<SEC-DOCUMENT>0001157523-12-006394.txt : 20121217
<SEC-HEADER>0001157523-12-006394.hdr.sgml : 20121217
<ACCEPTANCE-DATETIME>20121217172724
ACCESSION NUMBER:		0001157523-12-006394
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20121213
ITEM INFORMATION:		Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20121217
DATE AS OF CHANGE:		20121217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MBIA INC
		CENTRAL INDEX KEY:			0000814585
		STANDARD INDUSTRIAL CLASSIFICATION:	SURETY INSURANCE [6351]
		IRS NUMBER:				061185706
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09583
		FILM NUMBER:		121269414

	BUSINESS ADDRESS:	
		STREET 1:		113 KING ST
		CITY:			ARMONK
		STATE:			NY
		ZIP:			10504
		BUSINESS PHONE:		914-273-4545

	MAIL ADDRESS:	
		STREET 1:		113 KING ST
		CITY:			ARMONK
		STATE:			NY
		ZIP:			10504
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50510544.htm
<DESCRIPTION>MBIA INC. 8-K
<TEXT>
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      <br>
      <font style="font-size: 18pt"><b>UNITED STATES</b></font><br><font style="font-family: Times New Roman; font-size: 18pt"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><br><font style="font-family: Times New Roman; font-size: 14pt"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-family: Times New Roman; font-size: 18pt"><b>FORM
      8-K</b></font><br><br><font style="font-family: Times New Roman; font-size: 14pt"><b>CURRENT
      REPORT</b></font><br><br><font style="font-family: Times New Roman; font-size: 10pt">Pursuant
      to Section 13 or 15(d) of</font><br><font style="font-family: Times New Roman; font-size: 10pt">
      the Securities Exchange Act of 1934</font><br><br><br><font style="font-family: Times New Roman; font-size: 10pt">Date
      of Report (Date of earliest event reported): December 17, 2012&#160;(December
      13, 2012)</font><br><br><font style="font-size: 18pt"><b>MBIA INC.</b></font><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-family: Times New Roman; margin-bottom: 10.0px; font-size: 10pt; margin-left:auto;margin-right:auto; width: 100%">
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        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 33%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Connecticut</b>
          </p>
        </td>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>1-9583</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; text-align: center; width: 33%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>06-1185706</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center; width: 33%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or other jurisdiction of
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            incorporation)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; width: 34%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission File Number)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: center; width: 33%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-family: Times New Roman; margin-bottom: 10.0px; font-size: 10pt; width: 100%">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 50%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>113 King Street,<br>Armonk, New York</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; text-align: center; width: 50%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>10504</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 50%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; text-align: center; width: 50%">
          <font style="font-family: Times New Roman; font-size: 10pt">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">Registrant&#8217;s
      telephone number, including area code:</font><br><b>914-273-4545</b><br><br><br><b>Not
      Applicable</b><br><font style="font-family: Times New Roman; font-size: 10pt">(Former
      name or former address, if changed since last report)</font><br><br><br>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><br>
    </p>
    <hr style="color: #000000; text-align: center; height: 1.0 pt; width: 100%">


