Document:

Unassociated Document

    

    Exhibit
      4.1

     

    EXECUTION
      COPY

     

     

    

     

    RSB
      BONDCO LLC,

     

    Issuer,

     

    and

     

    DEUTSCHE
      BANK TRUST COMPANY AMERICAS,

     

    Indenture
      Trustee and Securities Intermediary

     

    

     

    ______________________________

     

    INDENTURE

     

    Dated
      as of June 29, 2007

     

    ______________________________

     

    Issuable
      in Series

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    Page

     

    
      
        	
                ARTICLE
                  I

              	
                 

              
	
                DEFINITIONS
                  AND INCORPORATION BY REFERENCE

              	
                 

              
	 	
                 

              
	
                SECTION
                  1.01. Definitions.

              	
                2

              
	
                SECTION
                  1.02. Incorporation by Reference of Trust Indenture Act.

              	
                2

              
	
                SECTION
                  1.03. Rules of Construction.

              	
                2

              
	 	
                 

              
	
                ARTICLE
                  II

              	
                 

              
	
                THE
                  RATE STABILIZATION BONDS

              	 
	 	
                 

              
	
                SECTION
                  2.01. Form.

              	
                3

              
	
                SECTION
                  2.02. Denominations; Rate Stabilization Bonds Issuable in
                  Series.

              	
                3

              
	
                SECTION
                  2.03. Execution, Authentication and Delivery.

              	
                5

              
	
                SECTION
                  2.04. Temporary Rate Stabilization Bonds.

              	
                5

              
	
                SECTION
                  2.05. Registration; Registration of Transfer and Exchange of Rate
                  Stabilization Bonds.

              	
                5

              
	
                SECTION
                  2.06. Mutilated, Destroyed, Lost or Stolen Rate Stabilization
                  Bonds.

              	
                7

              
	
                SECTION
                  2.07. Persons Deemed Owner.

              	
                8

              
	
                SECTION
                  2.08. Payment of Principal, Premium, if any, and Interest; Interest
                  on
                  Overdue Principal; Principal, Premium, if any, and Interest Rights
                  Preserved.

              	
                8

              
	
                SECTION
                  2.09. Cancellation.

              	
                9

              
	
                SECTION
                  2.10. Outstanding Amount; Authentication and Delivery of Rate
                  Stabilization Bonds.

              	
                10

              
	
                SECTION
                  2.11. Book-Entry Rate Stabilization Bonds.

              	
                19

              
	
                SECTION
                  2.12. Notices to Clearing Agency.

              	
                20

              
	
                SECTION
                  2.13. Definitive Rate Stabilization Bonds.

              	
                20

              
	
                SECTION
                  2.14. CUSIP Number.

              	
                21

              
	
                SECTION
                  2.15. Letter of Representations.

              	
                21

              
	
                SECTION
                  2.16. Special Terms Applicable to Subsequent Transfers of Certain
                  Rate
                  Stabilization Bonds.

              	
                21

              
	
                SECTION
                  2.17. Tax Treatment.

              	
                22

              
	
                SECTION
                  2.18. State Pledge.

              	
                22

              
	
                SECTION
                  2.19. Security Interests.

              	
                23

              
	 	
                 

              
	
                ARTICLE
                  III

              	
                 

              
	
                COVENANTS

              	
                 

              
	 	
                 

              
	
                SECTION
                  3.01. Payment of Principal, Premium, if any, and Interest.

              	
                24

              
	
                SECTION
                  3.02. Maintenance of Office or Agency.

              	
                24

              
	
                SECTION
                  3.03. Money for Payments To Be Held in Trust.

              	
                25

              
	
                SECTION
                  3.04. Existence.

              	
                26

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
                  3.05. Protection of Rate Stabilization Bond Collateral.

              	
                26

              
	
                SECTION
                  3.06. Opinions as to Rate Stabilization Bond Collateral.

              	
                27

              
	
                SECTION
                  3.07. Performance of Obligations; Servicing; SEC Filings.

              	
                28

              
	
                SECTION
                  3.08. Certain Negative Covenants.

              	
                29

              
	
                SECTION
                  3.09. Annual Statement as to Compliance.

              	
                30

              
	
                SECTION
                  3.10. Issuer May Consolidate, etc., Only on Certain Terms.

              	
                31

              
	
                SECTION
                  3.11. Successor or Transferee.

              	
                33

              
	
                SECTION
                  3.12. No Other Business.

              	
                33

              
	
                SECTION
                  3.13. No Borrowing.

              	
                33

              
	
                SECTION
                  3.14. Servicer’s Obligations.

              	
                33

              
	
                SECTION
                  3.15. Guarantees, Loans, Advances and Other Liabilities.

              	
                33

              
	
                SECTION
                  3.16. Capital Expenditures.

              	
                33

              
	
                SECTION
                  3.17. Restricted Payments.

              	
                33

              
	
                SECTION
                  3.18. Notice of Events of Default.

              	
                34

              
	
                SECTION
                  3.19. Further Instruments and Acts.

              	
                34

              
	
                SECTION
                  3.20. Purchase of Subsequent Rate Stabilization Property.

              	
                34

              
	
                SECTION
                  3.21. Inspection.

              	
                35

              
	
                SECTION
                  3.22. Sale Agreement, Servicing Agreement and Administration Agreement
                  Covenants.

              	
                36

              
	
                SECTION
                  3.23. Taxes.

              	
                38

              
	 	
                 

              
	
                ARTICLE
                  IV

              	
                 

              
	
                SATISFACTION
                  AND DISCHARGE; DEFEASANCE

              	
                 

              
	 	
                 

              
	
                SECTION
                  4.01. Satisfaction and Discharge of Indenture; Defeasance.

              	
                38

              
	
                SECTION
                  4.02. Conditions to Defeasance.

              	
                40

              
	
                SECTION
                  4.03. Application of Trust Money.

              	
                41

              
	
                SECTION
                  4.04. Repayment of Moneys Held by Paying Agent.

              	
                42

              
	 	
                 

              
	
                ARTICLE
                  V

              	
                 

              
	
                REMEDIES

              	
                 

              
	 	
                 

              
	
                SECTION
                  5.01. Events of Default.

              	
                42

              
	
                SECTION
                  5.02. Acceleration of Maturity; Rescission and Annulment.

              	
                43

              
	
                SECTION
                  5.03. Collection of Indebtedness and Suits for Enforcement by Indenture
                  Trustee.

              	
                44

              
	
                SECTION
                  5.04. Remedies; Priorities.

              	
                46

              
	
                SECTION
                  5.05. Optional Preservation of the Rate Stabilization Bond
                  Collateral.

              	
                47

              
	
                SECTION
                  5.06. Limitation of Suits.

              	
                48

              
	
                SECTION
                  5.07. Unconditional Rights of Holders To Receive Principal, Premium,
                  if
                  any, and Interest.

              	
                49

              
	
                SECTION
                  5.08. Restoration of Rights and Remedies.

              	
                49

              
	
                SECTION
                  5.09. Rights and Remedies Cumulative.

              	
                49

              
	
                SECTION
                  5.10. Delay or Omission Not a Waiver.

              	
                49

              
	
                SECTION
                  5.11. Control by Holders.

              	
                49

              
	
                SECTION
                  5.12. Waiver of Past Defaults.

              	
                50

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                SECTION
                  5.13. Undertaking for Costs.

              	
                50

              
	
                SECTION
                  5.14. Waiver of Stay or Extension Laws.

              	
                51

              
	
                SECTION
                  5.15. Action on Rate Stabilization Bonds.

              	
                51

              
	 	
                 

              
	
                ARTICLE
                  VI

              	
                 

              
	
                THE
                  INDENTURE TRUSTEE

              	
                 

              
	 	
                 

              
	
                SECTION
                  6.01. Duties of Indenture Trustee.

              	
                51

              
	
                SECTION
                  6.02. Rights of Indenture Trustee.

              	
                53

              
	
                SECTION
                  6.03. Individual Rights of Indenture Trustee.

              	
                54

              
	
                SECTION
                  6.04. Indenture Trustee’s Disclaimer.

              	
                54

              
	
                SECTION
                  6.05. Notice of Defaults.

              	
                54

              
	
                SECTION
                  6.06. Reports by Indenture Trustee to Holders.

              	
                55

              
	
                SECTION
                  6.07. Compensation and Indemnity.

              	
                56

              
	
                SECTION
                  6.08. Replacement of Indenture Trustee and Securities
                  Intermediary.

              	
                56

              
	
                SECTION
                  6.09. Successor Indenture Trustee by Merger.

              	
                58

              
	
                SECTION
                  6.10. Appointment of Co-Trustee or Separate Trustee.

              	
                58

              
	
                SECTION
                  6.11. Eligibility; Disqualification.

              	
                59

              
	
                SECTION
                  6.12. Preferential Collection of Claims Against Issuer.

              	
                59

              
	
                SECTION
                  6.13. Representations and Warranties of Indenture Trustee.

              	
                59

              
	
                SECTION
                  6.14. Annual Report by Independent Registered Public
                  Accountants.

              	
                60

              
	
                SECTION
                  6.15. Custody of Rate Stabilization Bond Collateral.

              	
                60

              
	 	
                 

              
	
                ARTICLE
                  VII

              	
                 

              
	
                HOLDERS’
                  LISTS AND REPORTS

              	
                 

              
	 	
                 

              
	
                SECTION
                  7.01. Issuer To Furnish Indenture Trustee Names and Addresses of
                  Holders.

              	
                61

              
	
                SECTION
                  7.02. Preservation of Information;  Communications to
                  Holders.

              	
                61

              
	
                SECTION
                  7.03. Reports by Issuer.

              	
                61

              
	
                SECTION
                  7.04. Reports by Indenture Trustee.

              	
                62

              
	 	
                 

              
	
                ARTICLE
                  VIII

              	
                 

              
	
                ACCOUNTS,
                  DISBURSEMENTS AND RELEASES

              	 
	 	
                 

              
	
                SECTION
                  8.01. Collection of Money.

              	
                62

              
	
                SECTION
                  8.02. Collection Accounts and TPC Deposit Accounts.

              	
                62

              
	
                SECTION
                  8.03. General Provisions Regarding the Collection
                  Accounts.

              	
                67

              
	
                SECTION
                  8.04. Release of Rate Stabilization Bond Collateral.

              	
                68

              
	
                SECTION
                  8.05. Opinion of Counsel.

              	
                68

              
	
                SECTION
                  8.06. Reports by Independent Registered Public
                  Accountants.

              	
                69

              

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              
	
                ARTICLE
                  IX

              	
                 

              
	
                SUPPLEMENTAL
                  INDENTURES

              	
                 

              
	 	
                 

              
	
                SECTION
                  9.01. Supplemental Indentures Without Consent of Holders.

              	
                69

              
	
                SECTION
                  9.02. Supplemental Indentures with Consent of Holders.

              	
                71

              
	
                SECTION
                  9.03. Execution of Supplemental Indentures.

              	
                72

              
	
                SECTION
                  9.04. Effect of Supplemental Indenture.

              	
                72

              
	
                SECTION
                  9.05. Conformity with Trust Indenture Act.

              	
                73

              
	
                SECTION
                  9.06. Reference in Rate Stabilization Bonds to Supplemental
                  Indentures.

              	
                73

              
	 	
                 

              
	
                ARTICLE
                  X

              	
                 

              
	
                MISCELLANEOUS

              	
                 

              
	 	
                 

              
	
                SECTION
                  10.01. Compliance Certificates and Opinions, etc.

              	
                73

              
	
                SECTION
                  10.02. Form of Documents Delivered to Indenture Trustee.

              	
                75

              
	
                SECTION
                  10.03. Acts of Holders.

              	
                75

              
	
                SECTION
                  10.04. Notices, etc., to Indenture Trustee, Issuer and Rating
                  Agencies.

              	
                76

              
	
                SECTION
                  10.05. Notices to Holders; Waiver.

              	
                77

              
	
                SECTION
                  10.06. Conflict with Trust Indenture Act.

              	
                77

              
	
                SECTION
                  10.07. Effect of Headings and Table of Contents.

              	
                78

              
	
                SECTION
                  10.08. Successors and Assigns.

              	
                78

              
	
                SECTION
                  10.09. Severability.

              	
                78

              
	
                SECTION
                  10.10. Benefits of Indenture.

              	
                78

              
	
                SECTION
                  10.11. Legal Holidays.

              	
                78

              
	
                SECTION
                  10.12. GOVERNING LAW.

              	
                78

              
	
                SECTION
                  10.13. Counterparts.

              	
                78

              
	
                SECTION
                  10.14. Recording of Indenture.

              	
                79

              
	
                SECTION
                  10.15. Issuer Obligation.

              	
                79

              
	
                SECTION
                  10.16. No Recourse to Issuer.

              	
                79

              
	
                SECTION
                  10.17. Basic Documents.

              	
                79

              
	
                SECTION
                  10.18. No Petition.

              	
                79

              

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    
      EXHIBITS
        AND SCHEDULES

       

      
        
          	
                  EXHIBIT
                    A

                	
                  Form
                    of Rate Stabilization Bonds

                

        

        
          	
                  EXHIBIT
                    B

                	
                  Form
                    of Series Supplement

                

        

        
          	
                  EXHIBIT
                    C

                	
                  Form
                    of Investor Representation Letter

                

        

        
          	
                  EXHIBIT
                    D

                	
                  Form
                    of ERISA Representation Letter

                

        

        
          	
                  EXHIBIT
                    E

                	
                  Servicing
                    Criteria to be Addressed by Indenture Trustee in Assessment of
                    Compliance

                

        

      

      

      

      APPENDIX

      

      
        
          	
                  APPENDIX
                    A

                	
                  Definitions

                

        

      

       

      
        
          
          

        

        
          v

          
            

          

        

        
          
          

        

      

    

     

    TRUST
      INDENTURE ACT CROSS REFERENCE TABLE

    

    
      	
              TIA
                Section

            	
              Indenture
                Section

            
	
              310

            	
              (a)(1)

            	
              6.11

            
	 	
              (a)(2)

            	
              6.11

            
	 	
              (a)(3)

            	
              6.10(b)(i)

            
	 	
              (a)(4)

            	
              N.A.

            
	 	
              (a)(5)

            	
              6.11

            
	 	
              (b)

            	
              6.12

            
	 	
              (c)

            	
              N.A.

            
	
              311

            	
              (a)

            	
              6.13

            
	 	
              (b)

            	
              6.13

            
	 	
              (c)

            	
              N.A.

            
	
              312

            	
              (a)

            	
              7.01
                and 7.02

            
	 	
              (b)

            	
              7.02

            
	 	
              (c)

            	
              7.02

            
	
              313

            	
              (a)

            	
              7.04

            
	 	
              (b)(1)

            	
              7.04

            
	 	
              (b)(2)

            	
              7.04

            
	 	
              (c)

            	
              7.04

            
	 	
              (d)

            	
              7.04

            
	
              314

            	
              (a)

            	
              3.09,
                4.01, and 7.03(a)

            
	 	
              (b)

            	
              3.06
                and 4.01

            
	 	
              (c)(1)

            	
              2.10,
                4.01 and 11.01(a)

            
	 	
              (c)(2)

            	
              2.10,
                4.01 and 11.01(a)

            
	 	
              (c)(3)

            	
              2.10
                4.01 and 11.01(a)

            
	 	
              (d)

            	
              2.10,
                8.04(b) and 10.01(b)

            
	 	
              (e)

            	
              10.01(a)

            
	 	
              (f)

            	
              10.01(a)

            

    

     

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

     

    
      	
              TIA
                Section

            	
              Indenture
                Section

            

    

    
      	
              315

            	
              (a)

            	
              6.01(b)(i)(ii)

            
	 	
              (b)

            	
              6.05

            
	 	
              (c)

            	
              6.01
                (a)

            
	 	
              (d)

            	
              6.01(c)(i)-(iii)

            
	 	
              (e)

            	
              5.13

            
	
              316

            	
              (a)
                (last sentence)

            	
              Appendix
                A – definition of “Outstanding”

            
	 	
              (a)(1)(A)

            	
              5.11

            
	 	
              (a)(1)(B)

            	
              5.12

            
	 	
              (a)(2)

            	
              Omitted

            
	 	
              (b)

            	
              5.07

            
	 	
              (c)

            	
              Appendix
                A – definition of  “Record Date”

            
	
              317

            	
              (a)(1)

            	
              5.03(a)

            
	 	
              (a)(2)

            	
              5.03(c)(iv)

            
	 	
              (b)

            	
              3.03

            
	
              318

            	
              (a)

            	
              10.07

            

    

    

    **           “N.A.”
      shall mean “not applicable”.

     

    THIS
      CROSS REFERENCE TABLE SHALL NOT, FOR ANY PURPOSE, BE DEEMED TO BE PART OF THIS
      INDENTURE.

     

    
      
        
        

      

      
        vii

        
          

        

      

      
        
        

      

    

     

    This
      INDENTURE dated as of June 29, 2007, by and between RSB BONDCO LLC, a Delaware
      limited liability company (the “Issuer”), and DEUTSCHE BANK TRUST COMPANY
      AMERICAS, a New York banking corporation, in its capacity as indenture trustee
      (the “Indenture Trustee”) for the benefit of the Secured Parties (as
      defined herein) and in its separate capacity as a securities intermediary (the
      “Securities Intermediary”).

     

    In
      consideration of the mutual agreements herein contained, each party agrees
      as
      follows for the benefit of the other and each of the Holders:

     

    RECITALS
      OF THE ISSUER

     

    The
      Issuer has duly authorized the execution and delivery of this Indenture and
      the
      creation and issuance of Rate Stabilization Bonds issuable in Series hereunder,
      each Series to be of substantially the tenor set forth herein and in the
      respective Series Supplement relating to each such Series of Rate Stabilization
      Bonds.

     

    The
      Rate
      Stabilization Bonds shall be non-recourse obligations and shall be secured
      by
      and payable solely out of the proceeds of the Rate Stabilization Property and
      the other Rate Stabilization Bond Collateral.  If and to the extent
      that such proceeds of Rate Stabilization Property and the other Rate
      Stabilization Bond Collateral are insufficient to pay all amounts owing with
      respect to the Rate Stabilization Bonds, then, except as otherwise expressly
      provided hereunder, the Holders shall have no Claim in respect of such
      insufficiency against the Issuer, and the Holders, by their acceptance of the
      Rate Stabilization Bonds, waive any such Claim.

     

    All
      things necessary to (a) make the Rate Stabilization Bonds, when executed by
      the
      Issuer and authenticated and delivered by the Indenture Trustee hereunder and
      duly issued by the Issuer, valid obligations, and (b) make this Indenture a
      valid agreement of the Issuer, in each case, in accordance with their respective
      terms, have been done.

     

    NOW,
      THEREFORE, THIS INDENTURE WITNESSETH:

     

    That
      the
      Issuer, in consideration of the premises herein contained and of the purchase
      of
      the Rate Stabilization Bonds by the Holders and of other good and lawful
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      and
      to secure, equally and ratably without prejudice, priority or distinction,
      except as specifically otherwise set forth in this Indenture, the payment of
      the
      Rate Stabilization Bonds, the payment of all other amounts due under or in
      connection with this Indenture (including, without limitation, all fees,
      expenses, counsel fees and expenses, and other amounts due and owing to the
      Indenture Trustee) and the performance and observance of all of the covenants
      and conditions contained herein or in such Rate Stabilization Bonds, has hereby
      executed and delivered this Indenture and by these presents does hereby and
      under one or more Series Supplements will convey, grant and assign, transfer
      and
      pledge, in each case, in and unto the Indenture Trustee, its successors and
      assigns forever, for the benefit of the Secured Parties of the related Series,
      all and singular the property described in one or more Series Supplements (such
      property with respect to a particular Series hereinafter referred to as the
      “Series Rate Stabilization Bond Collateral” and all such property,
      collectively, hereinafter referred to as the “Rate Stabilization Bond
      Collateral”).  Each Series 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Supplement
      will more particularly describe the obligations of the Issuer secured by the
      applicable Series Rate Stabilization Bond Collateral.

     

    AND
      IT IS
      HEREBY COVENANTED, DECLARED AND AGREED between the parties hereto that all
      Rate
      Stabilization Bonds are to be issued, countersigned and delivered and that
      all
      of the Rate Stabilization Bond Collateral is to be held and applied, subject
      to
      the further covenants, conditions, releases, uses and trusts hereinafter set
      forth, and the Issuer, for itself and any successor, does hereby covenant and
      agree to and with the Indenture Trustee and its successors in said trust, for
      the benefit of the Secured Parties, as follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND INCORPORATION BY REFERENCE

     

    SECTION
      1.01.  Definitions.  Except as otherwise specified
      herein or as the context may otherwise require, the capitalized terms used
      herein shall have the respective meanings set forth in Appendix A
      attached hereto and made a part hereof for all purposes of this
      Indenture.

     

    SECTION
      1.02.  Incorporation by Reference of Trust Indenture
      Act.  Whenever this Indenture refers to a provision of the TIA,
      that provision is incorporated by reference in and made a part of this
      Indenture.  The following TIA terms used in this Indenture have the
      following meanings:

     

    “indenture
      securities” means the Rate Stabilization Bonds.

     

    “indenture
      security holder” means a Holder.

     

    “indenture
      to be qualified” means this Indenture.

     

    “indenture
      trustee” or “institutional trustee” means the Indenture Trustee.

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    All
      other
      TIA terms used in this Indenture that are defined by the TIA, defined by TIA
      reference to another statute or defined by SEC rule have the meanings assigned
      to them by such definitions.

     

    SECTION
      1.03.  Rules of Construction.  Unless the context
      otherwise requires:

     

    (i)         a
      term has the meaning assigned to it;

     

    (ii)        an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles in the United States
      of
      America as in effect from time to time;

     

    (iii)       “or”
      is not exclusive;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (iv)       “including”
      means including without limitation;

     

    (v)        words
      in the singular include the plural and words in the plural include the singular;
      and

     

    (vi)       the
      words “herein,” “hereof,” “hereunder” and other words of similar import refer to
      this Indenture as a whole and not to any particular Article, Section or other
      subdivision.

     

    ARTICLE
      II

     

    THE
      RATE
      STABILIZATION BONDS

     

    SECTION
      2.01.  Form.  The Rate Stabilization Bonds and the
      Indenture Trustee’s certificate of authentication shall be in substantially the
      forms set forth in Exhibit A, with such appropriate insertions,
      omissions, substitutions and other variations as are required or permitted
      by
      this Indenture or by the related Series Supplement and may have such letters,
      numbers or other marks of identification and such legends or endorsements placed
      thereon as may, consistently herewith, be determined by the officers executing
      such Rate Stabilization Bonds, as evidenced by their execution of such Rate
      Stabilization Bonds.  Any portion of the text of any Rate
      Stabilization Bond may be set forth on the reverse thereof, with an appropriate
      reference thereto on the face of the Rate Stabilization Bond.

     

    The
      Rate
      Stabilization Bonds shall be typewritten, printed, lithographed or engraved
      or
      produced by any combination of these methods (with or without steel engraved
      borders), all as determined by the officers executing such Rate Stabilization
      Bonds, as evidenced by their execution of such Rate Stabilization
      Bonds.

     

    Each
      Rate
      Stabilization Bond shall be dated the date of its authentication.  The
      terms of the Rate Stabilization Bonds set forth in Exhibit A are part of
      the terms of this Indenture.

     

    SECTION
      2.02.  Denominations; Rate Stabilization Bonds Issuable in
      Series.  The Rate Stabilization Bonds shall be issuable in the
      Minimum Denomination specified in the applicable Series Supplement and, except
      as otherwise provided in such Series Supplement, in integral multiples
      thereof.

     

    The
      Rate
      Stabilization Bonds may, at the election of and as authorized by a Responsible
      Officer of the Issuer, be issued in one or more Series (each comprised of one
      or
      more Tranches), and shall be designated generally as the “Rate Stabilization
      Bonds” of the Issuer, with such further particular designations added or
      incorporated in such title for the Rate Stabilization Bonds of any particular
      Series or Tranche as a Responsible Officer of the Issuer may
      determine.  Each Rate Stabilization Bond shall bear upon its face the
      designation so selected for the Series or Tranche to which it
      belongs.  All Rate Stabilization Bonds of the same Series shall be
      identical in all respects except for the denominations thereof, unless such
      Series is comprised of one or more Tranches, in which case all Rate
      Stabilization Bonds of the same Tranche shall be identical in all respects
      except for the denominations thereof.  All Rate Stabilization Bonds of
      a particular Series or, if such Series is comprised of one or more 

     

    
      
        
        

      

      
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    Tranches,
      all Rate Stabilization Bonds of a particular Tranche thereof, in each case
      issued under this Indenture, shall be in all respects equally and ratably
      entitled to the benefits hereof without preference, priority or distinction
      on
      account of the actual time or times of authentication and delivery, all in
      accordance with the terms and provisions of this Indenture.

     

    No
      Series
      of Rate Stabilization Bonds shall be subordinated in right of payment to any
      other Series of Rate Stabilization Bonds.

     

    Each
      Series of Rate Stabilization Bonds shall be created by a Series Supplement
      authorized by a Responsible Officer of the Issuer and establishing the terms
      and
      provisions of such Series.  The several Series and Tranches thereof
      may differ as between Series and Tranches, in respect of any of the following
      matters:

     

    (1)           designation
      of the Series and, if applicable, the Tranches thereof;

     

    (2)           the
      principal amount;

     

    (3)           the
      Rate Stabilization Bond Interest Rate;

     

    (4)           the
      Payment Dates;

     

    (5)           the
      Scheduled Final Payment Dates;

     

    (6)           the
      Final Maturity Date;

     

    (7)           the
      Series Issuance Date;

     

    (8)           the
      place or places for the payment of interest, principal and premium, if
      any;

     

    (9)           the
      Rate Stabilization Bond Collateral;

     

    (10)         the
      Minimum Denominations;

     

    (11)         the
      Expected Amortization Schedule;

     

    (12)         provisions
      with respect to the definitions set forth in Appendix A
      hereto;

     

    (13)         whether
      or not the Rate Stabilization Bonds of such Series are to be Book-Entry Rate
      Stabilization Bonds and the extent to which Section 2.11 should
      apply;

     

    (14)         to
      the extent applicable, the extent to which payments on the Rate Stabilization
      Bonds of any Tranche of the related Series are subordinate to or pari
      passu in right of payment of principal and interest to other Tranche of such
      Series; and

     

    (15)         any
      other provisions expressing or referring to the terms and conditions upon which
      the Rate Stabilization Bonds of the applicable Series or Tranche are to be
      issued under this Indenture that are not in conflict with the provisions of
      this
      Indenture and as to which the Rating Agency Condition is satisfied.

     

    
      
        
        

      

      
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    SECTION
      2.03.  Execution, Authentication and Delivery.  The
      Rate Stabilization Bonds shall be executed on behalf of the Issuer by any of
      its
      Responsible Officers.  The signature of any such Responsible Officer
      on the Rate Stabilization Bonds may be manual or facsimile.

     

    Rate
      Stabilization Bonds bearing the manual or facsimile signature of individuals
      who
      were at any time Responsible Officers of the Issuer shall bind the Issuer,
      notwithstanding that such individuals or any of them have ceased to hold such
      offices prior to the authentication and delivery of such Rate Stabilization
      Bonds or did not hold such offices at the date of such Rate Stabilization
      Bonds.

     

    At
      any
      time and from time to time after the execution and delivery of this Indenture,
      the Issuer may deliver Rate Stabilization Bonds executed by the Issuer to the
      Indenture Trustee pursuant to an Issuer Order for authentication; and the
      Indenture Trustee shall authenticate and deliver such Rate Stabilization Bonds
      as in this Indenture provided and not otherwise.

     

    No
      Rate
      Stabilization Bond shall be entitled to any benefit under this Indenture or
      be
      valid or obligatory for any purpose, unless there appears on such Rate
      Stabilization Bond a certificate of authentication substantially in the form
      provided for therein executed by the Indenture Trustee by the manual signature
      of one of its authorized signatories, and such certificate upon any Rate
      Stabilization Bond shall be conclusive evidence, and the only evidence, that
      such Rate Stabilization Bond has been duly authenticated and delivered
      hereunder.

     

    SECTION
      2.04.  Temporary Rate Stabilization Bonds.  Pending
      the preparation of Definitive Rate Stabilization Bonds pursuant to Section
      2.13, the Issuer may execute, and upon receipt of an Issuer Order the
      Indenture Trustee shall authenticate and deliver, Temporary Rate Stabilization
      Bonds which are printed, lithographed, typewritten, mimeographed or otherwise
      produced, of the tenor of the Definitive Rate Stabilization Bonds in lieu of
      which they are issued and with such variations not inconsistent with the terms
      of this Indenture as the officers executing such Rate Stabilization Bonds may
      determine, as evidenced by their execution of such Rate Stabilization
      Bonds.

     

    If
      Temporary Rate Stabilization Bonds are issued, the Issuer will cause Definitive
      Rate Stabilization Bonds to be prepared without unreasonable
      delay.  After the preparation of Definitive Rate Stabilization Bonds,
      the Temporary Rate Stabilization Bonds shall be exchangeable for Definitive
      Rate
      Stabilization Bonds upon surrender of the Temporary Rate Stabilization Bonds
      at
      the office or agency of the Issuer to be maintained as provided in Section
      3.02, without charge to the Holder.  Upon surrender for
      cancellation of any one or more Temporary Rate Stabilization Bonds, the Issuer
      shall execute and the Indenture Trustee shall authenticate and deliver in
      exchange therefor a like principal amount of Definitive Rate Stabilization
      Bonds
      in any Minimum Denominations.  Until so delivered in exchange, the
      Temporary Rate Stabilization Bonds shall in all respects be entitled to the
      same
      benefits under this Indenture as Definitive Rate Stabilization
      Bonds.

