In response to investor inquiries, National Public Finance Guarantee Corporation (National), an indirect subsidiary of MBIA Inc. (NYSE: MBI), today confirmed that it has approximately $33 million of insured exposure to the City of San Bernardino, California, $18 million of which is backed by the City’s general fund.
The following is a summary of National’s insured exposure to various bonds issued by the City of San Bernardino:
|San Bernardino City Joint Powers Financing Authority Leases||$18,455,000|
|San Bernardino City Sewer||$14,795,000|
The San Bernardino Joint Powers Financing Authority Lease issues rely directly on the general fund for debt service and are secured by an interest in the lease payments to be made by the City for use of its city hall and central police facility and jail. The sewer debt has its own dedicated revenue stream separate from the general fund. In the event that the City fails to make a required debt service payment for any reason, including a bankruptcy filing by the City, National’s insured bondholders are guaranteed their scheduled interest and principal payments on time and in full under National’s policies.
Copies of the relevant policyholder documentation as well as a comprehensive listing of National’s insured portfolio can be found on National’s website at www.nationalpfg.com.National, headquartered in Armonk, New York, is the world’s largest U.S. public finance-only financial guarantee insurance company, with offices in New York and San Francisco.