Insurer Threatens to Seize City Hall After Muni Bond Default
- ACA Says Virginia town has skipped debt payments since 2015
- Insurer also may foreclose on golf course and police building
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The Blue Ridge mountain hamlet of Buena Vista, Virginia, is in danger of having its City Hall, police headquarters and municipal golf course seized for defaulting on its debt.
The city, with 6,600 residents, has failed for more than a year to make payments on $9.2 million of debt that’s insured by ACA Financial Guaranty Corp., the company said in a statement Tuesday. The securities are a “moral obligation” paid with money appropriated by the city council and secured by the golf course and municipal buildings, according to ACA, which said it filed suit over the default.