010312 | Phoenix (City of), AZ Cons Car Rental Fac Rev | |
04010313 | Bradley Intl Arpt, CT Rev Ref 04 | |
04010317 | Moberly (City of), MO W&S Rev 04 | |
04010320 | Anaheim Pub Fin Auth, CA Mello Roos 04A | |
04010321 | Anaheim Pub Fin Auth, CA Mello Roos 04A | |
04010322 | Indiana Transport Fin Auth, IN Hwy Rev 04A | |
04010323 | Myrtle Beach (City of), SC Accomod Fee Rev 2004AB | |
04010324 | Myrtle Beach (City of), SC Accomod Fee Rev 2004 | |
04010325 | Fashion Inst of Tech (SUNY), NY Rev 2004 | |
04010326 | Tacoma (City of), WA Elec Rev 04A | |
04010327 | Houston (City of), TX Comb Util Rev Ref 04ABC | |
04010331 | Energy Northwest, WA Elec Rev Ref 04 | |
04010332 | Univ of New Orleans (LSU BOS), LA Std Fee Rev 04A | |
04010333 | Univ of New Orleans (LSU BOS), LA Std Fee Rev 04A | |
04010341 | Oklahoma City (City of), OK W&S Sys Rev 04 | |
04010342 | Oklahoma City (City of), OK W&S Sys Rev 04 | |
04010343 | Kentucky Turnpike Auth, KY Lease Rev 04A | |
04010344 | Texas Mun Pwr Agy (TMPA) Sub Lien, TX Elec Ref 04 | |
04010345 | Texas Mun Pwr Agy (TMPA) Sub Lien, TX Elec Ref 04 | |
04010346 | Port Orange (City of), FL Excise Rev 04 | |
04010354 | Central Washington Univ (SUB/REC), WA Rev 04 | |
04010355 | Lincoln University, PA | |
04010356 | Oxnard Finance Auth, CA Sewer Rev 2004A | |
04010357 | Oxnard Finance Auth, CA Sewer Rev 2004A | |
04010359 | Massachusetts Commonwealth, MA Hotel Tax Rev 04 | |
04010360 | Massachusetts Commonwealth, MA Hotel Tax Rev 04 | |
04010364 | Anaheim Pub Fin Auth, CA Mello Roos 04A SY | |
04010371 | South Jersey Transp Auth, NJ Rev Rev 2004 A | |
04010376 | San Antonio (City), TX Sr. Lien Wtr Rev Ref 04 | |
04010377 | San Antonio (City), TX Sr. Lien Wtr Rev Ref 04 | |
04010378 | San Antonio (City), TX Jr. Lien Wtr Rev Ref 04 | |
04010379 | San Antonio (City), TX Jr. Lien Wtr Rev Ref 04 | |
04010380 | San Antonio (City), TX Jr. Lien Wtr Rev Ref 04A | |
04010381 | San Antonio (City), TX Jr. Lien Wtr Rev Ref 04A | |
04010384 | Clay County Bldg Corp, IN Lease Rev 04 | |
04010385 | Kansas City, MO GARB Rev Ref 04E | |
04010386 | Kansas City, MO GARB Rev Ref 04E | |
04010387 | Port of Seattle, WA Rev Rfdg 2004 | |
04010388 | Port of Seattle, WA Rev Rfdg 2004 | |
04010390 | Stockton PFA (Parking & Cap Projects), CA Rev 04 | |
04010392 | Childrens Hosp Med Ctr, OH, Rev Ref 04 |
Policy Id |
Policy | |
04010398 | Watsonville (City of) RDA, CA TABS | |
04010399 | Watsonville (City of) RDA, CA TABS Ref 04A | |
04010400 | Jackson State University (EBC), MS Rev 04 | |
04010402 | South Orange Cnty PFA (Foothill), CA Rev Ref 04A | |
04010407 | Indiana Transport Fin Auth, IN Hwy Rev 04B | |
04010409 | Leesburg (City of), FL Electric Util Sys Rev 04 | |
04010411 | Leesburg (City of), FL Electric Util Sys Rev 04 | |
04010412 | Leesburg (City of), FL Wtr/Gas Util Sys Rev 04 | |
04010413 | Leesburg (City of), FL Wtr/Gas Util Sys Rev 04 | |
04010414 | Oregon Fac Auth (Willamette Univ), OR Rev 04A | |
04010415 | Allen County Pub Lib Bldg Corp, IN Lease Rev 04 | |
04010429 | Massachusetts Commonwealth, MA Hotel Tax Rev 04 | |
04010430 | Massachusetts Commonwealth, MA Hotel Tax Rev 04 | |
04010431 | Massachusetts Commonwealth, MA Hotel Tax Rev 04 | |
04010436 | Kearns Improv Dist, UT Sewer Rev Surety | |
04010439 | Saginaw Valley St Univ, MI Rev Ref 04 | |
04010446 | Central Ark Univ BOT, AR Rev 04A/Tax 04B & Aux 04C | |
04010450 | Indiana Transport Fin Auth, IN Hwy Rev 04C | |
04010454 | Miami-Dade County SD, FL Lease Rev COPs 04A | |
04010461 | Rutgers St Univ, NJ Rev 04E | |
04010464 | Corona RDA, CA TAB Ref 04 | |
04010466 | Corona RDA, CA TAB Ref 04 | |
04010468 | Alamo Comm Coll Dist, TX Comb Fee Rev 04 | |
04010471 | Denver Reg Trans Dist (RTD), CO Rev COPS 04A | |
04010472 | Nevada (State of), NV Hwy Impr Motor Fuel Tax 04 | |
04010473 | Miami-Dade County Expwy Auth, FL Toll Rev 04AB | |
04010474 | Miami-Dade County Expwy Auth, FL Toll Rev 04AB | |
04010476 | Leesburg (City of)), FL Cap Imp Rev 04 | |
04010477 | Leesburg (City of)), FL Cap Imp Rev 04 | |
04010480 | Cleveland State Univ, OH Rev 04 | |
04010484 | Lucia Mar USD, CA COPS 04AB | |
04010485 | Lucia Mar USD, CA COPS 04AB | |
04010486 | Otay Water District, CA Rev Ref 04 | |
04010487 | Otay Water District, CA Rev Ref 04 | |
04010490 | West Palm Beach, FL W&S Util 2004 | |
04010494 | Clark County (McCarran Arpt), NV SubLien Rev 04ABC | |
04010495 | North Dakota St Univ, ND Auxil Fac Rev 04 | |
04010503 | Houston (City of), TX Wtr&Swr Jr Lien 2004-AB | |
04010506 | Miami-Dade Co., FL W&S Surety 97 | |
04010508 | Miami-Dade Co., FL W&S Surety 99A | |
04010509 | Florida Muni Power Agy, FL Rev 04 | |
04010510 | Monroe Co Comm Sch Corp, IN Lease Rev Ref 04 | |
04010511 | Piedmont Muni Pwr Ag, SC Elec Rev 04AB | |
04010512 | Florida Muni Power Agy, FL Rev 04 | |
04010513 | Florida Muni Power Agy, FL Rev 04 | |
04010519 | Franklin Comm SBC, IN Lse Rev 04 | |
04010525 | Univ of Washington (Biomed Prop I), WA Lse Rev 04A | |
04010532 | Concord Hospital, NH Rev 04 | |
04010533 | Grand Rapids, MI Sani Swr Sys Rev 04 | |
04010534 | Grand Rapids, MI Sani Swr Sys Rev 04 | |
04010536 | Puerto Rico Electr Power Auth, PR Rev Ref OO | |
04010538 | El Dorado Irrig Dist, CA Fixed Rev Ref COPS 04A | |
04010541 | Murrieta Valley USD (CFDs), CA Mello Roos 04 | |
04010542 | Murrieta Valley USD (CFDs), CA Mello Roos 04 | |
04010543 | Michigan State Trunk Line, MI Gas Tax 04 |
-71-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
04010545 | New Jersey EDA (Sch Fac Constr), NJ Lease Rev 04I | |
04010546 | West Virginia Higher Ed Policy Comm, WV Rev 04B | |
04010548 | New Jersey Trans Trust Fund Auth, NJ Rev 2004A | |
04010551 | Alabama St. Univ., AL GO | |
04010552 | Alabama St. Univ., AL GO | |
04010553 | Alabama St. Univ., AL GO | |
04010555 | New York University, NY Rev 04AB | |
04010566 | Fulton County, GA W&S Rev 04 (Tax-Ex) | |
04010567 | Southwest Gas Corp (Ind Dev Auth), NV Rev 04 | |
04010568 | Manatee County, FL Rev Impv 04 | |
04010569 | Manatee County, FL Rev Impv 04 | |
04010576 | Sarasota Co Sch Bd, FL Lease Rev 04 | |
04010577 | Palmdale Water District, CA Rev COPs 04 | |
04010578 | Palmdale Water District, CA Rev COPs 04 | |
04010583 | Northwestern SBC, IN Lease Rev 04 | |
04010588 | Beaumont (City of), TX Wtr & Swr Rev 04 | |
04010589 | Beaumont (City of), TX Wtr & Swr Rev 04 | |
04010591 | Schenectady Metroplex Dev Auth, NY Gen Res 04A | |
04010596 | Univ of Central Florida, FL (UCFAA) COPs 04 | |
04010599 | Riviera Beach (City of), FL W&S Rev 04 | |
04010600 | Riviera Beach (City of), FL W&S Rev 04 | |
04010601 | Public Utility Dist #1 (Cowlitz Cnty), WA Rev 04 | |
04010602 | Public Utility Dist #1 (Cowlitz Cnty), WA Rev 04 | |
04010607 | Manteca USD, CA CFD 1989-2 2004D | |
04010608 | Manteca USD, CA CFD 1989-2 2004D | |
04010612 | Iowa BOR (State Univ of), IA Acad Bldg S.U.I. 2004 | |
04010624 | Louisiana State Univ (New Orleans), LA Rev Ref 04 | |
04010625 | Louisiana State Univ (New Orleans), LA Rev Ref 04 | |
04010634 | Sierra Joint CCD, CA COPS 04 | |
04010635 | Sierra Joint CCD, CA COPS 04 | |
04010640 | Lee Co IDA (Bonita Springs Util), FL W&S 04A | |
04010641 | Lee Co IDA (Bonita Springs Util), FL W&S 04A | |
04010642 | New Jersey Trans Trust Fund Auth, NJ Rev 2004B | |
04010645 | Coastal Water Auth, TX Rev 04 (Houston City Proj) | |
04010647 | Coastal Water Auth, TX Rev 04 (Houston City Proj) | |
04010650 | Hallsdale-Powell UD, TN WWks & Swr Rev 04 | |
04010651 | Hallsdale-Powell UD, TN WWks & Swr Rev 04 | |
04010659 | Lebanon Pub Library, IN Lease Rev 04 | |
04010664 | Lee County, FL 5 Cent Gas Tax Ref Rev 04 | |
04010665 | Lee County, FL 5 Cent Gas Tax Ref Rev 04 | |
04010666 | Delaware Transportation Auth, DE Rev Sr Lien 04 | |
04010668 | Saginaw Valley St Univ, MI Gen Rev 04B | |
04010673 | Ramapo College (NJEFA), NJ Rev 04E | |
04010674 | Ramapo College (NJEFA), NJ Rev 04E | |
04010679 | Univ of Akron, OH Gen Receipts 2004B | |
04010680 | Emerald Coast Util Auth, FL Ref Rev 2004 | |
04010681 | Emerald Coast Util Auth, FL Ref Rev 2004 | |
04010686 | High Point (City of), NC Comb Enterprise Rev 04 | |
04010687 | High Point (City of), NC Comb Enterprise Rev 04 | |
04010688 | New York STAR Corp, NY Rev 05AB | |
04010690 | Indiana MPA, IN Electr Rev 04A | |
04010691 | Indiana Bond Bank, IN Spec Prgm 04D | |
04010692 | Indiana Bond Bank, IN Spec Prgm 04D | |
04010702 | Osceola Co Sch Brd, FL Lease Rev 04A | |
04010703 | Osceola Co Sch Brd, FL Lease Rev 04B |
Policy Id |
Policy | |
04010706 | Mississippi St Univ EBC (Res Hall), MS Rev Ref 04A | |
04010718 | Melbourne (City of), FL W&S Rev 04 | |
04010719 | Melbourne (City of), FL W&S Rev 04 | |
04010721 | Lancaster RDA (Proj Areas), CA Mark-Roos 04 | |
04010722 | Lancaster RDA (Housing Program), CA TAB 04 | |
04010723 | Washington (Columbia Basin CC), WA COPS Rev 04F | |
04010725 | Erie City, PA Water Authority 2004 | |
04010726 | Brevard County SD, FL Lease Rev 04AB | |
04010730 | Pulaski Tech College (Board of Trust), AR Rev 04 | |
04010732 | Riverside (City) Redev Ag, CA TAB 04A | |
04010738 | Polk County, FL Util Sys Rev 04A & Ref 04B | |
04010739 | Polk County, FL Util Sys Rev 04A & Ref 04B | |
04010740 | Dunklin County, MO COPS 04 | |
04010741 | Mooresville (Town of), NC Enterprise Sys Rev 04 | |
04010742 | Mooresville (Town of), NC Enterprise Sys Rev 04 | |
04010745 | West Virginia (Univ of), WV Rev 04BC | |
04010755 | Aqua Pennsylvania, PA Rev 04 | |
04010756 | Camden (City of), SC Combined Util Rev Ref 04 | |
04010757 | Camden (City of), SC Combined Util Rev Ref 04 | |
04010758 | Univ of Colorado BOR, CO Enterprise Sys Rev 04 | |
04010760 | Lower Colorado River Auth (LCRA), TX Rev Ref 04D | |
04010761 | Lower Co Riv Auth (LCRA-Trans Svc), TX Elec Rev 04 | |
04010765 | West Virginia (Univ of), Auction Rate Rev 04A | |
04010766 | Ceres USD, CA COPS 04 | |
04010768 | Portland (Interstate Corridor), OR TIF Rev 04A | |
04010769 | Portland (Interstate Corridor), OR TIF Rev 04A | |
04010770 | New Albany-Floyd Co SBC, IN Lease Rev Ref 04 | |
04010771 | DASNY (Catskill Reg Med Ctr), NY Rev 04 | |
04010772 | Big Creek Util Dist (Grundy Co), TN Wtr Rev Ref 04 | |
04010774 | Montefiore Med Center (DASNY), NY Hosp Rev 04 | |
04010776 | NYS PIT (NYS Urban Dev Corp) 04A-1 | |
04010781 | New Jersey Bldg Auth, NJ Lease Rev 04A | |
04010783 | New Jersey Bldg Auth, NJ Lease Rev 04B | |
04010786 | Northern Arizona Univ, AZ Sys Rev Ref 04 | |
04010789 | Aurora Sch Bldg Corp, IN Lease Rev 04 | |
04010791 | Brevard County SD, FL Lease Rev 04B | |
04010796 | NYS Environmental Fac Corp State PIT Rev 04A&B | |
04010802 | St Louis Muni Fin Corp (Forest Park), MO Lse 04 | |
04010803 | St Louis Muni Fin Corp (Forest Park), MO Lse 04 | |
04010807 | Port Authority of NY & NJ 138th Cons. Bds | |
04010808 | San Francisco, CA Intl Airport Issue 32 Rev Ref | |
04010810 | San Francisco, CA Intl Airport Issue 32 Rev Ref | |
04020012 | California DWR Power Supply Rev. Bonds 2002A | |
04020018 | California DWR Power Supply Rev. Bonds 2002A | |
04020019 | New York St Tobacco Settl Fin Corp, NY Rev 2003B | |
04020020 | California (State of) Econ. Recovery Bonds, 2004 | |
04020021 | California (State of) Econ. Recovery Bonds, 2004 | |
04020023 | New York St Tobacco Settl Fin Corp, NY Rev 2003B | |
04020030 | New York City TFA 2004B | |
04020032 | New York City TFA 2004B | |
04020033 | New York City TFA 1999A&B | |
04020034 | New York LGAC Sales Tax 93D/E | |
04020037 | New York City TFA 2004B | |
04020039 | Port Authority of NY Consol 85 | |
04020040 | New York St Tobacco Settl Fin Corp, NY Rev 2003B |
-72-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
04020041 | New York City TFA 98B | |
04020042 | New York City TFA 2003D | |
04020045 | New York City TFA 1999A&B | |
04020046 | New York City TFA 2004C | |
04020047 | New York City TFA 2004C | |
04020048 | New York St Tobacco Settl Fin Corp, NY Rev 2003A | |
04020051 | New York City TFA 2004C | |
04020052 | New York City TFA 2004C | |
04020053 | Virgin Islands Pub Fac Auth 2003A | |
04020062 | New York City TFA 2004C | |
04020067 | California (State of) Econ. Recovery Bonds, 2004 | |
04020069 | New York City TFA 2004C | |
04020070 | New York City TFA 2003B | |
04020072 | New York St Tobacco Settl Fin Corp, NY Rev 2003A | |
04020079 | California (State of) Econ. Recovery Bonds, 2004 | |
04020083 | Upstate Comm Colleges (DASNY), NY Rev 04 | |
04020084 | Upstate Comm Colleges (DASNY), NY Rev Ref 04B | |
04020085 | Upstate Comm Colleges (DASNY), NY Rev Ref 04B | |
04020086 | Upstate Comm Colleges (DASNY), NY Rev Ref 04B | |
04020087 | Upstate Comm Colleges (DASNY), NY Rev 04 | |
04020088 | Upstate Comm Colleges (DASNY), NY Rev Ref 04B | |
04020089 | Upstate Comm Colleges (DASNY), NY Rev 04 | |
04020092 | New York City TFA 2003D | |
04020094 | California (State of) Econ. Recovery Bonds, 2004 | |
04020095 | California (State of) Econ. Recovery Bonds, 2004 | |
04020096 | New York City TFA 2004C | |
04020097 | California (State of) Econ. Recovery Bonds, 2004 | |
04020099 | California (State of) Econ. Recovery Bonds, 2004 | |
04020100 | California (State of) Econ. Recovery Bonds, 2004 | |
04020101 | New Jersey Trans Trust Fund Auth, NJ Rev 99 A | |
04020102 | New Jersey (Lease) Econ Devel Auth 2003F | |
04020103 | California SPWB (Univ CA ), CA Lse 04F | |
04020104 | California SPWB (Univ CA ), CA Lse 04F | |
04020105 | California SPWB (Univ CA ), CA Lse 04F | |
04020107 | California (State of) Econ. Recovery Bonds, 2004 | |
04020108 | California (State of) Econ. Recovery Bonds, 2004 | |
