Merrill Lynch seeks to enforce $3.1 b in guarantees from XL Capital Assurance

London-based Merrill Lynch International has filed a lawsuit against a subsidiary of Bermuda-based bond insurer Security Capital Assurance Ltd. in an attempt to enforce guarantees of up to $3.1 billion.MLI, which is incorporated in England and Wales, filed a complaint at the U. S. District Court for the Southern District of New York on March 19, 2008. Defendants are XL Capital Assurance Inc., which is incorporated and based in New York and a subsidiary of SCA, and XLCA Admin LLC, as Trustee for seven trusts, which are all based in New York. MLI is seeking declaratory judgments that guarantees from XLCA are “binding and enforceable”.