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(8) Pre - refunded municipal obligations defined as follows: Any bonds or <br />other obligations of any state of the United States of America or of any agency, instrumentality <br />or local governmental unit of any such state which are not callable at the option of the obligor <br />prior to maturity or as to which irrevocable instructions have been given by the obligor to call on <br />the date specified in the notice; and <br />a. which are rated, based on an irrevocable escrow account or fund <br />(the "escrow "), in the highest long -tern rating category of at least <br />one nationally recognized rating agencies; or <br />b. (i) which are fully secured as to principal and interest and <br />redemption premium, if any, by an escrow consisting only of cash <br />or direct obligations of the United States of America, which <br />escrow may be applied only to the payment of such principal of <br />and interest and redemption premium, if any, on such bonds or <br />other obligations on the maturity date or dates thereof or the <br />specified redemption date or dates pursuant to such irrevocable <br />instructions, as appropriate, and <br />(ii) which escrow is sufficient, as verified by a <br />nationally recognized independent certified public accountant, to <br />pay principal of and interest and redemption premium, if any, on <br />the bonds or other obligations described in this paragraph on the <br />maturity date or dates specified in the irrevocable instructions <br />referred to above, as appropriate. <br />(9) General obligations of states or political subdivisions of states with a <br />short-term rating in one of the two highest rating categories and a long -term rating in one of the <br />two highest rating categories of at least two nationally recognized rating agencies. In the event <br />such obligations are variable rate obligations, the interest rate on such obligations must be reset <br />not less frequently than annually. <br />(10) Funds invested in the Local Agency Investment Fund (as that tern is <br />defined in Section 16429.1 of the California Government Code, as such section maybe amended <br />or recodified from time to time) to the extent deposits and withdrawals may be made by the <br />Trustee. <br />(11) Certificates of deposit secured at all times by collateral described in (2) <br />and /or (3) above. Such certificates must be issued by commercial banks, savings and loan <br />associations or mutual savings banks. The collateral must be held by a third party and the <br />bondholders must have a perfected first security interest in the collateral. <br />follows: <br />The value of the above investments, other than cash, shall be determined as <br />"Value," which shall be determined as of the end of the month, means <br />"fair market value," which may be determined using a computer pricing service <br />including any service contained in the Trustee's accounting system, provided that <br />the Trustee shall not be liable for any error made by any such service. <br />55394.00011 \8754149.4 9 <br />