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.

Topics Carriers Virginia

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Latest Comments

  • July 9, 2015 at 5:22 pm
    Agent says:
    Sounds a lot like many California cities that have gone bankrupt. How about the territory of Puerto Rico wanting to go belly up. How about the State of Illinois which has sev... read more
  • July 9, 2015 at 2:48 pm
    Jack Kanauph says:
    What do they think this is, a mortgage crisis? They made a settlement offer? Like Jack M says, pay your agreement! If you don't have the money, how about selling Washington Re... read more
  • July 9, 2015 at 2:21 pm
    Jack J Maniscalco says:
    Simple solution: Pay your debts, Buena Vista.

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