2004-21 PROVIDING FOR ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2004B

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. , . MC31/� 5. Pre-refunded municipal bonds rated "Aaa" by Moody's and "AAA" by S&P. If however, the issue is only rated by S&P (i.e.,there is no Moody's rating),then the pre-refunded bonds must have been pre-refunded with cash, direct U.S. or U.S. guaranteed obligations, or AAA rated pre-refunded municipals to satisfy this condition. 6. Obligations issued by the following agencies which are backed by the full faith and credit of the U.S.: a. U.S. Export-Im�ort Bank(Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership b. Farmers Home Administration(FmHA) Certificates of beneficial ownership c. Federal Financin�Bank d. General Services Administration Participation certificates e. U.S. Maritime Administration Guaranteed Title XI financing f. U.S. Department of Housing and Urban Development(HUD) Project Notes Local Authority Bonds New Communities Debentures-U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds G. If a forward supplv contract is being executed in conjunction with the refunding (or subsequent to the closing of the refunding transaction), the following conditions must also be met: L The Insurer must review and approve the forward supply contract at least five business days prior to closing(or after closing, at least five business days prior to execution if not contemplated at the time of closing). 2. The forward supply contract must provide by its terms that the securities delivered under the forward supply are sufficient(when taken with other funds remaining in the escrow) as to amount and timeliness to retire the refunded bonds. 3. The Insurer requires an opinion from a nationally recognized banla-uptcy counsel that the securities in escrow and payments to owners of refunded bonds will not constitute assets of the forward supply contract supplier and will not be subject to automatic stay in the event of bankruptcy and/or insolvency of the supplier. 4. The supplier of the securities delivered under the forward supply contract must affirm in the contract that it has no rights to or interest in the monies or securities held in the escrow. 5. The escrow agent must be acceptable to the Insurer. The Insurer reserves the right to replace the escrow agent for cause. 6. See 6 above for investments permitted under the forward supply contract. Investments must be non-callable.