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FurURE FINANCING ARRANGEMENTS During Fiscal Years 1992 and 1993 the County anticipates that it will expend the Sea Oaks Wastewater Plant at an estimated cast of $2.5 Million and conatntet rouse transmission lines at an estimated cod of $3 Million. A potion of the cost of these two projects will be financed with the proceeds derived from the issuance and sale of Additional Parity Bonds. MUNICIPAL BOND INSURANCE Bond Insurance Coocunandy with the isatsoce of the Series 1991 Bonds, FinaocW Guaranty Insurance Company ("Financial Guaranty') will issue its Municipal Bond New Issue Immo Policy for the Bonds (the 'Policy'). The Policy unoonditiooally guarantees the payment of that potion of the principal of and interest on tie Bonds which hu become due for payment, but shall be unpaid by reason of nonpayment by the County. Financial Guaranty will make such payments to Citibank N.A., or its successor u its agent (the 'Fiscal Agent'), on the later of the date on which such principal and interest is due or on the business day next following the day on which Financial Guaranty shall have received telephonic or telegraphic notice, subsequently confirmed in writing, or written notice by registered or certified mail, from an owner of the Series 1991 Bonds or the Paying Agent of the nonpayment of such amount by the County. The Fiscal Agent will disburse such amount due on any Series 1991 Hood to its owner upon receipt by the Fiscal Agent of evidence satisfactory to the Fiscal Agent of the owner's right to receive payment of the principal and interest due for payment and evidence, including any appropriate • instruments of assignment, that all of such owner's rights to payment of such principal and interest shall be vested in Financial Guaranty. The term 'nonpayment" in respect of a Series 1991 Bond includes any payment of principal or interest made to an owner of a Series 1991 Bond which hu been recovered from such owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy in accordance with a final, nonappealable order of a court having competent jurisdiction. The Policy is non -cancelable and the premium will be fully paid at the time of delivery of the Bonds. The Policy covers failure to pay principal of the Series 1991 Bonds on their respective stated maturity dates or dates on which the same shall have been duly called for mandatory sinking fund redemption, and not on any other date on which the Series 1991 Bonds may have been otherwise called for redemption, accelerated or advanced in maturity, and covers the failure to pay an installment of interest on the stated date for its payment. Generally, in connection with its insurance of an issue of municipal securities, Financial Guaranty requires, among other things, (i) that it be granted the power to exercise any rights granted to the holders of such securities upon the occurrence of an event of default, without the consent of such holders, and that such holders may not exercise such rights without Financial Guaranty's consent, in each case so long as Financial Guaranty has not failed to comply with its payment obligations under its insurance policy; and (ii) that any amendment or supplement to or other modification of the principal legal documents be subject to Financial Guaranty's consent. The specific rights, if any, granted to Financial Guaranty in connection with its insurance of the Series 1991 Bonds are set forth in the description of the principal legal documents appearing elsewhere in this Official Statement. Reference should be made as well to such description for a discussion of the circumstances. if any, under which the County is required to provide additional or substitute credit enhancement, and related matters. This Official Statement contains a section regarding the ratings assigned to the Series 1991 Bonds and references should be made to such section for a discussion of such ratings and the basis for their assignment to the Bonds. Reference should be made to the description of the County for a discussion of the ratings, if any, assigned to such entity's outstanding parity debt that is not soured by credit enhancement. Financial Guaranty is a wholly-owned subsidiary of FGIC Corporation (the "Corporation"), a Delaware holding company. The Corporation is a wholly-owned subsidiary of General Electric Capital Corporation ("GE Capital"). Neither the Corporation nor GE Capital is obligated to pay the debts of or the claims against Financial Guaranty. Financial Guaranty is a monoline financial guaranty insurer domiciled in the State of New York and subject to regulation by the State of New York Insurance Department. As of March 31, 1991, the total capital and surplus of Financial Guaranty was approximately S502.600,000. Financial Guaranty prepares financial statements on the basis of both statutory accounting principles and 10