by Calculated Risk on 12/27/2007 09:30:00 AM

From Bloomberg: ACA Gives Control to Regulator to Avert Delinquency

ACA Capital Holdings Inc., the bond insurer that lost its investment-grade credit rating last week, agreed to give control to regulators to avert delinquency proceedings.

ACA Financial Guaranty Corp., a unit of ACA Capital, will seek approval from the Maryland Insurance Administration before pledging or assigning assets or paying dividends, the New York- based company said in a filing with the Securities & Exchange Commission yesterday.