    <p>

    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 2.04 TRIGGERING EVENTS THAT ACCELERATE OR INCREASE A DIRECT
      FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET
      ARRANGEMENT</b>
    </p>
    <p>
      To the extent required by Item 2.04 of Form 8-K, the information
      contained in Item 8.01 of this Current Report is incorporated by
      reference herein.&#160;&#160;As more fully set forth in Item 8.01, MBIA Inc.
      (&#8220;MBIA&#8221; or the &#8220;Company&#8221;) believes that there has not been a triggering
      event that, if not cured within 60 days after notice, would accelerate
      the maturity of its 5.70% Senior Notes due 2034 (the &#8220;Senior Notes&#8221;).
    </p>
    <p>
      <b>Item 8.01 OTHER EVENTS</b>
    </p>
    <p>
      On December 13, 2012, MBIA received a letter from Blue Ridge
      Investments, L.L.C. addressed to the Company and The Bank of New York
      Mellon Corporation (the &#8220;Trustee&#8221;) in its capacity as the trustee under
      the Senior Indenture, dated as of November 24, 2004, by and between MBIA
      and The Bank of New York (as supplemented by the First Supplemental
      Indenture, dated as of November 24, 2004, and the Second Supplemental
      Indenture, dated as of November 21, 2012 (the &#8220;Second Supplemental
      Indenture&#8221;) (collectively, the &#8220;Indenture&#8221;)), governing MBIA&#8217;s $329
      million principal amount of Senior Notes. The letter purports to be a
      &#8220;Notice of Default&#8221; under Section 501(3) of the Indenture (the
      &#8220;Purported Notice of Default&#8221;) and alleges that the Second Supplemental
      Indenture was executed without the requisite consent of holders of the
      Senior Notes required by the Indenture.&#160;&#160;A copy of the Purported Notice
      of Default is attached hereto as Exhibit&#160;99.1 and is incorporated herein
      by reference.&#160;&#160;Pursuant to the Indenture, if the default alleged in the
      Purported Notice of Default continues for a period of 60 days after
      notice, then the Trustee or the holders of not less than 25% in
      aggregate principal amount of the outstanding Senior Notes may declare
      the principal amount of the Senior Notes to be due and payable
      immediately.&#160;&#160;As previously disclosed, MBIA owns approximately $170
      million principal amount of the Senior Notes.&#160;&#160;
    </p>
    <p>
      In addition, pursuant to the Indenture, dated as of August 1, 1990, by
      and between MBIA and The First National Bank of Chicago, as trustee (as
      supplemented and amended, the &#8220;1990 Indenture&#8221;), governing the Company&#8217;s
      6.40% Senior Notes due 2022, 7.00% Debentures due 2025, 7.15% Debentures
      due 2027 and 6.625% Debentures due 2028 (collectively, the &#8220;1990
      Securities&#8221;), any acceleration of the amount due under the Senior
      Indenture that is not discharged or cured, waived, rescinded or annulled
      within 10 days after notice from the trustee of the 1990 Indenture or
      holders of not less than 25% aggregate principal amount of the 1990
      Notes (treated as one class) would constitute an Event of Default under
      the 1990 Indenture and either the trustee of the 1990 Indenture or the
      holders of not less than 25% in aggregate principal amount of the 1990
      Securities then outstanding (treated as one class) may declare the
      entire principal of the 1990 Debt Securities then outstanding and
      interest accrued thereon to be due and payable immediately.
    </p>
    <p>
      On December 17, 2012, the Company sent the Trustee a letter advising the
      Trustee that the Purported Notice of Default is meritless and has no
      force and effect under the Indenture, directing the Trustee to take no
      action in furtherance of the Purported Notice of Default, and advising
      the Trustee that the Company intends to take any and all necessary and
      appropriate actions to enforce the Second Supplemental Indenture.&#160;&#160;A
      copy of the Company&#8217;s letter to the Trustee is attached hereto as
      Exhibit&#160;99.2 and is incorporated herein by reference.
    </p>
    <p>
      On December 13, 2012, Bank of America Corporation (&#8220;BoA&#8221;) filed suit in
      the Supreme Court of the State of New York, County of Westchester
      against MBIA and The Bank of New York Mellon alleging that MBIA
      tortiously interfered with BoA&#8217;s tender offer to buy all of the Senior
      Notes and seeking a permanent injunction against the implementation of
      the Second Supplemental Indenture and money damages.&#160;&#160;Based on currently
      available information, we believe we have strong defenses and intend to
      defend against this lawsuit vigorously if and when we are served with
      process, but the outcome of this matter is inherently uncertain and may
      be materially adverse.
    </p>
    <p style="text-align: center">
      ***
    </p>
    <p>
      <i>The information contained in this Current Report, other than
      statements of historical fact, are &#8220;forward-looking statements&#8221; made
      pursuant to the safe harbor provisions of the Private Securities
      Litigation Reform Act of 1995, including those regarding the Purported
      Notice of Default and its effect on the Senior Notes and the 1990
      Securities under the terms of the Senior Indenture and the 1990
      Indenture, respectively.&#160;&#160;These statements are based on our current
      plans and expectations and involve risks and uncertainties that could
      cause actual future events or results to be different than those
      described in or implied by such forward-looking statements.&#160;&#160;In
      addition, there can be no assurance regarding how the allegations set
      forth in the Purported Notice of Default may ultimately be
      resolved.&#160;&#160;The Company cautions readers not to place undue reliance on
      any such forward-looking statements, which speak only as of the date of
      this Current Report. The Company undertakes 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.</i>
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%">
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        <div style="text-align: left">

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        <div style="text-align: center">

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          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 9.01.&#160;&#160;FINANCIAL STATEMENTS AND EXHIBITS.</b>
    </p>
    <p style="white-space: nowrap">
      99.1&#160;&#160;Letter from Blue Ridge Investments, L.L.C., dated December 13, 2012
    </p>
    <p style="white-space: nowrap">
      99.2&#160;&#160;Letter from MBIA Inc., dated December 17, 2012
    </p>
    <p>

    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p style="font-family: Times New Roman; text-indent: 30.0px; font-size: 10pt">

