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Upon receipt of telephonic or telegraphic notice, such notice subsequently confirmed in writing by
<br /> registered or certified mail, or upon receipt of written notice by registered or certified mail, by the Insurer
<br /> from the Trustee or any owner of a Bond the payment of an insured amount for which is then due, that such
<br /> required payment has not been made, the Insurer on the due date of such payment or within one business
<br /> day after receipt of notice of such nonpayment, whichever is later, will make a deposit of funds, in an
<br /> account with State Street Bank and Trust Company, N.A., New York, New York, or its successor, sufficient
<br /> for the payment of any such insured amounts which are then due. Upon presentment and surrender of such
<br /> Bonds or presentment of such other proof of ownership of the Bonds, together with any appropriate
<br /> instruments of assignment to evidence the assignment of the insured amounts due on the Bonds as are paid
<br /> by the Insurer, and appropriate instruments to effect the appointment of the Insurer as agent for such owners
<br /> of the Bonds in any legal proceeding related to payment of insured amounts on the Bonds, such instruments
<br /> being in a form satisfactory to State Street Bank and Trust Company, N.A., State Street Bank and Trust
<br /> Company, N.A. shall disburse to such owners or the Trustee payment of the insured amounts due on such
<br /> Bonds, less any amount held by the Trustee for the payment of such insured amounts and legally available
<br /> therefor.
<br /> The Insurer, formerly known as Municipal Bond Investors Assurance Corporation, is the principal
<br /> operating subsidiary of MBIA Inc., a New York Stock Exchange listed company. MBIA Inc. is not
<br /> obligated to pay the debts of or claims against the Insurer. The Insurer is domiciled in the State of New
<br /> York and licensed to do business in all 50 states, the District of Columbia, the Commonwealth of Puerto
<br /> Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands of the United States and the
<br /> Territory of Guam. The Insurer has one European branch in the Republic of France.
<br /> As of December 31, 1995 the Insurer had admitted assets of$3.8 billion(audited), total liabilities
<br /> of$2.5 billion(audited), and total capital and surplus of$1.3 billion(audited)determined in accordance with
<br /> statutory accounting practices prescribed or permitted by insurance regulatory authorities. As of March 31,
<br /> 1996, the Insurer had admitted assets of$4.0 billion(unaudited), total liabilities of$2.7 billion(unaudited),
<br /> and total capital and surplus of$1.3 billion(unaudited)determined in accordance with statutory accounting
<br /> practices prescribed or permitted by insurance regulatory authorities. All information regarding the Insurer,
<br /> a wholly owned subsidiary of MBIA Inc., including the financial statements of the Insurer for the year ended
<br /> December 31, 1995, prepared in accordance with generally accepted accounting principles, included in the
<br /> Annual Report on Form 10-K of MBIA Inc. for the year ended December 31, 1995 is hereby incorporated
<br /> by reference into this Official Statement and shall be deemed to be a part hereof. Any statement contained
<br /> in a document incorporated by reference herein shall be modified or superseded for purposes of this Official
<br /> Statement to the extent that a statement contained herein or in any other subsequently filed document which
<br /> also is incorporated by reference herein modifies or supersedes such statement. Any statement so modified
<br /> or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Official
<br /> Statement.
<br /> Furthermore, copies of the Insurer's year end financial statements prepared in accordance with
<br /> statutory accounting practices are available from the Insurer. _A copy of the_Annual Report on Form 10-K
<br /> of MBIA Inc. is available from the Insurer or the Securities and Exchange Commission. The address of the
<br /> Insurer is 113 King Street, Armonk, New York 10504.
<br /> Moody's Investors Service ("Moody's") rates the claims paying ability of the Insurer "Aaa".
<br /> Standard & Poor's Ratings Services ("Standard & Poor's"), a division of The McGraw Hill
<br /> Companies, Inc., rates the claims paying ability of the Insurer "AAA".
<br /> Fitch Investors Service, L.P., rates the claims paying ability of the Insurer "AAA".
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