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MaIA FINANCIAL GUARANTY INSURANCE POLICY
<br /> Municipal Bond Investors Assurance Corporation
<br /> Armonk,New York 10504
<br /> Policy No. 15491
<br /> Municipal Bond Investors Assurance Corporation (the "Insurer"), in consideration of the payment of the premium and subject to the terms of this
<br /> policy,hereby unconditionally and irrevocably guarantees to any owner, as hereinafter defined, of the following described obligations, the full and
<br /> complete payment required to be made by or on behalf of the Issuer to Meridian Trust Company of California,San Francisco,California or its successor
<br /> (the"Paying Agent")of an amount equal to(i)the principal of(either at the stated maturity or by any advancement of maturity pursuant to a mandatory
<br /> sinking fund payment)and interest on, the Obligations(as that teen is defined below)as such payments shall become due but shall not be so paid
<br /> (except that in the event of any acceleration of the due date of such principal by mason of mandatory or optional redemption or acceleration resulting
<br /> from default or otherwise,other than any advancement of maturity pursuant to a mandatory sinking fund payment,the payments guaranteed hereby
<br /> shall be made in such amounts and at such times as such payments of principal would have been due had there not been any such acceleration); and(ii)
<br /> the reimbursement of any such payment which is subsequently recovered from any owner pursuant to a final judgment by a court of competent
<br /> jurisdiction that such payment constitutes an avoidable preference to such owner within the meaning of any applicable bankruptcy law. The amounts
<br /> referred to in clauses(i)and(ii)of the preceding sentence shall be referred to herein collectively as the"Insured Amounts." "Obligations"shall mean:
<br /> $107,399,438.50(Original Principal Value)
<br /> $108,255,000(Maturity Value)
<br /> Santa Ma Financing Authority
<br /> Police Administration and Holding Facility
<br /> Lease Revenue Bonds
<br /> Series 1994A
<br /> Upon receipt of telephonic or telegraphic notice,such notice subsequently confirmed in writing by registered or certified mail,or upon receipt of written
<br /> notice by registered or certified mail,by the Insurer from the Paying Agent or any owner of an Obligation the payment of an Insured Amount for which
<br /> is then due,that such required payment has not been made,the Insurer on the due date of such payment or within one business day after receipt of notice
<br /> of such nonpayment,whichever is later,will make a deposit of funds,in an account with State Street Bank and Trust Company,NA.,in New York,
<br /> New York,or its successor,sufficient for the payment of any such Insured Amounts which are then due. Upon presentment and surrender of such
<br /> Obligations or presentment of such other proof of ownership of the Obligations,together with any appropriate insnrments of assignment to evidence
<br /> the assignment of the Insured Amounts due on the Obligations as are paid by the Insurer,and appropriate instruments to effect the appointment of the
<br /> Insurer as agent for such owners of the Obligations in any legal proceeding related to payment of Insured Amounts on the Obligations,such instruments
<br /> being in a form satisfactory to State Street Bank and Trust Company,N.A.,State Street Bank and Trust Company,N.A.shall disburse to such owners,
<br /> or the Paying Agent payment of the Insured Amounts due on such Obligations,less any amount held by the Paying Agent for the payment of such
<br /> Insured Amounts and legally available therefor. This policy does not insure against loss of any prepayment premium which may at any time be payable
<br /> with respect to any Obligation.
<br /> As used herein,the term"owner"shall mean the registered owner of any Obligation as indicated in the books maintained by the Paying Agent,the
<br /> Issuer,or any designee of the Issuer for such purpose. The term owner shall not include the Issuer or any party whose agreement with the Issuer
<br /> constitutes the underlying security for the Obligations.
<br /> My service of process on the Insurer may be made to the Insurer at its offices located at 113 King Street,Armonk,New York 10504 and such service
<br /> of process shall be valid and binding.
<br /> This policy is non-cancellable for any mason. The premium on this policy is not refundable for any mason including the payment prior to maturity of
<br /> the Obligations.
<br /> In the event the Insurer were to become insolvent,any claims arising under a policy of financial guaranty insurance are excluded from coverage by the
<br /> California Insurance Guaranty Association,established pursuant to Article 142(commencing with Section 1063)of Chapter 1 of Part 2 of Division 1 of
<br /> the California Insurance Code.
<br /> IN WITNESS WHEREOF,the Insurer has caused this policy to be executed in facsimile on its behalf by its duly authorized officers,this 23rd day of
<br /> March,1994.
<br /> MUNICIPAL BOND INVESTORS
<br /> ASSURANCE CORPORATION
<br /> trefuAa. teat,.
<br /> Presid t �/J�
<br /> Attest�2r.Q. e w / // c
<br /> Assistant Secretary
<br /> SID-RCA-5
<br />
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