    </p>
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        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" colspan="2" style="padding-left: 0.0px; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            MBIA INC.
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td valign="top" colspan="2" style="padding-left: 0.0px; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 5%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 45%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left; width: 3%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>By</b>:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; border-bottom: solid black 1.0pt; text-align: left; width: 37%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Ram D. Wertheim
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 37%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Ram D. Wertheim
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 37%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Chief Legal Officer
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 37%">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 5%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 45%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            December 17, 2012
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 37%">

        </td>
        <td style="width: 10%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <b>EXHIBIT INDEX TO CURRENT REPORT ON FORM 8-K</b><br>Dated <font style="font-family: Times New Roman; font-size: 10pt">December
      17, 2012</font><br><br><br>
    </p>
    <p style="text-align: center">

    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-family: Times New Roman; margin-bottom: 10.0px; font-size: 10pt; margin-left:auto;margin-right:auto; width: 100%">
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; text-align: left; width: 10%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.1
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Letter from Blue Ridge Investments, L.L.C., dated December 13, 2012
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 10%">

        </td>
        <td style="width: 90%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; white-space: nowrap; text-align: left; width: 10%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            99.2
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; text-align: left; width: 90%">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Letter from MBIA Inc., dated December 17, 2012
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a50510544ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="margin-right: 180.0px; margin-left: 180.0px; text-align: center">
      <b>BLUE RIDGE INVESTMENTS, L.L.C.</b><br>214 N Tryon St.<br><sub>Charlotte,
      NC 28255</sub>
    </p>
    <p style="margin-right: 270.0px; margin-left: 270.0px; text-align: center">

    </p>
    <p>
      December 13, 2012
    </p>
    <p>

    </p>
    <p>
      <u><b>BY CERTIFIED MAIL</b></u>
    </p>
    <p>
      MBIA Inc.<br>113 King Street<br>Armonk, New York 10504<br>Attention:
      General Counsel
    </p>
    <p>

    </p>
    <p>
      The Bank of New York Mellon Corporation<br>101 Barclay Street, 21 West<br>New
      York, New York 10286<br>Attention: Corporate Trust Administration
    </p>
    <p>

    </p>
    <p>
      Ladies and Gentlemen:
    </p>
    <p style="text-indent: 30.0px">
      Reference is made to that certain Senior Indenture, dated as of November
      24, 2004, by and between MBIA Inc. (the &quot;Company&quot;) and The Bank of New
      York, as trustee (as supplemented by the First Supplemental Indenture,
      dated as of November 24, 2004, the &quot;Indenture&quot;).&#160;&#160;Capitalized terms
      used, but not otherwise defined, in this letter shall have the meanings
      ascribed to them in the Indenture.&#160;&#160;This letter constitutes a &quot;Notice of
      Default&quot; under Section 501(3) of the Indenture.
    </p>
    <p style="text-indent: 30.0px">
      Blue Ridge Investments, L.L.C. is the Holder of $135,633,000 in
      principal amount of the series of Securities entitled 5.70% Senior Notes
      due 2034 (the &quot;Senior Notes&quot;), representing in excess of 25% in
      aggregate principal amount of the Outstanding Securities of such series
      of Senior Notes under the Indenture.&#160;&#160;This notice is delivered pursuant
      to Section 501(3) of the Indenture to notify you of a default in the
      performance by the Company of the covenants under the Indenture
      described below.
    </p>
    <p style="text-indent: 30.0px">
      On November 21, 2012, the Company entered into a supplemental indenture
      purporting to amend the Indenture to change the subsidiary of the
      Company that would be a &quot;Restricted Subsid iary&quot; (the &quot;Proposed
      Amendment&quot;).&#160;&#160;To validly enter into this supplemental indenture, the
      Indenture requires that the Proposed Amendment receive the consent of
      the Holders of not less than a majority in principal amount of the
      Outstanding Securities of each series affected by such supplemental
      indenture.&#160;&#160;The Company commenced a consent solicitation to obtain the
      requisite consents on November 7, 2012, offering to pay a consent fee of
      $10.00 for each $1,000 in aggregate principal amount of Senior
      Notes.&#160;&#160;However, shortly before the expiration of the consent
      solicitation, the Company acquired approximately $170,000,000 of Senior
      Notes at prices significantly higher than the market price.
    </p>
    <div style="margin-bottom: 10pt; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-indent: 30.0px">