04020109 | New York St Tobacco Settl Fin Corp, NY Rev 2003A | |
04020110 | New York City TFA 2004C | |
04020113 | California (State of) Econ. Recovery Bonds, 2004 | |
04020114 | California (State of) Econ. Recovery Bonds, 2004 | |
05010001 | Chelan Hydro Cons System (PUD #1), WA Rev 05A | |
05010002 | Chelan Hydro Cons System (PUD #1), WA Rev 05A | |
05010003 | Chelan Hydro Cons System (PUD #1), WA Rev 05B | |
05010004 | Chelan Hydro Cons System (PUD #1), WA Rev 05B | |
05010005 | South Carolina Pub Svc Auth, SC Electric Rev 05A | |
05010006 | Osceola Co Sch Brd, FL Lease Rev 04C fwd | |
05010010 | Mississippi Dev Bank (MDOT), MS Rev 05 | |
05010011 | Mississippi Dev Bank (MDOT), MS Rev 05 | |
05010014 | Lodi USD (Aspire Project), CA COPS 05AB | |
05010015 | Lodi USD (Aspire Project), CA COPS 05AB | |
05010021 | Oklahoma City Comm College (BOR), OK Rev 04 | |
05010022 | San Francisco, CA Intl Airport Issue 32 Rev Ref | |
05010024 | Georgia Muni Elec Auth (MEAG), GA Rev 05 | |
05010025 | Ocala (City of), FL Util Sys Rev Ref 04 | |
05010026 | Ocala (City of), FL Util Sys Rev Ref 04 |
Policy Id |
Policy | |
05010028 | New Jersey Trans Trust Fund Auth, NJ Rev 05B | |
05010032 | San Ysidro SD, CA COPS 05 | |
05010034 | San Ysidro SD, CA COPS 05 | |
05010042 | Western MI Univ BOT, Gen Rev 05 | |
05010044 | New Jersey EDA (Sch Fac Constr), NJ Lease Rev 05K | |
05010045 | Grant Cnty PUD 2 (Wanapum Hydro), Rev Ref 05 | |
05010046 | Grant Cnty PUD 2 (Wanapum Hydro), Rev Ref 05 | |
05010050 | Santee Comm Dev Commission, CA TAB 05A | |
05010054 | Santee Public Financing Auth, CA Lse Rev 05 | |
05010055 | Santee Public Financing Auth, CA Lse Rev 05 | |
05010058 | Pomona USD (Golden West Sch Fin Auth), CA Rev 05 | |
05010069 | Chesterfield (City of), MO Rev COPS 05 | |
05010070 | Chesterfield (City of), MO Rev COPS 05 | |
05010072 | Northern Arizona Healthcare Sys, AZ Hosp Rev 05 | |
05010074 | St. Francois County, MO COPS 04 | |
05010078 | Fort Zumwalt SD Improvement Corp, MO Lse Ref 05 | |
05010084 | Nebraska Pub Power Dist, NE Rev Rfdg 05B | |
05010093 | Pittsburgh Pub Parking Auth, PA Rev 05 | |
05010094 | Univ of Pennsylvania Health Sys, PA Hosp Rev 05B | |
05010095 | Pittsburgh Pub Parking Auth, PA Rev 05 | |
05010097 | Warren Twnp MSD Vision 2005, IN Lease Rev Ref 05 | |
05010098 | Elsinore Valley MWD, CA W&S COPs 05 | |
05010099 | Elsinore Valley MWD, CA W&S COPs 05 | |
05010103 | North Bergen Twp BOE, NJ Lease Rev dtd 12/15/04 | |
05010104 | North Bergen Twp BOE, NJ Lease Rev dtd 12/15/04 | |
05010105 | Creighton Univ (Douglas Co), NE Rev 03-04 | |
05010107 | New Jersey HMFA, NJ Housing Rev 05ABCDE | |
05010108 | Mental Health Svcs Fac Improv (DASNY), NY Rev 05 | |
05010111 | Centennial Water & Sani Dist, CO Ref 05 | |
05010112 | Centennial Water & Sani Dist, CO Ref 05 | |
05010116 | Nebraska Pub Power Dist, NE Rev Rfdg 05B | |
05010122 | South Carolina Pub Svc Auth, SC Rev Ref 05C | |
05010129 | CUNY (DASNY), NY Rev 05 | |
05010131 | Illinois (State of), IL Sales Tax Rev 05 | |
05010132 | Arkansas University (Fayetteville), AR Rev 05AB | |
05010133 | Pennsylvania Power & Light Co, PA Rev 05 | |
05010135 | Central TX Regl Mobility Auth Toll Rev 05 | |
05010138 | SUNY (DASNY), NY Rev 05 | |
05010139 | Tampa Bay Regional Water Authority, FL Ref Rev 05 | |
05010141 | San Diego County, CA Wtr Auth Ref 05 | |
05010142 | San Diego County, CA Wtr Auth Ref 05 | |
05010147 | Arizona School Facilities Board, AZ COPs 05A-1 | |
05010148 | Arizona School Facilities Board, AZ COP 2005A-2 | |
05010149 | Arizona School Facilities Board, AZ COP 2005A-3 | |
05010150 | Upstate Comm Colleges (DASNY), NY Rev 05 | |
05010153 | Mental Health Svcs Fac Improv (DASNY), NY Rev | |
05010154 | Indian River County, FL W&S Ref 05 | |
05010158 | NYS PIT Housing Fin Agency (Eco Devel/Hous) 05A | |
05010161 | Womans Hospital, LA Hosp Rev Ref 05 | |
05010162 | Contra Costa Wtr Dist, CA Wtr Rev Ref Series N 05 | |
05010166 | Center Grove Comm Sch Bldg Corp, IN Lease Rev 05 | |
05010168 | SUNY (DASNY), NY Rev 05 | |
05010172 | Mental Hlth Svcs Fac Improv (DASNY) NY Rev 05 40.7 | |
05010173 | Mental Hlth Svcs Fac Improv (DASNY) NY Rev 05 40.7 | |
05010178 | Clinton Prairie Comm Sch Bldg Corp, IN, Rev 2005 |
-73-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
05010179 | Detroit (City), MI Wtr Supply Ref 2005A&C (Sr Ln) | |
05010180 | Detroit (City), MI Wtr Supply Ref 2005A&C (Sr Ln) | |
05010195 | Noblesville Multi Sch Bldg Corp, IN, Lease Rev 05 | |
05010197 | Chandler (City of), AZ W&S 05 (Sr. Lien) | |
05010198 | Chandler (City of), AZ W&S 05 (Sr. Lien) | |
05010199 | Southmost Union Jr College Dist, TX Rev Ref 05 | |
05010200 | Southmost Union Jr College Dist, TX Rev Ref 05 | |
05010201 | Alaska Municipal Bond Bank, AK GO 2005A | |
05010209 | NYS PIT Edu 05AB & Eco Develop/Housing) 05AB | |
05010210 | Duval County Sch Brd, FL, Lease Rev COPs 05A | |
05010215 | North West Hendricks Middle SBC, IN Lse Ref 2005 | |
05010219 | Massachusetts State Colleg Build Auth, MA, Rev 05A | |
05010223 | Greenfield Multi-Sch Bldg Corp, IN Lse Rev Ref 05 | |
05010231 | New Jersey Trans Trust Fund Auth, NJ Rev 05C | |
05010235 | Univ of Pennsylvania Health Sys, PA Hosp Rev 05D | |
05010237 | Puerto Rico Electr Power Auth, PR Rev Ref 05RR | |
05010239 | Madison Cons (Lydia Middleton)SBC, IN Lease Rev 05 | |
05010240 | Salem (City of), OR W&S Ref 05 | |
05010241 | Salem (City of), OR W&S Ref 05 | |
05010243 | Univ of Massachusetts (Mass HEFA), MA Rev Ref 05 | |
05010247 | Oklahoma City Pub Prop Auth (OCPPA), OK, Rev 05 | |
05010248 | Oklahoma City Pub Prop Auth (OCPPA), OK, Rev 05 | |
05010250 | Washington St Univ Hsg & Dining, WA Rev Ref 05 | |
05010251 | Washington St Univ Hsg & Dining, WA Rev Ref 05 | |
05010253 | Southeast Georgia Hlth Sys Ref Series 2005 | |
05010256 | Sarasota (County), FL W&S Util Sys Ref Adv Rev 05 | |
05010262 | Univ of North Carolina (Wilmington), NC Lse Rev 05 | |
05010263 | Univ of North Carolina (Wilmington), NC Lse Rev 05 | |
05010265 | North White SBC, IN, Lease Rev 2005 | |
05010269 | Cherokee (County), KS, COPs Rev 2005 | |
05010270 | Riverside County, CA Lease 05B | |
05010271 | Riverside County, CA Lease 05A | |
05010272 | Unive of Colorado (BOR), CO Rev Ref 05A | |
05010273 | Sacramento Suburban Water Dist, CA COP Taxable 05B | |
05010276 | Sacramento Suburban Water Dist, CA COP Taxable 05B | |
05010277 | Dillsburg Area Authority, PA Swr Rev 05 | |
05010278 | Center Grove 2000 Sch Bldg Corp, IN Lease Rev 05 | |
05010281 | Kentucky Turnpike Auth, Lease Rev 05 | |
05010284 | Capistrano UFSD (Ladera) CFD 98-2, CA MelloRoos 05 | |
05010285 | Capistrano UFSD (Ladera) CFD 98-2, CA MelloRoos 05 | |
05010290 | Louisiana State Gas & Fuels Tax Rev 05A | |
05010296 | KDFA BOR (Scientific Res & Dev Fac), KS Rev 05D | |
05010300 | Lancaster Area Sewer Authority, PA Rev 05 | |
05010306 | Port Authority of NY & NJ 139th Cons. Bds | |
05010311 | Wichita (City of), KS W&S Util Ref Rev 05A | |
05010312 | Wichita (City of), KS W&S Util Ref Rev 05A | |
05010313 | New York City Housing Dev Corp, NY Rev 05A | |
05010320 | Canaveral Port Auth, FL, Port Rev Ref, Series 2005 | |
05010321 | Del Mar Coll Distr, TX, Comb Fee Rev Ref, 2005 | |
05010322 | Del Mar Coll Distr, TX, Comb Fee Rev Ref, 2005 | |
05010324 | Oklahoma Cap Imp Auth (Native Am), OK Rev Ref 05C | |
05010326 | Laguna Stonelake CFD No. 1, CA Mello Roos Rev 05 | |
05010327 | Laguna Stonelake CFD No. 1, CA Mello Roos Rev 05 | |
05010334 | New York City Housing Dev Corp, NY Rev 05A | |
05010337 | Taylor County, FL Sales Tax Rev Ref 05 |
Policy Id |
Policy | |
05010338 | Taylor County, FL Sales Tax Rev Ref 05 | |
05010353 | Pittsburgh Pub Parking Auth, PA Rev 05A | |
05010355 | New Jersey Econ Dev Auth, NJ Lse Ref 05 | |
05010359 | Penn Pwr&Light Co.PA Lehigh Cty Ind Dev 05B | |
05010363 | Austin (Town Lake Pk Comm Ctr), TX Car Tax 05 | |
05010368 | Aqua Pennsylvania Proj (Del Co IDA), PA Rev 05AB | |
05010370 | Hillsborough County, FL Non Ad Valorem Ser 2005 | |
05010371 | Hillsborough County, FL Non Ad Valorem Ser 2005 | |
05010373 | Boone County Hosp Assoc, IN Lease Rev 2005 | |
05010375 | San Jose RDA, CA TABS Ref 05 B | |
05010376 | San Jose RDA, CA TABS Ref 05 B | |
05010377 | San Jose RDA, CA TABS Ref 05A | |
05010378 | San Jose RDA, CA TABS Ref 05A | |
05010379 | Austin (Town Lake Pk Comm Ctr), TX Car Tax 05 | |
05010380 | Blue Ridge HealthCare Sys, NC Hosp Rev 05A | |
05010391 | Colorado State University Sys, CO Ent Rev 05B | |
05010393 | Merrillville Multi-School BC, IN GO Lease Rev 2005 | |
05010394 | Wayne Twp Marion Cty SBC, IN, Lease Rev 2005 | |
05010396 | Minneapolis-St.Paul Metro Arpt,MN Subord Rev 05C | |
05010399 | Roseville (City of), CA Elec Rev 05A | |
05010403 | Chandler (City of), AZ W&S Ref 05 (Sr. Lien) | |
05010413 | England Dist Sub-Dist No 1, LA, Rev 2005 | |
05010428 | Univ of Central Florida, FL (UCFAA) COPs 2005A | |
05010432 | Turlock USD, CA COPs Rev 05 | |
05010433 | Turlock USD, CA COPs Rev 05 | |
05010437 | TPFA (Stephen F. Austin Univ), TX Rev 05 | |
05010442 | Passaic Valley Wtr Comm, NJ Water Supp Rev Ref 05 | |
05010449 | Rio Rancho (City), NM Gross Rcpts (City Hall)05 | |
05010453 | Los Angeles (City of) Sanit Equip Charge, CA 05A | |
05010454 | Univ of Denver (CO ECFA), CO Rev Ref 05A | |
05010455 | Univ of Denver (CO ECFA), CO Rev Ref 05A | |
05010457 | Sacramento City Fin Auth (Solid Waste), CA Rev 05 | |
05010458 | Sacramento City Fin Auth (Solid Waste), CA Rev 05 | |
05010459 | Sacramento City Fin Auth (Solid Waste), CA Rev 05 | |
05010468 | Lahey Clinic Medical Center, MA Rev Series 2005 | |
05010469 | Stockton (City of) CFD 90-2, CA Mello-Roos Rev 05 | |
05010476 | Massachusetts Commonwlth, MA Spec Obs Rev Ref 05 | |
05010477 | Massachusetts Commonwlth, MA Spec Obs Rev Ref 05 | |
05010478 | 2004 Plainfield Comm. HSBC, IN Lease Series 2005A | |
05010488 | Antioch PFFA (CFD No. 89-1), CA MelloRoos Ref 05 | |
05010495 | Corona Norco USD PFA, CA MelloRoos Rev Ref 05 | |
05010497 | Arvada (City of) Finance Corp, CO Lse Rev 05 | |
05010498 | Arvada (City of) Finance Corp, CO Lse Rev 05 | |
05010499 | Val Verde USD, CA COPs 05B | |
05010507 | Douglas Co. PUD No 1 (Wells), WA Elec Ref 05ABC | |
05010508 | Douglas Co. PUD No 1 (Wells), WA Elec Ref 05ABC | |
05010509 | Los Angeles Co MTA Grant Notes, Series 2005 | |
05010514 | Honolulu (City/Cnty), HI WWater Rev 05AB (Sr Lien) | |
05010515 | Honolulu (City/Cnty), HI WWater Rev 05AB (Sr Lien) | |
05010529 | Lower Co Riv Auth (LCRA-Trans Svc), TX Elec Rev 05 | |
05010532 | MARTA, GA Sales Tax Rev Ref 05A (Third Indenture) | |
05010534 | MARTA, GA Sales Tax Rev Ref 05A (Third Indenture) | |
05010537 | California St Univ Sacramento Fndn, CA Aux Rev 05 | |
05010543 | Sacramento Cnty San Dist, CA Rev Ref 05 | |
05010544 | Sacramento Cnty San Dist, CA Rev Ref 05 |
-74-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
05010546 | Mississippi Dev Bank, MS Moral Ob Rev Ref 05AB | |
05010547 | Wichita (City of), KS W&S Util Ref Rev 05B | |
05010548 | Wichita (City of), KS W&S Util Ref Rev 05B | |
05010549 | Chino Valley USD, CA COPS Ref 05A | |
05010550 | Chino Valley USD, CA COPS Ref 05A | |
05010552 | Oregon Fac Auth (Willamette Univ), OR Rev 05 | |
05010557 | Parkersburg (City of), WV W&S Impr Rev 05 | |
05010573 | NYS Thruway Auth, NY Highway/Bridge 05B | |
05010582 | Port of Tacoma, WA Rev 05 | |
05010599 | New Jersey Transit Corp, NJ, Sub lien GARVEE 2005A | |
05010602 | Idaho St Bldg Auth (Eastrn Idaho Tech), ID Rev 04A | |
05010603 | Idaho St Bldg Auth (Eastrn Idaho Tech), ID Rev 04A | |
05010606 | Phoenix (City), AZ CIC Exc Tax Rev 05A (Civ Plaza) | |
05010610 | Montefiore Med Center (DASNY), NY Hosp Rev 05 | |
05010616 | Alamo Comm Coll Dist, TX Comb Fee Rev 05 | |
05010617 | Alamo Comm Coll Dist, TX Comb Fee Rev 05 | |
05010620 | Anchorage, AK Airport Car Rental Fac Rev 2005 | |
05010621 | Anchorage, AK Airport Car Rental Fac Rev 2005 | |
05010625 | Nacogdoches County Hosp Dist, TX Sales Tx Ref 05 | |
05010636 | Phoenix CIC State Distribution Rev 2005 | |
05010637 | Santa Monica (City of), CA WWater Rev 2005A | |
05010638 | Santa Monica (City of), CA WWater Rev 2005A | |
05010642 | Tacoma (City of), WA Water System Rev & Ref 2005 | |
05010643 | Norman Utilities Auth, OK Util Rev Ref 05 | |
05010644 | Norman Utilities Auth, OK Util Rev Ref 05 | |
05010645 | UCF Convocation Center, FL CBA | |
05010646 | Tacoma (City of), WA Elec Rev Ref 05A | |
05010647 | Tacoma (City of), WA Elec Rev Ref 05B | |
05010657 | Omaha Public Power Dist, NE Elec Rev 05 | |
05010659 | Tacoma (City of), WA Water System Rev & Ref 2005 | |
05010661 | Port Authority of NY & NJ 141st Cons. Bds | |
05010662 | Palm Bay (City of), FL Util Rev Ref 05A | |
05010663 | Palm Bay (City of), FL Util Rev Ref 05A | |
05010664 | Palm Bay (City of), FL Util Rev Ref 05B | |
05010665 | Palm Bay (City of), FL Util Rev Ref 05B | |
05010666 | San Rafael ESD, CA COPS 05 | |
05010667 | San Rafael ESD, CA COPS 05 | |
05010668 | Port of Los Angeles, CA Harbor Rev 05C | |
05010671 | Port of Los Angeles, CA Harbor Rev 05C | |
05010672 | Alaska (Virology Lab), AK COPS 05B | |
05010677 | Los Angeles Co Sani Dist #14, CA Rev 05B | |
05010678 | Los Angeles Co Sani Dist #14, CA Rev 05B | |
05010679 | Oregon (State of) Dept. of Admin COPs 2005 | |
05010681 | Reno (City of) Cap Improvement, NV Rev Ref 05 | |
05010682 | Reno (City of) Cap Improvement, NV Rev Ref 05 | |
05010689 | Calif St Pub Wks Brd (SPWB), CA Lse 05E | |
05010691 | Mississippi Dev Bank (MDOT), MS Spcl Ob 05 Laurel | |
