OTHER NEWS - July 23, 1991

Payment Moratorium Ordered on Bonds: New Jersey temporarily blocked investors from redeeming $638 million in revenue bonds guaranteed by ailing Mutual Benefit Life Insurance Co. of Newark, which the state seized last week. Regulators had already stopped policyholders from redeeming policies issued by the nation’s 18th-largest life insurer, to stop what they called a run on the company’s cash. Payment of death benefits, annuities and health benefits will continue. Also, Mutual Benefit will still be able to make interest payments on the bonds. The bonds are issued by state and local governments on behalf of private developers to back development projects such as shopping centers and office complexes. Since the seizure, bondholders had tendered more than $151.4 million in bonds.