Assured Guaranty Municipal Offers Statement Related to Jefferson County, Alabama Sewer Revenue Warrants Payments
On Friday, February 1, 2013, The Bank of New York Mellon (NYSE: BK), as trustee for the Jefferson County, Alabama, sewer revenue warrants, notified Assured Guaranty (NYSE: AGO) Municipal Corp. (AGM) that it was suspending, until further notice, distributions to warrant holders of funds that secure and are the source of payment of the sewer warrants' debt service. The suspended distributions include both net system revenues and draws on insurance policies, including certain AGM insurance policies.
AGM disagrees with the trustee's decision to suspend distributions and will take all steps necessary to ensure that each holder of an AGM-insured sewer warrant will receive scheduled debt service payments in full and in a timely manner.
In that regard, AGM has paid all amounts due for payment on February 1, 2013 on the AGM-insured sewer warrants under its bond insurance policy to the Depository Trust Company (DTC) and expects that DTC will credit such amounts to holders' accounts on Monday, February 4, 2013.
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