    </p>
    <p style="text-indent: 30.0px">
      It is clear that these repurchases were completed with the tacit
      understanding that the Holder of such Senior Notes consent to the
      Proposed Amendment. As such (i) these purchases constitute an additional
      consent payment that was not made available to all Holders, and (ii)
      given that there was an agreement, arrangement or understanding with
      respect to the Company's acquisition of the Senior Notes, the Company
      had beneficial ownership of the Senior Notes at the time that the
      consent was obtained.
    </p>
    <p style="text-indent: 30.0px">
      The payment of a consent fee to some Holders in a manner that does not
      make such fee available to all Holders is a violation of the implied
      covenant of good faith and fair dealing, as MBIA paid this higher
      consent fee to only a select few. Not only do the Company's actions with
      respect to the Proposed Amendment constitute a default due to the
      Company's breach of its implied covenant of good faith and fair dealing,
      it also invalidates the consents received with respect to the Proposed
      Amendment.
    </p>
    <p style="text-indent: 30.0px">
      Furthermore, once the Company obtained beneficial ownership of the
      Senior Notes, they ceased to be Outstanding Securities for purposes of
      the Indenture, and the consent received with respect thereto was invalid
      with respect to any subsequently executed supplemental indenture.&#160;&#160;The
      Company's execution of a supplemental indenture without the requisite
      consent breaches Section 902 of the Indenture and constitutes a default
      under Section 501(3) of the Indenture.
    </p>
    <p style="text-indent: 30.0px">
      We hereby require the Company to remedy these breaches within the time
      period specified&#160;&#160;in Section 501(3) of the Indenture.
    </p>
    <p style="text-indent: 30.0px">

    </p>
    <p>
      Very truly yours,
    </p>
    <p>
      /s/ Richard Knaub
    </p>
    <p>
      Richard Knaub<br>Senior Vice President
    </p>
    <p>

    </p>
    <p>

    </p>
    <p style="margin-right: 300.0px; margin-left: 300.0px; text-align: center">
      2
    </p>
    <p style="text-align: left">

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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>a50510544ex99_2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
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    <title></title>
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    <p style="text-align: right">
      <b>Exhibit 99.2</b>
    </p>
    <p style="text-align: center">
      <b>[LETTERHEAD OF MBIA INC.]</b>
    </p>
    <p>

    </p>
    <p>

    </p>
    <p>
      December 17, 2012
    </p>
    <p>
      <u><b>BY CERTIFIED MAIL</b></u>
    </p>
    <p>
      The Bank of New York Mellon Corporation<br>101 Barclay Street, 21 West<br>New
      York, New York 10286<br>Attention: Corporate Trust Administration
    </p>
    <p style="text-align: center">
      <b>Senior Indenture, dated as of November 24, 2004,<br>by and between
      MBIA Inc. and The Bank of New York</b>
    </p>
    <p>
      Ladies and Gentlemen:
    </p>
    <p>
      On December 13, 2012, MBIA Inc. (&#8220;MBIA&#8221; or the &#8220;Company&#8221;) received a
      letter from Blue Ridge Investments, L.L.C. addressed to the Company and
      The Bank of New York Mellon Corporation (the &#8220;Trustee&#8221;) in its capacity
      as the trustee under the Senior Indenture, dated as of November 24,
      2004, by and between MBIA and The Bank of New York (as supplemented by
      the First Supplemental Indenture, dated as of November 24, 2004, and the
      Second Supplemental Indenture, dated as of November 21, 2012 (the
      &#8220;Second Supplemental Indenture&#8221;) (collectively, the &#8220;Indenture&#8221;)),
      governing MBIA&#8217;s 5.70% Senior Notes due 2034 (the &#8220;Senior Notes&#8221;). The
      letter purports to be a &#8220;Notice of Default&#8221; under Section 501(3) of the
      Indenture (the &#8220;Purported Notice of Default&#8221;).
    </p>
    <p>
      The Purported Notice of Default is meritless and has no force and effect
      under the Indenture. All consents necessary for the Company&#8217;s and the
      Trustee&#8217;s entry into the Second Supplemental Indenture were validly
      obtained from a majority of the holders of record of the Senior Notes as
      of 5:00 p.m. on November&#160;6, 2012, the record date established for the
      consents, and all other conditions precedent for the entry into the
      Second Supplemental Indenture under the terms of the Indenture were
      satisfied.&#160;&#160;The entry into the Second Supplemental Indenture did not
      breach or violate any term or covenant, express or implied, of the
      Indenture whatsoever.&#160;&#160;Consequently, the Second Supplemental Indenture
      is valid, binding and enforceable.
    </p>
    <p>
      Accordingly, the Company directs the Trustee to take no action in
      furtherance of the Purported Notice of Default and advises the Trustee
      that it intends to take any and all necessary and appropriate actions to
      enforce the Second Supplemental Indenture.
    </p>
    <p>
      Very truly yours,<br>/s/ Ram D. Wertheim
    </p>
    <p>
      Ram D. Wertheim<br>Chief Legal Officer
    </p>
    <p>
      cc: Blue Ridge Investments, L.L.C.<br>214 N Tyron St.<br>Charlotte, NC
      28255
    </p>
    <p style="text-align: left">

    </p>
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