Va. City Could Face Foreclosure on City Hall Over Bond Debt, Insurer Says

July 9, 2015

An insurance company says Buena Vista, Virginia, could face foreclosure on its city hall and police department if a bond debt isn’t paid.

The Roanoke Times reports that ACA Financial Guaranty Corp. sent a letter on Tuesday to City Council members regarding the debt. The letter urges the council to reconsider a decision to stop making payments on the bonds.

ACA says in the letter that it has the legal right to foreclose on the buildings housing city hall and the police department.

The city used the buildings as collateral when it issued bonds in 2005 to build a municipal golf course. ACA, a monoline bond insurance company, insured the bonds.

City attorney Brian Kearney tells the newspaper that the city is waiting for ACA to respond to a settlement offer it made in April.

Was this article valuable?

Here are more articles you may enjoy.