(1)—Callable anytime at the greater of par or the present value of the remaining scheduled payments of principal and interest.

(2)—Contractual interest rate is based on three month LIBOR plus 11.26%.

During 2020 and 2019, the Company redeemed $115 million and $150 million, respectively, principal amount of its 6.400% Senior Notes due 2022 at a cost of 100% of par value plus accrued interest. In addition to the preceding table, as of December 31, 2020, National owned $308 million principal amount of the 5.700% Senior Notes due 2034 and $10 million principal amount of MBIA Inc. 7.000% Debentures due 2025, and MBIA Inc., through its corporate segment, owned $13 million of MBIA Corp. surplus notes.

These amounts are eliminated in the Company’s consolidated financial statements.

Interest and principal payments on the surplus notes are subject to prior approval by the NYSDFS. From the January 15, 2013 interest payment to the present, MBIA Corp.’s requests for approval of the note interest payments have not been approved by the NYSDFS. MBIA Corp. provides notice to the Fiscal Agent when it will not make a scheduled interest payment. The deferred interest payment will become due on the first business day on or after which MBIA Corp. obtains approval to make such payment. No interest will accrue on the deferred interest. The surplus notes were callable at par at the option of MBIA Corp. on the fifth anniversary of the date of issuance, and are callable at par on January 15, 2023 and every fifth anniversary thereafter and are callable on

any other date at par plus a make-whole amount, subject to prior approval by the Superintendent and other restrictions. The cash received from the issuance of surplus notes was used for general business purposes and the deferred debt issuance costs are being amortized over the term of the surplus notes.

The aggregate maturities of principal payments of long-term debt obligations in each of the next five years ending December 31, and thereafter, are as follows:


In millions	2021		2022		2023		2024		2025		Thereafter		Total
Corporate debt	$	—	$	—	$	—	$	—	$	46	$	262	$	308
Surplus Notes due 2033		—		—		—		—		—		940		940

Total debt obligations due	$	—	$	—	$	—	$	—	$	46	$	1,202	$	1,248

Investment Agreements

Certain investment agreements provide for early termination, including, in some cases, with make-whole payments, upon certain contingent events including the bankruptcy of MBIA Inc. or the commencement of an insolvency proceeding with respect to MBIA Corp. Upon the occurrence of certain contractually agreed-upon events, some of these funds may be withdrawn by the investor prior to their contractual maturity dates. All of the investment agreements have been collateralized in accordance with the contractual terms.

Investment agreements have been issued with fixed interest rates in U.S. dollars. As of December 31, 2020 and 2019, the annual interest rates on these agreements ranged from 4.78% to 6.88% and the weighted average interest rates were 5.86%. Expected principal payments due under these investment agreements in each of the next five years ending December 31, and thereafter, based upon contractual maturity dates, are as follows:


In millions	Principal Amount
In millions	Principal Amount
Maturity date:
2021	$	2
2022		3
2023		19
2024		23
2025		35
Thereafter (through 2037)		225

Total expected principal payments (1)	$	307
Less discount and other adjustments (2)		38

Total	$	269

(1)—Amounts reflect principal due at maturity for investment agreements issued at a discount.

(2)—Discount is net of carrying amount adjustment of $3 million and accrued interest adjustment of $4 million.

Medium-Term Notes

MTNs are denominated in U.S. dollars or non-USD currencies and accrue interest based on fixed or floating interest rates. Certain MTNs are measured at fair value in accordance with the accounting guidance in Accounting Standards Codification (“ASC”) Topic 815, “Derivatives and Hedging”. As of December 31, 2020 and 2019, the interest rates of the MTNs ranged from 0% to 6.00% and the weighted average interest rates were 2.97% and 3.07%, respectively. Expected principal payments due under MTN obligations based on their contractual maturity dates are as follows:


In millions	Principal Amount
In millions	Principal Amount
Maturity date:
2021	$	—
2022		62
2023		12
2024		123
2025		61
Thereafter (through 2036)		659

Total expected principal payments (1)	$	917
Less discount and other adjustments (2)		207

Total	$	710

(1)—Amounts reflect principal due at maturity for notes issued at a discount.

