The Federal Housing Administration, insurer of nearly $20 million of North Philadelphia Health System Series 1997A bonds, will not acquire the borrower’s property and outstanding debt, as Bank of New York Mellon, trustee of the 1997 bonds, agreed to withdraw its notice of mortgage assignment to the U.S. Department of Housing and Urban Development.

BNY Mellon filed the assignment notice in April after the health care provider missed a Feb. 1 mortgage payment. The mortgage payments pay debt service on the 1997 bonds. The trustee used debt-service reserve funds to meet a $45,320 payment to bondholders on July 1.

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