     

    SECTION
      2.05.  Registration; Registration of Transfer and Exchange of Rate
      Stabilization Bonds.  The Issuer shall cause to be kept a register
      (the “Rate Stabilization Bond Register”) in which, subject to such
      reasonable regulations as it may prescribe, the Issuer shall 

     

    
      
        
        

      

      
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    provide
      for the registration of Rate Stabilization Bonds and the registration of
      transfers of Rate Stabilization Bonds.  The Indenture Trustee shall be
“Rate Stabilization Bond Registrar” for the purpose of registering Rate
      Stabilization Bonds and transfers of Rate Stabilization Bonds as herein
      provided.  Upon any resignation of any Rate Stabilization Bond
      Registrar, the Issuer shall promptly appoint a successor or, if it elects not
      to
      make such an appointment, assume the duties of Rate Stabilization Bond
      Registrar.

     

    If
      a
      Person other than the Indenture Trustee is appointed by the Issuer as Rate
      Stabilization Bond Registrar, the Issuer will give the Indenture Trustee prompt
      written notice of the appointment of such Rate Stabilization Bond Registrar
      and
      of the location, and any change in the location, of the Rate Stabilization
      Bond
      Register, and the Indenture Trustee shall have the right to inspect the Rate
      Stabilization Bond Register at all reasonable times and to obtain copies
      thereof, and the Indenture Trustee shall have the right to rely conclusively
      upon a certificate executed on behalf of the Rate Stabilization Bond Registrar
      by a Responsible Officer thereof as to the names and addresses of the Holders
      and the principal amounts and number of such Rate Stabilization Bonds
      (separately stated by Series and Tranche).

     

    Upon
      surrender for registration of transfer of any Rate Stabilization Bond at the
      office or agency of the Issuer to be maintained as provided in Section
      3.02, provided that the requirements of Section 8-401 of the UCC are met,
      the Issuer shall execute, and the Indenture Trustee shall authenticate and
      the
      Holder shall obtain from the Indenture Trustee, in the name of the designated
      transferee or transferees, one or more new Rate Stabilization Bonds in any
      Minimum Denominations, of the same Series (and, if applicable, Tranche) and
      aggregate principal amount.

     

    At
      the
      option of the Holder, Rate Stabilization Bonds may be exchanged for other Rate
      Stabilization Bonds in any Minimum Denominations, of the same Series (and,
      if
      applicable, Tranche) and aggregate principal amount, upon surrender of the
      Rate
      Stabilization Bonds to be exchanged at such office or agency as provided in
      Section 3.02.  Whenever any Rate Stabilization Bonds are so
      surrendered for exchange, the Issuer shall, provided that the requirements
      of
      Section 8-401 of the UCC are met, execute and, upon any such execution, the
      Indenture Trustee shall authenticate and the Holder shall obtain from the
      Indenture Trustee, the Rate Stabilization Bonds which the Holder making the
      exchange is entitled to receive.

     

    All
      Rate
      Stabilization Bonds issued upon any registration of transfer or exchange of
      other Rate Stabilization Bonds shall be the valid obligations of the Issuer,
      evidencing the same debt, and entitled to the same benefits under this
      Indenture, as the Rate Stabilization Bonds surrendered upon such registration
      of
      transfer or exchange.

     

    Every
      Rate Stabilization Bond presented or surrendered for registration of transfer
      or
      exchange shall be duly endorsed by, or be accompanied by (a) a written
      instrument of transfer in form satisfactory to the Indenture Trustee duly
      executed by the Holder thereof or such Holder’s attorney duly authorized in
      writing, with such signature guaranteed by an institution which is a member
      of
      one of the following recognized Signature Guaranty Programs: (i) The Securities
      Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange
      Medallion Program (MSP); (iii) The Stock Exchange Medallion Program (SEMP);
      or
      (iv) such 

     

    
      
        
        

      

      
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    other
      guarantee program acceptable to the Indenture Trustee, and (b) such other
      documents as the Indenture Trustee may require.

     

    No
      service charge shall be made to a Holder for any registration of transfer or
      exchange of Rate Stabilization Bonds, but the Issuer or the Indenture Trustee
      may require payment of a sum sufficient to cover any tax or other governmental
      charge or any fees or expenses of the Indenture Trustee that may be imposed
      in
      connection with any registration of transfer or exchange of Rate Stabilization
      Bonds, other than exchanges pursuant to Sections 2.04 or 2.06 not
      involving any transfer.

     

    The
      preceding provisions of this Section 2.05 notwithstanding, the Issuer
      shall not be required to make, and the Rate Stabilization Bond Registrar need
      not register, transfers or exchanges (i) of any Rate Stabilization Bond that
      has
      been submitted within fifteen (15) days preceding the due date for any payment
      with respect to such Rate Stabilization Bond until after such due date has
      occurred or (ii) of Unregistered Rate Stabilization Bonds unless Section
      2.16 has been complied with in connection with such transfer or
      exchange.

     

    SECTION
      2.06.  Mutilated, Destroyed, Lost or Stolen Rate Stabilization
      Bonds.  If (i) any mutilated Rate Stabilization Bond is
      surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence
      to its satisfaction of the destruction, loss or theft of any Rate Stabilization
      Bond and (ii) there is delivered to the Indenture Trustee such security or
      indemnity as may be required by it to hold the Issuer and the Indenture Trustee
      harmless, then, in the absence of notice to the Issuer, the Rate Stabilization
      Bond Registrar or the Indenture Trustee that such Rate Stabilization Bond has
      been acquired by a Protected Purchaser, the Issuer shall, provided that the
      requirements of Section 8-401 of the UCC are met, execute and, upon the Issuer’s
      written request, the Indenture Trustee shall authenticate and deliver, in
      exchange for or in lieu of any such mutilated, destroyed, lost or stolen Rate
      Stabilization Bond, a replacement Rate Stabilization Bond of like Series (and,
      if applicable, Tranche), tenor and principal amount, bearing a number not
      contemporaneously outstanding; provided, however, that if any such
      destroyed, lost or stolen Rate Stabilization Bond, but not a mutilated Rate
      Stabilization Bond, shall have become or within seven (7) days shall be due
      and
      payable, instead of issuing a replacement Rate Stabilization Bond, the Issuer
      may pay such destroyed, lost or stolen Rate Stabilization Bond when so due
      or
      payable without surrender thereof.  If, after the delivery of such
      replacement Rate Stabilization Bond or payment of a destroyed, lost or stolen
      Rate Stabilization Bond pursuant to the proviso to the preceding sentence,
      a
      Protected Purchaser of the original Rate Stabilization Bond in lieu of which
      such replacement Rate Stabilization Bond was issued presents for payment such
      original Rate Stabilization Bond, the Issuer and the Indenture Trustee shall
      be
      entitled to recover such replacement Rate Stabilization Bond (or such payment)
      from the Person to whom it was delivered or any Person taking such replacement
      Rate Stabilization Bond from such Person to whom such replacement Rate
      Stabilization Bond was delivered or any assignee of such Person, except a
      Protected Purchaser, and shall be entitled to recover upon the security or
      indemnity provided therefor to the extent of any loss, damage, cost or expense
      incurred by the Issuer or the Indenture Trustee in connection
      therewith.

     

    Upon
      the
      issuance of any replacement Rate Stabilization Bond under this Section
      2.06, the Issuer and/or the Indenture Trustee may require the payment by the
      Holder of such Rate Stabilization Bond of a sum sufficient to cover any tax
      or
      other governmental charge that may be 

     

    
      
        
        

      

      
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    imposed
      in relation thereto and any other reasonable expenses (including the fees and
      expenses of the Indenture Trustee and the Rate Stabilization Bond Registrar)
      connected therewith.

     

    Every
      replacement Rate Stabilization Bond issued pursuant to this Section 2.06
      in replacement of any mutilated, destroyed, lost or stolen Rate Stabilization
      Bond shall constitute an original additional contractual obligation of the
      Issuer, whether or not the mutilated, destroyed, lost or stolen Rate
      Stabilization Bond shall be found at any time or enforced by any Person, and
      shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Rate Stabilization Bonds duly issued
      hereunder.

     

    The
      provisions of this Section 2.06 are exclusive and shall preclude (to the
      extent lawful) all other rights and remedies with respect to the replacement
      or
      payment of mutilated, destroyed, lost or stolen Rate Stabilization
      Bonds.

     

    SECTION
      2.07.  Persons Deemed Owner.  Prior to due
      presentment for registration of transfer of any Rate Stabilization Bond, the
      Issuer, the Indenture Trustee, the Rate Stabilization Bond Registrar and any
      agent of the Issuer or the Indenture Trustee may treat the Person in whose
      name
      any Rate Stabilization Bond is registered (as of the day of determination)
      as
      the owner of such Rate Stabilization Bond for the purpose of receiving payments
      of principal of and premium, if any, and interest on such Rate Stabilization
      Bond and for all other purposes whatsoever, whether or not such Rate
      Stabilization Bond be overdue, and neither the Issuer, the Indenture Trustee
      nor
      any agent of the Issuer or the Indenture Trustee shall be affected by notice
      to
      the contrary.

     

    SECTION
      2.08.  Payment of Principal, Premium, if any, and Interest;
      Interest on Overdue Principal; Principal, Premium, if any, and Interest Rights
      Preserved.

     

    (a)           The
      Rate Stabilization Bonds shall accrue interest as provided in the related Series
      Supplement at the applicable Rate Stabilization Bond Interest Rate, and such
      interest shall be payable on each applicable Payment Date.  Any
      installment of interest, principal or premium, if any, payable on any Rate
      Stabilization Bond which is punctually paid or duly provided for on the
      applicable Payment Date shall be paid to the Person in whose name such Rate
      Stabilization Bond (or one or more Predecessor Rate Stabilization Bonds) is
      registered on the Record Date for such Payment Date, by check mailed
      first-class, postage prepaid to such Person’s address as it appears on the Rate
      Stabilization Bond Register on such Record Date or in such other manner as
      may
      be provided in the related Series Supplement except that (i) upon application
      to
      the Indenture Trustee by any Holder owning Rate Stabilization Bonds of any
      Tranche in the principal amount of $10,000,000 or more not later than the
      applicable Record Date payment will be made by wire transfer to an account
      maintained by such Holder and (ii) with respect to Book-Entry Rate Stabilization
      Bonds, payments will be made by wire transfer in immediately available funds to
      the account designated by the Holder of the applicable Global Rate Stabilization
      Bond unless and until such Global Rate Stabilization Bond is exchanged for
      Definitive Rate Stabilization Bonds (in which event payments shall be made
      as
      provided above) and except for the final installment of principal and premium,
      if any, payable with respect to such Rate Stabilization Bond on a Payment Date
      which shall be payable as provided below.  The funds represented by
      any such checks returned undelivered shall be held in accordance with Section
      3.03.

     

    
      
        
        

      

      
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    (b)           The
      principal of each Rate Stabilization Bond of each Series (and, if applicable,
      Tranche) shall be paid, to the extent funds are available therefor in the
      applicable Collection Account, in installments on each Payment Date specified
      in
      the related Series Supplement; provided that installments of principal
      not paid when scheduled to be paid in accordance with the Expected Amortization
      Schedule shall be paid upon receipt of money available for such purpose, in
      the
      order set forth in the Expected Amortization Schedule.  Failure to pay
      principal in accordance with such Expected Amortization Schedule because moneys
      are not available pursuant to Section 8.02 to make such payments shall
      not constitute a Default or Event of Default under this Indenture;
provided, however that failure to pay the entire unpaid principal
      amount of the Rate Stabilization Bonds of a Tranche or Series upon the Final
      Maturity Date for the related Series shall constitute a Default or Event of
      Default with respect to such Series under this
      Indenture.  Notwithstanding the foregoing, the entire unpaid principal
      amount of the Rate Stabilization Bonds of a Series shall be due and payable,
      if
      not previously paid, on the date on which an Event of Default shall have
      occurred and be continuing with respect to such Series, if the Indenture Trustee
      or the Holders of the Rate Stabilization Bonds representing not less than a
      majority of the Outstanding Amount of the Rate Stabilization Bonds of such
      Series have declared the Rate Stabilization Bonds to be immediately due and
      payable in the manner provided in Section 5.02.  All payments
      of principal and premium, if any, on the Rate Stabilization Bonds of any Series
      shall be made pro rata to the Holders entitled thereto unless otherwise provided
      in the related Series Supplement with respect to any Tranche of Rate
      Stabilization Bonds included in such Series.  The Indenture Trustee
      shall notify the Person in whose name a Rate Stabilization Bond is registered
      at
      the close of business on the Record Date preceding the Payment Date on which
      the
      Issuer expects that the final installment of principal of and premium, if any,
      and interest on such Rate Stabilization Bond will be paid.  Such
      notice shall be mailed no later than five (5) days prior to such final Payment
      Date and shall specify that such final installment will be payable only upon
      presentation and surrender of such Rate Stabilization Bond and shall specify
      the
      place where such Rate Stabilization Bond may be presented and surrendered for
      payment of such installment.

     

    (c)           If
      interest on the Rate Stabilization Bonds of any Series is not paid when due,
      such defaulted interest shall be paid (plus interest on such defaulted interest
      at the applicable Rate Stabilization Bond Interest Rate to the extent
      lawful)  to the Persons who are Holders on a subsequent Special Record
      Date.  The Issuer shall fix or cause to be fixed any such Special
      Record Date and Special Payment Date, and, at least ten (10) days before any
      such Special Record Date, the Issuer shall mail to each affected Holder a notice
      that states the Special Record Date, the Special Payment Date and the amount
      of
      defaulted interest (plus interest on such defaulted interest) to be
      paid.

     

    SECTION
      2.09.  Cancellation.  All Rate Stabilization Bonds
      surrendered for payment, registration of transfer or exchange shall, if
      surrendered to any Person other than the Indenture Trustee, be delivered to
      the
      Indenture Trustee and shall be promptly canceled by the Indenture
      Trustee.  The Issuer may at any time deliver to the Indenture Trustee
      for cancellation any Rate Stabilization Bonds previously authenticated and
      delivered hereunder which the Issuer may have acquired in any manner whatsoever,
      and all Rate Stabilization Bonds so delivered shall be promptly canceled by
      the
      Indenture Trustee.  No Rate Stabilization Bonds shall be authenticated
      in lieu of or in exchange for any Rate Stabilization Bonds canceled as provided
      in this Section 2.09, except as expressly permitted by this
      Indenture.  All canceled Rate

     

    
      
        
        

      

      
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    Stabilization
      Bonds may be held or disposed of by the Indenture Trustee in accordance with
      its
      standard retention or disposal policy as in effect at the time.

     

    SECTION
      2.10.  Outstanding Amount; Authentication and Delivery of Rate
      Stabilization Bonds.  The aggregate Outstanding Amount of Rate
      Stabilization Bonds that may be authenticated and delivered under this Indenture
      shall not exceed the aggregate of the amounts of Rate Stabilization Bonds that
      are authorized in each Applicable Qualified Rate Order but otherwise shall
      be
      unlimited.

     

    Rate
      Stabilization Bonds of each Series created and established by a Series
      Supplement may from time to time be executed by the Issuer and delivered to
      the
      Indenture Trustee for authentication and thereupon the same shall be
      authenticated and delivered by the Indenture Trustee upon Issuer Request and
      upon delivery by the Issuer to the Indenture Trustee, and receipt by the
      Indenture Trustee, or the causing to occur by the Issuer, of the following;
      provided, however, that compliance with such conditions and
      delivery of such documents shall only be required in connection with the
      original issuance of a Rate Stabilization Bond or Rate Stabilization Bonds
      of
      such Series:

     

    (1)           Issuer
      Action.  An Issuer Order authorizing and directing the
      authentication and delivery of the Rate Stabilization Bonds by the Indenture
      Trustee and specifying the principal amount of Rate Stabilization Bonds to
      be
      authenticated.

     

    (2)           Authorizations.  Copies
      of (x) a Qualified Rate Order related to such Series which shall be in full
      force and effect and be Final, (y) certified resolutions of the Managers or
      Member of the Issuer authorizing the execution and delivery of each Series
      Supplement and the execution, authentication and delivery of such Rate
      Stabilization Bonds and (z) a duly executed Series Supplement for the applicable
      Series of Rate Stabilization Bonds to be issued.

     

    (3)           Opinions.

     

    (a)           An
      Opinion of Counsel of external counsel of the Issuer that the Applicable
      Qualified Rate Order is in full force and effect, that the Applicable Qualified
      Rate Order is Final and that no other authorization, approval or consent of
      any
      governmental body or bodies at the time having jurisdiction in the premises
      is
      required for the valid issuance, authentication and delivery of such Rate
      Stabilization Bonds, except for such registrations as are required under the
      “Blue Sky” and securities laws of any State or such authorizations, approvals or
      consents of governmental bodies that have been obtained and copies of which
      have
      been delivered with such Opinion of Counsel.

     

    (b)           An
      Opinion of Counsel of external counsel of the Issuer that no authorization,
      approval or consent of any governmental body or bodies at the time having
      jurisdiction in the premises is required for the valid execution and delivery
      by
      the Issuer of each of the Basic Documents to which the Issuer is a party and
      that is executed and delivered in connection with such Rate Stabilization Bond
      issuance, except for such authorizations, approvals or consents of governmental
      bodies that have been obtained and copies of which have been delivered with
      such
      Opinion of Counsel.

     

    
      
        
        

      

      
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    (4)           Authorizing
      Certificate.  An Officer’s Certificate, dated the Series Issuance
      Date, certifying that (a) the Issuer has duly authorized the execution and
      delivery of this Indenture and the related Series Supplement and the execution
      and delivery of the Rate Stabilization Bonds of such Series and (b) that the
      Series Supplement for such Series of Rate Stabilization Bonds is in the form
      attached thereto, which Series Supplement shall comply with the requirements
      of
Section 2.02.

     

    (5)           The
      Rate Stabilization Bond Collateral.  The Issuer shall have made or
      caused to be made all filings with the PSC, the Maryland State Department of
      Assessments and Taxation, and the Delaware Secretary of State pursuant to the
      Qualified Rate Order, the Rate Stabilization Law and the UCC and all other
      filings necessary to perfect the Grant of the Series Rate Stabilization Bond
      Collateral to the Indenture Trustee and the Lien of this Indenture.

     

    (6)           Certificates
      of the Issuer and the Seller.

     

    (a)           An
      Officer’s Certificate, dated as of the Series Issuance Date:

     

    (i)           to
      the effect that (A) the Issuer is not in Default under this Indenture and that
      the issuance of the Rate Stabilization Bonds will not result in any Default
      or
      in any breach of any of the terms, conditions or provisions of or constitute
      a
      default under the Qualified Rate Order relating to the Rate Stabilization Bonds
      or any indenture, mortgage, deed of trust or other agreement or instrument
      to
      which the Issuer is a party or by which it or its property is bound or any
      order
      of any court or administrative agency entered in any Proceeding to which the
      Issuer is a party or by which it or its property may be bound or to which it
      or
      its property may be subject and (B) that all conditions precedent provided
      in
      this Indenture relating to the execution, authentication and delivery of the
      Rate Stabilization Bonds have been complied with;

     

    (ii)           to
      the effect that the Issuer has not assigned any interest or participation in
      the
      Series Rate Stabilization Bond Collateral except for the Grant contained in
      the
      Series Supplement for such Series; the Issuer has the power and right to Grant
      the Series Rate Stabilization Bond Collateral to the Indenture Trustee as
      security hereunder and thereunder; and the Issuer, subject to the terms of
      this
      Indenture, has Granted to the Indenture Trustee a first priority perfected
      security interest in all of its right, title and interest in and to such Series
      Rate Stabilization Bond Collateral free and clear of any Lien, mortgage, pledge,
      charge, security interest, adverse claim or other encumbrance arising as a
      result of actions of the Issuer or through the Issuer, except Permitted
      Liens;

     

    (iii)           to
      the effect that the Issuer has appointed the firm of Independent registered
      public accountants as contemplated in Section 8.06;

     

    (iv)           to
      the effect that attached thereto are duly executed, true and complete copies
      of
      the Sale Agreement, the Servicing Agreement, and the Administration Agreement
      which are, to the knowledge of the Issuer, in full force 

     

    
      
        
        

      

      
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    and
      effect and, to the knowledge of the Issuer, that no party is in default of
      its
      obligations under such agreements; and

     

    (v)           stating
      that all filings with the PSC, the Maryland State Department of Assessments
      and
      Taxation and the Delaware Secretary of State pursuant to the Rate Stabilization
      Law, the Qualified Rate Order and the UCC and relating to the Rate Stabilization
      Bonds and all UCC financing statements with respect to the Series Rate
      Stabilization Bond Collateral which are required to be filed by the terms of
      the
      Qualified Rate Order, the Rate Stabilization Law, the Sale Agreement, the
      Servicing Agreement and this Indenture, or as otherwise necessary to perfect
      the
      Grant of the Series Rate Stabilization Bond Collateral to the Indenture Trustee
      and the Lien of this Indenture, have been filed as required.

     

    (b)           An
      officer’s certificate from the Seller, dated as of the Series Issuance Date, to
      the effect that, in the case of the Rate Stabilization Property identified
      in
      the related Bill of Sale, immediately prior to the conveyance thereof to the
      Issuer pursuant to the Sale Agreement:

     

    (i)           the
      Seller was the original and the sole owner of such Rate Stabilization Property,
      free and clear of any Lien; the Seller had not assigned any interest or
      participation in such Rate Stabilization Property and the proceeds thereof;
      the
      Seller has the power, authority and right to own, sell and assign such Rate
      Stabilization Property and the proceeds thereof to the Issuer; and the Seller,
      subject to the terms of the Sale Agreement, will have validly sold and assigned
      to the Issuer all of its right, title and interest in and to such Rate
      Stabilization Property and the proceeds thereof, free and clear of any Lien
      (other than Permitted Liens) and such sale and assignment will be absolute
      and
      irrevocable and will be perfected; and

     

    (ii)           the
      attached copy of the Qualified Rate Order creating such Rate Stabilization
      Property is true and complete, is in full force and effect and is
      Final.

     

    (7)           Opinion
      of Tax Counsel.  The Seller shall have received and delivered to
      the Issuer and the Indenture Trustee an opinion of outside tax counsel (as
      selected by the Seller, and in form and substance reasonably satisfactory to
      the
      Issuer and the Indenture Trustee) to the effect that (a) the Issuer will not
      be
      subject to United States federal income tax as an entity separate from its
      sole
      owner and that the Rate Stabilization Bonds will be treated as debt of the
      Issuer's sole owner for United States federal income tax purposes; (b) for
      United States federal income tax purposes, the issuance of the Rate
      Stabilization Bonds will not result in gross income to the Seller; and
      (c) in the case of a subsequent issuance of Rate Stabilization Bonds only,
      such issuance will not adversely affect the characterization of any then
      outstanding Rate Stabilization Bonds as obligations of the Issuer's sole
      owner.  The opinion of outside tax counsel described above may, if the
      Seller so chooses, be conditioned on the receipt by the Seller of one or more
      letter rulings from the Internal Revenue Service (unless the Internal Revenue
      Service has announced that it will not rule on the issues described in this
      paragraph) and in rendering such opinion outside tax counsel shall be entitled
      to rely on the rulings 

     

    
      
        
        

      

      
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    contained
      in such letter rulings and to rely on the representations made, and information
      supplied, to the Internal Revenue Service in connection with such letter
      rulings.

     

    (8)           Opinion
      of Counsel.  Unless otherwise specified in a Series Supplement, an
      Opinion or Opinions of Counsel, dated the Series Issuance Date, in each case
      subject to the customary exceptions, qualifications and assumptions contained
      therein, substantively to the collective effect that:

     

    (a)           The
      Indenture has been duly qualified under the Trust Indenture Act, and the related
      Series Supplement either is qualified under the Trust Indenture Act or no such
      qualification is necessary under the Trust Indenture Act.

     

    (b)           All
      instruments furnished to the Indenture Trustee pursuant to the Indenture conform
      to the requirements set forth in the Indenture and constitute all of the
      documents required to be delivered under the Indenture for the Indenture Trustee
      to authenticate and deliver the Rate Stabilization Bonds.  All
      conditions precedent provided for in the Indenture relating to the
      authentication and delivery of the Rate Stabilization Bonds have been complied
      with.

     

    (c)           The
      Rate Stabilization Bonds have been duly authorized by the Issuer and, when
      executed and delivered on behalf of the Issuer by the Member, any Manager or
      any
      officer of the Issuer, acting singly or collectively, and when duly
      authenticated by the Indenture Trustee in accordance with the provisions of
      the
      Indenture and delivered against payment of the purchase price therefor, as
      provided in the Underwriting Agreement, the Rate Stabilization Bonds will
      constitute legal, valid and binding obligations of the Issuer and will be
      enforceable against the Issuer in accordance with their terms, except to the
      extent enforceability may be limited by bankruptcy, insolvency, reorganization,
      moratorium, fraudulent conveyance or other laws of general applicability
      relating to or affecting the enforcement of creditors’ rights and by the effect
      of general principles of equity (regardless of whether enforceability is
      considered in a proceeding in equity or at law).

     

    (d)           Each
      of the Indenture, each Series Supplement, the Administration Agreement, the
      Sale
      Agreement and the Servicing Agreement has been duly authorized, executed and
      delivered by the Issuer and is a legal, valid and binding agreement of the
      Issuer, enforceable against the Issuer in accordance with its terms, except
      to
      the extent enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium, fraudulent conveyance or other laws of general
      applicability relating to or affecting the enforcement of creditors’ rights and
      by the effect of general principles of equity (regardless of whether such
      enforceability is considered in a proceeding in equity or at
      law).  Each of the Administration Agreement, the Sale Agreement and
      the Servicing Agreement has been duly authorized, executed and delivered by
      BGE
      and constitutes a legal, valid and binding agreement of BGE, enforceable against
      BGE in accordance with its terms, except to the extent enforceability may be
      limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
      conveyance or other laws of general applicability relating to or affecting
      the
      enforcement of creditors’ rights and by the effect of general 

     

    
      
        
        

      

      
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    principles
      of equity (regardless of whether such enforceability is considered in a
      proceeding in equity or at law).

     

    (e)         1.With
      respect to the Series Rate Stabilization Bond Collateral, upon the giving of
      value by the Holders to the Issuer with respect to such Series Rate
      Stabilization Bond Collateral, the Indenture, together with the related Series
      Supplement, creates in favor of the Indenture Trustee, for the benefit of the
      Secured Parties, a valid security interest under Section 7-542 of the Rate
      Stabilization Law in such Series Rate Stabilization Bond Collateral (to the
      extent such Series Rate Stabilization Bond Collateral is Rate Stabilization
      Property) and Article 9 of the NY UCC in such Series Rate Stabilization Bond
      Collateral (to the extent such Series Rate Stabilization Bond Collateral is
      other than Rate Stabilization Property and is of a type in which a security
      interest can be created under Article 9 of the NY UCC) to secure the payment
      of
      the Secured Obligations with respect to the related Series
      Supplement.  Assuming that the collateral described in the Delaware
      Financing Statements is Rate Stabilization Bond Collateral pursuant to the
      Indenture, then insofar as Section 9-509 of the NY UCC is applicable, the
      Indenture Trustee is authorized to file the Delaware Financing
      Statements.

     

    (ii)           Under
      Section 9-305(a)(3) of the NY UCC, the local law of the Securities
      Intermediary’s jurisdiction as specified in Section 8-110(e) of the NY UCC
      governs perfection, the effect of perfection or nonperfection and priority
      in
      the Securities Account and Security Entitlements.  Under the
      Indenture, for purposes of Section 8-110(e) of the NY UCC, the jurisdiction
      of
      the Securities Intermediary is the State of New York.

     

    (iii)           To
      the extent that any Collection Account is a Securities Account, the provisions
      of the Indenture are effective to perfect by control the security interest
      of
      the Indenture Trustee, for the benefit of the Secured Parties, in each such
      Collection Account and the Issuer’s Security Entitlements with respect to the
      Financial Assets credited to each such Collection Account and, subject to and
      to
      the extent provided in Section 9-315 of the NY UCC and the Federal Book-Entry
      Regulations, identifiable cash proceeds thereof.  Such security
      interest will have priority over any security interest held by a secured party
      perfected by a means other than control.

     

    (iv)           Insofar
      as Article 9 of the NY UCC is applicable, and except as provided in (ii) and
      (iii) above, (A) pursuant to Section 9-301 of the NY UCC, the law of the
      location of the debtor governs the perfection of a nonpossessory security
      interest in the Rate Stabilization Bond Collateral (other than Rate
      Stabilization Property); (B) pursuant to 9-307 of the NY UCC, a registered
      organization that is organized under the law of a State is deemed to be located
      in that State for purposes of Section 9-301; (C) the Issuer is a “registered
      organization” as defined in Section 9-102(a)(70) of the NY UCC organized in the
      State of Delaware; and (D) therefore, the law of the State of Delaware governs
      the perfection of a nonpossessory security interest in the Rate Stabilization
      Bond Collateral other than Rate Stabilization Property.

     

    
      
        
        

      

      
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    (f)           The
      Registration Statement covering the Rate Stabilization Bonds has become
      effective under the Securities Act; and, to the knowledge of such counsel,
      no
      stop order suspending the effectiveness of the Registration Statement has been
      issued under the Securities Act and no proceedings for that purpose have been
      initiated or are pending or threatened by the SEC.

     

    (g)           Neither
      the Issuer nor BGE is now and, assuming that the Issuer uses the net proceeds
      of
      the sale of the Rate Stabilization Bonds for the purpose of acquiring Rate
      Stabilization Property in accordance with the terms of the Sale Agreement
      following the sale of the Rate Stabilization Bonds to the Underwriters pursuant
      to the Underwriting Agreement, neither the Issuer nor BGE will be required
      to be
      registered under the Investment Company Act.

