Scope Of Bond Agreement At Issue In Briefs Before 5th Circuit
(February 24, 2016, 10:43 AM EST) -- NEW ORLEANS — The City of New Orleans and a financial guarantee insurance and management services company recently briefed the Fifth Circuit U.S. Court of Appeals over whether an agreement between them obligated the latter to retain its credit worthiness (The City of New Orleans v. Ambac Assurance Corp. and Ambac Financial Services LLC, No. 15-30532, 5th Cir.).
In 2000, the City of New Orleans issued approximately $170 million in variable rate debt obligations (VRDOs). The VRDOs funded the city’s firefighters’ pension plan.