(2)—Discount is net of carrying amount and market value adjustments of $29 million and accrued interest adjustment of $4 million.

Variable Interest Entity Notes

VIE notes elected to be recorded at fair value are debt instruments that were issued primarily in U.S. dollars by consolidated VIEs within the Company’s international and structured finance insurance segment. These VIE notes consist of debt instruments issued by issuer-sponsored consolidated VIEs collateralized by assets held by those consolidated VIEs. Holders of insured obligations of issuer-sponsored VIEs do not have recourse to the general assets of the Company. In the event of non-payment of an obligation issued by a consolidated VIE, the Company is obligated to pay principal and interest, when due, on MBIA-insured obligations only.

In July of 2019, MBIA Insurance Corporation consummated a financing facility (the “Refinanced Facility”) between MZ Funding LLC (“MZ Funding”) and certain purchasers, pursuant to which the purchasers or their affiliates (collectively, the “Senior Lenders”), agreed to refinance the outstanding insured senior notes of MZ Funding, and MBIA Inc. received amended subordinated notes of MZ Funding. In connection with the Refinanced Facility, original notes issued by MZ Funding in January of 2017 were redeemed or amended, as applicable, and the Senior Lenders purchased new senior notes issued by MZ Funding (the “Insured Senior Notes”) with an aggregate principal amount of $278 million. In addition, MBIA Inc. received amended subordinated notes issued by MZ Funding (and together with the Insured Senior Notes, the “New MZ Funding Notes”) with an aggregate principal amount of $54 million. As of December 31, 2020 and 2019, the consolidated outstanding amount of the Refinanced Facility was $273 million and $246 million, respectively. The New MZ Funding Notes mature on January 20, 2022 and bear interest at 12% per annum. The Refinanced Facility is secured by a first priority security interest in all of MBIA Corp.’s right, title and interest in the recovery of its claims from the assets of Zohar I and Zohar II which include, among other things, loans made to, and equity interests in, certain portfolio companies purportedly controlled by the Zohar Sponsor and claims that may exist against the Zohar Sponsor. If funds received from MBIA Corp. under the Refinanced Facility are insufficient to pay interest on interest payment dates, MZ Funding may elect to pay interest in kind, which increases the outstanding principal amount.

The Company recorded the refinancing of the MZ Funding debt in accordance with ASC Topic 470, “Debt”, which resulted in a portion of the refinancing being accounted for as a debt modification and a portion of the refinancing

being accounted for as a debt extinguishment. In connection with the Refinanced Facility, the Company paid debt issuance costs in 2019 of $6 million, of which $3 million was expensed and the remainder is being amortized over the term of the Refinanced Facility. The Company also recorded debt extinguishment costs of $1 million to write off the previously capitalized debt issuance costs. These costs are included in “Other net realized gains (losses)” under “Expenses of consolidated variable interest entities” on the Company’s consolidated statement of operations.

As of December 31, 2020 and 2019, the aggregate unpaid contractual principal of consolidated VIE notes was $1.4 billion and $2.3 billion, respectively. As of December 31, 2020 and 2019, the unpaid contractual principal of MBIA-insured consolidated VIE notes was $722 million and $1.6 billion, respectively, which excludes liabilities where the Company’s insured exposure has been fully offset by way of loss remediation transactions. Refer to “Note 7: Fair Value of Financial Instruments” for information about the fair values of consolidated VIE notes. As of December 31, 2020, the only remaining VIE note not accounted for at fair value is the MZ Funding note with a contractual interest rate of 12%. As of December 31, 2019, for VIE notes not accounted for at fair value, contractual interest rates ranged from 3.71% to 12.00% and the weighted average interest rate was 5.57%.

The following table provides the expected principal payments due under MBIA-insured consolidated VIE notes as of December 31, 2020. For RMBS consolidated VIEs, principal amounts are based on the expected maturity dates and for all other consolidated VIEs, principal amounts are based on the contractual maturity dates.


In millions	Insured Principal Amount


Maturity date:
2021	$	42
2022		308
2023		28
2024		14
2025		24
Thereafter (through 2038)		306

Total	$	722