     

    (h)           In
      accordance with the Rate Stabilization Law, (i) the rights and interests of
      BGE
      under the Qualified Rate Order are assignable and become Rate Stabilization
      Property when they are first transferred to the Issuer in connection with the
      issuance of Rate Stabilization Bonds; (ii) upon the transfer by BGE of the
      Rate
      Stabilization Property to the Issuer, the Issuer shall have all of the rights
      of
      BGE with respect to such Rate Stabilization Property; (iii) the Qualified Rate
      Order authorizes issuance of the Rate Stabilization Bonds, the sale or other
      absolute transfer of the Rate Stabilization Property to the Issuer, the Issuer’s
      pledge of the Rate Stabilization Property to the Indenture Trustee hereunder
      and
      the imposition of the Qualified Rate Stabilization Charge and periodic
      adjustment of the Qualified Rate Stabilization Charge; (iv) the transaction,
      as
      contemplated by the Basic Documents, conforms to the terms of the Qualified
      Rate
      Order; and (v) the Rate Stabilization Bonds are “Rate Stabilization Bonds”
within the meaning of Section 7-520(f) of the Rate Stabilization
      Law.

     

    (i)    
             No governmental approvals are required
      for the valid issuance, authentication and delivery of the Rate Stabilization
      Bonds or the performance by either BGE or the Issuer of its respective
      obligations under the Basic Documents, and the proviso (relating to the
      creation, attachment and perfection of any Liens created hereunder in Rate
      Stabilization Property governed by Maryland law) to Section 10.12, and
      the portions of this Indenture referred to by such proviso, to which either
      BGE
      or the Issuer is a party, except for (i) the Qualified Rate Order related to
      the
      Rate Stabilization Bonds and the governmental approvals expressly contemplated
      therein and (ii) the filings contemplated by paragraphs (l) and
(n) below.

     

    (j)      
           The choice of New York law to govern the
      Indenture, each Series Supplement and the Underwriting Agreement, to the extent
      the law of that state is chosen, is a valid and effective choice of law under
      the laws of the State of Maryland and, in a properly presented case, a Maryland
      court and a federal court sitting in the State of Maryland and applying Maryland
      choice-of-law principles would (a) recognize and enforce the choice of New
      York
      law, to the extent the law of that state is chosen, to govern the Indenture,
      each Series Supplement and the Underwriting Agreement, and (b) give effect
      to
      the choice of Maryland law as and to the extent provided in Section 10.12 of
      the
      Indenture.

     

    
      
        
        

      

      
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    (k)           Under
      the terms of Section 7-542 of the Rate Stabilization Law, the transfer of the
      Rate Stabilization Property by BGE to the Issuer is perfected under Section
      7-542 of the Rate Stabilization Law against all third parties, including
      subsequent judicial or other lien creditors.

     

    (l)           The
      provisions of the Indenture, as amended and supplemented by the Series
      Supplement, are effective to create on the Closing Date, in favor of the
      Indenture Trustee (for the benefit of the Secured Parties) to secure the
      obligations of the Issuer under the Indenture, a valid security interest in
      all
      of the Issuer’s right, title and interest in, to and under the Rate
      Stabilization Property under the Rate Stabilization Law.  The security
      interest in favor of the Indenture Trustee (for the benefit of the Secured
      Parties) in the Issuer’s right, title, and interest in, to and under the Rate
      Stabilization Property has been perfected under Maryland law against all third
      parties, including subsequent judicial or other lien creditors.

     

    (m)           Lien
      searches identify no secured party, other than the Indenture Trustee, who has
      filed with the Maryland State Department of Assessments and Taxation or the
      Maryland Secretary of State, naming BGE or the Issuer as debtor and describing
      any of the Rate Stabilization Bond Collateral.

     

    (n)           The
      Rate Stabilization Property Notices related to the Rate Stabilization Bonds
      are
      in appropriate form for filing pursuant to Section 7-542 of the Rate
      Stabilization Law.

     

    (o)           The
      Issuer has been duly formed and is validly existing in good standing as a
      limited liability company under the laws of the State of Delaware.

     

    (p)           The
      Certificate of Formation has been duly filed with the Secretary of State of
      the
      State of Delaware.

     

    (q)           The
      LLC Agreement constitutes a legal, valid and binding agreement of BGE and is
      enforceable against BGE, in its capacity as member of the Issuer, in accordance
      with its terms.

     

    (r)           Under
      the LLC Act and the LLC Agreement, the Issuer has the limited liability company
      power and authority to execute and deliver each of the Basic Documents to which
      the Issuer is a party and the Rate Stabilization Bonds and to perform its
      obligations thereunder.  Under the LLC Act and the LLC Agreement, the
      execution and delivery by the Issuer of each of the Basic Documents to which
      the
      Issuer is a party and the Rate Stabilization Bonds, and the performance by
      the
      Issuer of its obligations hereunder or thereunder, have been duly authorized
      by
      all necessary limited liability company action on the part of the
      Issuer.  Under the LLC Act and the LLC Agreement, upon execution and
      delivery on behalf of the Issuer by the Member, any Manager or any officer
      of
      the Issuer, acting singly or collectively, of the Basic Documents to which
      the
      Issuer is a party and the Rate Stabilization Bonds, the Basic Documents to
      which
      the Issuer is a party and the Rate Stabilization Bonds will be duly executed
      and
      delivered by the Issuer.

     

    
      
        
        

      

      
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    (s)           Under
      the LLC Act and the LLC Agreement, the issuance of the Rate Stabilization Bonds
      has been duly authorized by all necessary limited liability company action
      on
      the part of the Issuer.

     

    (t)  
               Neither the execution or
      delivery by the Issuer or BGE of each of the Basic Documents to which it is
      a
      party or the Rate Stabilization Bonds nor the compliance by the Issuer or BGE,
      as the case may be, with the terms hereof or thereof, nor the consummation
      by
      the Issuer or BGE, as the case may be, of any of the transactions contemplated
      hereby or thereby requires the consent or approval of, the giving of notice
      to,
      the registration with, or the taking of any other action with respect to any
      Delaware court, or Delaware governmental or Delaware regulatory authority or
      Delaware agency under the laws of the State of Delaware, except for the filing
      of the Certificate of Formation with the Secretary of State, which Certificate
      of Formation has been duly filed.

     

    (u)           Neither
      the execution and delivery by the Issuer or BGE of the Basic Documents to which
      it is a party or the Rate Stabilization Bonds nor the compliance by the Issuer
      or BGE, as the case may be, with the terms hereof or thereof, nor the
      consummation by the Issuer or BGE, as the case may be, of any of the
      transactions contemplated hereby or thereby conflicts with or constitutes a
      breach of or default under the Certificate of Formation or the LLC Agreement,
      or
      violates any law, governmental rule or regulation of the State of
      Delaware.

     

    (v)           After
      due inquiry, limited to, and solely to the extent reflected on the results
      of
      computer searches of court dockets for active cases of the Court of Chancery
      of
      the State of Delaware in and for New Castle County, Delaware, of the Superior
      Court of the State of Delaware in and for New Castle County, Delaware, and
      of
      the United States District Court sitting in the State of Delaware, such counsel
      is not aware of any legal or governmental proceeding pending against the
      Issuer.

     

    (w)           If
      properly presented to a Delaware court, a Delaware court applying Delaware
      law
      would conclude that (i) in order for any Person to file a voluntary bankruptcy
      petition on behalf of the Issuer, the affirmative vote of its Member and the
      affirmative vote of all of the Managers, including all of the Independent
      Managers, as provided in Section 1.08(b) of the LLC Agreement, is
      required and (ii) such provision, contained in Section 1.08(b) of the LLC
      Agreement that requires the affirmative vote of its Member and the affirmative
      vote of all of the Managers, including all of the Independent Managers, in
      order
      for a Person to file a voluntary bankruptcy petition on behalf of the Issuer,
      constitutes a legal, valid and binding agreement of the Member, and is
      enforceable against the Member, in accordance with its terms.

     

    (x)           Under
      the LLC Act and the LLC Agreement, the bankruptcy (as defined in the LLC Act)
      or
      dissolution of BGE will not, by itself, cause the Issuer to be dissolved or
      its
      affairs to be wound up.

     

    (y)           While
      under the LLC Act, on application to a court of competent jurisdiction, a
      judgment creditor of the Member may be able to charge the Member’s

     

    
      
        
        

      

      
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    share
      of
      any profits and losses of the Issuer and the Member’s right to receive
      distributions of the Issuer’s assets (“Member’s Interest”), to the extent
      so charged, the judgment creditor has only the right to receive any distribution
      or distributions to which the Member would otherwise have been entitled in
      respect of such Member’s Interest.  Under the LLC Act, no creditor of
      the Member shall have any right to obtain possession of, or otherwise exercise
      legal or equitable remedies with respect to, the property of the
      Issuer.  Thus, under the LLC Act, a judgment creditor of the Member
      may not satisfy its claims against the Member by asserting a claim against
      the
      assets of the Issuer.

     

    (z)           Under
      the LLC Act (i) the Issuer is a separate legal entity, and (ii) the existence
      of
      the Issuer as a separate legal entity shall continue until the cancellation
      of
      its Certificate of Formation.

     

    (aa)         The
      Delaware Financing Statement is in an appropriate form for filing in the State
      of Delaware under Section 9-502(a) and 9-516 of the Delaware UCC.

     

    (bb)         Insofar
      as Article 9 of the Delaware UCC is applicable (without regard to conflict
      of
      laws principles), upon the filing of the Delaware Financing Statement with
      the
      Secretary of State of the State of Delaware (Uniform Commercial Code Section)
      (the “Division”), the Indenture Trustee will have a perfected security
      interest in the Issuer’s rights in that portion of the Series Rate Stabilization
      Bond Collateral (other than Rate Stabilization Property) that may be perfected
      by the filing of a UCC financing statement with the Division (the “Filing
      Collateral”) and the proceeds (as defined in Section 9-102(a)(64) of the
      Delaware UCC) thereof, and such security interest will be prior to any other
      security interest in the Filing Collateral granted by the Issuer that is
      perfected solely by the filing of financing statements with the Division under
      the Delaware UCC.  Insofar as Article 9 of the Delaware UCC is
      applicable (without regard to conflict of laws principles), the Division is
      the
      appropriate place to file a financing statement to perfect a security interest
      except for as-extracted collateral or timber to be cut (as described in Section
      9-501(a)(1)(A) of the Delaware UCC) or fixture filings where the collateral
      is
      goods that are or are to become fixtures (as described in Section 9-501(a)(1)(B)
      of the Delaware UCC).

     

    (cc)         The
      UCC lien search sets forth the proper filing office and the proper debtor
      necessary to identify those Persons who under the Delaware UCC have on file
      financing statements against the Issuer covering the Filing Collateral as of
      the
      effective time.  The UCC lien search identifies no secured party who
      has on file with the Division a currently effective financing statement naming
      the Issuer as debtor and describing the Filing Collateral prior to the effective
      time.

     

    (dd)        Insofar
      as Article 9 of the Delaware UCC is applicable (without regard to conflict
      of
      laws principles), the provisions of the Indenture are sufficient to constitute
      authorization by the Issuer of the filing of the Delaware Financing Statement
      for purposes of Section 9-509 of the Delaware UCC.

     

    (ee)         Insofar
      as Article 9 of the Delaware UCC is applicable (without regard to conflict
      of
      laws principles), for purposes of the Delaware UCC, the Issuer is a “registered

     

    
      
        
        

      

      
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    organization”
      (as defined in Section 9-102(a)(70) of the Delaware UCC).  The Issuer
      is “located” (within the meaning of Section 9-307 of the Delaware UCC) in the
      State of Delaware.  Under the Delaware UCC (including the choice of
      laws provisions thereof), while a debtor is “located” in a jurisdiction, the
      local law of that jurisdiction governs perfection of a nonpossessory security
      interest in collateral if the collateral constitutes “accounts,” “general
      intangibles,” “negotiable documents,” goods” (other than as-extracted
      collateral, timber to be cut, goods covered by a certificate of title, and
      goods
      as to which a security interest therein is perfected by filing a fixture
      filing), “instruments” or “chattel paper.”

     

    (9)           Accountant’s
      Certificate or Letter.  One or more certificates or letters,
      addressed to the Issuer complying with the requirements of
Section 10.01(a), of a firm of Independent registered public
      accountants of recognized national reputation to the effect that (a) such
      accountants are Independent with respect to the Issuer within the meaning of
      this Indenture, and are independent public accountants within the meaning of
      the
      standards of The American Institute of Certified Public Accountants, and (b)
      with respect to the Series Rate Stabilization Bond Collateral, they have applied
      such procedures as instructed by the addressee’s of such certificate or
      letter.

     

    (10)         Rating
      Agency Condition.  The Indenture Trustee shall receive evidence
      reasonably satisfactory to it that the Rating Agency Condition will be satisfied
      with respect to the issuance of such new Series.

     

    (11)         Requirements
      of Series Supplement.  Such other funds, accounts, documents,
      certificates, agreements, instruments or opinions as may be required by the
      terms of the Series Supplement creating such Series.

     

    (12)         Required
      Capital Level.  Evidence satisfactory to the Indenture Trustee
      that the Required Capital Level for such Series has been credited to the related
      Capital Subaccount for such Series.

     

    (13)         Other
      Requirements.  Such other documents, certificates, agreements,
      instruments or opinions as the Indenture Trustee may reasonably
      require.

     

    SECTION
      2.11.  Book-Entry Rate Stabilization Bonds.  Unless
      the applicable Series Supplement provides otherwise, all of the related Series
      of Rate Stabilization Bonds shall be issued in Book-Entry Form, and the Issuer
      shall execute and the Indenture Trustee shall, in accordance with this
Section 2.11 and the Issuer Order with respect to such Series,
      authenticate and deliver one or more Global Rate Stabilization Bonds, evidencing
      the Rate Stabilization Bonds of such Series which (i) shall be an aggregate
      original principal amount equal to the aggregate original principal amount
      of
      such Rate Stabilization Bonds to be issued pursuant to the applicable Issuer
      Order, (ii) shall be registered in the name of the Clearing Agency therefor
      or
      its nominee, which shall initially be Cede & Co., as nominee for The
      Depository Trust Company, the initial Clearing Agency, (iii) shall be delivered
      by the Indenture Trustee pursuant to such Clearing Agency’s or such nominee’s
      instructions, and (iv) shall bear a legend substantially to the effect set
      forth
      in Exhibit A.

     

    
      
        
        

      

      
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    Each
      Clearing Agency designated pursuant to this Section 2.11 must, at the
      time of its designation and at all times while it serves as Clearing Agency
      hereunder, be a “clearing agency” registered under the Exchange Act and any
      other applicable statute or regulation.

     

    No
      Holder
      of any Series of Rate Stabilization Bonds issued in Book-Entry Form shall
      receive a Definitive Rate Stabilization Bond representing such Holder’s interest
      in any such Rate Stabilization Bonds, except as provided in Section
      2.13.  Unless (and until) certificated, fully registered Rate
      Stabilization Bonds of any Series (the “Definitive Rate Stabilization
      Bonds”) have been issued to the Holders of such Series pursuant to
Section 2.13 or pursuant to any applicable Series Supplement relating
      thereto:

     

    (a)           the
      provisions of this Section 2.11 shall be in full force and
      effect;

     

    (b)           the
      Issuer, the Servicer, the Paying Agent, the Rate Stabilization Bond Registrar
      and the Indenture Trustee may deal with the Clearing Agency for all purposes
      (including the making of distributions or other payments on the Rate
      Stabilization Bonds of such Series and the giving of instructions or directions
      hereunder) as the authorized representatives of the Holders of such
      Series;

     

    (c)           to
      the extent that the provisions of this Section 2.11 conflict with any
      other provisions of this Indenture, the provisions of this Section 2.11
      shall control;

     

    (d)           the
      rights of Holders of such Series shall be exercised only through the Clearing
      Agency and the Clearing Agency Participants and shall be limited to those
      established by law and agreements between such Holders and the Clearing Agency
      and/or the Clearing Agency Participants.  Pursuant to the Letter of
      Representations, unless and until Definitive Rate Stabilization Bonds are issued
      pursuant to Section 2.13, the initial Clearing Agency will make
      book-entry transfers among the Clearing Agency Participants and receive and
      transmit distributions of principal and interest on the Book-Entry Rate
      Stabilization Bonds to such Clearing Agency Participants; and

     

    (e)           whenever
      this Indenture requires or permits actions to be taken based upon instruction
      or
      directions of the Holders evidencing a specified percentage of the Outstanding
      Amount of any Series of Rate Stabilization Bonds, the Clearing Agency shall
      be
      deemed to represent such percentage only to the extent that it has received
      instructions to such effect from the Holders and/or the Clearing Agency
      Participants owning or representing, respectively, such required percentage
      of
      the beneficial interest in such Series of Rate Stabilization Bonds and has
      delivered such instructions to a Responsible Officer of the Indenture
      Trustee.

     

    SECTION
      2.12.  Notices to Clearing Agency.  Unless and until
      Definitive Rate Stabilization Bonds shall have been issued to Holders of such
      Series pursuant to Section 2.13, whenever notice, payment, or other
      communications to the holders of Book-Entry Rate Stabilization Bonds of any
      Series is required under this Indenture, the Indenture Trustee, the Servicer
      and
      the Paying Agent, as applicable, shall give all such notices and communications
      specified herein to be given to Holders of such Series to the Clearing
      Agency.

     

    SECTION
      2.13.  Definitive Rate Stabilization Bonds.  If (a)
      (i) the Issuer advises the Indenture Trustee in writing that the Clearing Agency
      is no longer willing or able to properly

     

    
      
        
        

      

      
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    discharge
      its responsibilities under any Letter of Representations and (ii) the Issuer
      is
      unable to locate a qualified successor Clearing Agency, (b) the Issuer, at
      its
      option, advises the Indenture Trustee in writing that, with respect to any
      Series, it elects to terminate the book-entry system through the Clearing Agency
      or (c) after the occurrence of an Event of Default hereunder, Holders holding
      Rate Stabilization Bonds aggregating not less than a majority of the aggregate
      Outstanding Amount of any Series of Rate Stabilization Bonds maintained as
      Book-Entry Rate Stabilization Bonds advise the Indenture Trustee, the Issuer
      and
      the Clearing Agency (through the Clearing Agency Participants) in writing that
      the continuation of a book-entry system through the Clearing Agency is no longer
      in the best interests of the Holders of such Series, the Issuer shall notify
      the
      Clearing Agency, the Indenture Trustee and all such Holders of such Series
      in
      writing of the occurrence of any such event and of the availability of
      Definitive Rate Stabilization Bonds of such Series to the Holders of such Series
      requesting the same.  Upon surrender to the Indenture Trustee of the
      Global Rate Stabilization Bonds of such Series by the Clearing Agency
      accompanied by registration instructions from such Clearing Agency for
      registration, the Issuer shall execute, and the Indenture Trustee shall
      authenticate and deliver, Definitive Rate Stabilization Bonds of such Series
      in
      accordance with the instructions of the Clearing Agency.  None of the
      Issuer, the Rate Stabilization Bond Registrar, the Paying Agent or the Indenture
      Trustee shall be liable for any delay in delivery of such instructions and
      may
      conclusively rely on, and shall be fully protected in relying on, such
      instructions.  Upon the issuance of Definitive Rate Stabilization
      Bonds of any Series, the Indenture Trustee shall recognize the Holders of the
      Definitive Rate Stabilization Bonds as Holders hereunder.

     

    Definitive
      Rate Stabilization Bonds will be transferable and exchangeable at the offices
      of
      the Rate Stabilization Bonds Registrar.

     

    SECTION
      2.14.  CUSIP Number.  The Issuer in issuing any Rate
      Stabilization Bond or Series of Rate Stabilization Bonds may use a “CUSIP”
number and, if so used, the Indenture Trustee shall use the CUSIP number
      provided to it by the Issuer in any notices to the Holders thereof as a
      convenience to such Holders; provided, that any such notice may state
      that no representation is made as to the correctness or accuracy of the CUSIP
      number printed in the notice or on the Rate Stabilization Bonds and that
      reliance may be placed only on the other identification numbers printed on
      the
      Rate Stabilization Bonds.  The Issuer shall promptly notify the
      Indenture Trustee in writing of any change in the CUSIP number with respect
      to
      any Rate Stabilization Bond.

     

    SECTION
      2.15.  Letter of Representations.  Notwithstanding
      anything to the contrary in this Indenture or any Series Supplement, the parties
      hereto shall comply with the terms of each Letter of Representations applicable
      to such party.

     

    SECTION
      2.16.  Special Terms Applicable to Subsequent Transfers of Certain
      Rate Stabilization Bonds.

     

    (a)           Certain
      Series of Rate Stabilization Bonds may not be registered under the Securities
      Act, or the securities laws of any other jurisdiction.  Consequently,
      such Unregistered Rate Stabilization Bonds shall not be transferable other
      than
      pursuant to an exemption from the registration requirements of the Securities
      Act and satisfaction of certain other provisions specified herein or in the
      related Series Supplement.  Unless otherwise provided in the related

     

    
      
        
        

      

      
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    Series
      Supplement, no sale, pledge or other transfer of any Unregistered Rate
      Stabilization Bond (or interest therein) may be made by any Person unless either
      (i) such sale, pledge or other transfer is made (A) to a “qualified
      institutional buyer” (as defined under Rule 144A under the Securities Act) or
      (B) to an “institutional accredited investor” (as described in Rule 501(a)(l),
      (2), (3) or (7) under the Securities Act) which executes and delivers a
      certificate to such effect in the form attached hereto as Exhibit C or
      (ii) such sale, pledge or other transfer is otherwise made in a transaction
      exempt from, or not subject to, the registration requirements of the Securities
      Act, in which case the Indenture Trustee shall require a written Opinion of
      Counsel (which shall not be at the expense of the Issuer, the Servicer or the
      Indenture Trustee) satisfactory to the Issuer and the Indenture Trustee to
      the
      effect that such transfer will not violate the Securities Act.  None
      of the Seller, the Issuer, the Indenture Trustee or the Servicer shall be
      obligated to register any Unregistered Rate Stabilization Bonds under the
      Securities Act, qualify any Unregistered Rate Stabilization Bonds under the
      securities laws of any State or provide registration rights to any purchaser
      or
      holder thereof.

     

    (b)           Unless
      otherwise provided in the related Series Supplement, the Unregistered Rate
      Stabilization Bonds may not be acquired by or for the account of a Restricted
      Plan and, by accepting and holding an Unregistered Rate Stabilization Bond,
      the
      Holder of an Unregistered Rate Stabilization Bond in global form shall be deemed
      to have represented and warranted that it is not a Restricted Plan and, the
      Holder of an Unregistered Rate Stabilization Bond in definitive form shall
      execute and deliver to the Indenture Trustee a certificate to such effect in
      the
      form attached hereto as Exhibit D.

     

    (c)           Unless
      otherwise provided in the related Series Supplement, Unregistered Rate
      Stabilization Bonds shall be issued in the form of Definitive Rate Stabilization
      Bonds, shall be in fully registered form and Sections 2.11 and
2.12 shall not apply thereto.

     

    (d)           Each
      Unregistered Rate Stabilization Bond shall bear legends to the effect set forth
      in subsections (a) and (b) (if subsection (b) is
      applicable) above.

     

    SECTION
      2.17.  Tax Treatment.  The Issuer and the Indenture
      Trustee, by entering into this Indenture, and the Holders and any Persons
      holding a beneficial interest in any Rate Stabilization Bond, by acquiring
      any
      Rate Stabilization Bond or interest therein, (a) express their intention that,
      solely for the purposes of federal taxes and, to the extent consistent with
      applicable state, local and other tax law, solely for the purposes of state,
      local and other taxes, the Rate Stabilization Bonds qualify under applicable
      tax
      law as indebtedness of the Member secured by the Rate Stabilization Bond
      Collateral and (b) solely for the purposes of federal taxes and, to the extent
      consistent with applicable state, local and other tax law, solely for purposes
      of state, local and other taxes, so long as any of the Rate Stabilization Bonds
      are outstanding, agree to treat the Rate Stabilization Bonds as indebtedness
      of
      the Member secured by the Rate Stabilization Bond Collateral unless otherwise
      required by appropriate taxing authorities.

     

    SECTION
      2.18.  State Pledge.  Under the laws of the State of
      Maryland in effect on the Closing Date, the State of Maryland has agreed for
      the
      benefit of the Holders, pursuant to Section 7-535 of the Rate Stabilization
      Law, as follows:

     

    
      
        
        

      

      
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    “The
      state pledges, for the benefit and protection of financing parties and the
      electric company, that it will not take or allow any action that would impair
      the value of rate stabilization property, or, except as allowed in accordance
      with Sections 7-531, 7-533, and 7-534 of [the Rate Stabilization Law], reduce,
      alter, or impair the qualified rate stabilization charges to be imposed,
      collected, and remitted to financing parties, until the principal, interest
      and
      premium, and any other charges incurred and contracts to be performed in
      connection with the related rate stabilization bonds have been paid and
      performed in full.  Any party issuing rate stabilization bonds is
      authorized to include this pledge in any documentation relating to those
      bonds.”

     

    The
      Issuer hereby acknowledges that the purchase of any Rate Stabilization Bond
      by a
      Holder or the purchase of any beneficial interest in a Rate Stabilization Bond
      by any Person and the Indenture Trustee’s obligations to perform hereunder are
      made in reliance on such agreement and pledge by the State of
      Maryland.

     

    SECTION
      2.19.  Security Interests.  The Issuer hereby makes
      the following representations and warranties.  Other than the security
      interests granted to the Indenture Trustee pursuant to this Indenture, the
      Issuer has not pledged, granted, sold, conveyed or otherwise assigned any
      interests or security interests in the Rate Stabilization Bond Collateral and
      no
      security agreement, financing statement or equivalent security or Lien
      instrument listing the Issuer as debtor covering all or any part of the Rate
      Stabilization Bond Collateral is on file or of record in any jurisdiction,
      except such as may have been filed, recorded or made by the Issuer in favor
      of
      the Indenture Trustee on behalf of the Secured Parties in connection with this
      Indenture.  This Indenture constitutes a valid and continuing lien on,
      and first priority perfected security interest in, the Rate Stabilization Bond
      Collateral in favor of the Indenture Trustee on behalf of the Secured Parties,
      which lien and security interest is prior to all other Liens and is enforceable
      as such as against creditors of and purchasers from the Issuer in accordance
      with its terms, except as such enforceability may be limited by bankruptcy,
      insolvency, fraudulent conveyance, reorganization, moratorium and other similar
      laws affecting creditors’ rights generally or by general equitable principles,
      whether considered in a proceeding at law or in equity and by an implied
      covenant of good faith and fair dealing.  With respect to all Series
      Rate Stabilization Bond Collateral, this Indenture, together with the related
      Series Supplement, creates a valid and continuing first priority perfected
      security interest (as defined in the UCC and pursuant to
      the  provisions of the Rate Stabilization Law governing the creation,
      priority and perfection of security interests) in such Series Rate Stabilization
      Bond Collateral, which security interest is prior to all other Liens and is
      enforceable as such as against creditors of and purchasers from the Issuer
      in
      accordance with its terms, except as such enforceability may be limited by
      bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
      other similar laws affecting creditors’ rights generally or by general equitable
      principles, whether considered in a proceeding at law or in equity and by an
      implied covenant of good faith and fair dealing.  The Issuer has good
      and marketable title to the Rate Stabilization Bond Collateral free and clear
      of
      any Lien, claim or encumbrance of any Person other than Permitted
      Liens.  All of the Rate Stabilization Bond Collateral constitutes
      either Rate Stabilization Property or accounts, deposit accounts, investment
      property or general intangibles (as each such term is defined in the UCC) except
      that proceeds of the Rate Stabilization Bond Collateral may also take the form
      of instruments.  The Issuer has taken, or caused the Servicer to take,
      all action necessary to perfect the security interest in the Series Rate
      Stabilization Bond Collateral granted to the Indenture Trustee, for the

     

    
      
        
        

      

      
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    benefit
      of the Secured Parties of each related Series.  The Issuer has filed
      (or has caused the Servicer to file) all appropriate financing statements in
      the
      proper filing offices in the appropriate jurisdictions under applicable law
      in
      order to perfect the security interest in the Rate Stabilization Bond Collateral
      granted to the Indenture Trustee. The Issuer has not authorized the filing
      of
      and is not aware, after due inquiry, of any financing statements against the
      Issuer that include a description of the Rate Stabilization Bond Collateral
      other than those filed in favor of the Indenture Trustee.  The Issuer
      is not aware of any judgment or tax Lien filings against the
      Issuer.  Each Collection Account (including all subaccounts thereof)
      constitutes a “securities account” within the meaning of the UCC.  The
      Issuer has taken all steps necessary to cause the Securities Intermediary of
      each such securities account to identify in its records the Indenture Trustee
      as
      the person having a security entitlement against the Securities Intermediary
      in
      such securities account, no Collection Account is in the name of any person
      other than the Indenture Trustee, and the Issuer has not consented to the
      Securities Intermediary of any Collection Account to comply with entitlement
      orders of any person other than the Indenture Trustee.  All of the
      Series Rate Stabilization Bond Collateral constituting investment property
      has
      been and will have been credited to the applicable Collection Account or a
      subaccount thereof, and the Securities Intermediary for each Collection Account
      has agreed to treat all assets credited to each Collection Account as "financial
      assets" within the meaning of the UCC.    Accordingly, the
      Indenture Trustee has a first priority perfected security interest in each
      Collection Account, all funds and financial assets on deposit therein, and
      all
      securities entitlements relating thereto.  The representations and
      warranties set forth in this Section 2.19 shall survive the execution and
      delivery of this Indenture and the issuance of any Rate Stabilization Bonds,
      shall be deemed re-made on each date on which any funds in each Collection
      Account are distributed to the Issuer or otherwise released from the Lien of
      the
      Indenture and may not be waived by any party hereto except pursuant to a
      supplemental indenture executed in accordance with Article IX and as to
      which the Rating Agency Condition has been satisfied.