05010693 | Mississippi Dev Bank (MDOT), MS Spcl Ob Rev 05 | |
05010694 | Mississippi Dev Bank (MDOT), MS Spcl Ob Rev 05 | |
05010699 | University of North Texas Sys, TX Rev Ref 05 | |
05010701 | Nebraska Pub Power Dist, NE Gen Rev 05C | |
05010702 | New Jersey Natural Gas Co (NJ Rsrces), NJ 05A | |
05010703 | New Jersey Natural Gas Co (NJ Rsrces), NJ 05B | |
05010704 | New Jersey Natural Gas Co (NJ Rsrces), NJ 05C | |
05010705 | West Virginia Wtr Dev, WV Rev Ref A-II, B-II, C-II |
Policy Id |
Policy | |
05010706 | Calif St Pub Wks Brd (SPWB), CA Lse 05F | |
05010707 | Calif St Pub Wks Brd (SPWB), CA Lse 05G | |
05010714 | Univ of Maine System, ME Rev 2005 | |
05010722 | Omaha Public Power Dist, NE Elec Rev 05 | |
05010726 | Nevada (State of), NV Motor Vehicle Fuel Tax 05 | |
05010729 | University of Kentucky (A/L Comm), Gen Rec 05 | |
05010732 | Fl Brd of Reg (U of FL), FL Hsg Rev Rfdg 2005A | |
05010734 | Dover (City of),OH Mun Elec Rev Ref 2005 | |
05010745 | Univ of California (Regents), CA Rev Ref 05GHIJK | |
05010752 | Redding, CA Electric Rev 05 | |
05010753 | Redding, CA Electric Rev 05 | |
05010758 | 2004 Plainfield Comm. HSBC, IN Lease Series 2005B | |
05010759 | Virginia Hospital Center Ref Series 2005 | |
05010760 | Brevard County, FL Gas Tax Rev 2005 | |
05010761 | Brevard County, FL Gas Tax Rev 2005 | |
05010763 | Sacramento Fin Auth (Downtown & Oak), CA TAB 05AB | |
05010764 | Sacramento Fin Auth (Downtown & Oak), CA TAB 05AB | |
05010765 | Missouri Dev Fin Board (State Offices),MO COPs 05A | |
05010767 | North West Hendricks Middle SBC, IN Lse Ref 2005B | |
05010769 | Delaware Trans Auth, DE Rev Sr Lien 05 | |
05010770 | Sacramento Fin Auth (Downtown & Oak), CA TAB 05AB | |
05010771 | Conn Dev Auth, CT Water Fac Rev (Crystal Water)05A | |
05010772 | Connecticut Dev Auth/Water Svc, CT Rev 2005A | |
05010773 | Univ of Denver (CO Educ & Cul Fac Auth), CO Rev 05 | |
05010774 | Univ of Denver (CO Educ & Cul Fac Auth), CO Rev 05 | |
05010780 | Ca Infr & Ec Dev Bnk Sch Apportion LS (Vallejo USD | |
05010781 | Ca Infr & Ec Dev Bnk Sch Apportion LS (Vallejo USD | |
05010782 | Ca Infr & Ec Dev Bnk Sch Apportion LS (WCCUSD) | |
05010783 | Ca Infr & Ec Dev Bnk Sch Apportion LS (WCCUSD) | |
05010787 | Grand Rapids (City of), MI Wtr Sys Rev 2005 | |
05010788 | Oakland SBA (Elihu M. Harris), CA Lse Rev 05A | |
05010789 | San Francisco SBA (Civic Center), CA Lse Rev 05A | |
05010790 | Mental Hlth Svcs Fac Improv (DASNY) NY Rev 05EF | |
05010792 | Phoenix Hotel Rev Sub Lien (Sports Fac. Tax) 05BC | |
05010793 | Grant Cnty No 2 (Priest Rapids), WA Elec Rev 05ABZ | |
05010794 | Grant Cnty No 2 (Priest Rapids), WA Elec Rev 05ABZ | |
05010801 | Grand Rapids (City of), MI Wtr Sys Rev 2005 | |
05010803 | North Texas Tollway Auth, TX RevRfdg05 | |
05010804 | North Texas Tollway Auth, TX RevRfdg05 | |
05010807 | Columbus Childrens Series 2005C | |
05010810 | South Dakota Bd of Regents, SD Aux Rev 05 | |
05010811 | Banning (City of) Util Auth, CA Wtr Rev Ref 05 | |
05010812 | Banning (City of) Util Auth, CA Wtr Rev Ref 05 | |
05010813 | Franklin Comm SBC, IN Lse Rev 05 | |
05010815 | North Texas Tollway Auth, TX RevRfdg05 | |
05010817 | Dare County, NC Lease Rev | |
05010818 | Chicago-OHare Airport, IL 3rd Lien Rev 05A | |
05010819 | Chicago-OHare Airport, IL 3rd Lien Rev 05B | |
05010820 | Chicago-OHare Airport, IL 3rd Lien Rev 05A | |
05010821 | Chicago-OHare Airport, IL 3rd Lien Rev 05AB | |
05010846 | Aqua Pennsylvania Proj (Del Co IDA), PA Rev 05C | |
05010849 | Tampa-Hillsborough (State of Florida) Exprswy 2002 | |
05020002 | California (State of) Econ. Recovery Bonds, 2004 | |
05020003 | California (State of) Econ. Recovery Bonds, 2004 | |
05020004 | California (State of) Econ. Recovery Bonds, 2004 |
-75-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
05020005 | California (State of) Econ. Recovery Bonds, 2004 | |
05020006 | California (State of) Econ. Recovery Bonds, 2004 | |
05020007 | California (State of) Econ. Recovery Bonds, 2004 | |
05020009 | Port Authority of NY & NJ 138th Cons. Bds | |
05020010 | New York LGAC Sales Tax 93D/E | |
05020012 | New York LGAC Sales Tax 93D/E | |
05020013 | California SPWB (Univ CA ), CA Lse 04F | |
05020014 | North Carolina Muni Power #1 Elec Rev03AB | |
05020015 | North Carolina Muni Power #1 Elec Rev03AB | |
05020019 | New York St Tobacco Settl Fin Corp, NY Rev 2003A | |
05020020 | New York City TFA 2004 D Sen/Sub | |
05020052 | Upstate Comm Colleges (DASNY), NY Rev Ref 04B | |
05020054 | California (State of) Econ. Recovery Bonds, 2004 | |
05020055 | California (State of) Econ. Recovery Bonds, 2004 | |
05020057 | California (State of) Econ. Recovery Bonds, 2004 | |
05020063 | Upstate Comm Colleges (DASNY), NY Rev Ref 04B | |
05020064 | California (State of) Econ. Recovery Bonds, 2004 | |
05020073 | Tacoma (City of), WA Elec Rev Ref 05A | |
06010002 | Port of Los Angeles, CA Harbor Rev 06 A | |
06010003 | Port of Los Angeles, CA Harbor Rev 06 B&C | |
06010008 | Gilbert (Town of) Pub Fac MPC, AZ Sales Tax Rv 06 | |
06010018 | Cape Girardeau (City of), MO Wtr Rev Ref 05A | |
06010021 | Eureka (City of) Redev Agency, CA Surety 05 | |
06010022 | Oklahoma City Comm College (BOR), OK Rev 06 | |
06010027 | South Jersey Transp Auth,NJ Rev (Atl City Proj) 05 | |
06010028 | Orange County, FL Sales Tax Rev Ref 2006 | |
06010033 | Oklahoma St Univ, OK Util System Rev Ref 06 | |
06010034 | Oklahoma St Univ, OK Util System Rev Ref 06 | |
06010039 | Placentia-Yorba Linda USD, CA COPS Rev 06 | |
06010056 | Wayne Twp Marion County SBC, IN 1st Mort Ref 06 | |
06010058 | West Virginia Wtr Dev, WV Rev Ref 2006A-II | |
06010059 | Galveston (City of), TX WWks & Swr Rev Ref 06 | |
06010066 | Rhode Island EDC GARVEES 2006A | |
06010070 | Nacogdoches County Hosp Dist, TX Sales Tx Ref 06 | |
06010071 | Glendale (City of), AZ Sub Lien W&S Rev 2006 | |
06010072 | Glendale (City of), AZ Sub Lien W&S Rev 2006 | |
06010073 | Aurora (City of), CO COPS Ref 05 A-1 & A-2 | |
06010075 | Fashion Inst of Tech (SUNY), NY Rev 2004 Surety | |
06010077 | Golden (City of), CO COPs 2006 | |
06010080 | Omaha Public Power Dist, NE Elec Rev 05 | |
06010084 | Aurora (City of), CO COPS Ref 05 A-1 & A-2 | |
06010086 | West Ouachita Parish SD, LA Sls Tax Ref 2006 | |
06010088 | Boulder County, CO Sales & Use Tax 06 | |
06010089 | Boulder County, CO Sales & Use Tax 06 | |
06010090 | Sacramento City Fin Auth (Oak Park), CA TAB 06A | |
06010091 | Sacramento City Fin Auth (Oak Park), CA TAB 06A | |
06010092 | Sacramento City Fin Auth (Del Paso), CA TAB 06B | |
06010097 | Canaveral Port Auth, FL, Port Ref 06A/Port Imp 06B | |
06010098 | Orange Cnty Sch Brd, FL Lease Rev COPs 06AB | |
06010100 | Univ of Connecticut, CT GO 2006A & GO Ref 2006A | |
06010113 | Parkersburg (City of), WV WWks &Sewer Rev Ref 06C | |
06010114 | Univ of Arkansas (UAMS), AR Rev 06 | |
06010115 | Univ of Arkansas (UAMS), AR Rev 06 | |
06010116 | Noblesville Multi Sch Bldg Corp, IN Lse Rev 2006 | |
06010117 | Indianapolis Local Pub Imp Bank, IN Mor Obl 06D |
Policy Id |
Policy | |
06010118 | Indianapolis Local Pub Imp Bank, IN Mor Obl 06D | |
06010119 | Long Island Power Auth, NY Electr Rev 06AB | |
06010120 | Omaha Public Power Dist, NE Elec Rev 05 | |
06010126 | KDFA (Transportation Program), KS Rev 06A | |
06010135 | Tarrant Reg Water District, TX Wtr Rev 06 | |
06010149 | Chula Vista Elementary SD, CA COP 06 | |
06010152 | University of Pittsburgh Med Cntr Series 2006 | |
06010153 | Sacramento City Fin Auth (Del Paso), CA TAB 06B | |
06010155 | Chula Vista Elementary SD, CA COP 06 | |
06010158 | Santa Rosa Sch. Brd., FL COPs 2006-2 | |
06010160 | Kansas City Muni Asst Co (Bartle Hall), MO Lse 06A | |
06010161 | Kansas City Muni Asst Corp (Kemper), MO Lse 06B | |
06010162 | Kansas City Muni Asst Co (Bartle Hall), MO Lse 06A | |
06010163 | Kansas City Muni Asst Corp (Kemper), MO Lse 06B | |
06010168 | Hobart Bldg Corp, IN Lease Rev 2006 | |
06010169 | Santa Monica (City of), CA TAB Ref 06AB | |
06010170 | Santa Monica (City of), CA TAB Ref 06AB | |
06010173 | Hillsborough County, FL Spec Assessment 2006 | |
06010174 | Travis USD, CA COPs 06 | |
06010175 | Dillsburg Area Authority, PA Swr Rev 2006 | |
06010180 | South San Francisco RDA, CA TAB Rev 06A | |
06010181 | Florida State Ed Sys, Univ Sys Imp Rev Ref, 2006A | |
06010182 | Dist. of Columbia, DC (St Elizabeth Hosp) COPs 06 | |
06010184 | East Baton Rouge Parish, LA Sales Tax 06A | |
06010186 | East Baton Rouge Parish, LA Sales Tax 06B | |
06010193 | Georgetown (City of), TX Utility Sys Rev 06 | |
06010199 | Florida State Ed Sys, Univ Sys Imp Rev Ref, 2006A | |
06010200 | District of Col Baseball 2006 A-1, A-2, B-1, B-2 | |
06010201 | District of Col Baseball 2006 A-1, A-2, B-1, B-2 | |
06010202 | District of Col Baseball 2006 A-1, A-2, B-1, B-2 | |
06010204 | District of Col Baseball 2006 A-1, A-2, B-1, B-2 | |
06010205 | District of Col Baseball 2006 A-1, A-2, B-1, B-2 | |
06010206 | District of Col Baseball 2006 A-1, A-2, B-1, B-2 | |
06010210 | Univ of North Carolina (Wilmington), NC Lse Rev 06 | |
06010211 | Univ of North Carolina (Wilmington), NC Lse Rev 06 | |
06010219 | Aerospace Corp Series 2006 | |
06010224 | Fashion Inst of Tech (SUNY), NY Rev 2004 Surety II | |
06010226 | Oregon (State of) Dept. of Admin COPs Fwd 06 | |
06010234 | New Jersey TTFA, NJ 2006 | |
06010235 | Coronado CDA, CA TABs Ref 06 | |
06010236 | Coronado CDA, CA TABs Ref 06 | |
06010238 | St. Lucie Co. SD, FL Lcl Sales Tax 2006 | |
06010239 | St. Lucie Co. SD, FL Lcl Sales Tax 2006 | |
06010242 | DASNY Muni Health Fac (PCDC), NY Lease Rev Ref 06A | |
06010243 | Illinois Muni Pwr Elec Agy, IL Pwr Sup Sys Rev 06 | |
06010245 | Phoenix (City of), AZ CIC Sub Ex Tax Rev 06C | |
06010247 | Providence Health Rev 06 | |
06010251 | Mesa (City of), AZ Utility Sys Rev 06 | |
06010257 | New Jersey Trans Trust Fund Auth, NJ GARVEE 06A | |
06010263 | Fresno JPFA (Convention Cntr), CA Lse Rev 06 | |
06010264 | Fresno JPFA (Convention Cntr), CA Lse Rev 06 | |
06010265 | Mesa (City of), AZ Utility Sys Rev Ref 06 | |
06010269 | College Park (Atlanta Intl Air/Car Rental) GA 06AB | |
06010270 | Riverside County (Cap Impr Proj), CA COP 06A | |
06010271 | Tacoma (City), WA Sewer Rev Ref 2006AB |
-76-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
06010272 | Tacoma (City), WA Sewer Rev Ref 2006AB | |
06010276 | Washington (State of), WA COPs 06F | |
06010279 | New Hampshire Muni Bond Bank, NH Rev 2006A | |
06010280 | New Hampshire Muni Bond Bank, NH Rev 2006A | |
06010283 | Emerald Coast Util Auth, FL Rev 2006 | |
06010284 | Emerald Coast Util Auth, FL Rev 2006 | |
06010286 | Michigan State Trunk Line, MI Gas Tax 2006 | |
06010290 | Sacramento Regional Cnty Sanitation Dstr,CA Rev 06 | |
06010292 | Omaha Public Power Dist, NE Elec Rev 05 | |
06010293 | Cleveland (City of), OH Pub Pwr Sys Rev Ref 2006A- | |
06010305 | Denver (City & Co) CO Airport Sys Rev 06AB | |
06010307 | Detroit (City), MI Sewer Disp Rev 2006AB (2nd Ln) | |
06010308 | Detroit (City), MI Sewer Disp Rev 2006AB (2nd Ln) | |
06010310 | New Jersey HMFA, NJ Multi-Family Rev 06DF | |
06010317 | Louisiana State Univ (A&M), LA Aux Rev 06 | |
06010320 | California Science Center Foundation, CA Rev 06 | |
06010323 | Klickitat Co. PUD No.1, WA Elec Rev Ref 06AB | |
06010324 | Cleveland (City of), OH Pub Pwr Sys Rev Ref 2006AB | |
06010326 | Detroit Sewer Disposal Rev, MI 06 | |
06010327 | San Jose USD, CA COPs Ref 06 | |
06010331 | San Jose USD, CA COPs Ref 06 | |
06010337 | Alaska Railroad Corp, AK FTA (5307 & 5309) 2006 | |
06010338 | Alaska Railroad Corp, AK FTA (5307 & 5309) 2006 | |
06010339 | Marysville Joint USD, CA COPs 06 | |
06010340 | Marysville Joint USD, CA COPs 06 | |
06010341 | Denver (City & Co) CO Airport Sys Rev 06A | |
06010345 | Cleveland (City of), OH Pub Pwr Sys Rev Ref 2006A- | |
06010349 | Signal Hill RDA, CA Proj No.1 TABs 06A | |
06010350 | Signal Hill RDA, CA Proj No.1 TABs 06A | |
06010351 | Fort Smith (City of), AR Sales Tax Ref 2006 | |
06010352 | Fort Smith (City of), AR Sales Tax Ref 2006 | |
06010361 | Michigan State Building Auth., MI Lease Rev 2006 | |
06010364 | Hammond Multi-School Bldg Corp, IN Lse Rev Ref 06 | |
06010370 | Hallsdale-Powell UD, TN WWks & Swr Rev 2006 | |
06010371 | Hallsdale-Powell UD, TN WWks & Swr Rev 2006 | |
06010375 | Tampa Bay Regional Water Authority, FL Rev 06 | |
06010376 | Riverside(Galleria @ Tyler Pub Imp), CA Lse Rev 06 | |
06010378 | Long Island Power Auth, NY Electric Rev 06E | |
06010383 | West Valley City MBA, UT Lease Rev Ref 06AB | |
06010384 | West Valley City MBA, UT Lease Rev Ref 06AB | |
06010385 | West Valley City MBA, UT Lease Rev Ref 06AB | |
06010386 | Virgin Islands Pub Fac Auth 2006A | |
06010387 | Nebraska Pub Power Dist, NE Gen Rev 06A | |
06010388 | Springfield (City of), MO Utility Rev 06 | |
06010389 | Ohio Bldg Auth, OH St Fac Ref, Rev 06AB | |
06010390 | Mississippi Dev Bank (MDOT), MS Spcl Obl Rev 06 | |
06010391 | Mississippi Dev Bank (MDOT), MS Spcl Obl Rev 06 | |
06010398 | Eastern Washington Univ, WA Srvs & Acts Rev Ref 06 | |
06010399 | Eastern Washington Univ, WA Srvs & Acts Rev Ref 06 | |
06010401 | Idaho St Bldg Auth (Idaho St Cap Prj), ID Rev 06 | |
06010402 | Idaho St Bldg Auth (Idaho St Cap Prj), ID Rev 06 | |
06010404 | Yuba City USD, CA COP 06 | |
06010405 | Yuba City USD, CA COP 06 | |
06010407 | Virginia Port Authority, VA Port Fac Rev 2006 | |
06010409 | Virginia Port Authority, VA Port Fac Rev 2006 |
Policy Id |
Policy | |
06010411 | Oglethorpe Power Corp 144A | |
06010413 | Univ of Oklahoma (BOR), OK Rev Ref 06A | |
