BRADENTON, Fla. - Assured Guaranty Municipal Corp. said Monday that it disagrees with the decision of the trustee for Jefferson County, Ala.’s sewer warrants to suspend payments. Assured said it will continue to make good on its insurance policies.

Bank of New York Mellon, trustee for $3.14 billion of defaulted warrants, said Friday that all payments - including those from insurance - would be suspended until further notice because holders of bank warrants with overdue principal payments would no longer consent to the distribution of principal payments on other warrants when due. BNY Mellon did not say why bank warrant holders would no longer agree to provide a forbearance on their payments.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.