     

    ARTICLE
      III

     

    COVENANTS

     

    SECTION
      3.01.  Payment of Principal, Premium, if any, and
      Interest.  The principal of and premium, if any, and interest on
      the Rate Stabilization Bonds shall be duly and punctually paid by the Issuer,
      or
      the Servicer on behalf of the Issuer, in accordance with the terms of the Rate
      Stabilization Bonds and this Indenture; provided that except on the Final
      Maturity Date or upon the acceleration of the Rate Stabilization Bonds following
      the occurrence of an Event of Default, the Issuer shall only be obligated to
      pay
      the principal of such Rate Stabilization Bonds on each Payment Date therefor
      to
      the extent moneys are available for such payment pursuant to Section
      8.02.  Amounts properly withheld under the Code or other tax laws
      by any Person from a payment to any Holder of interest or principal or premium,
      if any, shall be considered as having been paid by the Issuer to such Holder
      for
      all purposes of this Indenture.

     

    SECTION
      3.02.  Maintenance of Office or Agency.  The Issuer
      shall maintain in the Borough of Manhattan, the City of New York, an office
      or
      agency at the Corporate Trust Office where Rate Stabilization Bonds may be
      surrendered for registration of transfer or exchange.  The Issuer
      hereby initially appoints the Indenture Trustee to serve as its agent for the
      foregoing purposes.  The Issuer shall give prompt written notice to
      the Indenture Trustee of the 

     

    
      
        
        

      

      
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    location,
      and of any change in the location, of any such office or agency.  If
      at any time the Issuer shall fail to maintain any such office or agency or
      shall
      fail to furnish the Indenture Trustee with the address thereof, such surrenders
      may be made at the office of the Indenture Trustee located at the Corporate
      Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent
      to receive all such surrenders.

     

    SECTION
      3.03.  Money for Payments To Be Held in Trust.  As
      provided in Section 8.02(a), all payments of amounts due and payable with
      respect to any Rate Stabilization Bonds that are to be made from amounts
      withdrawn from the applicable Collection Account pursuant to Section
      8.02(d) shall be made on behalf of the Issuer by the Indenture Trustee or by
      another Paying Agent, and no amounts so withdrawn from such applicable
      Collection Account for payments with respect to any Rate Stabilization Bonds
      shall be paid over to the Issuer except as provided in this Section 3.03
      and Section 8.02.

     

    The
      Issuer will cause each Paying Agent other than the Indenture Trustee to execute
      and deliver to the Indenture Trustee an instrument in which such Paying Agent
      shall agree with the Indenture Trustee (and if the Indenture Trustee acts as
      Paying Agent, it hereby so agrees), subject to the provisions of this Section
      3.03, that such Paying Agent will:

     

    (i)           
      hold all sums held by it for the payment of amounts due with respect to the
      Rate
      Stabilization Bonds in trust for the benefit of the Persons entitled thereto
      until such sums shall be paid to such Persons or otherwise disposed of as herein
      provided and pay such sums to such Persons as herein provided;

     

    (ii)           give
      the Indenture Trustee written notice of any Default by the Issuer of which
      it
      has actual knowledge in the making of any payment required to be made with
      respect to the Rate Stabilization Bonds;

     

    (iii)          at
      any time during the continuance of any such Default, upon the written request
      of
      the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held
      in trust by such Paying Agent;

     

    (iv)          immediately
      resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
      held by it in trust for the payment of Rate Stabilization Bonds if at any time
      the Paying Agent determines that it has ceased to meet the standards required
      to
      be met by a Paying Agent at the time of such determination; and

     

    (v)           comply
      with all requirements of the Code and other tax laws with respect to the
      withholding from any payments made by it on any Rate Stabilization Bonds of
      any
      applicable withholding taxes imposed thereon and with respect to any applicable
      reporting requirements in connection therewith.

     

    The
      Issuer may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, by Issuer Order direct
      any
      Paying Agent to pay to the Indenture Trustee all sums held in trust by such
      Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts
      as those upon which the sums were held by such Paying Agent; and upon such
      payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall
      be
      released from all further liability with respect to such money.

     

    
      
        
        

      

      
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    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Indenture Trustee or any Paying Agent in trust for the payment of any amount
      due
      with respect to any Rate Stabilization Bond and remaining unclaimed for two
      (2)
      years after such amount has become due and payable shall be discharged from
      such
      trust and be paid to the Issuer on an Issuer Request; and, subject to Section
      10.11, the Holder of such Rate Stabilization Bond shall thereafter, as an
      unsecured general creditor, look only to the Issuer for payment thereof (but
      only to the extent of the amounts so paid to the Issuer), and all liability
      of
      the Indenture Trustee or such Paying Agent with respect to such trust money
      shall thereupon cease; provided, however, that the Indenture
      Trustee or such Paying Agent, before being required to make any such repayment,
      may at the expense of the Issuer, cause to be published once, in a newspaper
      published in the English language, customarily published on each Business Day
      and of general circulation in The City of New York, notice that such money
      remains unclaimed and that, after a date specified therein, which shall not
      be
      less than thirty (30) days from the date of such publication, any unclaimed
      balance of such money then remaining will be repaid to the
      Issuer.  The Indenture Trustee may also adopt and employ, at the
      expense of the Issuer, any other reasonable means of notification of such
      repayment (including mailing notice of such repayment to Holders whose right
      to
      or interest in moneys due and payable but not claimed is determinable from
      the
      records of the Indenture Trustee or of any Paying Agent, at the last address
      of
      record for each such Holder).

     

    SECTION
      3.04.  Existence.  The Issuer shall keep in full
      effect its existence, rights and franchises as a limited liability company
      under
      the laws of the State of Delaware (unless it becomes, or any successor Issuer
      hereunder is or becomes, organized under the laws of any other State or of
      the
      United States of America, in which case the Issuer will keep in full effect
      its
      existence, rights and franchises under the laws of such other jurisdiction)
      and
      will obtain and preserve its qualification to do business in each jurisdiction
      in which such qualification is or shall be necessary to protect the validity
      and
      enforceability of this Indenture, the other Basic Documents, the Rate
      Stabilization Bonds, the Rate Stabilization Bond Collateral and each other
      instrument or agreement referenced herein or therein.

     

    SECTION
      3.05.  Protection of Rate Stabilization Bond
      Collateral.  The Issuer shall from time to time execute and
      deliver all such supplements and amendments hereto and all filings with the
      PSC
      or the Maryland State Department of Assessments and Taxation pursuant to the
      Qualified Rate Order or to the Rate Stabilization Law and all financing
      statements, continuation statements, instruments of further assurance and other
      instruments (including under the Delaware UCC), and shall take such other action
      necessary or advisable to:

     

    (i)    
             maintain or preserve the Lien and
      security interest (and the priority thereof) of this Indenture and the related
      Series Supplement or carry out more effectively the purposes
      hereof;

     

    (ii)           perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iii)          enforce
      any of the Rate Stabilization Bond Collateral;

     

    
      
        
        

      

      
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    (iv)          preserve
      and defend title to the Rate Stabilization Bond Collateral and the rights of
      the
      Indenture Trustee and the Holders in such Rate Stabilization Bond Collateral
      against the Claims of all Persons and parties, including, without limitation,
      the challenge by any party to the validity or enforceability of any Qualified
      Rate Order, any Tariff, the Rate Stabilization Property, the Rate Stabilization
      Law or any proceeding relating thereto and institute any action or proceeding
      necessary to compel performance by the PSC or the State of Maryland of any
      of
      its obligations or duties under the Rate Stabilization Law, the State Pledge,
      or
      any Qualified Rate Order or Tariff; or

     

    (v)           pay
      any and all taxes levied or assessed upon all or any part of the Rate
      Stabilization Bond Collateral.

     

    The
      Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact
      to
      execute or authorize, as the case may be, any filings with the Maryland State
      Department of Assessments and Taxation, financing statements, continuation
      statements or other instruments (including with the Delaware Secretary of State)
      required pursuant to this Section 3.05, it being understood that the
      Indenture Trustee shall have no such obligation or any duty to prepare such
      documents.

     

    SECTION
      3.06.  Opinions as to Rate Stabilization Bond
      Collateral.

     

    (a)           On
      the Series Issuance Date for each Series (including the Closing Date), the
      Issuer shall furnish to the Indenture Trustee an Opinion of Counsel of external
      counsel of the Issuer either stating that, in the opinion of such counsel,
      such
      action has been taken with respect to the recording and filing of this
      Indenture, any indentures supplemental hereto, and any other requisite
      documents, and with respect to the execution and filing of any filings with
      the
      PSC or the Maryland State Department of Assessments and Taxation pursuant to
      the
      Rate Stabilization Law and the Applicable Qualified Rate Order and any financing
      statements and continuation statements, as are necessary to perfect and make
      effective the Lien, and the first priority perfected security interest created
      by this Indenture and the related Series Supplement, and no other Lien or
      security interest is equal or prior to the Lien and security interest of the
      Indenture Trustee in the Series Rate Stabilization Bond Collateral, and reciting
      the details of such action, or stating that, in the opinion of such counsel,
      no
      such action is necessary to make effective such Lien and security
      interest.

     

    (b)           Within
      ninety (90) days after the beginning of each calendar year beginning with the
      calendar year beginning January 1, 2008, the Issuer shall furnish to the
      Indenture Trustee an Opinion of Counsel of external counsel of the Issuer either
      stating that, in the opinion of such counsel, such action has been taken with
      respect to the recording, filing, re-recording and refiling of this Indenture,
      any indentures supplemental hereto and any other requisite documents and with
      respect to the execution and filing of any filings with the PSC or the Maryland
      State Department of Assessments and Taxation pursuant to the Rate Stabilization
      Law and the Applicable Qualified Rate Order and any financing statements and
      continuation statements as are necessary to maintain the Lien created by this
      Indenture and reciting the details of such action or stating that, in the
      opinion of such counsel, no such action is necessary to maintain such
      Lien.  Such Opinion of Counsel shall also describe the recording,
      filing, re-recording and refiling of this Indenture, any indentures supplemental
      hereto and any other requisite documents and the execution and filing of any
      filings with the PSC or the Maryland 

     

    
      
        
        

      

      
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    State
      Department of Assessments and Taxation, financing statements and continuation
      statements that will, in the opinion of such counsel, be required within the
      twelve-month period following the date of such opinion to maintain the Lien
      created by this Indenture.

     

    (c)           Prior
      to the effectiveness of any amendment to the Sale Agreement or the Servicing
      Agreement, the Issuer shall furnish to the Indenture Trustee an Opinion of
      Counsel of external counsel of the Issuer either (i) stating that, in the
      opinion of such counsel, all filings, including UCC financing statements and
      other filings with the PSC and the Maryland State Department of Assessments
      and
      Taxation pursuant to the Rate Stabilization Law or the Applicable Qualified
      Rate
      Order, have been executed and filed that are necessary fully to preserve and
      protect the Lien and security interest of the Issuer and the Indenture Trustee
      in the Rate Stabilization Property and the Rate Stabilization Bond Collateral,
      respectively, and the proceeds thereof, and reciting the details of such filings
      or referring to prior Opinions of Counsel in which such details are given,
      or
      (ii) stating that, in the opinion of such counsel, no such action shall be
      necessary to preserve and protect such Lien and security interest.

     

    SECTION
      3.07.  Performance of Obligations; Servicing.

     

    (a)           The
      Issuer (i) shall diligently pursue any and all actions to enforce its rights
      under each instrument or agreement included in the Rate Stabilization Bond
      Collateral and (ii) shall not take any action and shall use its best efforts
      not
      to permit any action to be taken by others that would release any Person from
      any of such Person’s covenants or obligations under any such instrument or
      agreement or that would result in the amendment, hypothecation, subordination,
      termination or discharge of, or impair the validity or effectiveness of, any
      such instrument or agreement, except, in each case, as expressly provided in
      the
      Basic Documents to which the Issuer is a party or such other instrument or
      agreement.

     

    (b)           The
      Issuer may contract with other Persons to assist it in performing its duties
      under this Indenture, and any performance of such duties by a Person identified
      to the Indenture Trustee herein or in an Officer’s Certificate shall be deemed
      to be action taken by the Issuer.  Initially, the Issuer has
      contracted with the Servicer to assist the Issuer in performing its duties
      under
      this Indenture.

     

    (c)           The
      Issuer shall punctually perform and observe all of its obligations and
      agreements contained in this Indenture, the related Series Supplement, the
      other
      Basic Documents to which the Issuer is a party and in the instruments and
      agreements included in the Rate Stabilization Bond Collateral, including filing
      or causing to be filed all filings with the PSC or the Maryland State Department
      of Assessments and Taxation pursuant to the Rate Stabilization Law or the
      Qualified Rate Order, all UCC financing statements and continuation statements
      required to be filed by it by the terms of this Indenture, the related Series
      Supplement, the Sale Agreement and the Servicing Agreement in accordance with
      and within the time periods provided for herein and therein.

     

    (d)           If
      the Issuer shall have knowledge of the occurrence of a Servicer Default under
      the Servicing Agreement, the Issuer shall promptly give written notice thereof
      to the Indenture Trustee and the Rating Agencies, and shall specify in such
      notice the response or action, if any, the Issuer has taken or is taking with
      respect to such default.  If a Servicer Default 

     

    
      
        
        

      

      
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    shall
      arise from the failure of the Servicer to perform any of its duties or
      obligations under the Servicing Agreement with respect to the Rate Stabilization
      Property, the Rate Stabilization Bond Collateral or the Qualified Rate
      Stabilization Charges, the Issuer shall take all reasonable steps available
      to
      it to remedy such failure.

     

    (e)           As
      promptly as possible after the giving of notice of termination to the Servicer
      and the Rating Agencies of the Servicer’s rights and powers pursuant
      to Section 7.01 of the Servicing Agreement, the
      Indenture Trustee may and shall, at the written direction of the Holders
      evidencing not less than a majority of the Outstanding Amount of the Rate
      Stabilization Bonds of all Series, appoint a successor Servicer (the
“Successor Servicer”), and such Successor Servicer shall accept its
      appointment by a written assumption in a form acceptable to the Issuer and
      the
      Indenture Trustee.  A Person shall qualify as a Successor Servicer
      only if such Person satisfies the requirements of the Servicing
      Agreement.  If within thirty (30) days after the delivery of the
      notice referred to above, a new Servicer shall not have been appointed, the
      Indenture Trustee may petition a court of competent jurisdiction to appoint
      a
      Successor Servicer.  In connection with any such appointment, BGE may
      make such arrangements for the compensation of such Successor Servicer as it
      and
      such successor shall agree, subject to the limitations set forth in Section
      8.02 and in the Servicing Agreement.

     

    (f)           Upon
      any termination of the Servicer’s rights and powers pursuant to the Servicing
      Agreement, the Indenture Trustee shall promptly notify the Issuer, the Holders
      and the Rating Agencies.  As soon as a Successor Servicer is
      appointed, the Indenture Trustee shall notify the Issuer, the Holders and the
      Rating Agencies of such appointment, specifying in such notice the name and
      address of such Successor Servicer.

     

    (g)           The
      Issuer shall (or shall cause the Sponsor to) file with or furnish to the SEC
      periodic reports and other reports as are required from time to time under
      Section 13 or Section 15(d) of the Exchange Act.

     

    (h)           The
      Issuer shall make all filings required under the Rate Stabilization Law relating
      to the transfer of the ownership or security interest in the Rate Stabilization
      Property other than those required to be made by the Seller or the Servicer
      pursuant to the Basic Documents.

     

    SECTION
      3.08.  Certain Negative Covenants.  So long as any
      Rate Stabilization Bonds are Outstanding, the Issuer shall not:

     

    (i)           except
      as expressly permitted by this Indenture and the other Basic Documents, sell,
      transfer, exchange or otherwise dispose of any of the properties or assets
      of
      the Issuer, including those included in the Rate Stabilization Bond Collateral,
      unless directed to do so by the Indenture Trustee in accordance with Article
      V;

     

    (ii)           claim
      any credit on, or make any deduction from the principal or premium, if any,
      or
      interest payable in respect of, the Rate Stabilization Bonds (other than amounts
      properly withheld from such payments under the Code or other tax laws) or assert
      any claim against any present or former Holder by reason of the payment of
      the
      taxes levied or assessed upon any part of the Rate Stabilization Bond
      Collateral;

     

    
      
        
        

      

      
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    (iii)           to
      the fullest extent permitted by law, terminate its existence or dissolve or
      liquidate in whole or in part, except in a transaction permitted by
Section 3.10;

     

    (iv)          (A)
      permit the validity or effectiveness of this Indenture or the other Basic
      Documents to be impaired, or permit the Lien of this Indenture and the related
      Series Supplement to be amended, hypothecated, subordinated, terminated or
      discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Rate Stabilization Bonds under this Indenture
      except as may be expressly permitted hereby, (B) permit any Lien (other than
      the
      Lien of this Indenture or the related Series Supplement) to be created on or
      extend to or otherwise arise upon or burden the Rate Stabilization Bond
      Collateral or any part thereof or any interest therein or the proceeds thereof
      (other than tax liens arising by operation of law with respect to amounts not
      yet due) or (C) permit the Lien of any Series Supplement not to constitute
      a
      valid first priority perfected security interest in the Series Rate
      Stabilization Bond Collateral;

     

    (v)           enter
      into any swap, hedge or similar financial instrument;

     

    (vi)          elect
      to be classified as an association taxable as a corporation for federal income
      tax purposes or otherwise take any action, file any tax return, or make any
      election inconsistent with the treatment of the Issuer, for purposes of federal
      taxes and, to the extent consistent with applicable state tax law, state income
      and franchise tax purposes, as a disregarded entity that is not separate from
      the sole owner of the Issuer;

     

    (vii)         change
      its name, identity or structure or the location of its chief executive office,
      unless at least ten (10) days’ prior to the effective date of any such change
      the Issuer delivers to the Indenture Trustee such documents, instruments or
      agreements, executed by the Issuer, as are necessary to reflect such change
      and
      to continue the perfection of the security interest of this Indenture and the
      related Series Supplement; or

     

    (viii)        take
      any action which is subject to the Rating Agency Condition without satisfying
      the Rating Agency Condition.

     

    SECTION
      3.09.  Annual Statement as to Compliance.  The Issuer
      will deliver to the Indenture Trustee and the Rating Agencies not later than
      March 30 of each year (commencing with March 30, 2008), an Officer’s Certificate
      stating, as to the Responsible Officer signing such Officer’s Certificate,
      that:

     

    (i) 
                a review of the
      activities of the Issuer during the preceding twelve (12) months ended December
      31 (or, in the case of the first such Officer’s Certificate, since the Series
      Issuance Date) and of performance under this Indenture has been made;
      and

     

    (ii)           to
      the best of such Responsible Officer’s knowledge, based on such review, the
      Issuer has in all material respects complied with all conditions and covenants
      under this Indenture throughout such twelve-month period (or such shorter period
      in the case of the first such Officer’s Certificate), or, if there has been a
      default in the compliance of any such condition or covenant, specifying each
      such default known to such Responsible Officer and the nature and status
      thereof.

     

    
      
        
        

      

      
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    SECTION
      3.10.  Issuer May Consolidate, etc., Only on Certain
      Terms.

     

    (a)           The
      Issuer shall not consolidate or merge with or into any other Person,
      unless:

     

    (i)    
             the Person (if other than the Issuer)
      formed by or surviving such consolidation or merger shall (A) be a Person
      organized and existing under the laws of the United States of America or any
      State, (B) expressly assume, by an indenture supplemental hereto, executed
      and
      delivered to the Indenture Trustee, in form and substance satisfactory to the
      Indenture Trustee, the performance or observance of every agreement and covenant
      of this Indenture and the related Series Supplement on the part of the Issuer
      to
      be performed or observed, all as provided herein and in the applicable Series
      Supplement, and (C) assume all obligations and succeed to all rights of the
      Issuer under the Sale Agreement, the Servicing Agreement and each other Basic
      Document to which the Issuer is a party;

     

    (ii)           immediately
      after giving effect to such merger or consolidation, no Default, Event of
      Default or Servicer Default shall have occurred and be continuing;

     

    (iii)          the
      Rating Agency Condition shall have been satisfied with respect to such merger
      or
      consolidation;

     

    (iv)          the
      Issuer shall have delivered to BGE, the Indenture Trustee and the Rating
      Agencies an opinion or opinions of outside tax counsel (as selected by the
      Issuer, in form and substance reasonably satisfactory to BGE and the Indenture
      Trustee, and which may be based on a ruling from the Internal Revenue Service
      (unless the Internal Revenue Service has announced that it will not rule on
      the
      issues described in this paragraph)) to the effect that the consolidation or
      merger will not result in a material adverse federal or state income tax
      consequence to the Issuer, BGE, the Indenture Trustee or the then existing
      Bondholders;

     

    (v)           any
      action as is necessary to maintain the Lien and the first priority perfected
      security interest in the Rate Stabilization Bond Collateral created by this
      Indenture and the related Series Supplement shall have been taken as evidenced
      by an Opinion of Counsel of external counsel of the Issuer delivered to the
      Indenture Trustee; and

     

    (vi)          the
      Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
      and an Opinion of Counsel of external counsel of the Issuer each stating that
      such consolidation or merger and such supplemental indenture comply with this
      Indenture, the related Series Supplement and that all conditions precedent
      herein provided for in this Section 3.10(a) with respect to such
      transaction have been complied with (including any filing required by the
      Exchange Act).

     

    (b)           Except
      as specifically provided herein, the Issuer shall not sell, convey, exchange,
      transfer or otherwise dispose of any of its properties or assets included in
      the
      Rate Stabilization Bond Collateral, to any Person, unless:

     

    
      
        
        

      

      
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    (i)  
               the Person that acquires
      the properties and assets of the Issuer, the conveyance, exchange, transfer
      or
      other disposal of which is hereby restricted, shall (A) be a United States
      citizen or a Person organized and existing under the laws of the United States
      of America or any State, (B) expressly assumes, by an indenture supplemental
      hereto, executed and delivered to the Indenture Trustee, in form and substance
      satisfactory to the Indenture Trustee, the performance or observance of every
      agreement and covenant of this Indenture on the part of the Issuer to be
      performed or observed, all as provided herein and in the applicable Series
      Supplements, (C) expressly agrees by means of such supplemental indenture that
      all right, title and interest so sold, conveyed, exchanged, transferred or
      otherwise disposed of shall be subject and subordinate to the rights of Holders,
      (D) unless otherwise provided in the supplemental indenture referred to in
      clause (B) above, expressly agrees to indemnify, defend and hold harmless
      the Issuer and the Indenture Trustee against and from any loss, liability or
      expense arising under or related to this Indenture, the related Series
      Supplements and the Rate Stabilization Bonds, (E) expressly agrees by means
      of
      such supplemental indenture that such Person (or if a group of Persons, then
      one
      specified Person) shall make all filings with the SEC (and any other appropriate
      Person) required by the Exchange Act in connection with the Rate Stabilization
      Bonds and (F) if such sale, conveyance, exchange, transfer or other disposal
      relates to the Issuer’s rights and obligations under the Sale Agreement or the
      Servicing Agreement, assume all obligations and succeed to all rights of the
      Issuer under the Sale Agreement and the Servicing Agreement, as
      applicable;

     

    (ii)           immediately
      after giving effect to such transaction, no Default, Event of Default or
      Servicer Default shall have occurred and be continuing;

     

    (iii)          the
      Rating Agency Condition shall have been satisfied with respect to such
      transaction;

     

    (iv)          the
      Issuer shall have delivered to BGE, the Indenture Trustee and the Rating
      Agencies an opinion or opinions of outside tax counsel (as selected by the
      Issuer, in form and substance reasonably satisfactory to BGE and the Indenture
      Trustee, and which may be based on a ruling from the Internal Revenue Service)
      to the effect that the disposition will not result in a material adverse federal
      or state income tax consequence to the Issuer, BGE, the Indenture Trustee or
      the
      then existing Bondholders;

     

    (v)           any
      action as is necessary to maintain the Lien and the first priority perfected
      security interest in the Rate Stabilization Bond Collateral created by this
      Indenture and the related Series Supplement shall have been taken as evidenced
      by an Opinion of Counsel of external counsel of the Issuer delivered to the
      Indenture Trustee; and

     

    (vi)          the
      Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
      and an Opinion of Counsel of external counsel of the Issuer each stating that
      such sale, conveyance, exchange,  transfer or other disposition and
      such supplemental indenture comply with this Indenture and the related Series
      Supplement and that all conditions precedent herein provided for in this
Section 3.10(b) with respect to such transaction have been complied
      with (including any filing required by the Exchange Act).

     

    
      
        
        

      

      
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    SECTION
      3.11.  Successor or Transferee.

     

    (a)           Upon
      any consolidation or merger of the Issuer in accordance with Section
      3.10(a), the Person formed by or surviving such consolidation or merger (if
      other than the Issuer) shall succeed to, and be substituted for, and may
      exercise every right and power of, the Issuer under this Indenture with the
      same
      effect as if such Person had been named as the Issuer herein.

     

    (b)           Except
      as set forth in Section 6.07, upon a sale, conveyance, exchange, transfer
      or other disposition of all the assets and properties of the Issuer in
      accordance with Section 3.10(b), the Issuer will be released from
      every covenant and agreement of this Indenture and the other Basic Documents
      to
      be observed or performed on the part of the Issuer with respect to the Rate
      Stabilization Bonds and the Rate Stabilization Property immediately following
      the consummation of such acquisition upon the delivery of written notice to
      the
      Indenture Trustee from the Person acquiring such assets and properties stating
      that the Issuer is to be so released.

     

    SECTION
      3.12.  No Other Business.  The Issuer shall not
      engage in any business other than financing, purchasing, owning and managing
      the
      Rate Stabilization Property and the other Rate Stabilization Bond Collateral
      and
      the issuance of the Rate Stabilization Bonds in the manner contemplated by
      the
      Qualified Rate Order and this Indenture and the Basic Documents and related
      activities incidental thereto.

     

    SECTION
      3.13.  No Borrowing.  The Issuer shall not issue,
      incur, assume, guarantee or otherwise become liable, directly or indirectly,
      for
      any indebtedness except for the Rate Stabilization Bonds and any other
      indebtedness expressly permitted by or arising under the Basic
      Documents.

     

    SECTION
      3.14.  Servicer’s Obligations.  The Issuer shall
      enforce the Servicer’s compliance with and performance of all of the Servicer’s
      material obligations under the Servicing Agreement.

     

    SECTION
      3.15.  Guarantees, Loans, Advances and Other
      Liabilities.  Except as otherwise contemplated by the Sale
      Agreement, the Servicing Agreement or this Indenture, the Issuer shall not
      make
      any loan or advance or credit to, or guarantee (directly or indirectly or by
      an
      instrument having the effect of assuring another’s payment or performance on any
      obligation or capability of so doing or otherwise), endorse or otherwise become
      contingently liable, directly or indirectly, in connection with the obligations,
      stocks or dividends of, or own, purchase, repurchase or acquire (or agree
      contingently to do so) any stock, obligations, assets or securities of, or
      any
      other interest in, or make any capital contribution to, any other
      Person.

     

    SECTION
      3.16.  Capital Expenditures.  Other than the purchase
      of Rate Stabilization Property from the Seller on each Series Issuance Date
      and
      other than expenditures made out of available funds in an aggregate amount
      not
      to exceed $25,000 in any calendar year, the Issuer shall not make any
      expenditure (by long-term or operating lease or otherwise) for capital assets
      (either realty or personalty).

     

    SECTION
      3.17.  Restricted Payments.   Except as provided
      in Section 8.04(c), the Issuer shall not, directly or indirectly, (a) pay
      any dividend or make any distribution (by reduction of capital or otherwise),
      whether in cash, property, securities or a combination thereof, 

     

    
      
        
        

      

      
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    to
      any
      owner of an interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or similar security in or of the Issuer, (b) redeem, purchase,
      retire or otherwise acquire for value any such ownership or equity interest
      or
      similar security or (c) set aside or otherwise segregate any amounts for any
      such purpose.  The Issuer will not, directly or indirectly, make
      payments to or distributions from any Collection Account except in accordance
      with this Indenture and the other Basic Documents.

     

    SECTION
      3.18.  Notice of Events of Default.  The Issuer
      agrees to give the Indenture Trustee and the Rating Agencies prompt written
      notice of each Default or Event of Default hereunder as provided in Section
      5.01, and each default on the part of the Seller or the Servicer of its
      obligations under the Sale Agreement or the Servicing Agreement,
      respectively.

     

    SECTION
      3.19.  Further Instruments and Acts.  Upon request of
      the Indenture Trustee, the Issuer shall execute and deliver such further
      instruments and do such further acts as may be reasonably necessary or proper
      to
      carry out more effectively the purpose of this Indenture and to maintain the
      first priority perfected security interest of the Indenture Trustee in the
      Rate
      Stabilization Bond Collateral.

     

    SECTION
      3.20.  Purchase of Subsequent Rate Stabilization
      Property.

     

    (a)           The
      Issuer may from time to time purchase Subsequent Rate Stabilization Property
      from the Seller pursuant to the Sale Agreement, subject to the conditions
      specified in paragraph (b) below.

