National Public Finance Guarantee Corporation Comments on the Complaint it Filed Challenging the Puerto Rico Emergency
Moratorium and Financial Rehabilitation Act
National Public Finance Guarantee Corporation (National), an indirect subsidiary of MBIA Inc. (NYSE: MBI), released the
following comments regarding the complaint it filed today challenging the Puerto Rico Emergency Moratorium and Financial
Rehabilitation Act (Moratorium Act).
Bill Fallon, National’s Chief Executive Officer, said, “National filed a Complaint in Federal District Court in Puerto Rico
today seeking a declaration from the court that the Puerto Rico Moratorium Act is preempted by Federal bankruptcy law and violates
the U.S. Constitution in several respects. Similar to the Puerto Rico Public Corporation Debt Enforcement and Recovery Act that was
adopted by Puerto Rico and found to be invalid by the United States Supreme Court, National believes that the Moratorium Act is
likewise invalid. With this action, National is seeking to protect the right to priority of payments established under the Puerto
Rico Constitution on the General Obligation bonds that it insures, and the liens on properties that secure other National-insured
bonds, which the Commonwealth has already invaded under claimed authority of the Moratorium Act.” Fallon added, “While National is
supportive of the efforts by the U.S. Congress to pass legislation to address Puerto Rico’s financial difficulties, the current
draft of the PROMESA legislation approved by the House of Representatives does not foreclose continued reliance on the
unconstitutional Moratorium Act. National continues to stand ready to work constructively with its Puerto Rico credits to address
their financial and liquidity challenges, and National is also determined to take reasonable and necessary actions to protect its
rights as the insurer of these bonds.”
Forward-Looking Statements
This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,”
“plan,” “expect,” “estimate,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions
identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual
results to differ materially from historical earnings and those presently anticipated or projected, including, among other factors,
the possibility that MBIA Inc. or National will experience increased credit losses or impairments on public finance obligations
issued by state, local and territorial governments and finance authorities that are experiencing unprecedented fiscal stress; the
possibility that loss reserve estimates are not adequate to cover potential claims; MBIA Inc.’s or National’s ability to fully
implement their strategic plan, including the ability to maintain high stable ratings for National and generate investor demand for
National’s financial guarantees; and changes in general economic and competitive conditions. These and other factors that could
affect financial performance or could cause actual results to differ materially from estimates contained in or underlying MBIA
Inc.’s or National’s forward-looking statements are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual
Report on Form 10-K, which may be updated or amended in MBIA Inc.’s subsequent filings with the Securities and Exchange Commission.
MBIA Inc. and National caution readers not to place undue reliance on any such forward-looking statements, which speak only to
their respective dates. National and MBIA Inc. undertake no obligation to publicly correct or update any forward-looking statement
if it later becomes aware that such result is not likely to be achieved.
National Public Finance Guarantee Corporation, headquartered in Purchase, New York is the world’s largest U.S. public
finance-only financial guarantee insurance company, with offices in New York and San Francisco. Please visit National’s website at
www.nationalpfg.com.
National Public Finance Guarantee Corporation
Media:
Greg Diamond, +1-914-765-3190
or
Investor Relations:
Nick Sourbis, +1-914-765-3385
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