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Municipal Bond Investors <br /> Assurance Corporation <br /> 113 King Street <br /> Armonk,NY 10504 <br /> 914 273 4545 <br /> TAX CERTIFICATE <br /> City of Santa Ana <br /> 20 Civic Center Plaza <br /> M Gi V'�A Santa Ana,California 92702 <br /> RE: $107,399,438.50 (Original Principal Value) $108,255,000 (Maturity Value) Santa <br /> Ana Financing Authority, Police Administration and Holding Facility Lease <br /> Revenue Bonds,Series 1994A <br /> (the"Obligations") <br /> Ladies and Gentlemen: <br /> In connection with the issuance of the above-referenced obligations(the "Obligations"), <br /> Municipal Bond Investors Assurance Corporation (the "Insurer") is issuing a financial <br /> guaranty insurance policy(the"Policy")securing the payment of principal and interest on the <br /> Obligations. <br /> This is to advise you that: <br /> 1. The Policy is an unconditional obligation of the Insurer to pay scheduled payments <br /> of principal and interest on the Obligations in the event of a failure to do so by the City of <br /> Santa Ana; • <br /> 2. The insurance premium in the amount of$1,091,000 represents the charge for a <br /> transfer of credit risk and was determined in arm's length negotiations and is required to be <br /> paid as a condition to the issuance of the Policy; <br /> 3. No portion of such premium represents an indirect payment of costs related to the <br /> issuance of the Obligations other than the transfer of credit risk; <br /> 4. The Insurer does not reasonably expect that it will be called upon to make any <br /> payment under the Policy;and <br /> 5. To the extent the Insurer is called upon to make any payment under the Policy,the <br /> Insurer reasonably expects to pursue all available legal remedies to secure reimbursement for <br /> such payment. <br /> Dated:March 23, 1994. <br /> MUNICIPAL BOND INVESTORS/ ASSURANCE CORPORATION <br /> jte4_44,1 <br /> Assistant Secretary <br />