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Certificate Insurer shall have received notice of Nonpayment from the Trustee. The insurance will extend for the term of the Series 2004 Certificates and, once issued, cannot be canceled by the Certificate Insurer. The Certificate Insurance Policy will insure payment only on stated maturity dates and on mandatory sinking fund installment dates, if any, in the case of principal, and on stated dates for payment, in the case of interest. If the Series 2004 Certificates become subject to mandatory redemption and insufficient funds are available for redemption of all outstanding Series 2004 Certificates, the Certificate Insurer will remain obligated to pay principal of and interest on outstanding Series 2004 Certificates on the originally scheduled interest and principal payment dates including mandatory sinking fund redemption dates, if any. In the event of any acceleration of the principal of the Series 2004 Certificates, the insured payments will be made at such times and in such amounts as would have been made had there not been an acceleration. In the event the Trustee has notice that any payment of principal of or interest on a Series 2004 Certificate which has become Due for Payment and which is made to a holder by or on behalf of the City has been deemed a preferential transfer and theretofore recovered from its registered owner pursuant to the United States Bankruptcy Code in accordance with a £mal, nonappealable order of a court of competent jurisdiction, such registered owner will be entitled to payment from the Certificate Insurer to the extent of such recovery if sufficient funds are not otherwise available. The Certificate Insurance Policy does not insure any risk other than Nonpayment, as defined in the Certificate Insurance Policy. Specifically, the Certificate Insurance Policy does not cover:. · payment on acceleration, as a result of a call for redemption (other than mandatory sinking fund redemption) or as a result of any other advancement of maturity. · payment of any redemption, prepayment or acceleration premium. · nonpayment of principal or interest caused by the insolvency or negligence of any Trustee or Bond Registrar, if any. If it becomes necessary to call upon the Certificate Insurance Policy, payment of principal requires surrender of Series 2004 Certificates to the Insurance Trustee together with an appropriate instrument of assignment so as to permit ownership of such Seres 2004 Certificates to be registered in the name of Certificate Insurer to the extent of the payment under the Certificate Insurance Policy. Payment of interest pursuant to the Certificate Insurance Policy requires proof of holder entitlement to interest payments and an appropriate assignment of the holder's right to payment to the Certificate Insurer. Upon payment of the insurance benefits, the Certificate Insurer will become the owner of the Series 2004 Certificates, appurtenant coupon, if any, or right to payment of principal or interest on such Series 2004 Certificate and will be fully subrogated to the surrendering holder's rights to payment. The Certificate Insurer The Certificate Insurer is a Wisconsin-domiciled stock insurance corporation regulated by the Office of the Commissioner of Insurance of the State of Wisconsin and licensed to do business in 50 states, the District of Columbia, the Territory of Guam, the Commonwealth of Puerto Rico and the U.S. Virgin Islands, with admitted assets of approximately $7,670,000,000 (unaudited) and statutory capital of approximately $4,683,000,000 (unaudited) as of March 31, 2004. Statutory capital consists of the Certificate Insurer's policyholders' surplus and statutory contingency reserve. Standard & Poor's Credit Markets Services, a Division of The McGraw-Hill Companies, Moody's Investors Service and Fitch Ratings have each assigned a triple-A financial strength rating to the Certificate Insurer. -8-