This excerpt taken from the LM 10-Q filed Aug 7, 2008.
Item 5. Other Information
On June 19, 2008 the Company purchased $57 million in face amount of securities issued by a structured investment vehicle from a money market fund managed by one of its subsidiaries (the Fund). The Company had previously acquired a letter of credit from a large bank to support the Funds investment in these securities. Upon the purchase of the securities, the letter of credit and a related letter agreement among the Company, the Companys subsidiary The Baltimore Company and the Fund, the Prime Cash Reserves Portfolio, a series of Master Portfolio Trust, were terminated in accordance with their terms. Under the letter of credit and related agreement, the Fund was able to draw up to $35 million under the letter of credit if it realized a loss on disposition or restructuring of the securities. In addition, the Fund was required to draw on the full amount of the letter of credit upon the expiration of its one year term if the Fund continued to hold the securities and the securities had not been restructured into securities that met certain requirements.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.