January 27, 2022 (WASHINGTON, DC) – The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, is pleased to announce the United States Court of Appeals for the Firth Circuit has approved its motion to file an Amicus Brief in Argonaut Insurance Company v. Falcon V, L.L.C.
In the Amicus Brief, SFAA argues that a decision made by the U.S. Bankruptcy Court should be reversed and the Fifth Circuit should rule that a debtor’s surety bond program, including the indemnity agreement, is an executory contract and a financial accommodation that could be assumed by a debtor with the surety’s consent. The failure to allow a debtor to assume a surety bond program with the surety’s consent could deprive other debtors of important financial resources necessary to emerge from, and remain viable after, bankruptcy. In its filing, SFAA urges the Court to modernize its test for executory contracts so it can be applied to surety bonds, which are three-party contracts.
Learn more about Argonaut Insurance Company v. Falcon V, L.L.C on casetext.com.