06010415 | Portage Twp Multi-Sch Bldg Corp, IN Lse Rev Ref 06 | |
06010419 | Lafayette (City of), IN Sewage Wrks Rev Ref 2006 | |
06010420 | Lafayette (City of), IN Sewage Wrks Rev Ref 2006 | |
06010426 | North Texas MWD, TX Wtr Sys Rev 06A | |
06010427 | Louisiana State Gas & Fuels Tax Rev 06A | |
06010437 | California SPWB (CA State Univ), CA Lease 06A | |
06010438 | Calif St Pub Wrks Brd (SPWB), CA Lse 06F | |
06010439 | Metropolitan Wastewtr Mgmt Comm, OR Wstwtr Rev 06 | |
06010440 | Metropolitan Wastewtr Mgmt Comm, OR Wstwtr Rev 06 | |
06010442 | San Francisco Intl Arpt, CA 2nd Ser Ref 32F&G | |
06010444 | Kansas City Metro CC, MO Lease Rev 06 | |
06010453 | Chicago (City of), IL 2nd Lien Swr Rev Ref 06AB | |
06010454 | Chicago (City of), IL 2nd Lien Swr Rev Ref 06AB | |
06010455 | NYC TFA, Building Aid Rev 2007S-1 | |
06010456 | Parker Water & Sanit Dist, CO W&S Rev Ref 06A | |
06010459 | Bartow (City of), FL W&S Rev Ref 2006 | |
06010460 | South Ogden City, UT Sales Tax Rev Ref 06 | |
06010461 | South Ogden City, UT Sales Tax Rev Ref 06 | |
06010462 | Metro Washington Airport Auth, DC Arpt Rev 06B | |
06010463 | Metro Washington Airport Auth, DC Arpt Rev 02B | |
06010464 | Metro Washington Airport Auth, DC Arpt Rev 06C | |
06010467 | Childrens Hospital Medical Center Rev 2006 | |
06010468 | SPWB (Cal St Univ), CA Lease Rev 06G | |
06010469 | SPWB (Dprt Corrct & Rehab), CA Lease Rev 06H | |
06010470 | SPWB (Dpt Mental Hlth), CA Lease Rev 06I | |
06010473 | Grays Harbor County PUD#1, WA Elec Rev Ref 06 | |
06010474 | Grays Harbor County PUD#1, WA Elec Rev Ref 06 | |
06010475 | Ramapo College (NJEFA)Lse Rev Bds 02H,I,J (Surety) | |
06010476 | Ramapo College (NJEFA), NJ Rev 2003H (surety) | |
06010478 | Ramapo College (NJEFA)Lse Rev Bds 02H,I,J (Surety) | |
06010479 | Ramapo College (NJEFA)Lse Rev Bds 02H,I,J (Surety) | |
06010480 | Emerald Coast Util Auth, FL Rev Ref 2006B | |
06010481 | Emerald Coast Util Auth, FL Rev Ref 2006B | |
06010482 | West Palm Beach (City of) CRA, FL Tax Incr Rev 06A | |
06010483 | West Palm Beach (City of) CRA, FL Tax Incr Rev 06A | |
06010484 | LACnty Pub Wrks Fin Auth, CA Lease Ref 06AB | |
06010485 | Castle Rock (Town of), CO W&S Rev 2006 | |
06010489 | Los Angeles (City) MICLA, CA Lease 06-A | |
06010490 | Los Angeles (City) MICLA, CA Lease 06-A | |
06010491 | Jackson State University (EBC), MS Rev 06A | |
06010492 | Castle Rock (Town of), CO W&S Rev 2006 | |
06010493 | Philadelphia, PAID Lease Rev Series 2006AB | |
06010494 | New Hampshire Muni Bond Bank, NH Rev 06B | |
06010496 | New Hampshire Muni Bond Bank, NH Rev 06B | |
06010498 | Bay Area Infrastr Fin Auth,CA St Pymnt Accl Nts 06 | |
06010500 | Mesa (City of), AZ Utility Sys Rev Ref 2nd 06 | |
06010501 | Norman Utilities Auth, OK W&S Util Rev 2006 | |
06010502 | Norman Utilities Auth, OK W&S Util Rev 2006 | |
06010504 | Northern Arizona Univ, AZ Sys Rev Ref 06 | |
06010505 | Arizona BOR (NAU), AZ Surety 97 | |
06010515 | Minneapolis-St. Paul, MN Airport Rev | |
06020002 | New York St Tobacco Settl Fin Corp, NY Rev 2003B | |
07010002 | Florida State DOE, FL CC Cap Improv Rev 2006A |
-77-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
07010003 | Florida State DOE, FL CC Cap Improv Rev 2006A | |
07010005 | Melbourne (City of), FL W&S Rev Ref 2007 | |
07010007 | U. Mass (Mass HEFA - Lowell), MA Rev Ref 07D | |
07010008 | U. Mass (Mass HEFA - Worcester), MA Rev Ref 07E | |
07010009 | U. Mass (Mass HEFA - Mattapan), MA Rev Ref 07F | |
07010010 | Univ of Denver (CO Educ Cul Fac Auth), CO Rev 07 | |
07010011 | Univ of Denver (CO Educ Cul Fac Auth), CO Rev 07 | |
07010013 | Aqua Pennsylvania (Chester Cnty IDA) 07 | |
07010026 | New York City Educ Constr Fund, NY Rev 07A | |
07010030 | Univ of Oklahoma (BOR), OK Rev 07AB | |
07010037 | San Antonio (City), TX Sr. Lien Wtr Rev Ref 2007 | |
07010038 | San Antonio (City), TX Sr. Lien Wtr Rev Ref 2007 | |
07010039 | Escondido JPFA, CA Lease Rev Ref 07AB | |
07010040 | Escondido JPFA, CA Lease Rev Ref 07AB | |
07010047 | Wichita Falls, TX W&S Rev Ref 07 | |
07010051 | Palm Beach County SD, FL COPs 2007AB | |
07010052 | West Virginia SBA, WV Rev Ref 2007 Fwd. | |
07010056 | Kentucky SPBC, KY Rev Ref Project No. 87 | |
07010059 | Wisconsin State, WI Transp Rev Ref 07 Ser 1 | |
07010060 | Wisconsin State, WI Transp Rev 07A | |
07010063 | Sacramento Reg Cnty San District,CA Rev Ref 07AB | |
07010064 | Sacramento Reg Cnty San District,CA Rev Ref 07AB | |
07010068 | Guadalupe Valley Electric Coop, Inc., TX Rev 2007 | |
07010070 | Guadalupe Valley Electric Coop, Inc., TX Rev 2007 | |
07010071 | Omaha Public Power Dist, NE Elec Rev 07 | |
07010072 | Clark County PUD No. 1, WA Elec Rev Ref 07 | |
07010073 | Clark County PUD No. 1, WA Elec Rev Ref 07 | |
07010074 | Clark County PUD No. 1, WA Generating Sys Rev 07 | |
07010075 | Clark County PUD No. 1, WA Generating Sys Rev 07 | |
07010076 | Oregon (State of) Dept. of Admin COPs Fwd 07 | |
07010077 | SPWB (Emerg. Srvs), CA Lease Rev 07A | |
07010078 | SPWB (Cal Comm Colleges), CA Lease Rev 07B | |
07010087 | NYC TFA, NY Building Aid Rev 2007S-2 | |
07010088 | Antelope Valley-East Kern Wtr Agncy,CA COPs 07A1 | |
07010089 | MARTA, GA Sales Tax Rev Ref 07A (Third Indenture) | |
07010090 | Antelope Valley-East Kern Wtr Agncy,CA COPs 07A1&2 | |
07010091 | MARTA, GA Sales Tax Rev Ref 07A (Third Indenture) | |
07010095 | Oklahoma Muni Pwr Auth (OMPA), OK Elec Sys Rev 07A | |
07010102 | Bryan (City of), TX W&S Rev Ref & Impr 07 | |
07010103 | Bryan (City of), TX W&S Rev Ref & Impr 07 | |
07010107 | Rowan Univ (NJEFA), NJ Rev Ref 2007B | |
07010108 | Broward County Sch Bd, FL Lease Rev COPs 07A | |
07010110 | Indiana Fin Auth, IN Hwy Rev Ref 2007A | |
07010125 | Kankakee River Metro Ag, IL Sr Lien Ref Rev 07 | |
07010127 | Tampa, FL Occ Lic & Non-Ad Valorem Tax, Ref 2007 | |
07010128 | Kankakee River Metro Ag, IL Sr Lien Ref Rev 07 | |
07010132 | New Jersey City Univ (NJEFA), NJ Rev Ref 2007F | |
07010133 | Fontana RDA (Sierra Corridor), CA TAB Rev 07 | |
07010134 | Fontana RDA (Sierra Corridor), CA TAB Rev 07 | |
07010136 | Omaha Public Power Dist, NE Elec Sub Rev 07AA | |
07010137 | Los Alamitos USD, CA COPs Ref 07 | |
07010138 | Los Alamitos USD, CA COPs Ref 07 | |
07010139 | Rohnert Park Comnty Dev Comm, CA TAB Hsg 07H | |
07010140 | Rohnert Park Comnty Dev Comm, CA TAB Hsg 07H | |
07010141 | Rohnert Park Comnty Dev Comm, CA TABs 07R |
Policy Id |
Policy | |
07010142 | Rohnert Park Comnty Dev Comm, CA TABs 07R | |
07010150 | California SPWB (Univ CA), CA Lease Ref 07A | |
07010151 | California SPWB (Univ Cal), CA Lease Rev Ref 07C | |
07010152 | California SPWB (Univ Cal), CA Lease Rev Ref 07B | |
07010154 | Buckeye Union SD, CA COPs 07 | |
07010155 | Buckeye Union SD, CA COPs 07 | |
07010156 | Kean University (NJ EFA), NJ Rev Ref 2007DE | |
07010165 | Lynwood USD, CA COPs Rev 07A | |
07010166 | Lynwood USD, CA COPs Rev 07A | |
07010167 | Cleveland State Univ, OH Rev Ref 2007 | |
07010168 | Lynwood USD, CA COPs Ref 07B | |
07010169 | Lynwood USD, CA COPs Ref 07B | |
07010178 | New Jersey Sports & Exp Auth, NJ Rev 2007A | |
07010182 | Port Authority of NY & NJ 147th Cons. Bds | |
07010184 | Miami-Dade County SD, FL Rev COPs 2007ABC | |
07010185 | Manteca USD, CA CFD 1989-2 2007E | |
07010186 | Manteca USD, CA CFD 1989-2 2007E | |
07010189 | El Centro RDA, CA TABs 07AB | |
07010195 | Buffalo Fiscal Stability Auth, NY Sales Tax 2007A | |
07010196 | Buffalo Fiscal Stability Auth, NY Sales Tax 2007A | |
07010198 | Sacramento County Water Finance Auth, CA Rev 07 | |
07010201 | Michigan Muni Bond Auth, MI Rev Ref 2007 | |
07010203 | Lincoln (City of), NE Electric Rev Sys 07A | |
07010204 | Lincoln (City of), NE Electric Rev Sys 07B | |
07010208 | San Francisco (City and County), CA COPs 07A | |
07010211 | Sacramento County Water Finance Auth, CA Rev 07 | |
07010213 | Miami-Dade County SD, FL Rev COPs 2007B | |
07010214 | East Bay MUD, CA Sub Water Rev Ref 07 AB | |
07010217 | East Bay MUD, CA Sub Water Rev Ref 07 AB | |
07010218 | Pacificorp | |
07010220 | East Bay MUD, CA Sub Water Rev Ref 07 AB | |
07010222 | Raleigh-Durham, NC Airport Rev 2007 | |
07010224 | Anaheim Pub Fin Auth, CA Sr Lse Rev Ref 07A-1&A-2 | |
07010225 | Anaheim Pub Fin Auth, CA Sr Lse Rev Ref 07A-1&A-2 | |
07010226 | Anaheim PFA, CA Sr Lse Rev Ref 07B (Taxable) | |
07010228 | Anaheim PFA, CA Sr Lse Rev Ref 07B (Taxable) | |
07010229 | Orange County, FL Tourist Dev Tax Rev Ref 2007 | |
07010230 | Kentucky Asset/Liab Comm, KY Rev Ref 07AB | |
07010235 | Puerto Rico Elec Pwr Auth Rev Ref VV | |
07010236 | Fashion Inst of Tech (SUNY), NY Rev 2007 | |
07010237 | Fashion Inst of Tech (SUNY), NY Rev 2007 | |
07010241 | Dist of Columbia, DC W&S Auth Sub Lien Rev 07A | |
07010243 | Whittier RDA, CA TABs 07B (Housing) (Taxable) | |
07010244 | Antioch USD, CA COPs 07 | |
07010249 | South Dakota Building Authority, SD Rev 07 | |
07010251 | Mesa State College, CO College Enterprise Rev 07 | |
07010252 | Mesa State College, CO College Enterprise Rev 07 | |
07010255 | Wayne Co. Airport Auth., Jr Lien New Money 2007 | |
07010262 | SPWB (Dept Correct & Rehab), CA Rev 07D | |
07010263 | Barnard College (DASNY), NY Rev 2007AB | |
07010265 | Brevard County, FL Local Option Gas Tax Rev 2007 | |
07010266 | Brevard County, FL Local Option Gas Tax Rev 2007 | |
07010267 | Louisiana PFA (19th Judicial Distr), LA Lease 07 | |
07010268 | Louisiana PFA (19th Judicial Distr), LA Lease 07 | |
07010269 | Sacramento Area Flood Control Agcy, CA Cons Cap 07 |
-78-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
07010270 | Sacramento Area Flood Control Agcy, CA Cons Cap 07 | |
07010271 | Ramona USD, CA COPs Ref 2007 | |
07010272 | Pasco County School Board, FL Rev COPs 2007 | |
07010275 | Ramona USD, CA COPs Ref 2007 | |
07010285 | Central Arkansas Univ (BOT), AR GO 07ABC | |
07010286 | Orange Cnty Sch Brd, FL Lease Rev COPs 07A | |
07010288 | Miami-Dade Co, FL Gtd Entitle Ref Rev 07 | |
07010289 | Univ of North Florida (Union), FL Ltd Rev 07 | |
07010290 | Univ of North Florida (Union), FL Ltd Rev 07 | |
07010292 | Univ of North Florida (Housing), FL Aux Rev 07 | |
07010293 | Univ of North Florida (Housing), FL Aux Rev 07 | |
07010294 | Florida Dept of Transp, FL Turnpike Rev 2007A | |
07010295 | Harpeth Valley Util Dist, TN W&S Rev Ref & Impr 07 | |
07010298 | Mass Port Auth (BOSFUEL Proj), MA Rev 2007 | |
07010299 | Mass Port Auth (BOSFUEL Proj), MA Rev 2007 | |
07010300 | Allegheny Co Sanitary Auth, PA Swr Rev 07 | |
07010301 | Allegheny Co Sanitary Auth, PA Swr Rev 07 | |
07010302 | Harpeth Valley Util Dist, TN W&S Rev Ref & Impr 07 | |
07010303 | MTA, NY Transportation Rev 2007A | |
07010305 | Houston (City of),TX Cmb Util 1st Lien Rev Ref 07B | |
07010321 | Olivenhain MWD No. 96-1, CA Lmtd Obl Impr Ref 07 | |
07010322 | South Madison Middle SBC, IN Rev 2007 | |
07010326 | Puerto Rico Sales Tax Rev 2007 | |
07010329 | Hercules RDA (Merged Proj Area), CA TAB 07 | |
07010335 | Houston (City of), TX Airport Rev Ref 07B | |
07010336 | Houston (City of), TX Airport Rev Ref 07B | |
07010339 | MICLA (Figueroa), CA Lse 07B-1/B-2 (Txble) | |
07010340 | MICLA (Figueroa), CA Lse 07B-1/B-2 (Txble) | |
07010341 | Los Angeles (City) MICLA (Cap Equip), CA Lease 07A | |
07010342 | Los Angeles (City) MICLA (Cap Equip), CA Lease 07A | |
07010347 | Victor Valley Transit Authority, CA COPs 07 | |
07010348 | Hayward (City of), CA Sew Sys.Rev COPs Ref 2007 | |
07010349 | Hayward (City of), CA Sew Sys.Rev COPs Ref 2007 | |
07010357 | Calleguas-Las Virgenes PFA,CA Rev Ref 07AB | |
07010358 | Calleguas-Las Virgenes PFA,CA Rev Ref 07AB | |
07010359 | Indian River Cnty Sch Brd, FL COPs 07 | |
07010360 | Idaho State University, ID Rev 07 | |
07010376 | Calleguas-Las Virgenes PFA,CA Rev Ref 07AB | |
07010381 | Alaska Railroad Corp, AK FTA (5307 & 5309) 2007 | |
07010382 | Alaska Railroad Corp, AK FTA (5307 & 5309) 2007 | |
07010386 | Colorado State University Sys, CO Ent Rev 07ABC | |
07010387 | Illinois Muni Pwr Elec Agy, IL Pwr Rev 07ABC | |
07010394 | Melbourne (City of), FL W&S Rev Ref 2007B | |
07010395 | Melbourne (City of), FL W&S Rev Ref 2007B | |
07010396 | Florida Keys Aqueduct Auth, FL Wtr Rev 2007 | |
07010397 | Florida Keys Aqueduct Auth, FL Wtr Rev 2007 | |
07010398 | South Bend Comm Sch Corp, IN Rev 2007 | |
07010399 | South Bend Comm Sch Corp, IN Rev 2007 | |
07010404 | Illinois Muni Pwr Elec Agy, IL Pwr Rev 07C | |
07010410 | Franklin Comm MSBC, IN Lse Rev Ref 2007 | |
07010414 | New York St Thruway Auth, Gen Rev Series H | |
07010416 | New York City Muni Wtr Fin Auth, NY W&S Rev 08AA | |
07010417 | San Mateo (City of), CA Lease Rev Ref 07B | |
07010418 | San Mateo (City of), CA Lease Rev Ref 07B | |
07010419 | Central Arkansas Univ (BOT), AR GO 07C |
Policy Id |
Policy | |
07010420 | Univ of California, CA Sub Lien Rev 07D | |
07010424 | St. Peters (City of), MO Water & Sewer Rev 2007 | |
07010426 | St. Peters (City of), MO Water & Sewer Rev 2007 | |
07010428 | Miramar (City of), FL Util Sys Rev 2007 | |
07010429 | Miramar (City of), FL Util Sys Rev 2007 | |
07010430 | Philadelphia, PAID Lease Rev Series 2007AB | |
07010433 | Maine Health & HEFA, ME Rev 2007B | |
07010434 | Cowlitz Co. PUD No.1, WA Elec Rev 07 | |
07010442 | Calaveras County, CA COPs 07 | |
07010443 | Calaveras County, CA COPs 07 | |
07010447 | Fort Smith (City of), AR Wtr & Swr Rev 2007 | |
07010448 | Fort Smith (City of), AR Wtr & Swr Rev 2007 | |
07010454 | Washington (State of), WA COPs 07F | |
07010455 | Wayne Co. Airport Auth., Sr. Lien Rfd. 2007 | |