     

    (b)           The
      Issuer shall be permitted to purchase from the Seller Subsequent Rate
      Stabilization Property and the proceeds thereof only upon the satisfaction
      of
      each of the following conditions on or prior to the related Subsequent Transfer
      Date:

     

    (i)  
               the Seller shall have
      provided the Issuer, the Indenture Trustee and the Rating Agencies with an
      Addition Notice, which shall be given not later than ten (10) days prior to
      the
      related Subsequent Transfer Date, specifying the Subsequent Transfer Date for
      such Subsequent Rate Stabilization Property and the aggregate amount of the
      Qualified Rate Stabilization Charges related to such Subsequent Rate
      Stabilization Property, and shall have provided any information reasonably
      requested by any of the foregoing Persons with respect to the Subsequent Rate
      Stabilization Property then being conveyed to the Issuer;

     

    (ii)           the
      Rate Stabilization Law, the Sale Agreement and the related Qualified Rate Order
      shall be in full force and effect and a filing shall have been made pursuant
      to
      Section 7-542 of the Rate Stabilization Law;

     

    (iii)          as
      of such Subsequent Transfer Date, the Seller shall not be insolvent and will
      not
      have been made insolvent by such sale and transfer and the Seller is not aware
      of any pending insolvency with respect to itself;

     

    (iv)          the
      Rating Agency Condition shall have been satisfied with respect to such sale
      and
      transfer;

     

    
      
        
        

      

      
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    (v)           the
      Seller shall have received and delivered to the Issuer and the Indenture Trustee
      an opinion of outside tax counsel (as selected by the Seller, and in form and
      substance reasonably satisfactory to the Issuer and the Indenture Trustee)
      to
      the effect that (A) the Issuer will not be subject to United States federal
      income tax as an entity separate from its sole owner and that the Rate
      Stabilization Bonds will be treated as debt of the Issuer's sole owner for
      United States federal income tax purposes, (B) for United States federal income
      tax purposes, the issuance of the Rate Stabilization Bonds will not result
      in
      gross income to the Seller, and (C)  such issuance will not adversely
      affect the characterization of any then outstanding Rate Stabilization Bonds
      as
      obligations of the Issuer's sole owner; the opinion of outside tax counsel
      described above may, if the Seller so chooses, be conditioned on the receipt
      by
      the Seller of one or more letter rulings from the Internal Revenue Service
      (unless the Internal Revenue Service has announced that it will not rule on
      the
      issues described in this paragraph) and in rendering such opinion outside tax
      counsel shall be entitled to rely on the rulings contained in such letter
      rulings and to rely on the representations made, and information supplied,
      to
      the Internal Revenue Service in connection with such letter
      rulings;

     

    (vi)          as
      of such Subsequent Transfer Date, no breach by the Seller of its
      representations, warranties or covenants in the Sale Agreement and no Servicer
      Default shall exist;

     

    (vii)  
            as of such Subsequent Transfer Date, the
      Issuer shall have sufficient funds available to pay the purchase price for
      the
      Subsequent Rate Stabilization Property to be conveyed on such date and all
      conditions to the issuance of one or more Series of Rate Stabilization Bonds
      intended to provide such funds set forth in Section 2.10 of this
      Indenture shall have been satisfied;

     

    (viii)        the
      Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
      confirming the satisfaction of each condition precedent specified in this
Section 3.20(b);

     

    (ix)           (A)
      the Issuer shall have delivered to the Rating Agencies any Opinions of Counsel
      requested by the Rating Agencies and (B) the Issuer shall have delivered to
      the
      Indenture Trustee the Opinion of Counsel required by Section 3.06(c);
      and

     

    (x)           The
      Seller and the Issuer shall have taken any action required to maintain the
      Lien
      and the first priority perfected ownership interest of the Issuer in the
      Subsequent Rate Stabilization Property and the proceeds thereof, and the Issuer
      shall have taken any action required to maintain the Lien and the first priority
      perfected security interest of the Indenture Trustee in the Subsequent Rate
      Stabilization Property and the proceeds thereof.

     

    SECTION
      3.21.  Inspection.  The Issuer agrees that, on
      reasonable prior notice, it will permit any representative of the Indenture
      Trustee, during the Issuer’s normal business hours, to examine all the books of
      account, records, reports and other papers of the Issuer, to make copies and
      extracts therefrom, to cause such books to be audited annually by Independent
      registered public accountants, and to discuss the Issuer’s affairs, finances and
      accounts with the Issuer’s officers, employees and Independent registered public
      accountants, all at such 

     

    
      
        
        

      

      
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    reasonable
      times and as often as may be reasonably requested.  The Indenture
      Trustee shall and shall cause its representatives to hold in confidence all
      such
      information except to the extent disclosure may be required by law (and all
      reasonable applications for confidential treatment are unavailing) and except
      to
      the extent that the Indenture Trustee may reasonably determine that such
      disclosure is consistent with its obligations
      hereunder.  Notwithstanding anything herein to the contrary, the
      preceding sentence shall not be construed to prohibit (a) disclosure of any
      and
      all information that is or becomes publicly known, or information obtained
      by
      the Indenture Trustee from sources other than the Issuer, provided such parties
      are rightfully in possession of such information, (b) disclosure of any and
      all
      information (i) if required to do so by any applicable statute, law, rule or
      regulation, (ii) pursuant to any subpoena, civil investigative demand or similar
      demand or request of any court or regulatory authority exercising its proper
      jurisdiction, (iii) in any preliminary or final offering circular, registration
      statement or other document a copy of which has been filed with the SEC or
      (iv)
      to any affiliate, independent or internal auditor, agent, employee or attorney
      of the Indenture Trustee having a need to know the same, provided that such
      parties agree to be bound by the confidentiality provisions contained in this
      Section 3.21, or (c) any other disclosure authorized by the
      Issuer.

     

    SECTION
      3.22.  Sale Agreement, Servicing Agreement and Administration
      Agreement Covenants.

     

    (a)           The
      Issuer agrees to take all such lawful actions to enforce its rights under the
      Sale Agreement, the Servicing Agreement and the Administration Agreement and
      to
      compel or secure the performance and observance by the Seller, the Servicer,
      the
      Administrator and BGE of each of their respective obligations to the Issuer
      under or in connection with the Sale Agreement, the Servicing Agreement and
      the
      Administration Agreement in accordance with the terms thereof.  So
      long as no Event of Default occurs and is continuing, but subject to Section
      3.22(f), the Issuer may exercise any and all rights, remedies, powers and
      privileges lawfully available to the Issuer under or in connection with the
      Sale
      Agreement, the Servicing Agreement and the Administration Agreement;
provided that such action shall not adversely affect the interests of the
      Holders in any material respect.

     

    (b)           If
      an Event of Default occurs and is continuing, the Indenture Trustee may, and
      at
      the direction (which direction shall be in writing) of Holders of a majority
      of
      the Outstanding Amount of the Rate Stabilization Bonds of all Series or Tranches
      affected thereby shall, exercise all rights, remedies, powers, privileges and
      claims of the Issuer against the Seller, BGE, the Administrator and the
      Servicer, as the case may be, under or in connection with the Sale Agreement,
      the Servicing Agreement and the Administration Agreement, including the right
      or
      power to take any action to compel or secure performance or observance by the
      Seller, BGE, the Administrator or the Servicer of each of their obligations
      to
      the Issuer thereunder and to give any consent, request, notice, direction,
      approval, extension or waiver under the Sale Agreement, the Servicing Agreement
      and the Administration Agreement, and any right of the Issuer to take such
      action shall be suspended.

     

    (c)           Except
      as set forth in Section 3.22(e), with the prior written consent of the
      Indenture Trustee, the Administration Agreement, the Sale Agreement and the
      Servicing Agreement may be amended in accordance with the provisions thereof,
      so
      long as the Rating Agency Condition is satisfied in connection therewith, at
      any
      time and from time to time, 

     

    
      
        
        

      

      
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    without
      the consent of the Holders of Rate Stabilization Bonds of the related Series;
      provided that such amendment, as evidenced by an Opinion of Counsel of
      external counsel of the Issuer, shall not adversely affect the interest of
      any
      Holder of Rate Stabilization Bonds of that Series in any material
      respect.

     

    (d)           Except
      as set forth in Section 3.22(e), if the Issuer, the Seller, BGE, the
      Administrator, the Servicer or any other party to the respective agreement
      proposes to amend, modify, waive, supplement, terminate or surrender, or agree
      to any amendment, modification, waiver, supplement, termination or surrender
      of,
      the terms of the Sale Agreement, the Administration Agreement, or the Servicing
      Agreement, or waive timely performance or observance by the Seller, BGE, the
      Administrator or the Servicer under the Sale Agreement,  the
      Administration Agreement or the Servicing Agreement, in each case in such a
      way
      as would materially and adversely affect the interests of any Holder of Rate
      Stabilization Bonds of any Series, the Issuer shall first notify the Rating
      Agencies of the proposed amendment, modification, waiver, supplement,
      termination or surrender and shall promptly notify the Indenture Trustee in
      writing and the Indenture Trustee shall notify the Holders of the Rate
      Stabilization Bonds of such Series of the proposed amendment, modification,
      waiver, supplement, termination or surrender and whether the Rating Agency
      Condition has been satisfied with respect thereto.  The Indenture
      Trustee shall consent to such proposed amendment, modification, waiver,
      supplement, termination or surrender only with the prior written consent of
      the
      Holders of a majority of the Outstanding Amount of Rate Stabilization Bonds
      of
      the Series or Tranches materially and adversely affected thereby.  If
      any such amendment, modification, waiver, supplement, termination or surrender
      shall be so consented to by the Indenture Trustee or such Holders, the Issuer
      agrees to execute and deliver, in its own name and at its own expense, such
      agreements, instruments, consents and other documents as shall be necessary
      or
      appropriate in the circumstances.

     

    (e)           If
      the Issuer or the Servicer proposes to amend, modify, waive, supplement,
      terminate or surrender, or to agree to any amendment, modification, supplement,
      termination, waiver or surrender of, the process for True-Up Adjustments, the
      Issuer shall notify the Indenture Trustee in writing and the Indenture Trustee
      shall notify the Holders of the Rate Stabilization Bonds of such proposal and
      the Indenture Trustee shall consent thereto only with the prior written consent
      of the Holders of a majority of the Outstanding Amount of Rate Stabilization
      Bonds of the Series or Tranches affected thereby and only if the Rating Agency
      Condition has been satisfied with respect thereto.

     

    (f)    
             Promptly following a default by the
      Seller under the Sale Agreement, by the Administrator under the Administration
      Agreement, by BGE or the occurrence of a Servicer Default under the Servicing
      Agreement, and at the Issuer’s expense, the Issuer agrees to take all such
      lawful actions as the Indenture Trustee may request to compel or secure the
      performance and observance by each of the Seller, BGE, the Administrator or
      the
      Servicer of their obligations under and in accordance with the Sale Agreement,
      the Servicing Agreement and the Administration Agreement, as the case may be,
      in
      accordance with the terms thereof, and to exercise any and all rights, remedies,
      powers and privileges lawfully available to the Issuer under or in connection
      with such agreements to the extent and in the manner directed by the Indenture
      Trustee, including the transmission of notices of any default by the Seller,
      BGE, the Administrator or the Servicer, respectively, thereunder and the
      institution of legal or 

     

    
      
        
        

      

      
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    administrative
      actions or Proceedings to compel or secure performance of their obligations
      under the Sale Agreement, the Servicing Agreement or the Administration
      Agreement, as applicable.

     

    Before
      consenting to any amendment, modification, supplement, termination, waiver
      or
      surrender under Sections 3.22(d) or (e), the Indenture Trustee
      shall be entitled to receive, and subject to Sections 6.01 and
6.02, shall be fully protected in relying upon, an Opinion of Counsel
      stating that such action is authorized or permitted by this
      Indenture.

     

    SECTION
      3.23.  Taxes.  So long as any of the Rate
      Stabilization Bonds are Outstanding, the Issuer shall pay all taxes, assessments
      and governmental charges imposed upon it or any of its properties or assets
      or
      with respect to any of its franchises, business, income or property before
      any
      penalty accrues thereon if the failure to pay any such taxes, assessments and
      governmental charges would, after any applicable grace periods, notices or
      other
      similar requirements, result in a Lien on the Rate Stabilization Bond
      Collateral; provided that no such tax need be paid if the Issuer is
      contesting the same in good faith by appropriate proceedings promptly instituted
      and diligently conducted and if the Issuer has established appropriate reserves
      as shall be required in conformity with generally accepted accounting
      principles.

     

    ARTICLE
      IV

     

    SATISFACTION
      AND DISCHARGE; DEFEASANCE

     

    SECTION
      4.01.  Satisfaction and Discharge of Indenture;
      Defeasance.

     

    (a)           This
      Indenture shall cease to be of further effect with respect to the Rate
      Stabilization Bonds of any Series and the Indenture Trustee, on reasonable
      written demand of and at the expense of the Issuer, shall execute proper
      instruments acknowledging satisfaction and discharge of this Indenture with
      respect to the Rate Stabilization Bonds of such Series, when:

     

    (i)    
             either

     

    (A)           all
      Rate Stabilization Bonds of such Series theretofore authenticated and delivered
      (other than (1) Rate Stabilization Bonds that have been destroyed, lost or
      stolen and that have been replaced or paid as provided in Section 2.06
      and (2) Rate Stabilization Bonds for whose payment money has theretofore been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in the last
      paragraph of Section 3.03) have been delivered to the Indenture Trustee
      for cancellation; or

     

    (B)           either
      (1) the Final Maturity Date has occurred with respect to all Rate Stabilization
      Bonds of such Series not theretofore delivered to the Indenture Trustee for
      cancellation or (2) such Rate Stabilization Bonds will be due and payable on
      their respective Final Maturity Dates within the same calendar year, and in
      either case, the Issuer has irrevocably deposited or caused to be irrevocably
      deposited in trust with the Indenture Trustee (i) cash and/or (ii) U.S.
      Government Obligations which through the scheduled payments of principal and
      interest in respect thereof in accordance with their terms are in an amount
      sufficient to pay 

     

    
      
        
        

      

      
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    principal,
      interest and premium, if any, on such Rate Stabilization Bonds not theretofore
      delivered to the Indenture Trustee for cancellation and all other sums payable
      hereunder by the Issuer with respect to such Rate Stabilization Bonds when
      scheduled to be paid and to discharge the entire indebtedness on such Rate
      Stabilization Bonds when due;

     

    (ii)           the
      Issuer has paid or caused to be paid all other sums payable hereunder by the
      Issuer with respect to such Series; and

     

    (iii)          the
      Issuer has delivered to the Indenture Trustee an Officer’s Certificate, an
      Opinion of Counsel of external counsel of the Issuer and (if required by the
      TIA
      or the Indenture Trustee) an Independent Certificate from a firm of registered
      public accountants, each meeting the applicable requirements of Section
      10.01(a) and each stating that all conditions precedent herein provided for
      relating to the satisfaction and discharge of this Indenture with respect to
      Rate Stabilization Bonds of such Series have been complied with.

     

    (b)           Subject
      to Sections 4.01(c) and 4.02, the Issuer at any time may terminate
      (i) all its obligations under this Indenture with respect to the Rate
      Stabilization Bonds of any Series (“Legal Defeasance Option”) or (ii) its
      obligations under Sections 3.04, 3.05, 3.06, 3.07,
3.08, 3.09, 3.10, 3.12, 3.13, 3.14,
      3.15, 3.16, 3.17, 3.18 and 3.19 and the
      operation of Section 5.01(iii) (“Covenant Defeasance Option”) with
      respect to any Series of Rate Stabilization Bonds.  The Issuer may
      exercise the Legal Defeasance Option with respect to any Series of Rate
      Stabilization Bonds notwithstanding its prior exercise of the Covenant
      Defeasance Option with respect to such Series.

     

    If
      the
      Issuer exercises the Legal Defeasance Option with respect to any Series, the
      maturity of the Rate Stabilization Bonds of such Series may not be accelerated
      because of an Event of Default.  If the Issuer exercises the Covenant
      Defeasance Option with respect to any Series, the maturity of the Rate
      Stabilization Bonds of such Series may not be accelerated because of an Event
      of
      Default specified in Section 5.01(iii).

     

    Upon
      satisfaction of the conditions set forth herein to the exercise of the Legal
      Defeasance Option or the Covenant Defeasance Option with respect to any Series
      of Rate Stabilization Bonds, the Indenture Trustee, on reasonable written demand
      of and at the expense of the Issuer, shall execute proper instruments
      acknowledging satisfaction and discharge of the obligations that are terminated
      pursuant to such exercise.

     

    (c)           Notwithstanding
      Sections 4.01(a) and 4.01(b) above, (i) rights of registration of
      transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen
      Rate Stabilization Bonds, (iii) rights of Holders to receive payments of
      principal, premium, if any, and interest, (iv) Sections 4.03 and
4.04, (v) the rights, obligations and immunities of the Indenture
      Trustee
      hereunder (including the rights of the Indenture Trustee under Section
      6.07 and the obligations of the Indenture Trustee under Section 4.03)
      and (vi) the rights of Holders as beneficiaries hereof with respect to the
      property deposited with the Indenture Trustee payable to all or any of them,
      shall survive until the Rate Stabilization Bonds of the Series as to which
      this
      Indenture or certain obligations hereunder have been satisfied and discharged
      pursuant to Section 

     

    
      
        
        

      

      
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    4.01(a)
      or 4.01(b) have been paid in full.  Thereafter the obligations
      in Sections 6.07 and 4.04 with respect to such Series shall
      survive.

     

    SECTION
      4.02.  Conditions to Defeasance.  The Issuer may
      exercise the Legal Defeasance Option or the Covenant Defeasance Option with
      respect to any Series of Rate Stabilization Bonds only if:

     

    (a)           the
      Issuer has irrevocably deposited or caused to be irrevocably deposited in trust
      with the Indenture Trustee (i) cash and/or (ii) U.S. Government Obligations
      which through the scheduled payments of principal and interest in respect
      thereof in accordance with their terms are in an amount sufficient to pay
      principal, interest and premium, if any, on such Rate Stabilization Bonds not
      therefore delivered to the Indenture Trustee for cancellation and all other
      sums
      payable hereunder by the Issuer with respect to such Rate Stabilization Bonds
      when scheduled to be paid and to discharge the entire indebtedness on such
      Rate
      Stabilization Bonds when due;

     

    (b)           the
      Issuer delivers to the Indenture Trustee a certificate from a nationally
      recognized firm of Independent registered public accountants expressing its
      opinion that the payments of principal and interest when due and without
      reinvestment of the deposited U.S. Government Obligations plus any deposited
      cash without investment will provide cash at such times and in such amounts
      (but, in the case of the Legal Defeasance Option only, not more than such
      amounts) as will be sufficient to pay in respect of the Rate Stabilization
      Bonds
      of such Series (i) principal in accordance with the Expected Amortization
      Schedule therefor, (ii) interest when due and (iii) all other sums payable
      hereunder by the Issuer with respect to such Rate Stabilization
      Bonds;

     

    (c)           in
      the case of the Legal Defeasance Option, ninety-five (95) days pass after the
      deposit is made and during the ninety-five (95)-day period no Default specified
      in Section 5.01(v) or (vi) occurs which is continuing at the end
      of the period;

     

    (d)           no
      Default has occurred and is continuing on the day of such deposit and after
      giving effect thereto;

     

    (e)           in
      the case of an exercise of the Legal Defeasance Option, the Issuer shall have
      delivered to the Indenture Trustee an Opinion of Counsel of external counsel
      of
      the Issuer stating that (i) the Issuer has received from, or there has been
      published by, the Internal Revenue Service a ruling, or (ii) since the date
      of
      execution of this Indenture, there has been a change in the applicable federal
      income tax law, in either case to the effect that, and based thereon such
      opinion shall confirm that, the Holders of the Rate Stabilization Bonds of
      such
      Series will not recognize income, gain or loss for federal income tax purposes
      as a result of such legal defeasance and will be subject to federal income
      tax
      on the same amounts, in the same manner and at the same times as would have
      been
      the case if such legal defeasance had not occurred;

     

    (f)           in
      the case of an exercise of the Covenant Defeasance Option, the Issuer shall
      have
      delivered to the Indenture Trustee an Opinion of Counsel of external counsel
      of
      the Issuer to the effect that the Holders of the Rate Stabilization Bonds of
      such Series will not recognize income, gain or loss for federal income tax
      purposes as a result of such covenant 

     

    
      
        
        

      

      
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    defeasance
      and will be subject to federal income tax on the same amounts, in the same
      manner and at the same times as would have been the case if such covenant
      defeasance had not occurred;

     

    (g)           the
      Issuer delivers to the Indenture Trustee an Officer’s Certificate and an Opinion
      of Counsel, each stating that all conditions precedent to the satisfaction
      and
      discharge of the Rate Stabilization Bonds of such Series to the extent
      contemplated by this Article IV have been complied with;

     

    (h)           the
      Issuer delivers to the Indenture Trustee an Opinion of Counsel of external
      counsel of the Issuer to the effect that (i) in a case under the Bankruptcy
      Code
      in which BGE (or any of its Affiliates, other than the Issuer) is the debtor,
      the court would hold that the deposited moneys or U.S. Government Obligations
      would not be in the bankruptcy estate of BGE (or any of its Affiliates, other
      than the Issuer, that deposited the moneys or U.S. Government Obligations);
      and
      (ii) in the event BGE (or any of its Affiliates, other than the Issuer, that
      deposited the moneys or U.S. Government Obligations) were to be a debtor in
      a
      case under the Bankruptcy Code, the court would not disregard the separate
      legal
      existence of BGE (or any of its Affiliates, other than the Issuer, that
      deposited the moneys or U.S. Government Obligations) and the Issuer so as to
      order substantive consolidation under the Bankruptcy Code of the Issuer’s assets
      and liabilities with the assets and liabilities of BGE or such other Affiliate;
      and

     

    (i)  
               the Rating Agency
      Condition shall have been satisfied with respect to the exercise of any Legal
      Defeasance Option or Covenant Defeasance Option.

     

    Notwithstanding
      any other provision of this Section 4.02, no delivery of moneys or U.S.
      Government Obligations to the Indenture Trustee shall terminate any obligation
      of the Issuer to the Indenture Trustee under this Indenture or the related
      Series Supplement or any obligation of the Issuer to apply such moneys or U.S.
      Government Obligations under Section 4.03 until such Rate Stabilization
      Bonds shall have been redeemed in accordance with the provisions of this
      Indenture and the related Series Supplement.

     

    SECTION
      4.03.  Application of Trust Money.  All moneys or
      U.S. Government Obligations deposited with the Indenture Trustee pursuant to
      Section 4.01 or 4.02 shall be held in trust and applied by it, in
      accordance with the provisions of the Rate Stabilization Bonds and this
      Indenture, to the payment, either directly or through any Paying Agent, as
      the
      Indenture Trustee is directed by the Issuer in writing, to the Holders of the
      particular Rate Stabilization Bonds for the payment of which such moneys have
      been deposited with the Indenture Trustee, of all sums due and to become due
      thereon for principal, premium, if any, and interest; but such moneys need
      not
      be segregated from other funds except to the extent required herein or in the
      Servicing Agreement or required by law.  Notwithstanding anything to
      the contrary in this Article IV, the Indenture Trustee shall deliver or
      pay to the Issuer from time to time upon Issuer Request any moneys or U.S.
      Government Obligations held by it pursuant to Section 4.02 which, in the
      opinion of a nationally recognized firm of Independent registered public
      accountants expressed in a written certification thereof delivered to the
      Indenture Trustee (and not at the cost or expense of the Indenture Trustee),
      are
      in excess of the amount thereof which would be required to be deposited for
      the
      purpose for which such moneys or U.S. Government Obligations were 

     

    
      
        
        

      

      
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    deposited,
      provided that any such payment shall be subject to the satisfaction of
      the Rating Agency Condition.

     

    SECTION
      4.04.  Repayment of Moneys Held by Paying Agent.  In
      connection with the satisfaction and discharge of this Indenture or the Covenant
      Defeasance Option or Legal Defeasance Option with respect to the Rate
      Stabilization Bonds of any Series, all moneys then held by any Paying Agent
      other than the Indenture Trustee under the provisions of this Indenture with
      respect to such Rate Stabilization Bonds shall, upon demand of the Issuer,
      be
      paid to the Indenture Trustee to be held and applied according to Section
      3.03 and thereupon such Paying Agent shall be released from all further
      liability with respect to such moneys.

     

    ARTICLE
      V

     

    REMEDIES

     

    SECTION
      5.01.  Events of Default.  “Event of Default”
with respect to any Series, wherever used herein, means any
      one or more of the
      following events (whatever the reason for such Event of Default and whether
      it
      shall be voluntary or involuntary or be effected by operation of law or pursuant
      to any judgment, decree or order of any court or any order, rule or regulation
      of any administrative or governmental body):

     

    (i) 
                default in the
      payment of any interest on any Rate Stabilization Bond when the same becomes
      due
      and payable (whether such failure to pay interest is caused by a shortfall
      in
      Qualified Rate Stabilization Charges received or otherwise), and such default
      shall continue for a period of five (5) Business Days; or

     

    (ii)           default
      in the payment of the then unpaid principal of any Rate Stabilization Bond
      of
      any Tranche or Series on the Final Maturity Date for such Tranche or Series;
      or

     

    (iii)          default
      in the observance or performance of any covenant or agreement of the Issuer
      made
      in this Indenture (other than defaults specified in clauses (i) or
(ii) above), and such default shall continue or not be cured, for
      a
      period of thirty (30) days after the earlier of (A) the date that there shall
      have been given, by registered or certified mail, to the Issuer by the Indenture
      Trustee or to the Issuer and the Indenture Trustee by the Holders of at least
      25
      percent of the Outstanding Amount of the Rate Stabilization Bonds of such
      Series, a written notice specifying such default and requiring it to be remedied
      and stating that such notice is a “Notice of Default” hereunder or (B)
      the date that the Issuer has actual knowledge of the default; or

     

    (iv)          any
      representation or warranty of the Issuer made in this Indenture or in any
      certificate or other writing delivered pursuant hereto or in connection herewith
      proving to have been incorrect in any material respect as of the time when
      the
      same shall have been made, and the circumstance or condition in respect of
      which
      such misrepresentation or warranty was incorrect shall not have been eliminated
      or otherwise cured, within thirty (30) days after the earlier of (A) the date
      that there shall have been given, by registered or certified mail, to the Issuer
      by the Indenture Trustee or to the 

     

    
      
        
        

      

      
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    Issuer
      and the Indenture Trustee by the Holders of at least 25 percent of the
      Outstanding Amount of the Rate Stabilization Bonds of such Series, a written
      notice specifying such incorrect representation or warranty and requiring it
      to
      be remedied and stating that such notice is a “Notice of Default”
hereunder or (B) the date the Issuer has actual knowledge of the default,
      or

     

    (v)           the
      filing of a decree or order for relief by a court having jurisdiction in the
      premises in respect of the Issuer or any substantial part of the Rate
      Stabilization Bond Collateral in an involuntary case or proceeding under any
      applicable federal or state bankruptcy, insolvency or other similar law now
      or
      hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
      trustee, sequestrator or similar official of the Issuer or for any substantial
      part of the Rate Stabilization Bond Collateral, or ordering the winding-up
      or
      liquidation of the Issuer’s affairs, and such decree or order shall remain
      unstayed and in effect for a period of ninety (90) consecutive days;
      or

     

    (vi)          the
      commencement by the Issuer of a voluntary case under any applicable federal
      or
      state bankruptcy, insolvency or other similar law now or hereafter in effect,
      or
      the consent by the Issuer to the entry of an order for relief in an involuntary
      case or proceeding under any such law, or the consent by the Issuer to the
      appointment or taking possession by a receiver, liquidator, assignee, custodian,
      trustee, sequestrator or similar official of the Issuer or for any substantial
      part of the Rate Stabilization Bond Collateral, or the making by the Issuer
      of
      any general assignment for the benefit of creditors, or the failure by the
      Issuer generally to pay its debts as such debts become due, or the taking of
      action by the Issuer in furtherance of any of the foregoing; or

     

    (vii)         any
      act or failure to act by the State of Maryland or any of its agencies (including
      the PSC), officers or employees which violates or is not in accordance with
      the
      State Pledge; or

     

    (viii)        any
      other event designated as such in a Series Supplement.

     

    The
      Issuer shall deliver to a Responsible Officer of the Indenture Trustee and
      to
      the Rating Agencies, within five (5) days after a Responsible Officer of the
      Issuer has knowledge of the occurrence thereof, written notice in the form
      of an
      Officer’s Certificate of any event (I) which is an Event of Default under
clauses (i), (ii), (v), (vi), (vii), or
(viii) or (II) which with the giving
      of notice, the lapse of time, or
      both, would become an Event of Default under clause (iii) or (iv),
      including, in each case, the status of such Event of Default and what action
      the
      Issuer is taking or proposes to take with respect thereto.  An Event
      of Default with respect to one Series of Rate Stabilization Bonds will not
      automatically trigger an Event of Default with respect to any other Outstanding
      Series of Rate Stabilization Bonds.

     

    SECTION
      5.02.  Acceleration of Maturity; Rescission and
      Annulment.  If an Event of Default (other than an Event of Default
      under clause (vii) of Section 5.01) should occur and be continuing
      with respect to any Series, then and in every such case the Indenture Trustee
      or
      the Holders representing not less than a majority of the Outstanding Amount
      of
      the Rate Stabilization Bonds of such Series may declare the Rate Stabilization
      Bonds of such Series to be immediately due and payable, by a notice in writing
      to the Issuer (and to the Indenture Trustee if 

     

    
      
        
        

      

      
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    given
      by
      Holders), and upon any such declaration the unpaid principal amount of the
      Rate
      Stabilization Bonds of such Series, together with accrued and unpaid interest
      thereon through the date of acceleration, shall become immediately due and
      payable.

