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:
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.
|San Bernardino City Joint Powers Financing Authority Leases||$18,455,000|
|San Bernardino City Sewer||$14,795,000|
Forward-Looking StatementsThis release 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,” “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. These risks and uncertainties could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying the MBIA Inc.’s or National’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or amended in MBIA Inc.’s subsequent filings with the Securities and Exchange Commission. MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.