2002 - Expropriation of Funds / Argentina
Sovereign paid an expropriation of funds claim to an American corporation that had dollars on deposit in two banks in Argentina. The deposits were frozen at the beginning of the Argentine crisis. Sovereign paid the claim in full and took a beneficial interest in the certificates of deposit with the Insured retaining nominal title. Once the freeze was lifted, Sovereign, via its Insured, was able to repatriate most of the previously frozen funds.