California is allowing the redevelopment agencies to be closed. That is probably the "dissolution" mentioned in the notice you received. According to this article
California RDA Law Upheld - The Bond Buyer Article there is no intention to default or not repay the outstanding obligations. Your bond should continue to be mature and pay coupons as agreed.
Quote:
According to the state’s reading of the law, when the agencies are shut down, the money to pay debts would be put in a special fund and bondholders would get paid, said H.D. Palmer, a spokesman for the Department of Finance. In this year’s state budget, the state directed that $5 billion should go toward payments on the bond debt, Palmer said. The state expects to have $1.7 billion left after the bond payments are made to fund other state budget items. The state’s 400 RDAs have $20 billion of bonds outstanding.
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The insurance is an additional guarantee. Relax and enjoy the weekend.