     

    At
      any
      time after such declaration of acceleration of maturity has been made and before
      a judgment or decree for payment of the money due has been obtained by the
      Indenture Trustee as hereinafter in this Article V provided, the Holders
      representing not less than a majority of the Outstanding Amount of the Rate
      Stabilization Bonds of such Series, by written notice to the Issuer and the
      Indenture Trustee, may rescind and annul such declaration and its consequences
      if:

     

    (i)           the
      Issuer has paid or deposited with the Indenture Trustee a sum sufficient to
      pay:

     

    (A)           all
      payments of principal of and premium, if any, and interest on all Rate
      Stabilization Bonds of such Series due and owing at such time as if such Event
      of Default had not occurred and was not continuing and all other amounts that
      would then be due hereunder or upon such Rate Stabilization Bonds if the Event
      of Default giving rise to such acceleration had not occurred; and

     

    (B)           all
      sums paid or advanced by the Indenture Trustee hereunder and the reasonable
      compensation, expenses, disbursements and advances of the Indenture Trustee
      and
      its agents and counsel; and

     

    (ii)           all
      Events of Default with respect to such Series, other than the nonpayment of
      the
      principal of the Rate Stabilization Bonds of such Series that has become due
      solely by such acceleration, have been cured or waived as provided in Section
      5.12.

     

    No
      such
      rescission shall affect any subsequent default or impair any right consequent
      thereto.

     

    SECTION
      5.03.  Collection of Indebtedness and Suits for Enforcement by
      Indenture Trustee.

     

    (a)           If
      an Event of Default under Section 5.01(i) or (ii) has occurred and
      is continuing with respect to any Series, subject to Section 10.15, the
      Indenture Trustee, in its own name and as trustee of an express trust, may
      institute a Proceeding for the collection of the sums so due and unpaid, and
      may
      prosecute such Proceeding to judgment or final decree, and, subject to the
      limitations on recourse set forth herein, may enforce the same against the
      Issuer or other obligor upon such Rate Stabilization Bonds and collect in the
      manner provided by law out of the property of the Issuer or other obligor upon
      such Rate Stabilization Bonds, wherever situated the moneys payable, or the
      related Series Rate Stabilization Bond Collateral and the proceeds thereof,
      the
      whole amount then due and payable on the Rate Stabilization Bonds of such Series
      for principal, premium, if any, and interest, with interest upon the overdue
      principal and premium, if any, and, to the extent payment at such rate of
      interest shall be legally enforceable, upon overdue installments of interest,
      at
      the respective rate borne by the Rate Stabilization Bonds of such Series or
      the
      applicable Tranche of such Series and in addition thereto such 

     

    
      
        
        

      

      
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    further
      amount as shall be sufficient to cover the costs and expenses of collection,
      including the reasonable compensation, expenses, disbursements and advances
      of
      the Indenture Trustee and its agents and counsel.

     

    (b)           If
      an Event of Default (other than Event of Default under clause (vii) of
Section 5.01) occurs and is continuing with respect to any Series, the
      Indenture Trustee shall, as more particularly provided in Section 5.04,
      in its discretion, proceed to protect and enforce its rights and the rights
      of
      the Holders of such Series, by such appropriate Proceedings as the Indenture
      Trustee shall deem most effective to protect and enforce any such rights,
      whether for the specific enforcement of any covenant or agreement in this
      Indenture or in aid of the exercise of any power granted herein, or to enforce
      any other proper remedy or legal or equitable right vested in the Indenture
      Trustee by this Indenture and the related Series Supplement or by law, including
      foreclosing or otherwise enforcing the Lien of the Series Rate Stabilization
      Bond Collateral securing such Series of Rate Stabilization Bonds or applying
      to
      a court of competent jurisdiction for sequestration of revenues arising with
      respect to such Rate Stabilization Property.

     

    (c)           If
      an Event of Default under Section 5.01(v) or (vi) has occurred and
      is continuing, the Indenture Trustee, irrespective of whether the principal
      of
      any Rate Stabilization Bonds of any Series shall then be due and payable as
      therein expressed or by declaration or otherwise and irrespective of whether
      the
      Indenture Trustee shall have made any demand pursuant to the provisions of
      this
Section 5.04, shall be entitled and empowered, by intervention in any
      Proceedings related to such Event of Default or otherwise:

     

    (i)     
            to file and prove a claim or claims for the
      whole amount of principal, premium, if any, and interest owing and unpaid in
      respect of the Rate Stabilization Bonds and to file such other papers or
      documents as may be necessary or advisable in order to have the claims of the
      Indenture Trustee (including any claim for reasonable compensation to the
      Indenture Trustee and each predecessor Indenture Trustee, and their respective
      agents, attorneys and counsel, and for reimbursement of all expenses and
      liabilities incurred, and all advances made, by the Indenture Trustee and each
      predecessor Indenture Trustee, except as a result of negligence or bad faith)
      and of the Holders allowed in such Proceedings;

     

    (ii)           unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      in any election of a trustee in bankruptcy, a standby trustee or Person
      performing similar functions in any such Proceedings;

     

    (iii)          to
      collect and receive any moneys or other property payable or deliverable on
      any
      such claims and to distribute all amounts received with respect to the claims
      of
      the Holders and of the Indenture Trustee on their behalf; and

     

    (iv)          to
      file such proofs of claim and other papers and documents as may be necessary
      or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      allowed in any judicial proceeding relative to the Issuer, its creditors and
      its
      property;

     

    and
      any
      trustee, receiver, liquidator, custodian or other similar official in any such
      Proceeding is hereby authorized by each of such Holders to make payments to
      the
      Indenture Trustee, and, in 

     

    
      
        
        

      

      
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    the
      event
      that the Indenture Trustee shall consent to the making of payments directly
      to
      such Holders, to pay to the Indenture Trustee such amounts as shall be
      sufficient to cover reasonable compensation to the Indenture Trustee, each
      predecessor Indenture Trustee and their respective agents, attorneys and
      counsel, and all other expenses and liabilities incurred, and all advances
      made,
      by the Indenture Trustee and each predecessor Indenture Trustee except as a
      result of negligence or bad faith.

     

    (d)           Nothing
      herein contained shall be deemed to authorize the Indenture Trustee to authorize
      or consent to or vote for or accept or adopt on behalf of any Holder any plan
      of
      reorganization, arrangement, adjustment or composition affecting the Rate
      Stabilization Bonds or the rights of any Holder thereof or to authorize the
      Indenture Trustee to vote in respect of the claim of any Holder in any such
      proceeding except, as aforesaid, to vote for the election of a trustee in
      bankruptcy or similar Person.

     

    (e)           All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Rate Stabilization Bonds of any Series, may be enforced by the Indenture
      Trustee without the possession of any of the Rate Stabilization Bonds of such
      Series or the production thereof in any trial or other Proceedings relative
      thereto, and any such action or proceedings instituted by the Indenture Trustee
      shall be brought in its own name as trustee of an express trust, and any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee, each predecessor Indenture Trustee and
      their respective agents and attorneys, shall be for the ratable benefit of
      the
      Holders of the Rate Stabilization Bonds of such Series.

     

    (f)   
              In any Proceedings brought by
      the Indenture Trustee (and also any Proceedings involving the interpretation
      of
      any provision of this Indenture to which the Indenture Trustee shall be a
      party), the Indenture Trustee shall be held to represent all the Holders of
      the
      Rate Stabilization Bonds, and it shall not be necessary to make any Holder
      a
      party to any such Proceedings.

     

    SECTION
      5.04.  Remedies; Priorities.

     

    (a)           If
      an Event of Default (other than an Event of Default under clause (vii) of
Section 5.01) shall have occurred and be continuing with respect to a
      Series, the Indenture Trustee may do one or more of the following (subject
      to
Section 5.05):

     

    (i) 
                institute
      Proceedings in its own name and as trustee of an express trust for the
      collection of all amounts then payable on the Rate Stabilization Bonds of such
      Series or under this Indenture with respect thereto, whether by declaration
      of
      acceleration or otherwise, and, subject to the limitations on recovery set
      forth
      herein, enforce any judgment obtained, and collect from the Issuer or any other
      obligor moneys adjudged due upon such Rate Stabilization Bonds;

     

    (ii)           institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Series Rate Stabilization Bond
      Collateral;

     

    (iii)          exercise
      any remedies of a secured party under the UCC, the Rate Stabilization Law or
      any
      other applicable law and take any other appropriate action to 

     

    
      
        
        

      

      
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    protect
      and enforce the rights and remedies of the Indenture Trustee and the Holders
      of
      the Rate Stabilization Bonds of such Series;

     

    (iv)          at
      the written direction of the Holders of a majority of the Outstanding Amount
      of
      the Rate Stabilization Bonds of such Series, sell the Series Rate Stabilization
      Bond Collateral or any portion thereof or rights or interest therein, at one
      or
      more public or private sales called and conducted in any manner permitted by
      law; and

     

    (v)           exercise
      all rights, remedies, powers, privileges and claims of the Issuer against the
      Seller, the Administrator, BGE or the Servicer under or in connection with,
      and
      pursuant to the terms of, the Sale Agreement, the Administration Agreement
      or
      the Servicing Agreement;

     

    provided,
      however, that the Indenture Trustee may not sell or otherwise liquidate
      any portion of the Rate Stabilization Bond Collateral following such an Event
      of
      Default, other than an Event of Default described in Section 5.01(i), or
(ii), with respect to any Series unless (A) the Holders of 100
      percent of
      the Outstanding Amount of the Rate Stabilization Bonds of all Series consent
      thereto, (B) the proceeds of such sale or liquidation distributable to the
      Holders of all Series are sufficient to discharge in full all amounts then
      due
      and unpaid upon such Rate Stabilization Bonds for principal, premium, if any,
      and interest after taking into account payment of all amounts due prior thereto
      pursuant to the priorities set forth in Section 8.02(e) or (C) the
      Indenture Trustee determines that the Rate Stabilization Bond Collateral will
      not continue to provide sufficient funds for all payments on the Rate
      Stabilization Bonds of all Series as they would have become due if the Rate
      Stabilization Bonds had not been declared due and payable, and the Indenture
      Trustee obtains the written consent of Holders of 66-2/3 percent of the
      Outstanding Amount of the Rate Stabilization Bonds of all Series.  In
      determining such sufficiency or insufficiency with respect to clause (B)
      and (C), the Indenture Trustee may, but need not, obtain (at the Issuer’s
      expense) and conclusively rely upon an opinion of an Independent investment
      banking or accounting firm of national reputation as to the feasibility of
      such
      proposed action and as to the sufficiency of the Rate Stabilization Bond
      Collateral for such purpose.

     

    (b)           If
      an Event of Default under clause (vii) of Section 5.01 shall have
      occurred and be continuing, the Indenture Trustee, for the benefit of the
      Secured Parties of the related Series, shall be entitled and empowered to the
      extent permitted by applicable law, to institute or participate in Proceedings
      necessary to compel performance of or to enforce the State Pledge and to collect
      any monetary damages incurred by the Holders or the Indenture Trustee as a
      result of any such Event of Default, and may prosecute any such Proceeding
      to
      final judgment or decree.  Such remedy shall be the only remedy that
      the Indenture Trustee may exercise if the only Event of Default that has
      occurred and is continuing is an Event of Default under Section
      5.01(vii).

     

    (c)           If
      the Indenture Trustee collects any money pursuant to this Article V, it
      shall pay out such money in accordance with the priorities set forth in
Section 8.02(e).

     

    SECTION
      5.05.  Optional Preservation of the Rate Stabilization Bond
      Collateral.  If the Rate Stabilization Bonds of any Series have
      been declared to be due and payable under 

     

    
      
        
        

      

      
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    Section
      5.02 following an Event of Default and such declaration and its consequences
      have not been rescinded and annulled, the Indenture Trustee may, but need not,
      elect to maintain possession of the related Series Rate Stabilization Bond
      Collateral.  It is the desire of the parties hereto and the Holders
      that there be at all times sufficient funds for the payment of principal of
      and
      premium, if any, and interest on the Rate Stabilization Bonds, and the Indenture
      Trustee shall take such desire into account when determining whether or not
      to
      maintain possession of the Series Rate Stabilization Bond
      Collateral.  In determining whether to maintain possession of the
      Series Rate Stabilization Bond Collateral or sell or liquidate the same, the
      Indenture Trustee may, but need not, obtain (at the Issuer’s expense) and
      conclusively rely upon an opinion of an Independent investment banking or
      accounting firm of national reputation as to the feasibility of such proposed
      action and as to the sufficiency of the Series Rate Stabilization Bond
      Collateral for such purpose.

     

    SECTION
      5.06.  Limitation of Suits.  No Holder of any Rate
      Stabilization Bond of any Series shall have any right to institute any
      Proceeding, judicial or otherwise, to avail itself of any remedies provided
      in
      the Rate Stabilization Law or to avail itself of the right to foreclose on
      the
      Rate Stabilization Bond Collateral or otherwise enforce the Lien and the
      security interest on the Rate Stabilization Bond Collateral with respect to
      this
      Indenture and the related Series Supplement, or for the appointment of a
      receiver or trustee, or for any other remedy hereunder, unless:

     

    (i)  
               such Holder previously has
      given written notice to the Indenture Trustee of a continuing Event of Default
      with respect to such Series;

     

    (ii)           the
      Holders of not less than a majority of the Outstanding Amount of the Rate
      Stabilization Bonds of all Series have made written request to the Indenture
      Trustee to institute such Proceeding in respect of such Event of Default in
      its
      own name as Indenture Trustee hereunder;

     

    (iii)          such
      Holder or Holders have offered to the Indenture Trustee indemnity satisfactory
      to it against the costs, expenses and liabilities to be incurred in complying
      with such request;

     

    (iv)          the
      Indenture Trustee for sixty (60) days after its receipt of such notice, request
      and offer of indemnity has failed to institute such Proceedings;
      and

     

    (v)           no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such sixty-day period by the Holders of a majority of the
      Outstanding Amount of the Rate Stabilization Bonds of all Series;

     

    it
      being
      understood and intended that no one or more Holders shall have any right in
      any
      manner whatever by virtue of, or by availing of, any provision of this Indenture
      to affect, disturb or prejudice the rights of any other Holders or to obtain
      or
      to seek to obtain priority or preference over any other Holders or to enforce
      any right under this Indenture, except in the manner herein
      provided.

     

    In
      the
      event the Indenture Trustee shall receive conflicting or inconsistent requests
      and indemnity from two or more groups of Holders, each representing less than
      a

     

    
      
        
        

      

      
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    majority
      of the Outstanding Amount of the Rate Stabilization Bonds of all Series, the
      Indenture Trustee in its sole discretion may determine what action, if any,
      shall be taken, notwithstanding any other provisions of this
      Indenture.

     

    SECTION
      5.07.  Unconditional Rights of Holders To Receive Principal,
      Premium, if any, and Interest.  Notwithstanding any other
      provisions in this Indenture, the Holder of any Rate Stabilization Bond shall
      have the right, which is absolute and unconditional, (a) to receive payment
      of
      (i) the interest, if any, on such Rate Stabilization Bond on the due dates
      thereof expressed in such Rate Stabilization Bond or in this Indenture or (ii)
      the unpaid principal, if any, of such Rate Stabilization Bonds on the Final
      Maturity Date therefor and (b) to institute suit for the enforcement of any
      such
      payment, and such right shall not be impaired without the consent of such
      Holder.

     

    SECTION
      5.08.  Restoration of Rights and Remedies.  If the
      Indenture Trustee or any Holder has instituted any Proceeding to enforce any
      right or remedy under this Indenture and such Proceeding has been discontinued
      or abandoned for any reason or has been determined adversely to the Indenture
      Trustee or to such Holder, then and in every such case the Issuer, the Indenture
      Trustee and the Holders shall, subject to any determination in such Proceeding,
      be restored severally and respectively to their former positions hereunder,
      and
      thereafter all rights and remedies of the Indenture Trustee and the Holders
      shall continue as though no such Proceeding had been instituted.

     

    SECTION
      5.09.  Rights and Remedies Cumulative.  No right or
      remedy herein conferred upon or reserved to the Indenture Trustee or to the
      Holders is intended to be exclusive of any other right or remedy, and every
      right and remedy shall, to the extent permitted by law, be cumulative and in
      addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise.  The assertion or
      employment of any right or remedy hereunder, or otherwise, shall not prevent
      the
      concurrent assertion or employment of any other appropriate right or
      remedy.

     

    SECTION
      5.10.  Delay or Omission Not a Waiver.  No delay or
      omission of the Indenture Trustee or any Holder to exercise any right or remedy
      accruing upon any Default or Event of Default shall impair any such right or
      remedy or constitute a waiver of any such Default or Event of Default or an
      acquiescence therein.  Every right and remedy given by this Article
      Vor by law to the Indenture Trustee or to the Holders may be exercised from
      time to time, and as often as may be deemed expedient, by the Indenture Trustee
      or by the Holders, as the case may be.

     

    SECTION
      5.11.  Control by Holders.  The Holders of not less
      than a majority of the Outstanding Amount of the Rate Stabilization Bonds of
      an
      affected Series or Tranche shall have the right to direct the time, method
      and
      place of conducting any Proceeding for any remedy available to the Indenture
      Trustee with respect to the Rate Stabilization Bonds of such Series or Tranche
      or Tranches or exercising any trust or power conferred on the Indenture Trustee
      with respect to such Series or Tranche or Tranches; provided
      that:

     

    (i)   
              such direction shall not be in
      conflict with any rule of law or with this Indenture and shall not involve
      the
      Indenture Trustee in any personal liability or expense;

     

    
      
        
        

      

      
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    (ii)           subject
      to other conditions specified in Section 5.04, any direction to the
      Indenture Trustee to sell or liquidate any Series Rate Stabilization Bond
      Collateral shall be by the Holders representing not less than 100 percent of
      the
      Outstanding Amount of the Rate Stabilization Bonds of the affected
      Series;

     

    (iii)          if
      the conditions set forth in Section 5.05 have been satisfied and the
      Indenture Trustee elects to retain the Series Rate Stabilization Bond Collateral
      pursuant to Section 5.05, then any direction to the Indenture Trustee by
      Holders representing less than 100 percent of the Outstanding Amount of the
      Rate
      Stabilization Bonds of all Series to sell or liquidate the Series Rate
      Stabilization Bond Collateral shall be of no force and effect; and

     

    (iv)          the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction;

     

    provided,
      however, that, the Indenture Trustee’s duties shall be subject to
Section 6.01, and the Indenture Trustee need not take any action that it
      determines might involve it in liability or might materially adversely affect
      the rights of any Holders not consenting to such action.  Furthermore
      and without limiting  the foregoing, the Indenture Trustee shall not
      be required to take any action for which it reasonably believes that it will
      not
      be indemnified to its satisfaction against any cost, expense or
      liabilities.

     

    SECTION
      5.12.  Waiver of Past Defaults.  Prior to the
      declaration of the acceleration of the maturity of the Rate Stabilization Bonds
      of all Series as provided in Section 5.02, the Holders representing not
      less than a majority of the Outstanding Amount of the Rate Stabilization Bonds
      of an affected Series or Tranche may waive any past Default or Event of Default
      and its consequences except a Default (a) in payment of principal of or premium,
      if any, or interest on any of the Rate Stabilization Bonds or (b) in respect
      of
      a covenant or provision hereof which cannot be modified or amended without
      the
      consent of the Holder of each Rate Stabilization Bond of all Series or Tranches
      affected.  In the case of any such waiver, the Issuer, the Indenture
      Trustee and the Holders shall be restored to their former positions and rights
      hereunder, respectively; but no such waiver shall extend to any subsequent
      or
      other Default or impair any right consequent thereto.

     

    Upon
      any
      such waiver, such Default shall cease to exist and be deemed to have been cured
      and not to have occurred, and any Event of Default arising therefrom shall
      be
      deemed to have been cured and not to have occurred, for every purpose of this
      Indenture; but no such waiver shall extend to any subsequent or other Default
      or
      Event of Default or impair any right consequent thereto.

     

    SECTION
      5.13.  Undertaking for Costs.  All parties to this
      Indenture agree, and each Holder of any Rate Stabilization Bond by such Holder’s
      acceptance thereof shall be deemed to have agreed, that any court may in its
      discretion require, in any suit for the enforcement of any right or remedy
      under
      this Indenture, or in any suit against the Indenture Trustee for any action
      taken, suffered or omitted by it as Indenture Trustee, the filing by any party
      litigant in such suit of an undertaking to pay the costs of such suit, and
      that
      such court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees, against any party litigant in such suit, 

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    having
      due regard to the merits and good faith of the claims or defenses made by such
      party litigant; but the provisions of this Section 5.13 shall not apply
      to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted
      by
      any Holder, or group of Holders, in each case holding in the aggregate more
      than
      ten (10) percent of the Outstanding Amount of the Rate Stabilization Bonds
      of a
      Series or (c) any suit instituted by any Holder for the enforcement of the
      payment of (i) interest on any Rate Stabilization Bond on or after the due
      dates
      expressed in such Rate Stabilization Bond and in this Indenture or (ii) the
      unpaid principal, if any, of any Rate Stabilization Bond on or after the Final
      Maturity Date therefor.

     

    SECTION
      5.14.  Waiver of Stay or Extension Laws.  The Issuer
      covenants (to the extent that it may lawfully do so) that it will not at any
      time insist upon, or plead or in any manner whatsoever, claim or take the
      benefit or advantage of, any stay or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      will not hinder, delay or impede the execution of any power herein granted
      to
      the Indenture Trustee, but will suffer and permit the execution of every such
      power as though no such law had been enacted.

     

    SECTION
      5.15.  Action on Rate Stabilization Bonds.  The
      Indenture Trustee’s right to seek and recover judgment on the Rate Stabilization
      Bonds or under this Indenture shall not be affected by the seeking, obtaining
      or
      application of any other relief under or with respect to this
      Indenture.  Neither the Lien of this Indenture nor any rights or
      remedies of the Indenture Trustee or the Holders shall be impaired by the
      recovery of any judgment by the Indenture Trustee against the Issuer or by
      the
      levy of any execution under such judgment upon any portion of the Rate
      Stabilization Bond Collateral or any other assets of the Issuer.

     

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

     

    SECTION
      6.01.  Duties of Indenture Trustee.

     

    (a)           If
      an Event of Default has occurred and is continuing, the Indenture Trustee shall
      exercise the rights and powers vested in it by this Indenture and use the same
      degree of care and skill in their exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs.

     

    (b)           Except
      during the continuance of an Event of Default:

     

    (i)   
              the Indenture Trustee undertakes
      to perform such duties and only such duties as are specifically set forth in
      this Indenture and no implied covenants or obligations shall be read into this
      Indenture against the Indenture Trustee; and

     

    (ii)           in
      the absence of bad faith on its part, the Indenture Trustee may conclusively
      rely, as to the truth of the statements and the correctness of the opinions
      expressed therein, upon certificates or opinions furnished to the Indenture
      Trustee and conforming to the requirements of this Indenture.

     

    
      
        
        

      

      
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    (c)           The
      Indenture Trustee may not be relieved from liability for its own negligent
      action, its own bad faith, its own negligent failure to act or its own willful
      misconduct, except that:

     

    (i)     
            this paragraph (c) does not limit the
      effect of paragraph (b) of this Section 6.01;

     

    (ii)           the
      Indenture Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer unless it is proved that the Indenture Trustee
      was negligent in ascertaining the pertinent facts; and

     

    (iii)          the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with a direction received by it
      hereunder.

     

    (d)           Every
      provision of this Indenture that in any way relates to the Indenture Trustee
      is
      subject to paragraphs (a), (b) and (c) of this Section
      6.01.

     

    (e)           The
      Indenture Trustee shall not be liable for interest on any money received by
      it
      except as the Indenture Trustee may agree in writing with the
      Issuer.

     

    (f)           Money
      held in trust by the Indenture Trustee need not be segregated from other funds
      held by the Indenture Trustee except to the extent required by law or the terms
      of this Indenture, the Sale Agreement, the Servicing Agreement or the
      Administration Agreement

     

    (g)           No
      provision of this Indenture shall require the Indenture Trustee to expend or
      risk its own funds or otherwise incur financial liability in the performance
      of
      any of its duties hereunder or in the exercise of any of its rights or powers,
      if it shall have reasonable grounds to believe that repayments of such funds
      or
      indemnity satisfactory to it against such risk or liability is not reasonably
      assured to it.

     

    (h)           Every
      provision of this Indenture relating to the conduct or affecting the liability
      of or affording protection to the Indenture Trustee shall be subject to the
      provisions of this Section 6.01 and to the provisions of the
      TIA.

     

    (i)   
              In the event that the Indenture
      Trustee is also acting as Paying Agent, Rate Stabilization Bond Registrar or
      Securities Intermediary hereunder, the protections of this Article VI
      shall also be afforded to the Indenture Trustee in its capacity as Paying Agent,
      Rate Stabilization Bond Registrar or Securities Intermediary.

     

    (j)   
              Except for the express duties of
      the Indenture Trustee with respect to the administrative functions set forth
      in
      the Basic Documents, the Indenture Trustee shall have no obligation to
      administer, service or collect Rate Stabilization Property or to maintain,
      monitor or otherwise supervise the administration, servicing or collection
      of
      the Rate Stabilization Property.

     

    (k)           Under
      no circumstance shall the Indenture Trustee be liable for any indebtedness
      of
      the Issuer, the Servicer or the Seller evidenced by or arising under the Rate
      Stabilization Bonds or the Basic Documents.

     

    
      
        
        

      

      
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    (l)  
               On or before March 15th of each
      fiscal
      year ending December 31, the Indenture Trustee shall (i) deliver to the Issuer
      a
      report (in form and substance reasonably satisfactory to the Issuer and
      addressed to the Issuer and signed by an authorized officer of the Indenture
      Trustee) regarding the Indenture Trustee’s assessment of compliance, during the
      immediately preceding fiscal year ending December 31, with each of the
      applicable servicing criteria specified on Exhibit E hereto as required
      under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation
      AB
      and (ii) deliver to the Issuer a report of an Independent registered public
      accounting firm reasonably acceptable to the Issuer that attests to and reports
      on, in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under
      the
      Securities Act and the Exchange Act, the assessment of compliance made by the
      Indenture Trustee and delivered pursuant to clause (i).

     

    SECTION
      6.02.  Rights of Indenture
      Trustee.  b)  The Indenture Trustee may conclusively
      rely and shall be fully protected in relying on any document believed by it
      to
      be genuine and to have been signed or presented by the proper
      person.  The Indenture Trustee need not investigate any fact or matter
      stated in such document.

     

    (b)           Before
      the Indenture Trustee acts or refrains from acting, it may require and shall
      be
      entitled to receive an Officer’s Certificate or an Opinion of Counsel of
      external counsel of the Issuer (at no cost or expense to the Indenture Trustee)
      that such action is required or permitted hereunder.  The Indenture
      Trustee shall not be liable for any action it takes or omits to take in good
      faith in reliance on such Officer’s Certificate or Opinion of
      Counsel.

     

    (c)           The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys or
      a
      custodian or nominee, and the Indenture Trustee shall not be responsible for
      any
      misconduct or negligence on the part of, or for the supervision of, any such
      agent, attorney, custodian or nominee appointed with due care by it
      hereunder.

     

    (d)           The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
provided, however, that the Indenture Trustee’s conduct does not
      constitute willful misconduct, negligence or bad faith.

     

    (e)           The
      Indenture Trustee may consult with counsel, and the advice or opinion of counsel
      with respect to legal matters relating to this Indenture and the Rate
      Stabilization Bonds shall be full and complete authorization and protection
      from
      liability in respect to any action taken, omitted or suffered by it hereunder
      in
      good faith and in accordance with the advice or opinion of such
      counsel.

     

    (f)   
              The Indenture Trustee shall be
      under no obligation to take any action or exercise any of the rights or powers
      vested in it by this Indenture or any other Basic Document, or to institute,
      conduct or defend any litigation hereunder or thereunder or in relation hereto
      or thereto, at the request, order or direction of any of the Bondholders
      pursuant to the provisions of this Indenture and the related Series Supplement
      or otherwise, unless it shall have grounds to believe in its discretion that
      security or indemnity against the costs, expenses and liabilities which may
      be
      incurred therein or thereby is to its satisfaction assured to it.

     

    
      
        
        

      

      
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    (g)           In
      order to comply with laws, rules, regulations and executive orders in effect
      from time to time applicable to banking institutions, including those relating
      to the funding of terrorist activities and money laundering (“Applicable Law”),
      the Indenture Trustee is required to obtain, verify and record certain
      information relating to individuals and entities which maintain a business
      relationship with the Indenture Trustee.  Accordingly, each of the
      parties agrees to provide to the Indenture Trustee upon its request from time
      to
      time such identifying information as may be available for such party in order
      to
      enable the Indenture Trustee to comply with Applicable Law.

     

    SECTION
      6.03.  Individual Rights of Indenture Trustee.  The
      Indenture Trustee in its individual or any other capacity may become the owner
      or pledgee of Rate Stabilization Bonds and may otherwise deal with the Issuer
      or
      its Affiliates with the same rights it would have if it were not Indenture
      Trustee.  Any Paying Agent, Rate Stabilization Bond Registrar,
      co-registrar or co-paying agent or agent appointed under Section 3.02 may
      do the same with like rights.  However, the Indenture Trustee must
      comply with Sections 6.11 and 6.12.

     

    SECTION
      6.04.  Indenture Trustee’s Disclaimer.  The Indenture
      Trustee shall not be responsible for and makes no representation (other than
      as
      set forth in Section 6.13) as to the validity or adequacy of this
      Indenture or the Rate Stabilization Bonds, it shall not be accountable for
      the
      Issuer’s use of the proceeds from the Rate Stabilization Bonds, and it shall not
      be responsible for any statement of the Issuer in the Indenture or in any
      document issued in connection with the sale of the Rate Stabilization Bonds
      or
      in the Rate Stabilization Bonds other than the Indenture Trustee’s certificate
      of authentication.  The Indenture Trustee shall not be responsible for
      the form, character, genuineness, sufficiency, value or validity of any of
      the
      Rate Stabilization Bond Collateral, or for or in respect of the Rate
      Stabilization Bonds (other than the certificate of authentication for the Rate
      Stabilization Bonds) or the Basic Documents and the Indenture Trustee shall
      in
      no event assume or incur any liability, duty or obligation to any Holder, other
      than as expressly provided in this Indenture.  The Indenture Trustee
      shall not be liable for the default or misconduct of the Issuer, the Seller,
      the
      Servicer or any other Person under the Basic Documents or otherwise, and the
      Indenture Trustee shall have no obligation or liability to perform the
      obligations of such Persons.

