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(b) ARS and IRS. The Authority is also issuing Ten Million Six Hundred Thousand Dollars ($10,600,000) principal amount of its Auction Rate Securities Bonds (the "Auction Rate Securities," or "ARS") and Ten Million Six Hundred Thousand Dollars ($10,600,000) principal amount of its Inverse Rate Securities (the "Inverse Rate Securities, or "IRS") (collectively, the ARS and the IRS and referred to as "Auction and Inverse Rate Securities, or "AIRS"). The AIRS shall bear interest at the rates per annum and be payable as provided in this Section and shall mature in the following years and amounts: ASS IRS Year Amount Amount 2014 $10,600,000 $10,600,000 The AIRS shall bear interest from the Closing Date to January 1, 1995 (the initial Interest Period), and thereafter for each Interest Period, at the Applicable ARS Rate (or rates) or the Applicable IRS Rate (or rates), as the case may be, determined pursuant to the provisions of Appendix A. Interest shall accrue for each Interest Period and shall be payable in arrears on each Interest Payment Date. Interest on the ARS may not exceed the Maximum Rate, including the applicable Service Charge Rate as set forth in Appendix A. Notwithstanding anything herein or in Appendix A, Exhibit A-3 or Exhibit A-4 hereto to the contrary, the Authority shall pay a blended rate of interest with respect to any Interest Period relating to the AIRS equal to 5.750% per annum, calculated on the basis of twelve 30-day months in a year of 360 days, as more fully set forth in Section 3(b) of Appendix A. The ARS shall be issued in fully registered form in Authorized Denominations, and shall be in substantially the form attached hereto as Exhibit A-3. The IRS shall be issued in Authorized Denominations, and shall be in substantially the form attached hereto as Exhibit A-4. Any Beneficial Owner of IRS may from time to time request a mandatory tender of ARS (having the same maturity date as such IRS) for purchase as provided in Section 9 of Appendix A. The ARS and the IRS shall be subject to redemption prior to maturity as provided in Section 4 hereof. A Beneficial Owner of Regular ARS may cause such ARS to be combined with Regular IRS, or Fixed, in accordance with the procedures set forth in Section 8 of Appendix A. A Beneficial Owner of Regular Fixed AIRS or Newly Fixed AIRS may cause such ARS and IRS to be Separated in accordance with the procedures set forth in Section 8 of Appendix A. LAI-63221.5 22