CHICAGO — Oral arguments are expected to take place early next year on CIFG Assurance North America Inc.'s request that a New York State court judge order Assured Guaranty Corp. to cover the policy on $83.3 million of Xenia Iowa Rural Water District bonds as part of its reinsurance agreement.

CIFG filed documents Monday seeking a summary judgment in its lawsuit against Assured alleging breach of contract violations. CIFG filed the lawsuit last summer after Assured failed to honor a claim to make up the $69,000 shortfall in a $1.8 million interest payment due June 1. CIFG subsequently covered a $1.26 million shortfall on a $1.8 million payment due Dec. 1 on the 2006 bond issue.

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