     

    SECTION
      6.05.  Notice of Defaults.

     

    (a)           If
      a Default occurs and is continuing with respect to any Series and if it is
      actually known to a Responsible Officer of the Indenture Trustee, the Indenture
      Trustee shall mail to each Rating Agency and each Bondholder of all Series
      notice of the Default within ninety (90) days after actual notice of such
      Default was received by a Responsible Officer of the Indenture
      Trustee.  Except in the case of a Default in payment of principal of
      and premium, if any, or interest on any Rate Stabilization Bond, the Indenture
      Trustee may withhold the notice if and so long as a committee of its Responsible
      Officers in good faith determines that withholding the notice is in the
      interests of Holders.  Except for an Event of Default under
Sections 5.01(i) or (ii) that occur at a time when the Indenture
      Trustee is acting as the Paying Agent, and except as provided in the first
      sentence of this Section 6.05, in no event shall the Indenture Trustee be
      deemed to have knowledge of a Default.

     

    
      
        
        

      

      
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    (b)           If
      a Default occurs and is continuing with respect to any Series and if it is
      actually known to a Responsible Officer of the Indenture Trustee, the Indenture
      Trustee shall promptly, but no more frequently than monthly, mail to the Issuer
      notice of any legal fees or other expenses incurred by the Indenture Trustee
      in
      defending or prosecuting any actual or threatened litigation, including any
      administrative proceeding, in respect of the Rate Stabilization Bonds or the
      Rate Stabilization Bond Collateral relating to such Series.

     

    SECTION
      6.06.  Reports by Indenture Trustee to Holders.

     

    (a)           So
      long as Rate Stabilization Bonds are Outstanding and the Indenture Trustee
      is
      the Rate Stabilization Bond Registrar and Paying Agent, it shall deliver to
      each
      relevant current or former Holder such information in its possession as required
      by applicable Requirements of Law in connection with such Holder’s preparation
      of its federal income and any applicable local or state tax
      returns.  If the Rate Stabilization Bond Registrar and Paying Agent is
      other than the Indenture Trustee, such Rate Stabilization Bond Registrar and
      Paying Agent, within the prescribed period of time for tax reporting purposes
      after the end of each calendar year, shall deliver to each relevant current
      or
      former Holder such information in its possession as may be required to enable
      such Holder to prepare its federal income and any applicable local or state
      tax
      returns.

     

    (b)           With
      respect to each Series of Rate Stabilization Bonds, on or prior to each Payment
      Date or Special Payment Date therefor, the Indenture Trustee will deliver to
      each Holder of such Rate Stabilization Bonds on such Payment Date or Special
      Payment Date a statement as provided and prepared by the Servicer which will
      include (to the extent applicable) the following information (and any other
      information so specified in the applicable Series Supplement) as to the Rate
      Stabilization Bonds of such Series with respect to such Payment Date or Special
      Payment Date or the period since the previous Payment Date, as
      applicable:

     

    (i)    
             the amount of the payment to Holders
      allocable to principal, if any;

     

    (ii)           the
      amount of the payment to Holders allocable to interest;

     

    (iii)          the
      aggregate Outstanding Amount of such Rate Stabilization Bonds, before and after
      giving effect to any payments allocated to principal reported under clause
      (i) above;

     

    (iv)          the
      difference, if any, between the amount specified in clause (iii) above
      and the Outstanding Amount specified in the related Expected Amortization
      Schedule;

     

    (v)           any
      other transfers and payments to be made on such Payment Date or Special Payment
      Date, including amounts paid to the Indenture Trustee and to the Servicer;
      and

     

    (vi)          the
      amounts on deposit in the applicable Capital Subaccount and the applicable
      Excess Funds Subaccount, after giving effect to the foregoing
      payments.

     

    (c)           The
      Issuer shall send a copy of each of the Certificate of Compliance delivered
      to
      it pursuant to Section 3.03 of the Servicing Agreement and the Annual
      Accountant’s 

     

    
      
        
        

      

      
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    Report
      delivered to it pursuant to Section 3.04 of the Servicing Agreement to
      the Rating Agencies.  A copy of such certificate and report may be
      obtained by any Holder by a request in writing to the Indenture
      Trustee.

     

    (d)           The
      Indenture Trustee may consult with counsel, and the advice or opinion of such
      counsel with respect to legal matters relating to this Indenture and the Rate
      Stabilization Bonds shall be full and complete authorization and protection
      from
      liability with respect of any action taken, omitted or suffered by it hereunder
      in good faith and in accordance with the advice or opinion of such
      counsel.

     

    SECTION
      6.07.  Compensation and Indemnity.  The Issuer shall
      pay to the Indenture Trustee from time to time reasonable compensation for
      its
      services.  The Indenture Trustee’s compensation shall not be limited
      by any law on compensation of a trustee of an express trust.  The
      Issuer shall reimburse the Indenture Trustee for all reasonable out-of-pocket
      expenses incurred or made by it, including costs of collection, in addition
      to
      the compensation for its services.  Such expenses shall include the
      reasonable compensation and expenses, disbursements and advances of the
      Indenture Trustee’s agents, counsel, accountants and experts.  The
      Issuer shall indemnify and hold harmless the Indenture Trustee and its officers,
      directors, employees and agents against any and all cost, damage, loss,
      liability, tax or expense (including reasonable attorney’s fees and expenses)
      incurred by it in connection with the administration and the enforcement of
      this
      Indenture and the Indenture Trustee’s rights, powers and obligations under this
      Indenture and the related Series Supplement and the performance of its duties
      hereunder and obligations under or pursuant to this Indenture and the related
      Series Supplement.  The Indenture Trustee shall notify the Issuer as
      soon as is reasonably practicable of any claim for which it may seek
      indemnity.  The Issuer shall defend the claim and the Indenture
      Trustee may have separate counsel and the Issuer shall pay the reasonable fees
      and expenses of such counsel.  The Issuer need not reimburse any
      expense or indemnify against any loss, liability or expense incurred by the
      Indenture Trustee through the Indenture Trustee’s own willful misconduct,
      negligence or bad faith.  The rights of the Indenture Trustee set
      forth in this Section 6.07 are subject to and limited by the priority of
      payments set forth in Section 8.02(e).

     

    The
      payment obligations to the Indenture Trustee pursuant to this Section
      6.07 shall survive the discharge of this Indenture and any Series Supplement
      or the earlier resignation or removal of the Indenture Trustee.  When
      the Indenture Trustee incurs expenses after the occurrence of a Default
      specified in Section 5.01(v) or (vi) with respect to the Issuer,
      the expenses are intended to constitute expenses of administration under the
      Bankruptcy Code or any other applicable federal or state bankruptcy, insolvency
      or similar law.

     

    SECTION
      6.08.  Replacement of Indenture Trustee and Securities
      Intermediary.

     

    (a)           The
      Indenture Trustee may resign at any time upon thirty (30) days’ prior written
      notice to the Issuer subject to clause (c) below.  The Holders
      of a majority of the Outstanding Amount of the Rate Stabilization Bonds of
      all
      Series may remove the Indenture Trustee by so notifying the Indenture Trustee
      and may appoint a successor Indenture Trustee.  The Issuer shall
      remove the Indenture Trustee if:

     

    (i)   
              the Indenture Trustee fails to
      comply with Section 6.11;

     

    
      
        
        

      

      
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    (ii)           the
      Indenture Trustee is adjudged a bankrupt or insolvent;

     

    (iii)          a
      receiver or other public officer takes charge of the Indenture Trustee or its
      property;

     

    (iv)          the
      Indenture Trustee otherwise becomes incapable of acting; or

     

    (v)           the
      Indenture Trustee fails to provide to the Issuer any information reasonably
      requested by the Issuer pertaining to the Indenture Trustee and necessary for
      the Issuer or the Sponsor to comply with its reporting obligations under the
      Exchange Act and Regulation AB and such failure is not resolved to the Issuer’s
      and the Indenture Trustee’s mutual satisfaction within a reasonable period of
      time.

     

    Any
      removal or resignation of the Indenture Trustee shall also constitute a removal
      or resignation of the Securities Intermediary.

     

    (b)           If
      the Indenture Trustee gives notice of resignation or is removed or if a vacancy
      exists in the office of Indenture Trustee for any reason (the Indenture Trustee
      in such event being referred to herein as the retiring Indenture Trustee),
      the
      Issuer shall promptly appoint a successor Indenture Trustee and Securities
      Intermediary.

     

    (c)           A
      successor Indenture Trustee shall deliver a written acceptance of its
      appointment as the Indenture Trustee and as the Securities Intermediary to
      the
      retiring Indenture Trustee and to the Issuer.  Thereupon the
      resignation or removal of the retiring Indenture Trustee shall become effective,
      and the successor Indenture Trustee shall have all the rights, powers and duties
      of the Indenture Trustee and Securities Intermediary, as applicable, under
      this
      Indenture.  No resignation or removal of the Indenture Trustee
      pursuant to this Section 6.08 shall become effective until acceptance of
      the appointment by a successor Indenture Trustee having the qualifications
      set
      forth in Section 6.11.  The successor Indenture Trustee shall
      mail a notice of its succession to Holders.  The retiring Indenture
      Trustee shall promptly transfer all property held by it as Indenture Trustee
      (including unless otherwise agreed by the successor Indenture Trustee, all
      TPC
      Deposit Accounts held by the Indenture Trustee) to the successor Indenture
      Trustee.

     

    (d)           If
      a successor Indenture Trustee does not take office within sixty (60) days after
      the retiring Indenture Trustee resigns or is removed, the retiring Indenture
      Trustee, the Issuer or the Holders of a majority in Outstanding Amount of the
      Rate Stabilization Bonds of all Series may petition any court of competent
      jurisdiction for the appointment of a successor Indenture Trustee.

     

    (e)           If
      the Indenture Trustee fails to comply with Section 6.11, any Holder may
      petition any court of competent jurisdiction for the removal of the Indenture
      Trustee and the appointment of a successor Indenture Trustee.

     

    (f)  
               Notwithstanding the
      replacement of the Indenture Trustee pursuant to this Section 6.08, the
      Issuer’s obligations under Section 6.07 shall continue for the benefit of
      the retiring Indenture Trustee.

     

    
      
        
        

      

      
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    SECTION
      6.09.  Successor Indenture Trustee by Merger.  If the
      Indenture Trustee consolidates with, merges or converts into, or transfers
      all
      or substantially all its corporate trust business or assets to, another
      corporation or banking association, the resulting, surviving or transferee
      corporation or banking association without any further act shall be the
      successor Indenture Trustee; provided, however, that if such successor
      Indenture Trustee is not eligible under Section 6.11, then the
      successor Indenture Trustee shall be replaced in accordance with
Section 6.08.  Notice of any such event shall be promptly
      given to each Rating Agency by the successor Indenture Trustee and any agent
      in
      Ireland appointed pursuant to Section 3.02.

     

    In
      case
      at the time such successor or successors by merger, conversion, consolidation
      or
      transfer shall succeed to the trusts created by this Indenture any of the Rate
      Stabilization Bonds shall have been authenticated but not delivered, any such
      successor to the Indenture Trustee may adopt the certificate of authentication
      of any predecessor trustee, and deliver such Rate Stabilization Bonds so
      authenticated; and in case at that time any of the Rate Stabilization Bonds
      shall not have been authenticated, any successor to the Indenture Trustee may
      authenticate such Rate Stabilization Bonds either in the name of any predecessor
      hereunder or in the name of the successor to the Indenture Trustee; and in
      all
      such cases such certificates shall have the full force which it is anywhere
      in
      the Rate Stabilization Bonds or in this Indenture provided that the certificate
      of the Indenture Trustee shall have.

     

    SECTION
      6.10.  Appointment of Co-Trustee or Separate
      Trustee.

     

    (a)           Notwithstanding
      any other provisions of this Indenture, at any time, for the purpose of meeting
      any legal requirement of any jurisdiction in which any part of the trust created
      by this Indenture or the Rate Stabilization Bond Collateral may at the time
      be
      located, the Indenture Trustee shall have the power and may execute and deliver
      all instruments to appoint one or more Persons to act as a co-trustee or
      co-trustees, or separate trustee or separate trustees, of all or any part of
      the
      trust created by this Indenture or the Rate Stabilization Bond Collateral,
      and
      to vest in such Person or Persons, in such capacity and for the benefit of
      the
      Secured Parties, such title to the Rate Stabilization Bond Collateral, or any
      part hereof, and, subject to the other provisions of this Section 6.10,
      such powers, duties, obligations, rights and trusts as the Indenture Trustee
      may
      consider necessary or desirable.  No co-trustee or separate trustee
      hereunder shall be required to meet the terms of eligibility as a successor
      trustee under Section 6.11 and no notice to Holders of the
      appointment of any co-trustee or separate trustee shall be required under
Section 6.08.

     

    (b)           Every
      separate trustee and co-trustee shall, to the extent permitted by law, be
      appointed and act subject to the following provisions and
      conditions:

     

    (i)   
              all rights, powers, duties and
      obligations conferred or imposed upon the Indenture Trustee shall be conferred
      or imposed upon and exercised or performed by the Indenture Trustee and such
      separate trustee or co-trustee jointly (it being understood that such separate
      trustee or co-trustee is not authorized to act separately without the Indenture
      Trustee joining in such act), except to the extent that under any law of any
      jurisdiction in which any particular act or acts are to be performed the
      Indenture Trustee shall be incompetent or unqualified to perform such act or
      acts, in which event such rights, powers, duties and obligations (including
      the
      holding of title to the Rate 

     

    
      
        
        

      

      
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    Stabilization
      Bond Collateral or any portion thereof in any such jurisdiction) shall be
      exercised and performed singly by such separate trustee or co-trustee, but
      solely at the direction of the Indenture Trustee;

     

    (ii)           no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii)          the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c)           Any
      notice, request or other writing given to the Indenture Trustee shall be deemed
      to have been given to each of the then separate trustees and co-trustees, as
      effectively as if given to each of them.  Every instrument appointing
      any separate trustee or co-trustee shall refer to this Indenture and the
      conditions of this Article VI.  Each separate trustee and
      co-trustee, upon its acceptance of the trusts conferred, shall be vested with
      the estates or property specified in its instrument of appointment, either
      jointly with the Indenture Trustee or separately, as may be provided therein,
      subject to all the provisions of this Indenture, specifically including every
      provision of this Indenture relating to the conduct of, affecting the liability
      of, or affording protection to, the Indenture Trustee.  Every such
      instrument shall be filed with the Indenture Trustee.

     

    (d)           Any
      separate trustee or co-trustee may at any time constitute the Indenture Trustee,
      its agent or attorney-in-fact with full power and authority, to the extent
      not
      prohibited by law, to do any lawful act under or in respect of this Indenture
      on
      its behalf and in its name.  If any separate trustee or co-trustee
      shall die, become incapable of acting, resign or be removed, all of its estates,
      properties, rights, remedies and trusts shall vest in and be exercised by the
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    SECTION
      6.11.  Eligibility; Disqualification.  The Indenture
      Trustee shall at all times satisfy the requirements of TIA § 310(a)(1) and
§ 310(a)(5) and Section 26(a)(1) of the Investment Company
      Act.  The Indenture Trustee shall have a combined capital and surplus
      of at least $50,000,000 as set forth in its most recent published annual report
      of condition and it shall have a long term debt rating of “Baa3” or better by
      Moody’s “BBB-” or better by Standard & Poor’s and, if Fitch provides a
      rating thereon, “BBB-” or better by Fitch.  The Indenture Trustee
      shall comply with TIA § 310(b), including the optional provision permitted by
      the second sentence of TIA § 310(b)(9); provided, however, that
      there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
      indentures under which other securities of the Issuer are outstanding if the
      requirements for such exclusion set forth in TIA § 310(b)(1) are
      met.

     

    SECTION
      6.12.  Preferential Collection of Claims Against
      Issuer.  The Indenture Trustee shall comply with TIA § 311(a),
      excluding any creditor relationship listed in TIA § 311(b).  An
      Indenture Trustee who has resigned or been removed shall be subject to TIA
§
311(a) to the extent indicated therein.

     

    SECTION
      6.13.  Representations and Warranties of Indenture
      Trustee.  The Indenture Trustee hereby represents and warrants
      that:

     

    
      
        
        

      

      
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    (a)           the
      Indenture Trustee is a banking corporation validly existing and in good standing
      under the laws of the State of New York; and

     

    (b)           the
      Indenture Trustee has full power, authority and legal right to execute, deliver
      and perform this Indenture and the Basic Documents to which the Indenture
      Trustee is a party and has taken all necessary action to authorize the
      execution, delivery, and performance by it of this Indenture and such Basic
      Documents.

     

    SECTION
      6.14.  Annual Report by Independent Registered Public
      Accountants.  In the event the firm of Independent registered
      public accountants requires the Indenture Trustee to agree or consent to the
      procedures performed by such firm pursuant to Section 3.05 of the
      Servicing Agreement, the Indenture Trustee shall deliver such letter of
      agreement or consent in conclusive reliance upon the direction of the Issuer
      in
      accordance with Section 3.05 of the Servicing Agreement.  In
      the event such firm requires the Indenture Trustee to agree to the procedures
      performed by such firm, the Issuer shall direct the Indenture Trustee in writing
      to so agree; it being understood and agreed that the Indenture Trustee will
      deliver such letter of agreement in conclusive reliance upon the direction
      of
      the Issuer, and the Indenture Trustee makes no independent inquiry or
      investigation to, and shall have no obligation or liability in respect of,
      the
      sufficiency, validity or correctness of such procedures.

     

    SECTION
      6.15.  Custody of Rate Stabilization Bond
      Collateral.  The Indenture Trustee shall hold such of the Rate
      Stabilization Bond Collateral (and any other collateral that may be granted
      to
      the Indenture Trustee) as consists of instruments, deposit accounts, negotiable
      documents, money, goods, letters of credit, and advices of credit in the State
      of New York.  The Indenture Trustee shall hold such of the Rate
      Stabilization Bond Collateral as constitute investment property through the
      Securities Intermediary (which, as of the date hereof, is Deutsche Bank Trust
      Company Americas).  The initial Securities Intermediary, hereby agrees
      (and each future Securities Intermediary shall agree) with the Indenture Trustee
      that (a) such investment property shall at all times be credited to a securities
      account of the Indenture Trustee, (b) the Securities Intermediary shall treat
      the Indenture Trustee as entitled to exercise the rights that comprise each
      financial asset credited to such securities account, (c) all property credited
      to such securities account shall be treated as a financial asset, (d) the
      Securities Intermediary shall comply with entitlement orders originated by
      the
      Indenture Trustee without the further consent of any other person or entity,
      (e)
      the Securities Intermediary will not agree with any person other than the
      Indenture Trustee to comply with entitlement orders originated by such other
      person, (f) such securities accounts and the property credited thereto shall
      not
      be subject to any Lien, right of set-off in favor of the Securities Intermediary
      or anyone claiming through it (other than the Indenture Trustee), and (g) such
      agreement shall be governed by the internal laws of the State of New
      York.  Terms used in the preceding sentence that are defined in the
      UCC and not otherwise defined herein shall have the meaning set forth in the
      UCC.  Except as permitted by this Section 6.15, or elsewhere in
      this Indenture, the Indenture Trustee shall not hold Rate Stabilization Bond
      Collateral through an agent or a nominee.

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    HOLDERS’
      LISTS AND REPORTS

     

    SECTION
      7.01.  Issuer To Furnish Indenture Trustee Names and Addresses of
      Holders.  The Issuer will furnish or cause to be furnished to the
      Indenture Trustee (a) not more than five (5) days after the earlier of (i)
      each
      Record Date with respect to each Series and (ii) six (6) months after the last
      Record Date with respect to each Series, a list, in such form as the Indenture
      Trustee may reasonably require, of the names and addresses of the Bondholders
      of
      such Series as of such Record Date, (b) at such other times as the Indenture
      Trustee may request in writing, within thirty (30) days after receipt by the
      Issuer of any such request, a list of similar form and content as of a date
      not
      more than ten (10) days prior to the time such list is furnished;
provided, however, that so long as the Indenture Trustee is the
      Rate Stabilization Bond Registrar, no such list shall be required to be
      furnished.  

     

    SECTION
      7.02.  Preservation of Information;  Communications to
      Holders.

     

    (a)           The
      Indenture Trustee shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders contained in the most recent
      list furnished to the Indenture Trustee as provided in Section 7.01 and
      the names and addresses of Holders received by the Indenture Trustee in its
      capacity as Rate Stabilization Bond Registrar.  The Indenture Trustee
      may destroy any list furnished to it as provided in such Section 7.01
      upon receipt of a new list so furnished.

     

    (b)           Holders
      may communicate pursuant to TIA § 312(b) with other Holders with respect to
      their rights under this Indenture or under the Rate Stabilization
      Bonds.  In addition, upon the written request of any Holder or group
      of Holders of any Series or of all Outstanding Series of Rate Stabilization
      Bonds evidencing not less than 10 percent of the Outstanding Amount of the
      Rate
      Stabilization Bonds of that Series or all Series, as applicable, the Indenture
      Trustee shall afford the Holder or Holders making such request a copy of a
      current list of Holders of that Series or all Outstanding Series, as applicable,
      for purposes of communicating with other Holders with respect to their rights
      hereunder.

     

    (c)           The
      Issuer, the Indenture Trustee and the Rate Stabilization Bond Registrar shall
      have the protection of TIA § 312(c).

     

    SECTION
      7.03.  Reports by Issuer.

     

    (a)           The
      Issuer shall:

     

    (i)    
             so long as the Issuer or the Sponsor
      is required to file such documents with the SEC, provide to the Indenture
      Trustee, within fifteen (15) days after the Issuer is required to file the
      same
      with the SEC, copies of the annual reports and of the information, documents
      and
      other reports (or copies of such portions of any of the foregoing as the SEC
      may
      from time to time by rules and regulations prescribe) which the Issuer or the
      Sponsor may be required to file with the SEC pursuant to Section 13 or 15(d)
      of
      the Exchange Act;

     

    
      
        
        

      

      
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    (ii)           provide
      to the Indenture Trustee, and file with the SEC, in accordance with rules and
      regulations prescribed from time to time by the SEC, such additional
      information, documents and reports with respect to compliance by the Issuer
      with
      the conditions and covenants of this Indenture as may be required from time
      to
      time by such rules and regulations; and

     

    (iii)          supply
      to the Indenture Trustee (and the Indenture Trustee shall transmit by mail
      to
      all Holders described in TIA § 313(c)) such summaries of any information,
      documents and reports required to be filed by the Issuer pursuant to clauses
      (i) and (ii) of this Section 7.03(a) as may be required by
      rules and regulations prescribed from time to time by the SEC.

     

    (b)           Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31 of each year.

     

    SECTION
      7.04.  Reports by Indenture Trustee.  If required by
      TIA § 313(a), within sixty (60) days after March 30 of each year,
      commencing with the year after the issuance of the Rate Stabilization Bonds
      of
      any Series, the Indenture Trustee shall mail to each Bondholder of such Series
      as required by TIA § 313(c) a brief report dated as of such date that complies
      with TIA § 313(a). The Indenture Trustee also shall comply with TIA § 313(b);
provided, however, that the initial report so issued shall be
      delivered not more than twelve (12) months after the initial issuance of each
      Series.

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    SECTION
      8.01.  Collection of Money.  Except as otherwise
      expressly provided herein, the Indenture Trustee may demand payment or delivery
      of, and shall receive and collect, directly and without intervention or
      assistance of any fiscal agent or other intermediary, all money and other
      property payable to or receivable by the Indenture Trustee pursuant to this
      Indenture and the other Basic Documents.  The Indenture Trustee shall
      apply all such money received by it as provided in this
      Indenture.  Except as otherwise expressly provided in this Indenture,
      if any default occurs in the making of any payment or performance under any
      agreement or instrument that is part of the Rate Stabilization Bond Collateral,
      the Indenture Trustee may take such action as may be appropriate to enforce
      such
      payment or performance, subject to Article VI, including the institution
      and prosecution of appropriate Proceedings.  Any such action shall be
      without prejudice to any right to claim a Default or Event of Default under
      this
      Indenture and any right to proceed thereafter as provided in Article
      V.

     

    SECTION
      8.02.  Collection Accounts and TPC Deposit
      Accounts.

     

    (a)           Prior
      to the Series Issuance Date for each Series of Rate Stabilization Bonds issued
      hereunder, the Issuer shall open or cause to be opened, at the Indenture
      Trustee’s office located at the Corporate Trust Office, or at another Eligible
      Institution, one or more segregated trust accounts in the Indenture Trustee’s
      name for the deposit of Estimated QRSC Collections, QRSC 

     

    
      
        
        

      

      
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    Collections
      and all other amounts received with respect to the Series Rate Stabilization
      Bond Collateral related to such Series (each, a “Collection
      Account”).  Each Collection Account will consist of three
      subaccounts: a general subaccount (the “General Subaccount”), an excess
      funds subaccount (the “Excess Funds Subaccount”) and a capital subaccount
      (the “Capital Subaccount” and, together with the General Subaccount and
      the Excess Funds Subaccount, the “Subaccounts”).  For
      administrative purposes, the Subaccounts for any Series may be established
      by
      the Indenture Trustee as separate accounts.  Such separate accounts
      will be recognized individually as a Subaccount and collectively as the
“Collection Account” for such Series.   Prior to or concurrently
      with the issuance of any Series of Rate Stabilization Bonds, the Member shall
      deposit into the applicable Capital Subaccount an amount equal to the Required
      Capital Level for such Series.  All amounts in the applicable
      Collection Account not allocated to any other subaccount shall be allocated
      to
      the applicable General Subaccount.  Prior to the Initial Payment Date
      for any Series, all amounts in the applicable Collection Account (other than
      funds deposited into the applicable Capital Subaccount, up to the Required
      Capital Level for any Series of Rate Stabilization Bonds) shall be allocated
      to
      the applicable General Subaccount.  All references to the Collection
      Account shall mean and be references to the applicable Collection Account for
      any Series and shall be deemed to include reference to all subaccounts contained
      therein.  Withdrawals from and deposits to each of the foregoing
      subaccounts of the applicable Collection Account shall be made as set forth
      in
Section 8.02(d) and (e).  Each Collection Account shall
      at all times be maintained in an Eligible Account, will be under the sole
      dominion and exclusive control of the Indenture Trustee, and only the Indenture
      Trustee shall have access to each such Collection Account for the purpose of
      making deposits in and withdrawals from each such Collection Account in
      accordance with this Indenture.  Funds in the Collection Account shall
      not be commingled with any other moneys. All moneys deposited from time to
      time
      in each Collection Account, all deposits therein pursuant to this Indenture,
      and
      all investments made in Eligible Investments as directed in writing by the
      Issuer with such moneys, including all income or other gain from such
      investments, shall be held by the Indenture Trustee in the applicable Collection
      Account as part of the Series Rate Stabilization Bond Collateral as herein
      provided.  The Indenture Trustee shall have no liability in respect of
      losses incurred as a result of the liquidation of any Eligible Investment prior
      to its stated maturity or its date of redemption or the failure of the Issuer
      or
      the Servicer to provide timely written investment direction.

     

    (b)           The
      Securities Intermediary hereby confirms that (i) each Collection Account is,
      or
      at inception will be established as, a “securities account” as such term is
      defined in Section 8-501(a) of the UCC, (ii) it is a “securities intermediary”
(as such term is defined in Section 8-102(a) (14) of the UCC) and is acting
      in
      such capacity with respect to such accounts, and (iii) the Indenture Trustee
      for
      the benefit of the Secured Parties is the sole “entitlement holder” (as such
      term is defined in Section 8-102(a)(7) of the UCC) with respect to such accounts
      and no other Person shall have the right to give “entitlement orders” (as such
      term is defined in Section 8-102(a)(8)) with respect to such
      accounts.  The Securities Intermediary hereby further agrees that each
      item of property (whether investment property, financial asset, security,
      instrument or cash) received by it will be credited to the applicable Collection
      Account and shall be treated by it as a “financial asset” within the meaning of
      Section 8-102(a)(9) of the UCC.  Notwithstanding anything to the
      contrary, the State of New York shall be deemed to be the location and
      jurisdiction of the Securities Intermediary for purposes of Section 8-110 of
      the

     

    
      
        
        

      

      
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    UCC,
      and
      each Collection Account (as well as the securities entitlements related thereto)
      shall be governed by the laws of the State of New York.

     

    (c)           The
      Indenture Trustee shall have sole dominion and exclusive control over all moneys
      in each Collection Account and shall apply such amounts therein as provided
      in
      this Section 8.02.  The Indenture Trustee shall also pay
      from each applicable Collection Account any amounts requested to be paid by
      or
      to the Servicer pursuant to Section 6.10(d) of the Servicing
      Agreement.

     

    (d)           Estimated
      QRSC Collections shall be deposited in the applicable General Subaccount as
      provided in Section 6.10 of the Servicing Agreement.  All
      deposits to and withdrawals from each applicable Collection Account, all
      allocations to the subaccounts of each such Collection Account and any amounts
      to be paid to the Servicer under Section 8.02(c) shall be made by the
      Indenture Trustee in accordance with the written instructions provided by the
      Servicer in the Monthly Servicer’s Certificate, the Servicer’s Certificate or
      upon other written notice provided by the Servicer pursuant to Section
      6.10(a) of the Servicing Agreement, as applicable.