07010456 | Philadelphia, PAID Lease Rev Series 2007AB | |
07010457 | Philadelphia, PAID Lease Rev Series 2007AB | |
07010458 | Sonoma (County of), CA (Measure F) Sales Tax 07AB | |
07010459 | Sonoma (County of), CA (Measure F) Sales Tax 07AB | |
07010460 | Sonoma (County of), CA (Measure F) Sales Tax 07AB | |
07010461 | Sonoma (County of), CA (Measure F) Sales Tax 07AB | |
07010482 | Kentucky SPBC, KY Rev Project No. 88 | |
07010485 | Escondido UHSD, CA COPs 07 | |
07010486 | Escondido UHSD, CA COPs 07 | |
07010487 | Fort Lewis College BOT, CO Aux Rev 07A,B1,B2,C,D | |
07010488 | Fort Lewis College BOT, CO Aux Rev 07A,B1,B2,C,D | |
07020001 | New Jersey TTFA, NJ 2006 | |
07020002 | Providence Health | |
84020044 | E.F. Hutton Tax Exempt Trust, | |
84020050 | Municipal Investment Trust Fun | |
84020054 | The Municipal Bond Trust Insur | |
84020078 | Sears Tax-Exempt Investment Tr | |
85020013 | Sears Tax-ExemptInvestment Tru | |
85020021 | Sears Tax-Exempt Investment Tr | |
85020054 | Sears Tax-Exempt Investment, T | |
85020096 | Smith Barney Insured Series 7 | |
86010159 | City of Indianapolis, Indiana | |
86020014 | Insured Tax-Free Income Trust, | |
86020019 | Sears Tax-Exempt Investment Tr | |
86990007 | Arizona HELP SEries 1985 | |
87010114 | Intermountain Power Agency (A | |
87020002 | E.F.Hutton Tax-Exempt Trust, C | |
88010480 | CABELL, PUTNAM, WAYNE CMO 88 | |
88010542 | CABELL PUTNAM WAYNE CMO CABS | |
88010655 | HERNANDO CNTY FL VRRB 1986 A&B | |
88010722 | Albuquerque, NM CMO Ser 1988A | |
89010026 | SEACOAST UTILITY AUTH 89 | |
89010028 | SEACOAST UTILITY AUTH 89 | |
89010079 | ROSS COUNTY OH 89 | |
89010109 | Sussex Co, DE Muni Ref CMO | |
89010123 | HARRISBURG SEWER RFDG 89 2ND S | |
89010124 | HARRISBURG SEWER RFDG 89 3RD S | |
89010141 | Orange Co., Fl SW Rev 89 | |
89010162 | FEDERAL WAY, WA W&S 89 | |
89010243 | Pompton Lakes, NJ MUA | |
89010255 | ESCAMBIA CNTY, FL SALES TAX 89 |
-79-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
90010030 | WEST ORANGE BD OF ED, NJ LEASE | |
90010051 | AUSTIN, TX COMB UTIL 90 A & B | |
90010150 | PALM BEACH CNTY, FL EXCISE 90 | |
90010184 | Castle Rock, Co Sewer 90 A | |
90010285 | SAN FRANCISCO REDEV PROJ, TAB | |
90010289 | SAN FRANCISCO REDEV PROJ, TAB | |
90010316 | Orlando-Orange Co Exp Auth 90 | |
90010321 | Chicago Wastewater 1990 | |
90020091 | Nashville/Davidson TN W/S 86 | |
90020374 | CITY UNIVERSITY, DASNY, LEASE | |
90020379 | CITY UNIVERSITY, DASNY, LEASE | |
90020380 | CITY UNIVERSITY, DASNY, LEASE | |
90020381 | CITY UNIVERSITY, DASNY, LEASE | |
91010042 | Allegheny Co., PA Sewer 1991 | |
91010047 | Piedmont MPA, SC Elec Refdg 91 | |
91010109 | Eastern Muni Wtr Dist COP 1991 | |
91010122 | Chandler, AZ Wtr/Swr Ref, 91 | |
91010125 | New Hampshire Tpke Rev 1991 | |
91010158 | DETROIT EDISON COMPANY 1991 AA | |
91010165 | DETROIT EDISON CO SERIES E 91 | |
91010201 | GREEN COVE SPRINGS,FL UTIL 91 | |
91010232 | UNIV MARYLAND MED SYS 91 A & B | |
91010269 | Buffalo Sewer Auth NY Ser F 91 | |
91010312 | PIMA CNTY, AZ SEWER REV SER 91 | |
91010345 | NJ Turnpike Authority 1991A | |
91010378 | DENVER METRO BASEBALL DIST,SLS | |
91010399 | SAN FRANCISCO REDEV PROJ,TAB91 | |
91010427 | ALLEGHENY CO, PA SWR 91 A,B,C | |
91010438 | GRAND RAPIDS, MI WTR SYS 1991 | |
91010444 | Clark Cnty, WA PUD No 1 1991 | |
91010455 | REGIONAL TRAN AUTH,IL SL TX91A | |
91010456 | Piedmont MPA Elec Rev Ref 91 A | |
91010463 | SANTA ROSA CNTY,FL EXCISETAX91 | |
91010465 | JOLIET, IL WATER & SEW REV 89 | |
91010467 | REGIONAL TRAN AUTH,IL SL TX91A | |
91010481 | LOS ANGELES CNTY TRANS,SLS TAX | |
91010505 | ROCK HILL, SC UTIL SYS REV 91 | |
91010513 | New Jersey Turnpike Auth 91 D | |
91010514 | New Jersey Tpke Auth 91 Surety | |
91010529 | REGIONAL TRAN AUTH,LA SLSTAX91 | |
91010533 | Bucks Co, PA Sew Sys 1991 A&B | |
91010534 | Bucks Co, PA SW Wtr Sys 91 A&B | |
91010535 | Bucks Co, PA Swr Sys 1991 | |
91020152 | Tucson Wtr, AZ Proj 84D (1991) | |
91020339 | DASNY STATE APPROP (SUNY), 90A | |
92010095 | Harrisburg, PA Swr 2nd Ser 92 | |
92010096 | Harrisburg, PA Swr 1st Ser 92 | |
92010104 | SAN BERNARDINO CNTY TRANS,CA92 | |
92010108 | NYS MED CARE(MNTL HLTH)LEASE92 | |
92010134 | DETROIT EDISON 92AA | |
92010150 | St Lucie Cnty, FL Sales Tax 92 | |
92010210 | Montgomery Co, MD Bethesda 92A | |
92010211 | Montgomery Co. MD (Silver) 92 | |
92010216 | Helena, MT Wtr Sys 92 B&C | |
92010223 | ST. LUCIE, FL W&S 1990 Surety |
Policy Id |
Policy | |
92010226 | PIERCE CNTY TRANS,WA SLS TX 92 | |
92010229 | Niagara Falls Brdg Comm 1992 | |
92010245 | Tampa, FL Water & Sewer 92A | |
92010247 | Winston-Salem, NC Wtr/Swr 92 | |
92010263 | OKLAHOMA BAPTIST UNIV 92 REF | |
92010289 | Richmond, VA Metro Auth ABC 92 | |
92010332 | LOS ANGELES CTC, SALES TAX 92A | |
92010348 | Hesperia, CA Wtr Dist 92A&B | |
92010354 | Hesperia, CA Wtr Dist 92A | |
92010355 | Passaic Valley Water, NJ 92 | |
92010357 | Gilbert, Az Water&Sewer 92 | |
92010360 | Hesperia, CA Wtr Dist 92A | |
92010384 | Boynton Beach, FL Wtr & Swr 92 | |
92010401 | Ridges Metro, CO GTD Sls Tax92 | |
92010425 | Lower Paxton, Pa Sewer 92 A&B | |
92010446 | PASCO COUNTY,FL GAS TAX 92 REF | |
92010447 | PASCO CNTY,FL GTD ENTLMT 92REF | |
92010468 | Farmington, NM Util Rev 92 | |
92010479 | FLAGSTAFF,AZ JrLIEN HWY USR 92 | |
92010490 | Pasco Co. Fl Wtr&Swr Ref 92 | |
92010491 | Maryland Trans. Auth. 1992 | |
92010498 | South Co. Regional Wstewtr 92B | |
92010508 | City of Fort Collins, Colorado | |
92010542 | ARVADA (CITY OF), CO SLS TX 92 | |
92010543 | ARVADA (CITY OF), CO SLS TX 92 | |
92010552 | KENNER (CITY),LA SLSTAX 92 REF | |
92010570 | Colorado Small Water Prog 92B | |
92010572 | Elsinore Valley, CA MUD Ref 92 | |
92010573 | KENTUCKY TRNPK AUTH, EXC 92REF | |
92010607 | Escambia Util Auth Ref 92B | |
92010608 | Escambia Util Auth Ref 92B | |
92010623 | Fulton County, GA Wtr & Swr 92 | |
92010664 | Panama City, FL Excise Tax S92 | |
92010669 | PALM BEACH CNTY, FL TAX REV 92 | |
92010676 | Santa Rosa Wastewater 92 B | |
92010690 | Altamonte Springs, Fl Wtr&Swr | |
92010715 | Chandler, AZ Wtr&Sw Ref 92 | |
92010723 | City of Chicago, Illinois, Was | |
92010746 | Gainesville, GA Wtr&Swr Surety | |
92010747 | Gainesville, GA Wtr/Swr 90 A&B | |
92010753 | Coral Springs, FL W&S Rev 92 | |
92010759 | Margate, Fl. Wtr&Swr Rev Ref92 | |
92010765 | Bergen Co Util Auth, NJ 92 B | |
92020025 | NYC Muni Water & Sewer 1992 A | |
92020027 | Port Auth of NY&NJ 74th Series | |
92020033 | Port Auth of NY&NJ 74th Series | |
92020073 | Port Auth of NY&NJ 74th Series | |
92020083 | PHOENIX, AZ ST/HWY JR LIEN 92 | |
92020278 | Nashville/Davidson TN W/S 86 | |
93010003 | Gainesville, GA Wtr&Swr 92 A&C | |
93010007 | McCORMICK PLACE, IL SLS TX 92 | |
93010013 | PHOENIX, AZ ST/HWY JR LIEN 92A | |
93010015 | Apopka, Fl Water and Swr 92 | |
93010029 | BroMenn HealthCare, IL 92 Ref | |
93010052 | Sarasota Co., Fl Util Ref 93 |
-80-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
93010053 | Sarasota Co., Fl Util Ref 93 | |
93010077 | San Diego Co., Calif. Wtr 92 A | |
93010078 | San Diego Co., Calif. Wtr 92 A | |
93010114 | Albany, NY Muni Wtr Auth 93 A | |
93010115 | JACKSONVILLE, FL EXC TAX 93 | |
93010116 | JACKSONVILLE, FL EXC TAX 93 | |
93010134 | Riverside City, CA Sewer 93 | |
93010135 | Riverside City, CA Sewer 93 | |
93010147 | Montgomery Co. OH Sewer 92 | |
93010152 | Detroit, MI Swr Rev. Ref 93 A | |
93010176 | Santa Maria, CA Water Proj. 93 | |
93010184 | INDIANA UNIV STUDNT FEES 93 J | |
93010185 | INDIANA UNIV STUDNT FEES 93 J | |
93010204 | Boston Water & Sewer Comm Rev | |
93010207 | Chicago, IL Wstewtr Ref 93 | |
93010208 | Chicago, IL Wstewtr Ref 92 | |
93010210 | Phoenix, AZ Wtr System Rev 93 | |
93010248 | Gainesville, GA Wtr&Swr 93 A&B | |
93010254 | Allegheny Co. Sani Auth. 93 A | |
93010258 | Landis, NJ Sewer Authority 93 | |
93010269 | Chandler, AZ Water&Sewer 93 | |
93010278 | Indian River County, FL W&S93 | |
93010296 | PALM BEACH CNTY,FL ADMIN REV93 | |
93010297 | PALM BEACH CNTY,FL ADMIN REV93 | |
93010301 | Hamilton County, Ohio Sewer 93 | |
93010332 | Charlotte Co., FL Utilty 93 | |
93010341 | MODESTO (CITY OF), CA LEASE 93 | |
93010350 | MIAMI UNIVERSITY,OH GEN REV 93 | |
93010359 | Santa Rosa, CA Sewer Rev 93 | |
93010360 | Eastern Municipal Wtr 93-B | |
93010378 | PALM BEACH CNTY, FL TAX REV 93 | |
93010379 | PALM BEACH CNTY, FL TAX REV 93 | |
93010408 | MONROE COUNTY,FL EXC TAX 93REF | |
93010430 | Big Bear Lake, CA Wtr&Pwr 93 | |
93010448 | VIRGINIA BEACH, VA COP REF 93 | |
93010456 | CONTRA COSTA TRAN AUTH, CA 93A | |
93010496 | New Jersey American Water 93 | |
93010499 | New Smyrna Beach Utility 93 | |
93010502 | Mary Hitchcock MemHosp,NH93Ref | |
93010504 | ROCKEFELLER UNIVERSITY, NY 91A | |
93010529 | CHILDRENS HSP MC OBGRP,OH93REF | |
93010536 | Niagara Falls Brdg Commiss 93 | |
93010545 | Vallejo, CA Sanitation Dist. | |
93010546 | Magee-Womens Hosp,Pitts, PA93 | |
93010547 | Niceville Fl, Wtr & Swr Ref 93 | |
93010553 | SAN FRANCISCO RDV PROJ,TAB 93B | |
93010556 | Bucks Co W&S Nashaminy 93 | |
93010566 | Houston, TX Airport Sys. | |
93010568 | Nashville/Davidson Co. W/S 93 | |
93010569 | Greater Baltimore Med Ctr,MD93 | |
93010596 | Oxnard, CA Financing Authority | |
93010609 | Ft. Myers, FL Utility Sys 93 | |
93010610 | Ft. Myers, FL Utility Sys 93 | |
93010614 | Philadelphia, PA Water & Sewer | |
93010643 | Palm Beach Co.,FL Wtr & Swr 93 |
Policy Id |
Policy | |
93010649 | Pittsburgh W&S 91A Surety | |
93010669 | Baystate Medical Center, MA93 | |
93010671 | PASSAIC COUNTY, NJ GO 93 REF | |
93010693 | Jurupa, CA Wastewater 93 | |
93010694 | SARASOTA (CITY OF), FL W&S 93 | |
93010731 | Dunedin, Fl Wtr/Swr Ref. 93 | |
93010732 | Dunedin, Fl Wtr/Swr Ref. 93 | |
93010733 | MED CTR CENTRAL GEORGIA S93A | |
93010738 | Fort Myers, FL Util Sys 93B | |
93010756 | Pompano Beach, Fl Wtr & Swr 93 | |
93010764 | Chicago, Il Water Rev Ref 93 | |
93010765 | Chicago, Il Water Rev Ref 93 | |
93010773 | COLORADO SMALL WTR RES AUTH 93 | |
93010775 | Westmoreland Cnty MA, PA 93ABC | |
93010789 | Houston, TX - Airport System | |
93010799 | Detroit (City of), MI Water 93 | |
93010803 | Shreveport, LA - Wtr & Swr93 B | |
93010809 | MACON-BIBB CNTY HOSP AUTH 93C | |
93010811 | Pittsburgh, PA Wtr & Swr 93 AB | |
93010812 | Pittsburgh, PA Wtr & Swr 93 AB | |
93010833 | Metropolitan Nashville Arpt 93 | |
93010835 | ROGERS (CITY OF), AR SLS TX 93 | |
93010862 | Kenosha (City of), WI Sewer 93 | |
93010865 | Washington, D.C., Transit Auth | |
93010866 | Washington, D.C., Transit Auth | |
93020026 | North Carolina East 93A&B Sec | |
93020028 | North Carolina East 92A&B Sec | |
93020061 | North Carolina East 93A&B Sec | |
93020062 | North Carolina East 92A&B Sec | |
93020071 | North Carolina East 93A&B Sec | |
93020078 | North Carolina East 93A&B Sec | |
93020094 | DASNY, STATE UNIV SER 89B | |
93020095 | DASNY LEASE 2ND RES(CUNY)90B&C | |
93020134 | CITY UNIV/DASNY CONS REV 93A | |
93020195 | STATE UNIV/DASNY, NY LEASE 93B | |
93020197 | STATE UNIV/DASNY, NY LEASE 93B | |
93020198 | STATE UNIV/DASNY, NY LEASE 93B | |
93020209 | Salt River Proj Elec Sys Rev | |
93020227 | DASNY, STATE UNIV SER 89B | |
93020282 | GEORGIA MUNI ELEC AUTH, SER V | |
93020290 | STATE UNIV/DASNY, NY LEASE 93A | |
94010011 | Oklahoma Muni Power Auth 94 | |
94010025 | OSCEOLA CNTY,FL SLS TAX 93REF | |
94010026 | OSCEOLA CNTY,FL SLS TAX 93REF | |
94010056 | ST. LUCIE CNTY,FL SLS TX REF93 | |
94010059 | BAY COUNTY, FL GAS TAX 94 | |
94010067 | Oklahoma Muni Power Auth 94 | |
94010075 | Mishawaka (City), IN Swr 94A/B | |
94010078 | Mishawaka (City), IN Swr 94A/B | |
94010084 | FT LAUDERDALE,FL EX TX SURETY | |
94010088 | Lancaster Cnty Wtr&Swr Dist,SC | |
94010095 | Washington Pub Pwr SS Pr#2 94A | |
94010110 | McMinnville City of,OR Sewer94 | |
94010131 | Baltimore, Md Water Proj. 94-A | |
94010132 | Baltimore, MD Wastewater 94-A |
-81-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
94010142 | Union (City of), SC Util Sys94 | |
94010157 | Stafford Muni Util Auth, NJ 94 | |
94010196 | NEW JERSEY TRANS/METROPARK, 94 | |
94010199 | Sumter Co,FL Gas & Gtd Ent 94 | |
94010224 | James Island PSD, SC Sewer 94 | |
94010232 | COLORADO SMALL WTR AUTH 94A | |
94010261 | Opa-Locka City, Fl GTDENT,SUTX | |
94010262 | Opa-Locka City, Fl GTDENT,SUTX | |
94010285 | PALM BEACH CNTY,FL CRM JSTC RV | |
94010304 | Miami, FL (SSGFC) Tax 94 | |
94010322 | Winston-Salem NC W&S 94 Surety | |
94010331 | Tacoma Wa Electric Sys Ref S94 | |
94010333 | METRO PIER & EXPO AUTH,IL 94AB | |
94010380 | RICHLAND COUNTY, SC COP SER 94 | |
94010387 | Santa Clara Vly Wtr Ds, Ca Cop | |
94010394 | ROCKEFELLER UNIVERSITY, NY 91A | |
94010412 | PALM BEACH CNTY,FL PB IMP RV94 | |
94010427 | South Orange Cnty PFA, CA 94C | |
94010431 | Miami Beach, FL (SSGFC) Tax 94 | |
94010448 | Med Ctr Hospital of Vermont94 | |
94010471 | ROCK HILL, SC UTIL SYS 94 | |
94010480 | Austin TX Comb UTS Sr. Lien 94 | |
94010488 | Miami, FL Non Ad Vlm Tax 94 | |
94010518 | Tacoma, Washington Sewer 94 | |
94010540 | Forsyth Cnty, GA - Wtr&Swr 94 | |
94010551 | Srs of Providence Oblg Grp, 94 | |
94010560 | Tacoma, Washington Sewer 94 | |
94010567 | Altoona, PA Water Authority | |
94010591 | Regional Trans Auth,IL STX94CD | |
94010600 | Regional Trans Auth,IL STX94CD | |
94010607 | CHARLOTTE CNTY WTR/SWR, FL 94 | |
94010616 | CHANDLER, AZ WATER & SEWER 94 | |
94010617 | CHANDLER, AZ WATER & SEWER 94 | |
94010639 | Sarasota Co., Fl Util Rev - 94 | |
94020029 | STATE UNIV/DASNY, NY LEASE 93A | |
94020038 | Gwinnett, GA Wtr & Swr Auth 94 | |
