Many of the tax-exempt put bonds insured by Mutual Benefit Life Insurance Co. are virtually guaranteed to default due to remarketing clauses in the indentures, according to trustee officials.

The fixed-rate put deals contain language that revokes the bond-holders' right to keep the securities at the next available put. In essence, investors will be forced to put the bonds back to the remarketing agent and lose all of their principal, bank officials said.

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