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Municipal Bond Insurance Policy Issuer: Bonds: AMBAC Indemnity Corporation clo CT Corporation Systems 44 East Mifflin St., Madison, Wisconsin 53703 Administrative Office: One State Street Plaza, New York, NY 10004 Telephone: (212) (308-0340 Policy Number: Premium: AMBAC Indemnity Corporation (AMBAC) A Wisconsin Stock Insurance Company In consideration of the payment of the premium and subject to the terms of this Policy. hereby agrees us pay to the United States Trust Company of New York, as trustee, or Its successor (the "Insurance Trustee-). for the benefit of Bondholders, that portion of the ptin- cipat of and Interest on the above-described debt obligations (the "Bonds-) which shall become Due forPrnt but shall be unpaid by reason of Nonpayment by the Issuer. AMBAC will make such payments to the Insurance Trustee within one (1) business day following otic o MBAC of Nonpay- ment. Upon a Bondholder's presentation and surrender to the Insurance Trustee of such u a t ant coupons, un - canceled and in bearer form and free of any adverse claim, the Insurance Trustee will r o th Jer t face amount of principal and interest which is then Due for Payment but is unpaid. Upon such disbu m t, A A h 1 be a owner of the surrendered Bonds and coupons and shall he fully subrogated to all of the NontJjrffA(er it ym t. In cases where the Bonds are issuable only in a form whereby principal is Insurance Trustee shall disburse principal to a Bondholder as aforesa of the unpaid Bond, uncanceled and free of any adverse claim, u e rr� Insurance Trustee, duly executed by the Bondholder or such 1 c such Bond to be registered in the name of AMBAC or its in ca. Is payable to registered Bondholders or their assign.a Ins e' us upon presentation to the Insurance Trustee of pro i ai nt t delivery to the Insurance Trustee of an instr n f ssignmen i or claimant Bondholder or such Bundhold •a I zed r r c the interest In respect of which the I r e ch u e t w ade. At payment on registered Bonds to htt• c e ns nt i rsemen IV r Bo � or their assigns, the o d render to the Insunncr Truster nment, in form satisfactory to the r rrsentative, so as to permit ownership of are issuable only in a form whereby interest terest uta Bondholder as aforesaid only to the payment ofinterest on the Bond and insurance Truster, duly executed by the transferring to AMBAC. all rights under such Bond to receive A(: shall be subrogated to all the Bondholders' rights to so made. In the event the trustee or-^ 1 get r t Bo as notice that any payment of principal of or interest on a Bond which has become Due for Payme a whi I m e o older by or on behalf of the issue of the Bonds has been deemed a preferential transfer and thePR2 o f mit egi ed owner pursuant to the United States Bankruptcy Code In accordance with a final, III n: a c n mps ten risdiction, such registered owner will be entitled tit payment from AMBAC to the extent ofsuchreco rcjCn un sarenototherwixravaihhlr. As used here the teVin"' " )n%oPcr.-.mcjns any person other titan the Issuer who, at the time of Nonpayment, Is the owner ofa Bond or ofacoupon ain oonused herein, "Due for Payment", when referring to the principal of Bonds, is when the stated maturity date or t redemption date for the application of a required sinking fund installment has been reached and does not refer trr any rarli which payment Is due by reason of call for redemption (other than by application of required sinking fund installments), acceleration or other advancement of maturity; and, when referring to interest on the Bonds, Is when the stated date for payment of interest has been reached. As used herein," Nonpayment" means the failure of the Issuer to have provided sufficient funds to the paying agent for payment in full of all principal of and interest on the Bonds which are Due for Payment. This Policy is noncancelable. The premium on this Policy is not refundable for any reason, including payment of the Bonds prior to maturity. This Policy does not insure against loss of any prepayment or other acceleration payment which at any time may become due In respect of any Bond, other than at the sole option of AMBAC, nor against any risk other than Nonpayment. In witness whereof, AMBAC has caused this Policy to be affixed with a facsimile of its corporate seal and to be signed by its duly authorized officers in facsimile to become effective as its original seal and signatures and binding upon AMBAC by virtue of the counter- signature of Its July authorized representative. 1 I,MM"� f PD�Idell[ ; r j Secretary 441 'ti, IyBatln Date: \_ Audwrized Itpresentative UNnW SLUMS TRUST COMPANY OF NEW IORK aduiowledges that it has agreed to perform the duties of Insuninim M ustee under this iblicy. &A"17 Form N S66-0003(8192) Audi ri7,e'd Offim