94020047 | METRO PIER/McCORMICK PLC,IL92A | |
94020051 | METRO PIER/McCORMICK PLC,IL92A | |
94020052 | METRO PIER/McCORMICK PLC,IL92A | |
94020053 | METRO PIER/McCORMICK PLC,IL92A | |
94020068 | METRO PIER/McCORMICK PLC,IL92A | |
94020073 | Georgia MuniElec Auth Ser Z&A | |
94020074 | Georgia Muni Elec Auth 93C | |
94020075 | Georgia MuniElec Auth Ser Z&A | |
94020076 | Georgia Muni Elec Auth BB | |
94020077 | Georgia Muni Elec Auth 93B | |
94020078 | Georgia Muni Elec Auth 92 B | |
94020080 | Georgia MuniElec Auth Ser Z&A | |
94020081 | Georgia Muni Elec Auth 93C | |
94020082 | GEORGIA MUNI ELEC AUTH, SER V | |
94020084 | Georgia MuniElec Auth Ser Z&A | |
94020089 | Georgia Muni Elec Auth 92 B | |
94020091 | Georgia Muni Elec Auth 92 B | |
94020093 | Georgia Muni Elec Auth 92 B | |
94020094 | Georgia MuniElec Auth Ser Z&A |
Policy Id |
Policy | |
94020095 | Georgia Muni Electric 92 B Sec | |
94020112 | LOS ANGELES DEPT OF WTR, CA 93 | |
94020121 | CITY UNIV/DASNY, 2ND RES 93A | |
94020134 | METRO PIER/McCORMICK PLC,IL92A | |
94020194 | METRO PIER/McCORMICK PLC,IL92A | |
94020195 | METRO PIER/McCORMICK PLC,IL92A | |
94020207 | PHOENIX, AZ ST/HWY JR LIEN 92 | |
94020246 | METRO PIER/McCORMICK PLC,IL92A | |
94020255 | DASNY, STATE UNIV SER 89B | |
94020257 | STATE UNIV/DASNY, NY LEASE 93A | |
94020258 | STATE UNIV/DASNY, NY LEASE 93A | |
94020265 | Georgia MuniElec Auth Ser Z&A | |
94020300 | Georgia MuniElec Auth Ser Z&A | |
94020303 | Georgia Muni Elec Auth BB | |
94020304 | INDIANA UNIV STUDENT FEE SER I | |
94020312 | METRO PIER/McCORMICK PLC,IL92A | |
94020318 | NEW YORK STATE (MCFFA) 94E | |
94020319 | NEW YORK STATE (MCFFA) 94E | |
94020332 | NEW YORK STATE (MCFFA) 92F | |
94020334 | LA DWAP 1994 | |
94020342 | City of Austin - Comb Util 93A | |
94020346 | Georgia MuniElec Auth Ser Z&A | |
94020347 | City of Austin - Comb Util 93 | |
94020361 | Georgia Muni Elec Auth BB | |
94020367 | METRO PIER/McCORMICK PLC,IL92A | |
94020369 | Metro Water Dist So. CA - 93 A | |
94020387 | Gwinnett, GA Wtr & Swr Auth 94 | |
94020389 | METRO PIER/McCORMICK PLC,IL92A | |
94020392 | NEW YORK ST POWER AUTH-SER 91Z | |
94020402 | LA DWAP 1994 | |
94020416 | METRO PIER/McCORMICK PLC,IL92A | |
94020422 | METRO PIER/McCORMICK PLC,IL92A | |
94020427 | METRO PIER/McCORMICK PLC,IL92A | |
94020437 | MICHIGAN ST TRUNKLINE,EXCISE89 | |
94020441 | Georgia MuniElec Auth Ser Z&A | |
94020446 | Georgia MuniElec Auth Ser Z&A | |
94020448 | Georgia Muni Elec Auth 92 B | |
94020451 | Georgia Muni Elec Auth 92 B | |
94020452 | METRO PIER/McCORMICK PLC,IL92A | |
94020456 | Gwinnett, GA Wtr & Swr Auth 94 | |
95010016 | Stockton Rev Certificates 1995 | |
95010061 | New York St Thruway Auth- 95 C | |
95010086 | Bradenton, Florida Utility Sys | |
95010110 | Beaufort-Jasp Co W&S Auth 92A | |
95010111 | Beaufort-Jasp Co W&S Auth 92 B | |
95010134 | Clifton Park Wtr Auth,NY Wtr93 | |
95010188 | Harrison Cnty, MS Wastewtr 95 | |
95010197 | Ft. Collins, Co Swr Rev Ref 95 | |
95010201 | Harrison Co Wastewtr, MS 91A | |
95010219 | Tacoma, Washington Swr 1995A&B | |
95010236 | Port of Portland Series Ten | |
95010245 | Peoria, AZ Wtr & Swr Rev 1995A | |
95010270 | ROCKEFELLER UNIVERSITY, NY 91A | |
95010273 | JACKSONVILLE, FL SLS TX 95 | |
95010339 | Houston Airport, TX Surety 95 |
-82-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
95010363 | Stafford Muni Util Auth, NJ 94 | |
95010379 | Miami, Fl Non-Ad Vlm Tax 1995 | |
95010380 | Miami, Fl Non-Ad Vlm Tax 1995 | |
95010410 | ORANGE CITY, FL UTIL SYS 1995 | |
95010436 | Winston-Salem, NC W&S 95AB sur | |
95010442 | Mesa, Arizona Utility Sys 1995 | |
95010448 | Dade County, FL Wtr & Swr 95 | |
95010449 | Mobile Co. Wtr & Fire Ser 1995 | |
95010477 | Robinson Twp MUA,PA W&S SerA95 | |
95010484 | Clark Cnty PUD No 1, Gener. 95 | |
95010491 | Miami, FL (SSGFC) Non-Ad Tx 95 | |
95010531 | Clark Cnty PUD No 1, WA Elec95 | |
95010536 | Mason Cnty, WA-PUD No. 3, 1995 | |
95010556 | Bradenton, Fl Sub Lien Ser 95 | |
95010572 | Hammond,IN Pub Imp Bd Bk 1995A | |
95010579 | San Diego, CA Sewer 95 | |
95010596 | Illinois (State of), SaleTax W | |
95010600 | Chicago (City),IL Wtr Rev 1995 | |
95010603 | Chicago Wstewtr Trans Jr,IL 95 | |
95010604 | Chicago (City),IL Wtr Rev 1995 | |
95020012 | Georgia Muni Elec Auth 92 B | |
95020016 | METRO PIER/McCORMICK PLC,IL92A | |
95020043 | LA DWAP 1994 | |
95020046 | LA DWAP 1994 | |
95020047 | METRO PIER/McCORMICK PLC,IL92A | |
95020051 | LOS ANGELES DEPT OF WTR, CA 93 | |
95020053 | METRO PIER/McCORMICK PLC,IL92A | |
95020054 | City of Austin - Comb Util 93A | |
95020063 | METRO PIER/McCORMICK PLC,IL92A | |
95020066 | LA DWAP 1994 | |
95020117 | LA DWAP 1994 | |
95020144 | City of Austin - Comb Util 93 | |
95020156 | METRO PIER/McCORMICK PLC,IL92A | |
95020167 | NEW YORK STATE (MCFFA) 92F | |
95020211 | SALT RIVER AG I&P DIST, AZ 93C | |
95020217 | City of Austin - Comb Util 93A | |
95020240 | City of Austin - Comb Util 93 | |
95020285 | WPPSS - No. 1 Refdg S89B WA | |
95020294 | NEW YORK ST POWER AUTH 93 CC | |
95020295 | NEW YORK ST POWER AUTH 93 CC | |
95020329 | METRO PIER/McCORMICK PLC,IL92A | |
95020338 | METRO PIER/McCORMICK PLC,IL92A | |
95020340 | City of Austin - Comb Util 93A | |
96010001 | SARASOTA (CITY OF), FL W&S 96 | |
96010006 | JACKSONVILLE, FL EXCISE TAX95A | |
96010018 | JACKSONVILLE, FL EXCISE TAX95A | |
96010045 | Riverside Cnty TC, CA Sls Tx95 | |
96010046 | Riverside Cnty TC, CA Sls Tx95 | |
96010055 | Bossier City, LA Utility 1996 | |
96010059 | Louisville & Jeff Co Sewer 96A | |
96010072 | East Bay MUD, CA Water Sys 96 | |
96010090 | JACKSONVILLE,FL EXCISE TAX 96A | |
96010091 | JACKSONVILLE,FL EXCISE TAX 96A | |
96010093 | COLUMBIA CNTY,FL GAS TX SURETY | |
96010097 | UNIV. OF CONNECTICUT G0 |
Policy Id |
Policy | |
96010100 | Lake Mary, Fl. Pub Imp Rev 96 | |
96010114 | Sarasota Co., Fl W & S Ser 96A | |
96010115 | Sarasota Co., Fl W & S Ser 96A | |
96010127 | Houston W&S Rev Rf,TX JR 96A&C | |
96010129 | Lakewood Pub Fin Auth Wtr 1996 | |
96010136 | Stafford County, VA Wtr/Swr 96 | |
96010149 | SAN ANTONIO,TX CONV CTR-HOTEL | |
96010165 | South Gate Pub Fin Wtr, CA 96A | |
96010203 | Port StLucie FL Utl Rev CAB96A | |
96010211 | Baltimore, MD Parking Sys 96A | |
96010212 | Baltimore, MD Parking Sys 96A | |
96010213 | Mary Hitchcock Mem Hosp 85A | |
96010234 | Lake Wales, FL W & S Rev 1996 | |
96010251 | Franklin Cnty Pub Fac Corp, NC | |
96010259 | Indian River County, FL W&S 96 | |
96010260 | NEW JERSEY-AMERICAN WTR CO 96 | |
96010281 | VANDENBERG VILL COMM SVS DT 96 | |
96010309 | Hillsborough Cnty Avtn 1996 AB | |
96010323 | Orange City FL Utl Sys Rev 96 | |
96010347 | LAKE WALES, FLORIDA EXCISE 96 | |
96010364 | West Palm Beach, FL (SSGFC) 96 | |
96010378 | CHARLOTTE CO WTR/SWR, FL 1996 | |
96010379 | CHARLOTTE CO WTR/SWR, FL 1996 | |
96010404 | Port Canaveral,FL Auth 1996A&B | |
96010473 | Unified Swrage Agcy,OR Sr 1996 | |
96010474 | Unified Swrage Agcy,OR Sr 1996 | |
96010485 | Dixon, City - Swr Imp Proj 96 | |
96010505 | Emerald Peoples Util Dist-96 | |
96010506 | Emerald Peoples Util Dist-96 | |
96010513 | Illinois St. Toll Hghwy 1996A | |
96010519 | Fort Lauderdale, FL (SSGFC) 96 | |
96010528 | Port of Portland, OR Series 11 | |
96010530 | Tulsa Airports Improv Trust 96 | |
96010545 | NORTHERN ILL. UNIV AUX REV 96 | |
96010548 | Hawaii (State), Exc1996 Surety | |
96010552 | Morristown, TN Water Sys 1996 | |
96010569 | BRIGHTON, COLORADO Sls 96RefB | |
96010570 | BRIGHTON, COLORADO Sls 96RefB | |
96010579 | JACKSONVILLE, FL EXCISE 96B&C | |
96010598 | PASSAIC COUNTY, NJ GO 96A&B | |
96010601 | Martin Cnty, Fl Wtr/Swr 1996 | |
96010605 | West Morgan East Law Wtr 1996 | |
96010652 | Margate, FL Wtr&Swr 96 Surety | |
96010663 | Kansas City, KS Swr SRF Loans | |
96010668 | Lynnwood, WA W&S Rev Ref 1996 | |
96010680 | Richmond Co, GA W&S 96A,B | |
96010691 | Dade County Expressway Auth 96 | |
96010701 | HOUSTON WTR & SWR JR,TX 1996D | |
96010712 | Kansas City, Mo Wtr Sys 1996B | |
96010717 | Kansas City, Kansas Sewer | |
96020049 | Boston Water & Sewer Sr. 92 A | |
96020152 | MASS WATER RESOURCES 1993 C | |
97010002 | Richmond County, GA W&S 1997 | |
97010005 | JACKSONVILLE, FL SLS TX 96 | |
97010006 | JACKSONVILLE, FL SLS TX 96 |
-83-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
97010023 | Wheeling, WV Comb. Wtr&Swr 97 | |
97010028 | HOUSTON W&S, TX REV REF 97ABC | |
97010037 | Texarkana, TX W & S Rev 96B | |
97010038 | ST. PETERSBURG,FL EXCISE DSRF | |
97010039 | Dade County, FL Wtr/Swr 1997 | |
97010044 | Fayette Co, Ga Water Rev 96 | |
97010050 | Connecticut State GF CDA 97A | |
97010064 | Kansas City, KS Swr Loans 1997 | |
97010085 | Maine Turnpike Authority Rev97 | |
97010086 | Bergen Co Util Auth, NJ 1997 | |
97010104 | San Diego, CA Sewer 1997 A&B | |
97010108 | Fort Lauderdale, FL (SSGFC) 97 | |
97010131 | Everett, WA Water&Sewer 1997 | |
97010132 | Everett, WA Water&Sewer 1997 | |
97010158 | Seattle, WA Water System 97 SY | |
97010170 | Mesa, AZ Utility System 1997 | |
97010171 | Daytona Beach, FL (SSGFC) 97 | |
97010175 | Sarasota Co., FL W & S Ser 97 | |
97010202 | Cocoa, Florida Wtr&Swr Sys 97 | |
97010265 | Corsicana, TX Wtr&Swr 1997C | |
97010284 | NEW JERSEY-AMERICAN WTR CO 97B | |
97010291 | Beaverton, OR Water Rev Ser 97 | |
97010292 | Beaverton, OR Water Rev Ser 97 | |
97010298 | Gilbert, Az Water&Sewer 1997 | |
97010312 | Colorado Wtr Res Dev Auth 97 A | |
97010330 | Arizona BD of Regents (NAU) 9 | |
97010331 | Arizona BD of Regents (NAU) 9 | |
97010337 | Bossier City, LA Sales Tax 97 | |
97010339 | TUCSON, AZ ST&HWY GAS TAX 97C | |
97010342 | Houston Arprt Syst., TX 1997 | |
97010364 | Arkansas Dev Fin Auth Ser 97 | |
97010369 | Atlanta, GA W&S Sr. Lien Ser97 | |
97010371 | Atlanta, GA W&S 2nd Lien | |
97010381 | Burlington VT Wtr Sys Ser 97 | |
97010382 | Burlington VT Wtr Sys Ser 97 | |
97010385 | Phila, PA - Arpt Rev Ser 97AB | |
97010403 | Fort Wayne (City), IN Water 97 | |
97010438 | Stafford Muni Util Auth, NJ 97 | |
97010445 | Regional Trans Dist, CO SLS 97 | |
97010462 | Stafford Muni Util Auth, NJ 97 | |
97010465 | Galveston, TX Wtr Sys (O&M) 97 | |
97010471 | Palm Beach Cnty, FL Non-Ad Vlm | |
97010491 | Jacksonville Elec, FL W&S 97AB | |
97010518 | Unified Swrage Agency,OR Sr 97 | |
97010519 | Unified Sewerage Agency Sub.97 | |
97010520 | Chandler, AZ Water&Sewer 1997 | |
97010529 | Polk County, FL Util Sys 97A&B | |
97010530 | Lambert-St Louis Intl Airprt97 | |
97010536 | Chicago (City), IL Wtr Rev 97 | |
97010537 | Chicago (City), IL Wtr Rev 97 | |
97010554 | Water Facilities Auth, CA 97A | |
97010557 | White House Util W&S, TN 97A&B | |
97010573 | Regional Trans Auth,IL STAX 97 | |
97010574 | Regional Trans Auth,IL STAX 97 | |
97010580 | Texas Tpke Auth DNT Sys. 1997A |
Policy Id |
Policy | |
97010597 | TX TA Dallas No Tollway Ser 97 | |
97010605 | White House Util W&S, TN 97A&B | |
97010611 | Prescott Valley Twn, AZ Exc Tx | |
97010624 | MESA, ARIZONA ST & HWY REV 97 | |
97010626 | Hamilton County, Ohio Swr 97A | |
97010632 | West Palm Beach, FL (SSGFC) 97 | |
97010641 | Prescott Valley Twn, AZ Exc Tx | |
97010646 | DASNY CUNY Cons 97AB 3rd 97-1 | |
97010660 | BATON ROUGE, LA SLS TAX 97 | |
97010662 | Marshall, TX Wtr & Swr Ser 97 | |
97010669 | RUTHERFORD CO. CUD, TN WTR 97A | |
97010679 | Butler Area Swr Auth Rev 97AB | |
97010701 | Modesto, CA Water Rev 97 COPS | |
97010705 | Modesto, CA Water Rev 97 COPS | |
97010727 | Greater Orlando, FL 1997 A,B&C | |
97010796 | Cherokee Co, GA Wtr&Swr Auth97 | |
97010806 | Prince William,VA Wtr/Swr 97 | |
97010808 | Warren (City of) Wtr Rev 1997 | |
97020047 | STATE UNIV/DASNY, NY LEASE 93A | |
97020048 | STATE UNIV/DASNY, NY LEASE 93A | |
97020052 | CITY UNIV/DASNY 93BCDE REF | |
97020053 | STATE UNIV/DASNY, NY LEASE 93A | |
97020054 | CITY UNIV/DASNY CONS REV 93A | |
97020056 | CITY UNIV/DASNY CONS REV 93A | |
97020058 | STATE UNIV/DASNY, NY LEASE 93A | |
97020060 | CITY UNIV/DASNY CONS REV 93A | |
97020066 | CITY UNIV/DASNY CONS REV 93A | |
97020068 | City Univ/DASNY, 2nd Res 95A | |
97020071 | STATE UNIV/DASNY, NY LEASE 93B | |
97020079 | MASS WATER RESOURCES 1993 C | |
97020102 | STATE UNIV/DASNY, NY LEASE 93A | |
97020105 | MASS WATER RESOURCES 1993 C | |
97020156 | MASS WATER RESOURCES 1993 C | |
97020158 | Tucson, Arizona Wtr Sys Ref 93 | |
97020162 | MASS WATER RESOURCES 1993 C | |
98010001 | Long Beach Harbor Revnue 1998A | |
98010012 | Colorado Wtr Res Dev Auth 97 B | |
98010023 | Metro Nashville Arpt,TN 97 | |
98010026 | Metro Nashville Arpt,TN 97 | |
98010027 | Metro Nashville Arpt,TN 97 | |
98010046 | Hillsborough CO, FL Fuel TX 98 | |
98010050 | Hillsborough CO, FL Fuel TX 98 | |
98010064 | San Jose, CA - Airport Rev 98A | |
98010070 | OSCEOLA CNTY, FL GAS TAX 98 | |
98010076 | Eastern KY Univ Mand Fee S&T | |
98010104 | Longview, TX WtrSwr Rev 98B | |
98010106 | Nashville/Davidson TN WS 98A | |
98010108 | Escambia Co. FL Ut Auth 1998D | |
98010111 | Escambia Co. FL Ut Auth 1998D | |
98010118 | GRAND VALLEY UNIVERSITY, MI 98 | |
98010124 | Escambia Co., FL Utl 1998 ABC | |
98010125 | Fairfield, OH Water Rev 1998 | |
98010126 | Escambia Co., FL Utl 1998 ABC | |
98010137 | Longview, TX WtrSwr 98-A TWDB | |
98010149 | Fayette Co, Ga Water Series 98 |
-84-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98010153 | Akron, Ohio Waterworks Rev. 98 | |
98010163 | Daytona Beach, FL (SSGFC) 98 | |
98010165 | Nashville/Davidson TN W/S 98B | |
98010170 | Pittsburgh, PA Wtr & Swr 98AB | |
98010194 | Charlotte Co., FL Wtr&Swr 1998 | |
98010197 | Buffalo, NY Muni Wtr Auth 98AB | |
