Quackenbush

The Bank of America, N.T. & S.A. (the Bank), holder of financial guarantee bonds issued by an insolvent insurer, filed claims on the bonds with the Insurance Commissioner. The Bank sought to have the underlying security valued by appraisal, as provided in the Insurance Code, even though it had previously made full credit bids on the security at a nonjudicial foreclosure sale. The commissioner determined that the full credit bids conclusively established the value of the security and extinguished the Bank’s claims. The Bank filed an application in the trial court seeking to set aside the commissioner’s determination, which was denied. The Bank appeals the trial court’s denial; we affirm.

Factual Background

The Bank’s claims arise out of a fraudulent investment scheme carried on by National Mortgage Equity Corporation (NMEC) between 1982 and 1984. During that time, NMEC pooled thousands of loans that were secured by deeds of trust on residential properties and sold shares of the pool to investors. NMEC also offered financial guarantee bonds, issued by Glacier General Assurance Company (Glacier), to the pool investors as additional security. The bonds provided that Glacier…