Syncora Challenges California Redevelopment Dissolution in Court

Bond insurer Syncora Guarantee Inc. sued to challenge California measures dissolving local redevelopment agencies, saying they jeopardize bond payments and unconstitutionally impair bondholder and insurers’ rights.

Syncora claims that provisions of the law dissolving the redevelopment agencies and redistributing their funds has “significantly reduced” money available to repay bonds. The company, which provided bond insurance for debt issues by California redevelopment agencies, seeks a court order declaring the measures are unconstitutional and blocking the state from implementing them.

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