98010198 | Edgefield Co. W&S Auth., SC 98 | |
98010199 | Edgefield Co. W&S Auth., SC 98 | |
98010201 | Fort Wayne (City), IN Swr 98A | |
98010213 | Westmoreland Muni Auth W&S 98 | |
98010215 | Phila, PA - Arpt Rev Ser 98A | |
98010218 | FORT PIERCE, FLORIDA NON-AD 98 | |
98010219 | FORT PIERCE, FLORIDA NON-AD 98 | |
98010232 | Butte-Silver Bow, MT Water 98 | |
98010241 | Baltimore, MD Prkng Sys 1998A | |
98010242 | Baltimore, MD Prkng Sys 1998A | |
98010269 | Parker Wtr&San Dist, CO Ref 98 | |
98010270 | Florida DOT Turnpike Rev 1998A | |
98010273 | S. Indiana (Univ of) Std Fee F | |
98010277 | Los Angeles, CA Wstewtr 98A&B | |
98010290 | Chicago (City of), Il STax98 | |
98010296 | Houston Airport Sys, TX 1998A | |
98010304 | Chandler, AZ Water & Sewer 98 | |
98010311 | Boston Water & Sewer Rev 98A | |
98010316 | Louisville & Jeff Co Sewer 98A | |
98010317 | Louisville & Jeff Co Sewer 98A | |
98010318 | Houston Airport Sys, TX 1998A | |
98010323 | Boston Water & Sewer Rev 98C | |
98010324 | Richmond, VA Metro Auth 1998 | |
98010326 | Metro Nashville Arpt,TN 98 | |
98010327 | Metro Nashville Arpt,TN 98 | |
98010330 | Mesa County, CO Sales Tax 98 | |
98010344 | Palmdale, CA Water District 98 | |
98010345 | Palmdale, CA Water District 98 | |
98010358 | DASNY CUNY Cons 3rd Res 98-1 | |
98010359 | DASNY CUNY Cons 2nd Res 1998A | |
98010360 | Mobile Co., AL Wtr,Swr&Fire 9 | |
98010370 | Hernando CO Sales Tax, FL 1998 | |
98010371 | Hernando Co, Florida W&S 98 | |
98010372 | Coral Springs, FL Wtr&Swr 1998 | |
98010374 | Akron (City), OH Swr Sys 98 | |
98010378 | Connecticut (St) Specl Tax 98A | |
98010379 | New Jersey Wastewater 1998G | |
98010411 | Winslow, AZ Water Revenue 1998 | |
98010413 | Winder, Georgia Wtr & Swr 1998 | |
98010414 | Winder, Georgia Wtr & Swr 1998 | |
98010438 | Kansas City, Mo Wtr Sys 98A&B | |
98010458 | Harris County, TX Toll RD 97SY | |
98010459 | Kansas City, Mo Wtr Sys 98B | |
98010460 | Orlando-Orange CO Exp, FL JR98 | |
98010466 | Port of Seattle, WA Rev.1998A | |
98010474 | Stafford Muni Util Auth, NJ 98 | |
98010475 | Stafford Muni Util Auth, NJ 98 | |
98010476 | Lantana, FL Utility Sys 1998 | |
98010482 | Kenosha, WI Water Rev 1998 |
Policy Id |
Policy | |
98010483 | Kenosha, WI Water Rev 1998 | |
98010507 | Martin Cnty, Fl Wtr/Swr 98 | |
98010508 | Martin Cnty, Fl Wtr/Swr 98 | |
98010509 | ST. JOHNS CO., FL SALES TAX 98 | |
98010510 | ST. JOHNS CO., FL SALES TAX 98 | |
98010511 | ST. JOHNS CO, FL W&S 1998 | |
98010512 | ST. JOHNS CO, FL W&S 1998 | |
98010515 | Oklahoma Tkpe Authority, 98A&B | |
98010516 | Oklahoma Tkpe Authority, 98A&B | |
98010517 | BATON ROUGE, LA SLS TAX 98A | |
98010519 | Phoenix, AZ Wtr Jr Rev 1998 | |
98010532 | PIMA COUNTY, AZ SEWER 98 | |
98010533 | PIMA COUNTY, AZ SEWER 98 | |
98010535 | Terrebonne, LA Wtr Dist #1 98 | |
98010540 | Florida State BOE Lottery 98A | |
98010542 | Florida State BOE Lottery 98A | |
98010544 | Kansas City, KS Swr Jr Lien 98 | |
98010548 | Kansas City,KS Swr Jr Lien 98A | |
98010552 | Lewisville, TX Wtr & Swr 98 | |
98010559 | Lancaster Cnty Wtr&Swr Dist,SC | |
98010574 | Fulton County, GA Wtr & Swr 98 | |
98010575 | North Port Utility System 92 | |
98010576 | North Port Utility System 92 | |
98010582 | Arvada, Colorado Sls Tx Ser 98 | |
98010602 | San Bernardino, CA Sew. Rev 98 | |
98010609 | Scottsdale Prsrve Auth, AZ 98 | |
98010613 | Seattle, WA Wtr Sys Rev 98 | |
98010624 | Winston-Salem, NC W&S 98 Sur | |
98010628 | Volusia County, FL Wtr/Sew 98 | |
98010633 | Grand Rapids Sewer Rev 1998A | |
98010634 | Grand Rapids Sewer Rev 1998A | |
98010643 | Fresno, CA Water System 1998 A | |
98010657 | West Wilson Util, TN Wtr 1998 | |
98010658 | HAWAII STATE-HIGHWAY REV 98 | |
98010660 | HAWAII STATE-HIGHWAY REV 98 | |
98010668 | Texas City, TX W&S (GCWA) 98-C | |
98010673 | Lakehaven Util Dist, WA W&S 98 | |
98010684 | Pinellas Co, Fl. Sewer Rev 98 | |
98010685 | Pinellas Co, Fl. Sewer Rev 98 | |
98010686 | Dade Co., Fl Aviation 1998A&B | |
98010687 | Oklahoma Tkpe Authority, 1998B | |
98010688 | Oklahoma Tkpe Authority, 1998B | |
98010691 | Philadelphia, PA -Arpt Rev 98B | |
98010693 | Philadelphia, PA -Arpt Rev 98B | |
98010700 | Warren Co, OH Wtrwks Rev 1998 | |
98010701 | Warren Co, OH Wtrwks Rev 1998 | |
98010708 | NEW JERSEY-AMERICAN WATER 98A | |
98010711 | Napa Sanitation Dist., CA 98A | |
98010716 | San Francisco Arpt 18A-18B-19 | |
98010718 | Putnam Cnty JBC, In Lease 98 | |
98010721 | Dallas Co Wtr Dist 6,TX W&SRev | |
98010739 | Salinas, CA Wastewater Rev 98 | |
98010745 | Oklahoma St Univ Util Revs 98 | |
98010748 | San Diego, CA Water Revenue 98 | |
98010769 | Illinois, Sales Tax McCorm98AB |
-85-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
98010795 | Greater Buffalo,NY Int Arpt 98 | |
98010802 | Weslaco, TX Wtr & Sew (TWDB)9 | |
98010807 | POLK COUNTY,FL FUEL TAX DSRF96 | |
98010809 | Greater Orlando, FL Airport 98 | |
98010819 | Peoria, AZ Wtr & Sew 98 A&B | |
98010822 | Peoria, AZ Wtr & Sew 98 A&B | |
98010823 | Peoria, AZ Wtr & Sew 98 A&B | |
98010825 | Ohio Turnpike Commission 98AB | |
98010827 | Central Michigan Univ, MI 1998 | |
98010832 | Wichita, Kansas Wtr & Swr 98 | |
98010834 | Wichita, Kansas Wtr & Swr 98 | |
98010835 | Florida State BOE Lottery 98B | |
98010836 | Florida State BOE Lottery 98B | |
98010851 | Lancaster Cty AVTSA, PA 98 | |
98010856 | Miramar, FL Water Imp Assmt 98 | |
98010864 | Tampa Bay Reg Wtr Auth FL 98AB | |
98010886 | Ohio Turnpike Commission 98B | |
98010893 | TOLEDO (UNIV OF),OH GEN RECT98 | |
98010907 | TX Tpke Auth Dallas N Toll 98 | |
98010911 | Colorado Wtr Res Dev Auth 1998 | |
98010916 | Willingboro MUA,NJ Wtr/Swr 98G | |
98010919 | MIAMI UNIV,OH GEN RECEIPTS 98 | |
98010924 | New York LGAC Sales Tax 1998A | |
98010925 | Port Authority of NY & NJ 116 | |
98010928 | Lauderhill, FL TAX REV 98 | |
98010937 | Douglsvll-Dgls Co W&S Ath GA98 | |
98010938 | ORANGE CO., FL Guar. Ent. 98 | |
98010950 | Wisconsin (State)MotorVeh 98B | |
98010956 | New York, NY Muni Wtr 99A | |
98010970 | Charleston, SC Wtrwrks&Swr 98 | |
98010975 | San Diego Co., CA. Wtr Rev 98A | |
98010977 | Houston Airport, TX Rev 98B&C | |
98010982 | Longview City TX WtrSwrRev 98C | |
98010992 | Clearwater, FL W&S Rev 98 | |
98010994 | Regional Trans Auth,LA SlsTx97 | |
98011000 | Houston Airport, TX Rev 98B&C | |
98011006 | Folsom Water Rev, CA Series 98 | |
98011007 | Folsom Water Rev, CA Series 98 | |
98011011 | Port Angeles, WA Wtr&Sew Rev98 | |
98011013 | Rutgers State Univ GO, NJ 98A | |
98011015 | Spartanburg, S.C. Wtr Rev 98 | |
98011016 | Port Angeles, WA Wtr&Sew Rev98 | |
98011030 | San Mateo, CA Sewer Rev. 98A&B | |
98011036 | Brea Pub Fin Auth, CA Wtr 98 | |
98011042 | Port of Portland, Oregon 12ABC | |
98011049 | Port Auth of NY/NJ Cons 117 | |
98011056 | Port of Portland, Oregon 12ABC | |
98011063 | New York City TFA 99A | |
98011068 | Regional Trans Auth,LA SlsTx97 | |
98011094 | PRESCOTT,AZ MPC EXCISE TAX 98F | |
98011100 | Alderwood Water District, WA98 | |
98011102 | Cherokee Co W&S Auth Rev 1998 | |
98011122 | Fort Lauderdale, FL Excise 98C | |
98011131 | Mitchell Elem SBC,IN 1998 | |
98011133 | Honolulu, HI Swr Rev/Jr.Lien98 |
Policy Id |
Policy | |
98011134 | Honolulu, HI Swr Rev/Sr.Lien98 | |
98011135 | Lambert-St Louis Intl Airprt98 | |
98011138 | SARASOTA Co, FL GTD ENTITLE 98 | |
98011143 | Corona Pub Fin Auth,CAWtrRev98 | |
98011144 | Corona Pub Fin Auth,CAWtrRev98 | |
98011149 | Rutgers/New Bruns Housing 1998 | |
98011150 | SARASOTA (CITY OF), FL W&S 98 | |
98011161 | Fort Wayne (City), IN Swr 98B | |
98011176 | Mass WtrPolAbmnt NewBedford 98 | |
98020004 | Houston Univ Of, TX Cons Rev98 | |
98020015 | New York City TFA 98B | |
98020017 | New York, NY Muni Wtr Auth 98D | |
98020018 | New York, NY Muni Wtr Auth 98D | |
98020019 | New York City TFA 98B | |
98020020 | New York, NY Muni Wtr Auth 98D | |
98020025 | New York, NY Muni Wtr Auth 98D | |
98020029 | New York, NY Muni Wtr Auth 98D | |
98020030 | New York, NY Muni Wtr Auth 98D | |
98020043 | New York, NY Muni Wtr Auth 98D | |
98020046 | New York City TFA 98B | |
98020057 | New York, NY Muni Wtr Auth 98D | |
98020072 | New York City TFA 98C | |
98020073 | New York City TFA 98C | |
98020076 | New York City TFA 98B | |
98020079 | New York City TFA 98B | |
98020085 | New York City TFA 98B | |
98020086 | New York City TFA 98B | |
98020091 | New York City TFA 98B | |
98020092 | New York City TFA 98B | |
98020093 | New York City TFA 98B | |
98020095 | MASS WATER RESOURCES 1993 C | |
98020126 | DASNY CUNY Cons 3rd Res 1998-2 | |
98020143 | DASNY CUNY Cons 3rd Res 1998-2 | |
98020145 | DASNY CUNY Cons 3rd Res 1998-2 | |
98020146 | MASS WATER RESOURCES 1993 C | |
98020176 | New York City TFA 98B | |
98020186 | STATE UNIV/DASNY, NY LEASE 93A | |
98020187 | STATE UNIV/DASNY, NY LEASE 93A | |
98020191 | New York City TFA 98C | |
98020192 | New York City TFA 98B | |
98020193 | New York LGAC Sales Tax 93C | |
98020194 | City Univ/DASNY, 2nd Res 95A | |
98020196 | Charleston, SC Wtrwrks&Swr 98 | |
98020197 | Charleston, SC Wtrwrks&Swr 98 | |
98020198 | New York, NY Muni Wtr 99A | |
98020199 | New York, NY Muni Wtr 99A | |
98020200 | New York, NY Muni Wtr 99A | |
98020201 | New York, NY Muni Wtr 99A | |
98020202 | New York, NY Muni Wtr 99A | |
98020207 | New York, NY Muni Wtr 99A | |
98020208 | New York, NY Muni Wtr 99A | |
98020211 | New York, NY Muni Wtr Auth 98D | |
98020214 | New York, NY Muni Wtr 99A | |
98020216 | New York State GO & Lease 97 | |
98020221 | New York City TFA 98B |
-86-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99010016 | Cent. Puget Sd RTA, WA SLTX 99 | |
99010017 | Cent. Puget Sd RTA, WA SLTX 99 | |
99010032 | Boston W & S Comm Rev 98D | |
99010043 | Orange County, FL Sales Tax 99 | |
99010049 | Kitsap Co., WA Sewer Rev 99 | |
99010050 | Kitsap Co., WA Sewer Rev 99 | |
99010059 | Collier Co, FL W&S Rev, 1999 | |
99010061 | Collier Co, FL W&S Rev 1999 | |
99010064 | Ball State Univ,IN StudFeeI 98 | |
99010065 | Allen, TX W&S Rev. Series 1999 | |
99010069 | Chicago (City of),Il SaleTax99 | |
99010073 | Chandler, AZ W&S 99 (Surety) | |
99010085 | Fair Oaks Wtr Dist Rev COPS 98 | |
99010102 | Cocoa, FL Wtr&Swr Sys 1998 | |
99010114 | Hurst, TX Wtrwrks & Swr, Ser99 | |
99010120 | Butler Cnty, MO Lease 98 Rfdg | |
99010129 | Los Angeles, CA Wastewater 99A | |
99010138 | New Hampshire Turnpike Rev99AB | |
99010142 | Florida State BOE Lottery 98C | |
99010143 | Florida State BOE Lottery 98C | |
99010149 | Richmond, VA Met Auth Toll 99 | |
99010150 | Southeastern PA Tran Auth,99AB | |
99010152 | Southeastern PA Tran Auth,99AB | |
99010166 | Alderwood Water District, WA99 | |
99010174 | Metro Domestic Wtr Dist, AZ 98 | |
99010175 | Metro Domestic Wtr Dist, AZ 98 | |
99010182 | PIERCE CNTY TRANS,WA SLS TAX99 | |
99010194 | JACKSONVILLE, FL EXCISE TAX 99 | |
99010195 | JACKSONVILLE, FL EXCISE TAX 99 | |
99010237 | San Diego, CA Sewer 99 A & B | |
99010241 | New York ST ThruwyAuthGasTx99A | |
99010256 | Butler County, OH Sewer Rev 99 | |
99010270 | Central Pug Sd RTA, WA SLTX 99 | |
99010274 | North Texas Muni Water Dist.99 | |
99010281 | Port of Portland, Oregon 14&15 | |
99010291 | Arvada, Colorado Sls Tx Ser 99 | |
99010292 | Arvada, Colorado Sls Tx Ser 99 | |
99010296 | South Island Pub Svc Di, SC 99 | |
99010297 | South Island Pub Svc Di, SC 99 | |
99010303 | Mission EDC, TX Sb Ln Sls Tx99 | |
99010314 | Loudoun Co., VA Sanit Auth 99 | |
99010315 | Kankakee, IL Sewerage 99AB | |
99010317 | Atlanta, GA Water & Sewer 1999 | |
99010318 | UNIV. OF CONNECTICUT G0 99A | |
99010319 | PICA/Philadelphia Wage Tax 99 | |
99010323 | PICA/Philadelphia Wage Tax 99 | |
99010331 | Clackamas SD 1 OR Sew Surety94 | |
99010336 | CASA GRANDE, AZ EXCISE TAX 99 | |
99010342 | Toledo, OH Water Rev 1999 | |
99010350 | West Melbourne, FL W/S, Ser 99 | |
99010356 | Miami-Dade Cnty, FL Wtr/Swr99A | |
99010358 | Metro Washington DC Arpt 99Rfg | |
99010359 | Metro Washington DC Arpt 99Rfg | |
99010378 | NORTHERN KENTUCKY U, CONS ED99 | |
99010381 | ST. JOHNS CO. FL W&S Ser.99AB |
Policy Id |
Policy | |
99010383 | ST. JOHNS CO. FL W&S Ser.99AB | |
99010384 | ST. JOHNS CO. FL W&S Ser.99AB | |
99010393 | San Francisco Park. Auth 99-1 | |
99010394 | San Francisco Park. Auth 99-1 | |
99010401 | San Francisco, CA Arpt 23A | |
99010402 | San Francisco, CA Arpt 23B | |
99010404 | AVONDALE, ARIZONA EXCISE TAX99 | |
99010405 | AVONDALE, ARIZONA EXCISE TAX99 | |
99010406 | Jefferson Co CO Sls Tx Open 99 | |
99010407 | Jefferson Co CO Sls Tx Open 99 | |
99010409 | Pennsylvania-American Wtr 1999 | |
99010431 | Bartow, FL Water & Sewer Ser99 | |
99010438 | Celina, OH Wastewater Rev | |
99010447 | New York ST Thruwy Auth TF 99B | |
99010452 | PHM Sch Renov BC, In Lse 99 | |
99010454 | Clifton Park Wtr Auth,NY 1999A | |
99010457 | FLORIDA PRSV 2000,DOC STAMP99A | |
99010461 | Colorado Springs, CO Sls Tx 99 | |
99010469 | Greater Orlando, FL Arpt 99A&B | |
99010488 | Wichita, KS Wtr & Sew Rev 99 | |
99010489 | Wichita, KS Wtr & Sew Rev 99 | |
99010493 | Oro Valley Mun Prop Corp,AZ 99 | |
99010497 | Seattle, WA Water System Rev99 | |
99010504 | Tucson, AZ Water Rev 1994-C 99 | |
99010507 | Hillsborough Co Avt Ath,FL99AB | |
99010515 | Tarrant Cnty WC&ID, TX Rev 99 | |
99010519 | WAYNE STATE UNIV, MI GEN REV99 | |
99010534 | ST. Louis, MO GO 99 | |
99010567 | Jackson, MS Water & Sewer 99 | |
99010568 | Jackson, MS Water & Sewer 99 | |
99010583 | Metro Nashville Apt,TN 95,98AB | |
99010588 | Minneapolis-St.Paul ArptRev 99 | |
99010590 | Napa County, CA Sales Tax 1999 | |
99010595 | Central Lake Co. Jt Wtr, IL 99 | |
