SA 3 - RESO - TAX ALLOCATION BONDS

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The following provisions shall govern in the event of a conflict with any contrary provision of the Indenture. If, on the third Business Day prior to the related scheduled interest payment date or principal payment date ( "Payment Date ") there is not on deposit with the Trustee, after making all transfers and deposits required under the Indenture, moneys sufficient to pay the principal of and interest on the Insured Series 2016 Bonds due on such Payment Date, the Trustee shall give notice to the 2016 Bond Insurer and to its designated agent (if any) (the "Insurer's Fiscal Agent") by telephone or telecopy of the amount of such deficiency by 12:00 noon, New York City time, on such Business Day. If, on the second Business Day prior to the related Payment Date, there continues to be a deficiency in the amount available to pay the principal of and interest on the Insured Series 2016 Bonds due on such Payment Date, the Trustee shall make a claim under the 2016 Bond Insurance Policy and give notice to the 2016 Bond Insurer and the Insurer's Fiscal Agent (if any) by telephone of the amount of such deficiency, and the allocation of such deficiency between the amount required to pay interest on the Insured Series 2016 Bonds and the amount required to pay principal of the Insured Series 2016 Bonds, confirmed in writing to the 2016 Bond Insurer and the Insurer's Fiscal Agent by 12:00 noon, New York City time, on such second Business Day by filling in the form of Notice of Claim and Certificate delivered with the 2016 Bond Insurance Policy. The Trustee shall designate any portion of payment of principal on Insured Series 2016 Bonds paid by the 2016 Bond Insurer, whether by virtue of mandatory sinking fund redemption, maturity or other advancement of maturity, on its books as a reduction in the principal amount of Insured Series 2016 Bonds registered to the then. current Owner, whether DTC or its nominee or otherwise, and shall issue a replacement Bond to the 2016 Bond Insurer, registered in the name of Assured Guaranty Municipal Corp., in a principal amount equal to the amount of principal so paid (without regard to authorized denominations); provided that the Trustee's failure to so designate any payment or issue any replacement Insured Series 2016 Bond shall have no effect on the amount of principal or interest payable by the Agency on any Insured Series 2016 Bond or the subrogation rights of the 2016 Bond Insurer. The Trustee shall keep a complete and accurate record of all funds deposited by the 2016 Bond Insurer into the Policy Payments Account (defined below) and the allocation of such funds to payment of interest on and principal of any Insured Series 2016 Bond, The 2016 Bond Insurer shall have the right to inspect such records at reasonable times upon reasonable notice to the Trustee. Upon payment of a claim under the 2016 Bond Insurance Policy, the Trustee shall establish a separate special purpose trust account for the benefit of Owners referred to herein as the "Policy Payments Account" and over which the Trustee shall have exclusive control and sole right of withdrawal. The Trustee shall receive any amount paid under the 2016 Bond Insurance Policy in trust on behalf of Owners and shall deposit any such amount in the Policy Payments Account and distribute such amount only for purposes of making the payments for which a claim was made. Such amounts shall be disbursed by the Trustee to Owners in the same manner as principal and interest payments are to be made with respect to the Insured Series 2016 Bonds under the sections hereof regarding payment of Insured Series 2016 Bonds. It shall not be necessary for such payments to be made by checks or wire transfers separate from the check or 59 3 -77