86-93 AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST SUPPLEMENTAL TRUST INDENTURE IN CONNECTION WITH THE OUTSTANDING SINGLE FAMILY MORTGAGE REVENUE BONDS, 1979 SERIES A

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the State of Illinois and, with respect to hazard insurance, rated B or better by Best ' s Insurance Reports (Property-Casualty) or, with respect to other kinds of insurance, qualified to pro- vide insurance on mortgages purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corpora- tion, whose participation in the Program will not result in the lowering of the ratings of the Bonds. "Residuals" means any moneys, securities or instruments on deposit at Policy Issuance in the Mortgage Reserve Fund or Capital Reserve Fund in excess of the Mortgage Reserve Require- ment or Capital Reserve Requirement, as of such date. "Trust Estate" means the property, rights, moneys, securities and other amounts pledged and assigned pursuant to the Granting Clauses of the Original Indenture and this First Supple- mental Indenture. ARTICLE II THE BOND INSURANCE POLICY Section 2.01 . Release of Residuals. On the date of Policy Issuance, Trustee, or the Custodian acting on behalf of the Trustee, shall release to Issuer all Residuals upon satisfac- tion of the following: (a) Nationally recognized counsel shall render an opin- ion, addressed to Issuer, Trustee and Custodian and dated as of Policy Issuance, to the effect that the transactions contemplated by this First Supplemental Indenture will not adversely affect the federal income tax status of the Bonds. (b) Nationally recognized counsel shall render an opin- ion, addressed to Issuer , Trustee and Custodian and dated as of Policy Issuance, to the effect that ( i) Issuer has the right and power to authorize and execute the First Supple- mental Indenture, ( ii ) the First Supplemental Indenture has been duly and lawfully authorized and executed by Issuer , is in full force and effect and is valid and binding upon Issuer and does not require any other authorization and ( iii) this First Supplemental Indenture creates a valid pledge which it purports to create of the Trust Estate held or set aside under the Indenture. (c) An amount stated in a written order signed by an authorized officer of Issuer that shall be sufficient to cause the amounts on deposit in the Mortgage Reserve Fund and the Capital Reserve Fund to equal the Mortgage Reserve Requirement and the Capital Reserve Requirement, respec- tively. -8-