99010600 | West Palm Beach, FL Wtr&Swr 99 | |
99010602 | St. Peters, MO Wtr&Swr 1999 | |
99010603 | St. Peters, MO Wtr&Swr 1999 | |
99010610 | Napa County, CA Sales Tax 1999 | |
99010612 | Tamarac, FL Sales Tax 1999 | |
99010613 | Tamarac, FL Sales Tax 1999 | |
99010615 | MANDEVILLE,LOUISIANA SLS TAX99 | |
99010632 | Contra Costa Wtr Dst, CA Rev99 | |
99010633 | Contra Costa Wtr Dst, CA Rev99 | |
99010636 | Jacksonville, FL Excise Tax99B | |
99010641 | Martinez, CA Water COPs Ser 99 | |
99010642 | Martinez, CA Water COPs Ser 99 | |
99010664 | Ft. Wayne,IN Waterworks Surety | |
99010668 | St. John, MO COP Series 1999 | |
99010671 | Escambia Co., FL Util Auth 99 | |
99010672 | Escambia Co., FL Util Auth 99 | |
99010676 | Akron (Univ of),OH Gen Recpt99 | |
99010680 | EAST BATON RGE PSH,LA SLSTX99A | |
99010683 | Prince William Cty,VA WtrSwr99 | |
99010690 | Illinois Sale Tax McCorm99ABCD | |
99010693 | St.Petersburg,FL SSGFC NonAd99 |
-87-
Schedule 1
List of Covered Policies
Policy Id |
Policy | |
99010694 | Turlock (City), CA Swr Rev 99 | |
99010701 | St.Petersburg,FL SSGFC NonAd99 | |
99010702 | Charlotte, NC Wtr & Swr Rev 99 | |
99010729 | Jacksonville, FL Excise Tax99B | |
99010736 | Lafayette, LA Sales Tax 99B | |
99010737 | Florida Ports Financing Comm99 | |
99010742 | Durango, Colorado Sls Tax 99 | |
99010743 | Durango, Colorado Sls Tax 99 | |
99010751 | Fort Myers (City), FL Util 99A | |
99010752 | Fort Myers (City), FL Util 99A | |
99010757 | Tampa Bay Wtr Auth FL Rev 99 | |
99010758 | San Francisco BART, Sls Tax 99 | |
99010768 | Phila. Sub. Water Corp. 1999 | |
99010770 | Tucson, Arizona Water Sys 99A | |
99010785 | Alabama Pub Sch & Coll Auth 99 | |
99010788 | Port Authority of NY/NJ 118 | |
99010800 | Seattle, WA Water System 99B | |
99010815 | Beaufort-Jasp Co W&S Rev 99 | |
99010816 | Beaufort-Jasp Co W&S Rev 99 | |
99010833 | Gainesville, GA Wtr & Swr 99 | |
99010838 | Gainesville, GA Wtr & Swr 99 | |
99010845 | King County, WA Sewer Rev 99 | |
99010850 | Vancouver, WA Water & Sewer 99 | |
99010861 | Austin Car Rental Tax, TX 99 | |
99010862 | Austin Car Rental Tax, TX 99 | |
99010886 | Alabama Pub Sch & Coll Auth99D | |
99010887 | Tulsa Airports Improv Trust99 | |
99010888 | Tulsa Airports Improv Trust99 | |
99010890 | San Antonio, TX Wtr Rev Sr 99 | |
99010907 | Corsicana, TX Wtr & Swr Rev 99 | |
99010911 | Longview, TX Wtr & Swr Rev 99 | |
99010915 | Connecticut (St) Specl Tax 99A | |
99010921 | Detroit,MI Water Rev 1999A | |
99010922 | Detroit,MI Water Rev 1999A | |
99010924 | Culver City, CA Wastewater 99 | |
99010926 | INDIANA U Stud Fee SerM Surety | |
99010935 | Ross Co Water Company OH Rev99 | |
99010938 | Ross Co Water Company OH Rev99 | |
99010945 | El Paso, TX Water & Sewer 99C | |
99010953 | Margate, FL Wtr & Swr Rev 1999 | |
99010961 | Ennis Eco Dev Corp,TX SlsTax99 | |
99010965 | DASNY-SUNY Series EDL FACS 99 | |
99010970 | Pittsburgh,PA Airport Rev 99 | |
99010978 | Detroit, MI Sewer Disposal 99A | |
99010979 | Detroit, MI Sewer Disposal 99A | |
99010982 | Louisville&Jeff Co Swr Rev 99A | |
99010983 | Louisville&Jeff Co Swr Rev 99A | |
99010992 | Central Missouri St Univ,MO 99 | |
99020001 | New York LGAC Sales Tax 93C | |
99020004 | Pennsylvania GO 98 3rd Series | |
99020018 | New York City TFA 98B | |
99020034 | New York City TFA 98C | |
99020053 | New York City TFA 98B | |
99020056 | New York City TFA 98C | |
99020063 | DASNY LEASE 2ND RES(CUNY)90B&C |
Policy Id |
Policy | |
99020067 | New York City TFA 99B | |
99020070 | Fulton County, GA Wtr & Swr 98 | |
99020071 | New York, NY Muni Wtr Auth 98D | |
99020072 | New York City TFA 99B | |
99020078 | New York City TFA 98C | |
99020079 | New York City TFA 98B | |
99020084 | City Univ/DASNY, 2nd Res 95A | |
99020087 | DASNY CUNY Cons 3rd Res 98-1 | |
99020090 | New York City TFA 98C | |
99020093 | New York City TFA 98C | |
99020095 | New York City TFA 99C | |
99020100 | New York City TFA 98C | |
99020103 | New York City TFA 98B | |
99020108 | New York City TFA 99A | |
99020109 | New York City TFA 99A | |
99020112 | Colorado Springs, CO Sls Tx 99 | |
99020113 | Colorado Springs, CO Sls Tx 99 | |
99020114 | Mass Port Auth,Rev Bonds 98D/E | |
99020119 | New York City TFA FY98 A | |
99020131 | New York, NY Muni Wtr Auth 98D | |
99020146 | New York City TFA 98B | |
99020157 | New York City TFA 98B | |
99020167 | New York, NY Muni Wtr Auth 97A | |
99020176 | New York, NY Muni Wtr 99A | |
99020206 | New York, NY Muni Wtr Auth 98D | |
99020208 | New York City TFA 99B | |
99020211 | New York City TFA 99B | |
99020223 | San Diego Co., CA Wtr Rev 97A | |
99020240 | DASNY CUNY Cons 3rd Res 98-1 | |
99020247 | Mass Port Auth Rev, MA 1999C-D | |
99020252 | New York, NY Muni Wtr Auth 97A | |
99020273 | DASNY LEASE 2ND RES(CUNY)90B&C | |
99020275 | New York City TFA 98C | |
99020280 | New York State GO & Lease 97 |
-88-
EXHIBIT A
FORM OF NOVATION ENDORSEMENT
[Letterhead of National]
National Public Finance Guarantee Corporation
113 King Street
Armonk, NY 10504
[Toll Free # to be inserted]
NOVATION ENDORSEMENT
On , 20[ ], the Supreme Court of the State of New York (the Rehabilitation Court ), Case No. Index No. 401265/2012, approved a Plan of Rehabilitation, Novation Agreement and this Novation Endorsement for Financial Guaranty Insurance Company ( FGIC ). As a result of the Rehabilitation Courts approval of these documents, National Public Finance Guarantee Corporation ( National ) has assumed and accepted all liabilities of FGIC under the express contractual terms of your financial guaranty insurance policy issued by FGIC.
This Novation Endorsement attaches to and forms part of your financial guaranty insurance policy issued by FGIC. Except as described in the amendments below, your financial guaranty insurance policy remains unchanged. The amendments to your financial guaranty insurance policy are as follows:
All references to the name Financial Guaranty Insurance Company are hereby changed to National Public Finance Guarantee Corporation.
Any references to the address of FGIC for the provision of notice or otherwise, are hereby changed to National Public Finance Guarantee Corporation, 113 King Street, Armonk, NY 10504.
[ Additional relevant changes to be included ].
You, as the holder of the policy, obligors of the obligations insured by the policy and all other interested persons are directed to pay all future premiums and recoveries, if any, and to submit all claims, if any, under or with respect to such policy solely and directly to National and to treat National for all purposes as if it had originally issued or written such policy instead of FGIC.
All other terms, provisions and conditions of your financial guaranty insurance policy remain unchanged except as described in this Novation Endorsement.
Please use the administrative address for National noted above to send premium payments, obtain claims forms and/or file claims.
IN WITNESS WHEREOF, National Public Finance Guarantee Corporation has, by its [ Authorized Officer ], executed this Novation Endorsement as of the day of 20 .
|
|
|||
Name: | Name: | |||
Title: | Title: |
EXHIBIT B
INDEMNIFICATION BY NATIONAL
National hereby agrees to indenmify, defend and hold harmless FGIC and its Affiliates and their respective directors, officers, employees, agents, advisors, legal counsel, auditors, other representatives, equityholders and successors and assigns (collectively, the Indemnitees and, each, an Indemnitee ) from and against any and all Liabilities incurred by any such Indemnitee to the extent relating to or arising from (i) Nationals exercise, or its refusal or other failure to exercise, any Covered Policy Rights, unless the exercise or refusal or other failure to exercise such Covered Policy Rights was undertaken by National at the written direction of FGIC, (ii) any National Extra Contractual Obligations and (iii) any actions taken by any Indemnitee pursuant to Section 4.7 of this Agreement at the request of and in accordance with the directions of National. Notwithstanding anything contrary in this Agreement, the indemnification provided for in this Exhibit B will be the sole and exclusive remedy against National and its Affiliates and their respective directors, officers, employees, agents, advisors, legal counsel, auditors, other representatives, equityholders and successors and assigns for any indemnifiable losses suffered or incurred by the Indemnitees by reason of the matters set forth in clauses (i), (ii) and (iii) above.
Each Indemnitee shall give written notice as promptly as reasonably practicable to National of any claims or action commenced against it in respect of which indemnity may be sought hereunder (each, a Claim ), but failure to so notify National shall not relieve National from any liability hereunder unless and to the extent such failure has materially prejudiced the rights of National. Any failure of an Indemnitee to so notify National shall not result in any liability of an Indemnitee to National.
Subject to the next sentence, National shall have the right, at its option and expense, to assume any defense of any Claim; provided , that within 20 days of receiving the notice with respect to such Claim pursuant to the above notice provision (or such shorter period of time as an answer to such Claim or other responsive action may be required), National, by written notice delivered to the Indemnitee, elects to assume such defense and National acknowledges in writing its obligation hereunder to indemnify the Indemnitee with respect to such Claim and periodically thereafter provides the Indemnitee with reasonably sufficient evidence of the ability of National to satisfy such Claim. Notwithstanding the foregoing, National shall not have the right to assume the defense of any Claim if (x) representation of both the Indemnitee and National by the same counsel would be prohibited by rules or regulations governing the professional conduct of such counsel due to actual or potential differing interests between them, (y) the Indemnitee determines in good faith that there is a significant possibility that such Claim may materially and adversely affect it or its Affiliates other than as a result of monetary damages and so notifies National of such determination, or (z) National has not assumed such defense pursuant to the first sentence of this paragraph within 20 days (or such shorter period described in such sentence) of receiving written notice of such Claim.
If National has assumed the defense of a Claim in accordance with this Exhibit B, then the following shall apply:
(i) | except as provided in clause (v) below, the Indemnitee shall have the right to participate and assist in, but not control, the defense of such Claim and to employ its own counsel in connection therewith; |
(ii) |
except as provided in clause (v) below, National shall not be liable to the Indemnitee for the fees, costs, or expenses of the Indemnitees counsel or other fees, costs, or expenses incurred by the Indemnitee in connection with participating in the defense of such Claim, except that National shall be liable for any such fees, costs, and expenses incurred prior to the time that National assumed such defense; |
(iii) |
counsel used by National in connection with the defense of such Claim shall be reasonably satisfactory to the Indemnitee; |
(iv) |
except as provided in clause (v) below, National shall have no liability with respect to any compromise or settlement of such Claim effected without its consent, such consent not to be unreasonably withheld, conditioned, or delayed; |
(v) |
if National shall fail to defend diligently such Claim, then (A) the Indemnitee shall have the right, upon written notice to National, to assume control of the defense of such Claim, (B) National shall be liable to the Indemnitee for the fees, costs and expenses of the Indemnitees counsel from after the date of any notice delivered pursuant to the preceding clause and other fees, costs and expenses incurred by the Indemnitee in connection with the defense of such Claim and (C) National shall be liable for any compromise or settlement in good faith of such Claim effected by the Indemnitee; and |
(vi) |
National may effect any compromise or settlement of such Claim only with the consent of the Indemnitee, which consent shall not be unreasonably withheld, conditioned, or delayed, and only if (1) such compromise or settlement includes a full release of the Indemnitee, (2) neither the Indemnitees business nor its name nor the business or name of any of its Affiliates will be damaged by such compromise or settlement, (3) such compromise or settlement is limited strictly to monetary damages, and (4) the Indemnitee has not previously assumed control of the defense of such Claim in accordance with clause (v) above. |
If National does not assume the defense of a Claim (whether because it elects not to or has no right to), without limiting the provisions of clause (v) of the preceding paragraph, the following shall apply:
(i) |
National shall have the right, at its sole cost and expense, to participate in, but not control, the defense of such Claim and to employ its own counsel in connection therewith; and |
(ii) |
National shall have no liability with respect to any compromise or settlement of such Claim effected without its consent, which will not be unreasonably withheld, conditioned, or delayed. |
The Parties agree to cooperate to the fullest extent possible in connection with any Claim in respect of which indemnification is sought under this Exhibit B.