By Marc Shapiro
Build America Mutual Assurance Company (BAM), the nation's first mutual municipal bond insurer endorsed by the National League of Cities, announced today that the Florida Office of Insurance Regulation has approved its license to operate in the State of Florida. With the Florida approval, BAM is now licensed in 49 states and the District of Columbia.
Robert P. Cochran, Chairman of BAM, said: "We look forward to working with Florida municipalities and their financial advisors to help them achieve increased market access and lower interest rates on their municipal bonds through our guaranty. As mutual members of BAM, Florida municipalities will also have the right to receive future dividends from BAM and to a premium credit in the event of a refunding of an insured issue.
"We are also pleased to note that, with the addition of our Florida license, we are very close to completion of our nationwide insurance licensing project."
Florida League of Cities Director of Insurance & Financial Services Jeannie Garner said: "Access to a new mutual bond insurer, such as Build America Mutual, provides a valuable tool to assist local governments in Florida by lowering borrowing costs. Lower costs will help critical capital projects move forward more quickly and ultimately speed the path to economic recovery.
"As NLC's preferred provider of financial guaranty insurance on debt for its member municipalities, I am pleased that Florida cities can now join with cities in 48 other states and the District of Columbia and benefit from greater access to municipal bond insurance that will facilitate their financing and reduce their costs," said NLC Executive Director Clarence E. Anthony.
For more information about Building America Mutual, visit Build America Mutual on the NLC website.