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DEFEASANCE LANGUAGE <br />A. The definition of "Outstanding" bonds or obligations, or any like concept, should <br />specifically include bonds or obligations which fall into the category described below. <br />B. The defeasance section of the Financing Document should include the following <br />language: <br />Notwithstanding anything herein to the contrary, in the event that the principal and/or <br />interest due on the Bonds shall be paid by AMBAC Indemnity Corporation pursuant to <br />the Municipal Bond Insurance Policy, the Bonds shall remain Outstanding for all <br />purposes, not be defeased or otherwise satisfied and not be considered paid by the <br />Issuer, and tt its assignment and pledge of the Trust Estate and all covenants, <br />agreements and other obligations of the Issuer to the registered owners shall continue <br />to exist and shall run to the benefit of AMBAC Indemnity, and AMBAC Indemnity shall <br />be subrogated to the rights of such registered owners. <br />10 <br />