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Financial Guarantee Insurance

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Financial guarantee insurance
Insurance created to cover losses from specified financial transactions.

Financial Guarantee Insurance
An insurance policy covering a lender from liability resulting from the failure of the borrower to repay the loan. It may also cover losses from a decrease in interest rates to the detriment of the lender. Financial guarantee insurance may cover different types of loans, but, in most U.S. states, usually does not include mortgages or certain credit lines. It is similar to a surety or a co-signed loan.


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Neil Budnick, president of MBIA Insurance Corporation and responsible for all new financial guarantee insurance business, has announced that he is leaving the Company to pursue other interests.
The value of the principal of the notes is protected through the Collateralized Investment Agreement from FSA Capital Management Services LLC backed by a financial guarantee insurance policy issued by Financial Security Assurance Inc.
The CP continues to benefit from 100% credit support of the face value of all dealer loans provided in the form of financial guarantee insurance policies issued by MBIA Insurance Corporation (insurer financial strength rated 'AAA' by Fitch) for CATD series A CP and surety bonds issued by Ambac Assurance Corporation (insurer financial strength rated 'AAA' by Fitch) for CATD series B CP.
 
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