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instrument of assignment so as to permit ownership of such Series 1991 Bonds to be registered in the name of AMBAC Indemnity to the extent of the payment under the Municipal Bond Insurance Policy. Payment of interest pursuant to the Municipal Bond Insurance Policy requires proof of Bondholder entitlement to interest payments and an appropriate assignment of the Bondholder's right to payment to AMBAC Indemnity. Upon payment of the insurance benefits, AMBAC Indemnity will become the owner of the Series 1991 Bond, appurtenant coupon, if any, or right to payment of principal or interest on such Series 1991 Bond and will be fully subrogated to the surrendering Bondholder's rights to payment. AMBAC Indemnity Corporation AMBAC Indemnity Corporation ("AMBAC Indemnity") is a Wisconsin - domiciled stock insurance company, regulated by the Insurance Department of the State of Wisconsin and licensed to do business in 50 states and the District of Columbia, with admitted assets of approximately $1,259,700,000 (unaudited) and statutory capital of approximately $752,200,000 (unaudited) as of March 31, 1991. Statutory capital consists of AMBAC Indemnity's policyholders' surplus and statutory contingency reserve. AMBAC Indemnity is a wholly-owned subsidiary of Citicorp Financial Guaranty Holdings, Inc. (Holdings") (formerly known as AMBAC, Inc.), a financial holding company and itself a wholly-owned subsidiary of Citibank, N.A. ("Citibank"). On May 1, 1991, AMBAC, Inc. ("AMBAC, Inc."), a financial holding company recently formed by Holdings, registered for sale with the Security and Exchange Commission 17,600,000 shares of its common stock. If the sale is completed, Citibank, through its affiliate Holdings, is expected to own approximately 49% of the total equity of AMBAC, Inc., with a right to cast 20% of the total number of votes of all shares of outstanding common stock of AMBAC, Inc. until such time as Citibank, including its affiliates, reduces its equity ownership to less than 25% of AMBAC, Inc. (at which time the shares owned by it become non- voting). Prior to the consummation of the proposed sale of common stock, AMBAC Indemnity will become a direct wholly owned subsidiary of AMBAC, Inc. The Wisconsin Insurance Department has stated that the sale of common stock described herein does not require its prior approval. Both Moody's Investors Service, Inc. and Standard & Poor's Corporation have reaffirmed that the proposed sale of the common stock of AMBAC, Inc. will not affect AMBAC Indemnity's triple-A claims -paying ability ratings. Copies of AMBAC Indemnity's financial statements prepared in accordance with statutory accounting standards are available from AMBAC Indemnity. The address of AMBAC Indemnity's administrative 10