GE Funding Capital Market Services, Inc. v. Nebraska Investment Finance Authority
District Judge Lorna G. Schofield
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Investment agreements established in connection with bonds issued by the Nebraska Inv. Fin. Auth. (NIFA) between 1994 and 2000 examples of competitively bid Guaranteed Investment Contracts obligated plaintiff GE to pay a fixed interest rate to NIFA on amounts under deposit. NIFA redeemed the bonds between 2005 and 2010. At issue was whether NIFA was entitled to interest payments after bonds were redeemed. The court denied NIFA partial summary judgment. Extrinsic evidence in the record was sufficient for a reasonable juror to find in favor of GE's position that the subject investment agreements would terminate upon redemption of the bonds. All but one of the bid forms drafted by NIFA provided for termination upon bond redemption. Nor was there record evidence that the parties negotiated the termination provision in the investment agreements to change the terms of the bids after the bidding process. The court also denied NIFA judgment on GE's claim NIFA acted ultra vires by transferring mortgage prepayments into the Revenue Fund instead of into the Redemption Fund. Because such alleged violation was distinct from the conduct underlying NIFA's contract claims, the ultra vires claim was not duplicative of those claims.