The Magen David Yeshivah in Brooklyn has received a forbearance from its insurer after failing to meet its financial obligations on a $38.5 million bond issuance.

The nonprofit religious school could have faced accelerated principal repayment or property foreclosure on the tax-exempt bond issuance without the forbearance from ACA Financial Guaranty Corp. The insurer, which also has a security interest on the property, agreed not to direct the trustee to pursue those remedies.

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