MUNICIPAL LEASING ASSOCIATES. INC.

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ARBITRAGE AND TAX CERTIFICATE 096-112--AF The undersigned hereby certifies that he/she is a duly appointed authorized agent, of the CITYOF SANTA ANA (the "Lessee"), for the Purpose of executing and delivering, on behalf of the Lessee, the Lease with Option to Purchase dated July 1, 1996 (the "Lease"), by and between MUNICIPAL LEASING ASSOCIATES, INC. (the "Corporation") as lessor and the Lessee as lessee. This Certificate is being issued pursuant to Section 148 of the Internal Revenue Code of 1986 (the "Code"), and Treasury Regulations, Sections 1.148-1 through 1.148-11 Promulgated thereunder (the "Regulations"). The following facts, estimates and circumstances are either in existence on the date of this Arbitrage and Tax Certificate or are reasonably expected to occur hereafter. 1. Under the Lease, the Corporation is required to acquire the property described in the schedule attached to the Lease (the "Property"), and to lease and sell the Property to the Lessee; and the Lessee is required to lease and purchase the Property from Corporation by making Rental Payments with respect thereto, comprising principal and interest, on the dates and in the amounts set forth in the Lease. 2. On the date of Lease issuance, the Lessee will receive not less than $1,325,580.00 from the Corporation. Such moneys will be deposited with the Lessee and used, together with interest earnings thereon, to pay the Property costs. 3. The Lessee on behalf of the Corporation, will proceed to acquire and install the Property with due diligence and, based upon the provisions of the purchase contracts, delivery and acceptance of the Property is scheduled to occur on or before six months after the date hereof but in no case later than three years from the date hereof, and it is expected that all Lease proceeds will be spent by such date. 4. The original proceeds of the Lease plus the interest earned thereon, will not exceed by more than 5% the amount necessary for the governmental purpose for which the Lease is issued. 5. The yield of the Lease, without taking into account costs of issuance thereon, and on the basis of the initial reoffering price of the Lease to the Assignee, is not less than 5.25%. 6. No sinking fund will be maintained for the payment of the Rental Payments due under the Lease. 7. The term of the Lease is not longer than is reasonably necessary for the -governmental purpose of the Lease, and the weighted average maturity of the Lease does not exceed 120 percent of the average reasonably expected economic life of the leased Property. 8. The Property has not been, and is not expected during the term of the Lease, to be sold or otherwise disposed of by the Lessee.