Insurance broker Aon Corp. will have to make good on a $10 million surety bond after an appeals court ruled that Societe Generale, a French bank, was not responsible for covering the loss involved.
The incident stems from a loan default back in 2000 by Ecobel Land Inc. which had secured a $9.3 million loan from Bear Stearns International Limited in 1999 to build condominiums in the Philippines.
According to court documents, as part of the agreement, Ecobel agreed to purchase a surety bond for the $10 million from the Government Service Insurance System (GSIS), an agency of the Philippines government.
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