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Fm,in�i,tl tni,u.uu� in.ur;utc. Company any other reserve turd substitute instrument (-Additional Reserve Policy") is provided, drawings under the Reserve Policy and any such Additional Reserve Policy, and repayment of Policy Costs and reimbursement burseent of amounts due under the Additional Reserve Policy, shall be made on a pro rata basis (calculated by reference to the Maximum Amounts available thereunder) after applying all available cash in the reserve fund and prior to replenishment of any such cash draws, respectively. (b) If the Issuer shall fail to repay any Policy Costs in accordance with the requirements of Paragraph 6(a) hereof, Financial Guaranty shall be entitled to exercise anv and all remedies available at law or under the authorizing document other than (i) acceleration of the maturity of the Bonds or (ii) remedies which would adversely affect Bondholders. (c) The authorizing document shall not be dischar-ed until all Policy Costs owing to Financial Guaranty shall have been paid in full.y (d) As security for the Issuer's repayment obligations with respect to the Reserve Policy, to the extent that the authorizing document pledges or grants a security interest in any revenues or collateral of the Issuer (or other obligor) as security for the Bonds, Financial Guaranty shall be granted a security interest in all such revenues and collateral, subordinate only to that of the Bondholders. (e) The additional bonds test and the rate covenant, if any, in the authorizing document shall expressly provide for at least one times coverage of the Issuer's obligations with respect to repayment of Policy Costs then due and owing. Furthermore, no additional bonds may be issued without Financial Guaranty's prior written consent if any Policy Costs are past due and owing to Financial Guaranty. The authorizing document shall be amended to provide that upon the issuance of additional parity obligations secured by the reserve fund, such reserve fund shall be fully funded (at the debt service reserve fund requirement) upon the issuance of such parity obligations,either with cash or permitted investments or by a reserve fund credit instrument acceptable to Financial Guaranty. (f) The authorizing document shall require the Trustee or Paying Agent, as applicable (the "Trustee") to ascertain the necessity for a claim upon the Reserve Policy and to provide notice to Financial Guaranty in accordance with the terms of the Reserve Policy at least two business days prior to each interest payment date. (g) The authorizing document shall not be modified or amended without the prior written consent of Financial Guaranty. (h) Financial Guaranty shall be provided with written notice of the resignation or removal of the Trustee and the appointment of a successor thereto and of the issuance of additional indebtedness of the Issuer at 115 Broadway, New York, New York 10006, Attention: Risk Management. (i) All of the conditions set forth in Financial Guaranty's Commitment for Municipal Bond Insurance in connection with the issuance of the Bonds shall have been met. 7. The Trustee, the Paying Agent or such other third party as shall be acceptable to Financial Guaranty shall be the custodian of the Reserve Policy and act as fiduciary for the Bondholders in respect thereof. Page 3 of 4