     

    (e)           On
      each Payment Date for any Series of Rate Stabilization Bonds, the Indenture
      Trustee shall apply all amounts on deposit in each applicable Collection
      Account, including all net earnings thereon, to pay the following amounts,
      in
      accordance with the Servicer’s Certificate, in the following
      priority:

     

    (i)     
            all amounts owed by the Issuer to the
      Indenture Trustee (including legal fees and expenses) shall be paid to the
      Indenture Trustee (subject to Section 6.07) in an amount not to exceed
      annually the amount set forth in the related Series Supplement, such amounts
      to
      be withdrawn from each Collection Account pro rata based on the respective
      Outstanding Amounts of such Series;

     

    (ii)           the
      Servicing Fee with respect to the related Series for such Payment Date and
      all
      unpaid Servicing Fees with respect to such Series for prior Payment Dates shall
      be paid to the Servicer;

     

    (iii)           the
      Administration Fee with respect to the related Series for such Payment Date
      and
      all unpaid Administration Fees with respect to such Series for prior Payment
      Dates shall be paid to the Administrator;

     

    (iv)          all
      other Operating Expenses for such Payment Date not described above shall be
      paid
      to the parties to which such Operating Expenses are owed, pro rata, in an amount
      not to exceed annually the amount set forth in the related Series Supplement,
      such amounts to be withdrawn from each Collection Account pro rata based on
      the
      respective Outstanding Amounts of such Series;

     

    (v)           Periodic
      Interest for such Payment Date, including any overdue Periodic Interest
      (together with, to the extent lawful, interest on such overdue Periodic Interest
      at the applicable Rate Stabilization Bond Interest Rate), with respect to the
      related Series of Rate Stabilization Bonds shall be paid to the Holders of
      such
      Series of Rate Stabilization Bonds;

     

    
      
        
        

      

      
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    (vi)          principal
      due and payable on the Rate Stabilization Bonds of the related Series as a
      result of an Event of Default or on the Final Maturity Date of the Rate
      Stabilization Bonds of such Series shall be paid to the Holders of such Series
      of Rate Stabilization Bonds;

     

    (vii)         Periodic
      Principal for such Payment Date, including any overdue Periodic Principal,
      with
      respect to the related Series of Rate Stabilization Bonds shall be paid to
      the
      Holders of such Series of Rate Stabilization Bonds;

     

    (viii)        any
      other unpaid Operating Expenses and any remaining amounts owed pursuant to
      the
      Basic Documents, including indemnity amounts owed to the Indenture Trustee,
      but
      excluding the Servicing Fee and the Administration Fee to the extent they exceed
      the amounts approved in the Series Supplement with respect to such Series,
      such
      amounts to be withdrawn from each Collection Account pro rata based on the
      respective Outstanding Amounts of such Series;

     

    (ix)   
             the amount, if any, by which the
      Required Capital Level with respect to the applicable Series of Rate
      Stabilization Bonds exceeds the amount in the applicable Capital Subaccount
      as
      of such Payment Date shall be allocated to the applicable Capital
      Subaccount;

     

    (x)           the
      balance, if any, shall be allocated to the applicable Excess Funds Subaccount
      for distribution on subsequent Payment Dates; and

     

    (xi)           following
      repayment in full of all amounts payable hereunder of principal of and premium,
      if any, and interest on all Outstanding Series of Rate Stabilization Bonds,
      and
      all of the other foregoing amounts, including, without limitation, amounts
      due
      and payable to the Indenture Trustee under Section 6.07 or otherwise,
subclause (e)(x) shall cease to apply, and the balance (including all
      amounts then held in the applicable Subaccounts), if any, shall be paid to
      the
      Issuer, free from the Lien of this Indenture and the related Series
      Supplement.

     

    All
      payments to the Holders of a Series pursuant to clauses(v),
(vi) and (vii) above shall be made to such Holders pro rata
      based
      on the respective amounts of interest and/or principal owed, unless, in the
      case
      of a Series comprised of two or more Tranches, the Series Supplement for such
      Series provides otherwise.  Payments in respect of principal of and
      premium, if any, and interest on any Tranche of Rate Stabilization Bonds will
      be
      made on a pro rata basis among all the Holders of such Tranche.

     

    The
      amounts paid during any calendar year pursuant to clauses (i) and
(iv) may not exceed the amounts approved in the Series Supplement
      with
      respect to any Series.    The amounts paid during any
      calendar year pursuant to clauses (ii) and (iii) may not exceed
      the amounts approved in the Series Supplement with respect to any Series,
provided that BGE may seek approval from the PSC to recover from
      Customers, in accordance with the Financing Credit Order, incremental costs
      in
      excess of the amounts approved in the Series Supplement with respect to any
      Series, and furtherprovided that such incremental costs shall
      neither be considered an Operating Expense nor be paid out of the Collection
      Account or included in the calculation of True-Up Adjustments.

     

    
      
        
        

      

      
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    (f)           If
      on any Payment Date of any Series funds on deposit in the applicable General
      Subaccount are insufficient to make the payments contemplated by clauses
      (i) through (viii) of Section 8.02(e) above, the Indenture
      Trustee shall (i) first, draw from amounts on deposit in the applicable
      Excess Funds Subaccount and (ii) second, draw from amounts on deposit in
      the applicable Capital Subaccount, in each case, up to the amount of such
      shortfall in order to make the payments contemplated by clauses (i)
      through (viii) of Section 8.02(e).  In addition, if on
      any Payment Date of any Series funds on deposit in the applicable General
      Subaccount are insufficient to make the allocations contemplated by clause
      (ix) above, the Indenture Trustee shall draw from amounts on deposit in the
      applicable Excess Funds Subaccount to make such allocations.

     

    (g)           The
      Indenture Trustee, shall, as directed by the Servicer under Section
      3.05(e) of the Servicing Agreement, maintain one or more segregated accounts
      in the Indenture Trustee’s name (the “TPC Deposit Accounts”) at its
      office located at the Corporate Trust Office, or at another Eligible
      Institution, for Third-Party Collector deposits provided pursuant to any
      Qualified Rate Order or Tariff, each such account for the benefit of the
      Indenture Trustee.  Pursuant to and in accordance with the Applicable
      Qualified Rate Order, amounts received from any Third-Party Collector as a
      security deposit shall be deposited into the applicable TPC Deposit
      Account.  To the extent permitted by each Applicable Qualified Rate
      Order, Tariff and PSC Regulations, the TPC Deposit Accounts shall at all times
      be maintained in Eligible Accounts, shall be subject to a perfected first
      priority security interest in favor of the Indenture Trustee for the benefit
      of
      the Secured Parties, and shall be under the sole dominion and exclusive control
      of the Indenture Trustee.  Funds in the TPC Deposit Accounts shall not
      be commingled with any other moneys.  All or a portion of the funds in
      the TPC Deposit Accounts shall be invested in Eligible Investments and
      reinvested by the Indenture Trustee in Eligible Investments pursuant to the
      written direction of the Servicer (or, absent such direction, in accordance
      with
Section 8.03(c)); provided, however, that (i) such Eligible
      Investments shall not mature or be redeemed later than the Business Day prior
      to
      the next Payment Date or Special Payment Date, if applicable, for the related
      Series of Rate Stabilization Bonds and (ii) such Eligible Investments shall
      not
      be sold, liquidated or otherwise disposed of at a loss prior to the maturity
      or
      the date of redemption thereof.  All moneys deposited from time to
      time in the TPC Deposit Accounts and all investments made in Eligible
      Investments with such moneys, including all income or other gain from such
      investments, shall be held by the Indenture Trustee in a TPC Deposit Account
      as
      part of the Rate Stabilization Bond Collateral as herein provided and shall
      only
      be allocated and released upon the direction of the Servicer in accordance
      with
Section 3.05(d) of the Servicing Agreement as required or permitted by
      this Indenture, each Applicable Qualified Rate Order, each applicable Tariff,
      or
      other applicable PSC Regulations.  Any loss resulting from investment
      made in Eligible Investments with moneys in a TPC Deposit Account shall be
      charged to such TPC Deposit Account.  The Indenture Trustee shall
      release property from a TPC Deposit Account only as and to the extent directed
      by the Servicer pursuant to the Applicable Qualified Rate Order and the
      Servicing Agreement and as required or permitted by this
      Indenture.   The Indenture Trustee shall have no liability in
      respect of losses incurred as a result of the liquidation of any Eligible
      Investment prior to its stated maturity or its date of redemption or the failure
      of the Issuer or the Servicer to provide timely written investment
      direction.

     

    
      
        
        

      

      
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    SECTION
      8.03.  General Provisions Regarding the Collection
      Accounts.

     

    (a)           So
      long as no Default or Event of Default shall have occurred and be continuing,
      all or a portion of the funds in each Collection Account shall be invested
      in
      Eligible Investments and reinvested by the Indenture Trustee upon Issuer Order;
      provided, however, that (i) such Eligible Investments shall not
      mature or be redeemed later than the Business Day prior to the next Payment
      Date
      or Special Payment Date, if applicable, for the related Series of Rate
      Stabilization Bonds and (ii) such Eligible Investments shall not be sold,
      liquidated or otherwise disposed of at a loss prior to the maturity or the
      date
      of redemption thereof.  All income or other gain from investments of
      moneys deposited in any Collection Account shall be deposited by the Indenture
      Trustee in such Collection Account, and any loss resulting from such investments
      shall be charged to such Collection Account.  The Issuer will not
      direct the Indenture Trustee to make any investment of any funds or to sell
      any
      investment held in any Collection Account unless the security interest Granted
      and perfected in such account will continue to be perfected in such investment
      or the proceeds of such sale, in either case without any further action by
      any
      Person, and, in connection with any direction to the Indenture Trustee to make
      any such investment or sale, if requested by the Indenture Trustee, the Issuer
      shall deliver to the Indenture Trustee an Opinion of Counsel of external counsel
      of the Issuer (at the Issuer’s cost and expense) to such effect.  In
      no event shall the Indenture Trustee be liable for the selection of Eligible
      Investments or for investment losses incurred thereon.  The Indenture
      Trustee shall have no liability in respect of losses incurred as a result of
      the
      liquidation of any Eligible Investment prior to its stated maturity or its
      date
      of redemption or the failure of the Issuer or the Servicer to provide timely
      written investment direction.  The Indenture Trustee shall have no
      obligation to invest or reinvest any amounts held hereunder in the absence
      of
      written investment direction pursuant to an Issuer Order.

     

    (b)           Subject
      to Section 6.01(c), the Indenture Trustee shall not in any way be held
      liable by reason of any insufficiency in any Collection Account resulting from
      any loss on any Eligible Investment included therein except for losses
      attributable to the Indenture Trustee’s failure to make payments on such
      Eligible Investments issued by the Indenture Trustee, in its commercial capacity
      as principal obligor and not as trustee, in accordance with their
      terms.

     

    (c)           If
      (i) the Issuer shall have failed to give written investment directions for
      any
      funds on deposit in any Collection Account to the Indenture Trustee by 11:00
      a.m. Eastern Time (or such other time as may be agreed by the Issuer and
      Indenture Trustee) on any Business Day; or (ii) a Default or Event of Default
      shall have occurred and be continuing with respect to the Rate Stabilization
      Bonds of any Series but the Rate Stabilization Bonds of such Series shall not
      have been declared due and payable pursuant to Section 5.02, then the
      Indenture Trustee shall, to the fullest extent practicable, invest and reinvest
      funds in such Collection Account in one or more money market funds described
      under clause (d) of the definition of “Eligible Investments” pursuant to
      the most recent written investment directions delivered by the Issuer to the
      Indenture Trustee with respect to such type of Eligible Investments;
provided that if the Issuer has never delivered written investment
      directions to the Indenture Trustee, the Indenture Trustee shall not invest
      or
      reinvest such funds in any investments.

     

    (d)           The
      parties hereto acknowledge that the Servicer may, pursuant to the Servicing
      Agreement, select Eligible Investments on behalf of the Issuer.

     

    
      
        
        

      

      
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    (e)           The
      Indenture Trustee and its Affiliates are permitted to receive additional
      compensation from third parties, that could be deemed to be in the Indenture
      Trustee’s or its Affiliates’ respective economic self-interest, for (i) serving
      as an investment advisor, administrator, shareholder servicing agent, custodian
      or sub-custodian with respect to certain Eligible Investments, (ii) using
      Affiliates to effect transactions in certain Eligible Investments or (iii)
      effecting transactions in certain Eligible Investments.

     

    SECTION
      8.04.  Release of Rate Stabilization Bond
      Collateral.

     

    (a)           So
      long as the Issuer is not in default hereunder and no Default hereunder would
      occur as a result of such action, the Issuer, through the Servicer, may collect,
      sell or otherwise dispose of written-off receivables, at any time and from
      time
      to time in the ordinary course of business, without any notice to, or release
      or
      consent by, the Indenture Trustee, but only as and to the extent permitted
      by
      the Basic Documents; provided, however, that any and all proceeds
      of such dispositions shall become Rate Stabilization Bond Collateral and be
      deposited to the applicable General Subaccount immediately upon receipt thereof
      by the Issuer or any other Person, including the Servicer.  Without
      limiting the foregoing, the Servicer, may, at any time and from time to time
      without any notice to, or release or consent by, the Indenture Trustee, sell
      or
      otherwise dispose of any Rate Stabilization Bond Collateral which is part of
      a
      Bill previously written-off as a defaulted or uncollectible account in
      accordance with the terms of the Servicing Agreement and the requirements of
      the
      proviso in the immediately preceding sentence.

     

    (b)           The
      Indenture Trustee may, and when required by the provisions of this Indenture
      shall, execute instruments to release property from the Lien of this Indenture,
      or convey the Indenture Trustee’s interest in the same, in a manner and under
      circumstances that are not inconsistent with the provisions of this
      Indenture.  No party relying upon an instrument executed by the
      Indenture Trustee as provided in this Article VIII shall be bound to
      ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
      any conditions precedent or see to the application of any moneys.  The
      Indenture Trustee shall release property from the Lien of this Indenture
      pursuant to this Section 8.04(b) only upon receipt of an Issuer Request
      accompanied by an Officer’s Certificate, an Opinion of Counsel of external
      counsel of the Issuer (at the Issuer’s cost and expense) and (if required by the
      TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1)
      meeting the applicable requirements of Section 10.01.

     

    (c)           The
      Indenture Trustee shall, at such time as there are no Rate Stabilization Bonds
      of a Series Outstanding and all sums payable to the Indenture Trustee pursuant
      to Section 6.07 or otherwise have been paid, release any remaining
      portion of the Series Rate Stabilization Bond Collateral that secured such
      Rate
      Stabilization Bonds from the Lien of this Indenture, release to the Issuer
      or
      any other Person entitled thereto any funds or investments then on deposit
      in or
      credit to the applicable Collection Account and, subject to the instructions
      of
      the Servicer, shall release the TPC Deposit Accounts in accordance with
Section 8.02.

     

    SECTION
      8.05.  Opinion of Counsel.  The Indenture Trustee
      shall receive at least seven (7) days’ notice when requested by the Issuer to
      take any action pursuant to Section 8.04, accompanied by copies of
      any instruments involved, and the Indenture Trustee shall also require, as
      a
      condition to such action, an Opinion of Counsel of external counsel of the
      Issuer, in form 

     

    
      
        
        

      

      
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    and
      substance satisfactory to the Indenture Trustee, stating the legal effect of
      any
      such action, outlining the steps required to complete the same, and concluding
      that all conditions precedent to the taking of such action have been complied
      with and such action will not materially and adversely impair the security
      for
      the Rate Stabilization Bonds or the rights of the Holders in contravention
      of
      the provisions of this Indenture and the related Series Supplement;
provided, however, that such Opinion of Counsel shall not be
      required to express an opinion as to the fair value of the Rate Stabilization
      Bond Collateral.  Counsel rendering any such opinion may rely, without
      independent investigation, on the accuracy and validity of any certificate
      or
      other instrument delivered to the Indenture Trustee in connection with any
      such
      action.

     

    SECTION
      8.06.  Reports by Independent Registered Public
      Accountants.  As of the Closing Date, the Issuer shall appoint a
      firm of Independent registered public accountants of recognized national
      reputation for purposes of preparing and delivering the reports or certificates
      of such accountants required by this Indenture and the related Series
      Supplements.  In the event such firm requires the Indenture Trustee to
      agree to the procedures performed by such firm, the Issuer shall direct the
      Indenture Trustee in writing to so agree; it being understood and agreed that
      the Indenture Trustee will deliver such letter of agreement in conclusive
      reliance upon the direction of the Issuer, and the Indenture Trustee makes
      no
      independent inquiry or investigation to, and shall have no obligation or
      liability in respect of, the sufficiency, validity or correctness of such
      procedures.  Upon any resignation by, or termination by the Issuer of,
      such firm the Issuer shall provide written notice thereof to the Indenture
      Trustee and shall promptly appoint a successor thereto that shall also be a
      firm
      of Independent registered public accountants of recognized national
      reputation.  If the Issuer shall fail to appoint a successor to a firm
      of Independent registered public accountants that has resigned or been
      terminated within fifteen (15) days after such resignation or termination,
      the
      Indenture Trustee shall promptly notify the Issuer of such failure in
      writing.  If the Issuer shall not have appointed a successor within
      ten (10) days thereafter the Indenture Trustee shall promptly appoint a
      successor firm of Independent registered public accountants of recognized
      national reputation; provided that the Indenture Trustee shall have no
      liability with respect to such appointment.  The fees of such
      Independent registered public accountants and its successor shall be payable
      by
      the Issuer.

     

    ARTICLE
      IX

     

    Supplemental
      Indentures

     

    SECTION
      9.01.  Supplemental Indentures Without Consent of
      Holders.

     

    (a)           Without
      the consent of the Holders of any Rate Stabilization Bonds but with prior notice
      to the Rating Agencies, the Issuer and the Indenture Trustee, when authorized
      by
      an Issuer Order, at any time and from time to time, may enter into one or more
      indentures supplemental hereto (which shall conform to the provisions of the
      TIA
      as in force at the date of the execution thereof), in form satisfactory to
      the
      Indenture Trustee, for any of the following purposes:

     

    (i)  
               to correct or amplify the
      description of any property, including, without limitation, the Rate
      Stabilization Bond Collateral, at any time subject to the Lien of this
      Indenture, or better to assure, convey and confirm unto the Indenture Trustee
      any 

     

    
      
        
        

      

      
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    property
      subject or required to be subjected to the Lien of this Indenture and the
      related Series Supplement, or to subject to the Lien of this Indenture and
      the
      related Series Supplement additional property;

     

    (ii)           to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Rate Stabilization Bonds;

     

    (iii)          to
      add to the covenants of the Issuer, for the benefit of the Secured Parties,
      or
      to surrender any right or power herein conferred upon the Issuer;

     

    (iv)          to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v)           to
      cure any ambiguity, to correct or supplement any provision herein or in any
      supplemental indenture, including any Series Supplement, which may be
      inconsistent with any other provision herein or in any supplemental indenture,
      including any Series Supplement, or to make any other provisions with respect
      to
      matters or questions arising under this Indenture or in any supplemental
      indenture; provided that (i) such action shall not, as evidenced by an
      Opinion of Counsel of external counsel of the Issuer, adversely affect in any
      material respect the interests of the Holders of the Rate Stabilization Bonds
      and (ii) the Rating Agency Condition shall have been satisfied with respect
      thereto;

     

    (vi)          to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Rate Stabilization Bonds and to add to
      or
      change any of the provisions of this Indenture as shall be necessary to
      facilitate the administration of the trusts hereunder by more than one trustee,
      pursuant to the requirements of Article VI;

     

    (vii)         to
      modify, eliminate or add to the provisions of this Indenture to such extent
      as
      shall be necessary to effect the qualification of this Indenture under the
      TIA
      or under any similar or successor federal statute hereafter enacted and to
      add
      to this Indenture such other provisions as may be expressly required by the
      TIA;

     

    (viii)        to
      set forth the terms of any Tranche or any Series that has not theretofore been
      authorized by a Series Supplement;

     

    (ix)   
             to qualify the Rate Stabilization
      Bonds for registration with a Clearing Agency; or

     

    (x)           to
      satisfy any Rating Agency requirements.

     

    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b)           The
      Issuer and the Indenture Trustee, when authorized by an Issuer Order, may,
      also
      without the consent of any of the Holders of the Rate Stabilization
      Bonds,  enter into 

     

    
      
        
        

      

      
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    an
      indenture or indentures supplemental hereto for the purpose of adding any
      provisions to, or changing in any manner or eliminating any of the provisions
      of, this Indenture or of modifying in any manner the rights of the Holders
      of
      the Rate Stabilization Bonds under this Indenture; provided,
however, that (i) such action shall not, as evidenced by an Opinion
      of
      Counsel of nationally recognized counsel of the Issuer experienced in structured
      finance transactions, adversely affect in any material respect the interests
      of
      the Holders and (ii) the Rating Agency Condition shall have been satisfied
      with
      respect thereto.

     

    SECTION
      9.02.  Supplemental Indentures with Consent of
      Holders.  The Issuer and the Indenture Trustee, when authorized by
      an Issuer Order, also may, with prior notice to the Rating Agencies and with
      the
      consent of the Holders of not less than a majority of the Outstanding Amount
      of
      the Rate Stabilization Bonds of each Series or Tranche to be affected, by Act
      of
      such Holders delivered to the Issuer and the Indenture Trustee, enter into
      an
      indenture or indentures supplemental hereto for the purpose of adding any
      provisions to, or changing in any manner or eliminating any of the provisions
      of, this Indenture or of modifying in any manner the rights of the Holders
      of
      the Rate Stabilization Bonds under this Indenture; provided,
however, that no such supplemental indenture shall, without the consent
      of the Holder of each Outstanding Rate Stabilization Bond of each Series or
      Tranche affected thereby:

     

    (i)    
             change the date of payment of any
      installment of principal of or premium, if any, or interest on any Rate
      Stabilization Bond of such Series or Tranche, or reduce the principal amount
      thereof, the interest rate thereon or premium, if any, with respect thereto,
      change the provisions of this Indenture and the related applicable Series
      Supplement relating to the application of collections on, or the proceeds of
      the
      sale of, the Rate Stabilization Bond Collateral to payment of principal of
      or
      premium, if any, or interest on the Rate Stabilization Bonds, or change any
      place of payment where, or the coin or currency in which, any Rate Stabilization
      Bond or the interest thereon is payable, or impair the right to institute suit
      for the enforcement of the provisions of this Indenture requiring the
      application of funds available therefor, as provided in Article V, to the
      payment of any such amount due on the Rate Stabilization Bonds on or after
      the
      respective due dates thereof;

     

    (ii)           reduce
      the percentage of the Outstanding Amount of the Rate Stabilization Bonds or
      of a
      Series or Tranche thereof, the consent of the Holders of which is required
      for
      any such supplemental indenture, or the consent of the Holders of which is
      required for any waiver of compliance with certain provisions of this Indenture
      or certain defaults hereunder and their consequences provided for in this
      Indenture;

     

    (iii)          reduce
      the percentage of the Outstanding Amount of the Rate Stabilization Bonds
      required to direct the Indenture Trustee to direct the Issuer to sell or
      liquidate the Rate Stabilization Bond Collateral pursuant to Section
      5.04;

     

    (iv)          modify
      any provision of this Section 9.02 except to increase any percentage
      specified herein or to provide that those provisions of this Indenture or the
      other Basic Documents referenced in this Section 9.02 cannot be modified
      or waived without the consent of the Holder of each Outstanding Rate
      Stabilization Bond affected thereby;

     

    
      
        
        

      

      
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    (v)           modify
      any of the provisions of this Indenture in such manner as to affect the
      calculation of the amount of any payment of interest, principal or premium,
      if
      any, due on any Rate Stabilization Bond on any Payment Date (including the
      calculation of any of the individual components of such calculation) or change
      the Expected Amortization Schedules or Final Maturity Dates of any Tranche
      or
      Series of Rate Stabilization Bonds;

     

    (vi)
               decrease the Required
      Capital Level with respect to any Series;

     

    (vii)         permit
      the creation of any Lien ranking prior to or on a parity with the Lien of this
      Indenture with respect to any part of the Rate Stabilization Bond Collateral
      or,
      except as otherwise permitted or contemplated herein, terminate the Lien of
      this
      Indenture on any property at any time subject hereto or deprive the Holder
      of
      any Rate Stabilization Bond of the security provided by the Lien of this
      Indenture; or

     

    (viii)        cause
      any material adverse federal income tax consequence to the Seller, the Issuer,
      the Managers, the Indenture Trustee or the then existing Holders.

     

    It
      shall
      not be necessary for any Act of Holders under this Section 9.02 to
      approve the particular form of any proposed supplemental indenture, but it
      shall
      be sufficient if such Act shall approve the substance thereof.

     

    Promptly
      after the execution by the Issuer and the Indenture Trustee of any supplemental
      indenture pursuant to this Section 9.02, the Issuer shall mail to the
      Rating Agencies and the Holders of the Rate Stabilization Bonds to which such
      supplemental indenture relates a notice setting forth in general terms the
      substance of such supplemental indenture.  Any failure of the Issuer
      to mail such notice, or any defect therein, shall not, however, in any way
      impair or affect the validity of any such supplemental indenture.

     

    SECTION
      9.03.  Execution of Supplemental Indentures.  In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modifications thereby
      of the trusts created by this Indenture, the Indenture Trustee shall be entitled
      to receive, and subject to Sections 6.01 and 6.02, shall be fully
      protected in relying upon, an Opinion of Counsel stating that the execution
      of
      such supplemental indenture is authorized or permitted by this
      Indenture.  The Indenture Trustee may, but shall not be obligated to,
      enter into any such supplemental indenture that affects the Indenture Trustee’s
      own rights, duties, liabilities or immunities under this Indenture or
      otherwise.

     

    SECTION
      9.04.  Effect of Supplemental Indenture.  Upon the
      execution of any supplemental indenture pursuant to the provisions hereof,
      this
      Indenture shall be and be deemed to be modified and amended in accordance
      therewith with respect to each Series or Tranche of Rate Stabilization Bonds
      affected thereby, and the respective rights, limitations of rights, obligations,
      duties, liabilities and immunities under this Indenture of the Indenture
      Trustee, the Issuer and the Holders shall thereafter be determined, exercised
      and enforced hereunder subject in all respects to such modifications and
      amendments, and all the terms and conditions of any such supplemental indenture
      shall be and be deemed to be part of the terms and conditions of this Indenture
      for any and all purposes.

     

    
      
        
        

      

      
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    SECTION
      9.05.  Conformity with Trust Indenture Act.  Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article IX shall conform to the requirements of the TIA as then
      in effect so long as this Indenture shall then be qualified under the
      TIA.

     

    SECTION
      9.06.  Reference in Rate Stabilization Bonds to Supplemental
      Indentures.  Rate Stabilization Bonds authenticated and delivered
      after the execution of any supplemental indenture pursuant to this Article
      IX may, and if required by the Indenture Trustee shall, bear a notation in
      form approved by the Indenture Trustee as to any matter provided for in such
      supplemental indenture.  If the Issuer or the Indenture Trustee shall
      so determine, new Rate Stabilization Bonds so modified as to conform, in the
      opinion of the Indenture Trustee and the Issuer, to any such supplemental
      indenture may be prepared and executed by the Issuer and authenticated and
      delivered by the Indenture Trustee in exchange for Outstanding Rate
      Stabilization Bonds.

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    SECTION
      10.01.  Compliance Certificates and Opinions, etc.

     

    (a)           Upon
      any application or request by the Issuer to the Indenture Trustee to take any
      action under any provision of this Indenture, the Issuer shall furnish to the
      Indenture Trustee (i) an Officer’s Certificate stating that all conditions
      precedent, if any, provided for in this Indenture relating to the proposed
      action have been complied with, (ii) an Opinion of Counsel stating that in
      the
      opinion of such counsel all such conditions precedent, if any, have been
      complied with and (iii) (if required by the TIA) an Independent Certificate
      from
      a firm of registered public accountants meeting the applicable requirements
      of
      this Section 10.01, except that, in the case of any such application or
      request as to which the furnishing of such documents is specifically required
      by
      any provision of this Indenture, no additional certificate or opinion need
      be
      furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (i)  
               a statement that each
      signatory of such certificate or opinion has read or has caused to be read
      such
      covenant or condition and the definitions herein relating thereto;

     

    (ii)           a
      brief statement as to the nature and scope of the examination or investigation
      upon which the statements or opinions contained in such certificate or opinion
      are based;

     

    (iii)          a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with; and

     

    
      
        
        

      

      
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    (iv)          a
      statement as to whether, in the opinion of each such signatory, such condition
      or covenant has been complied with.

     

    (b)           (i)
      Prior to the deposit of any Rate Stabilization Bond Collateral or other property
      or securities with the Indenture Trustee that is to be made the basis for the
      release of any property or securities subject to the Lien of this Indenture,
      the
      Issuer shall, in addition to any obligation imposed in Section 10.01(a)
      or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of each person signing such
      certificate as to the fair value (within ninety (90) days of such deposit)
      to
      the Issuer of the Rate Stabilization Bond Collateral or other property or
      securities to be so deposited.

     

    (ii)           Whenever
      the Issuer is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (i) above, the Issuer shall also deliver to
      the Indenture Trustee an Independent Certificate as to the same matters, if
      the
      fair value to the Issuer of the securities to be so deposited and of all other
      such securities made the basis of any such withdrawal or release since the
      commencement of the then-current fiscal year of the Issuer, as set forth in
      the
      certificates delivered pursuant to clause (i) above and this clause
      (ii), is ten percent or more of the Outstanding Amount of the Rate
      Stabilization Bonds of all Series, but such a certificate need not be furnished
      with respect to any securities so deposited, if the fair value thereof to the
      Issuer as set forth in the related Officer’s Certificate is less than the lesser
      of (A) $25,000 or (B) one percent of the Outstanding Amount of the Rate
      Stabilization Bonds of all Series.

     

    (iii)          Whenever
      any property or securities are to be released from the Lien of this Indenture
      other than pursuant to Section 8.02(e), the Issuer shall also furnish to
      the Indenture Trustee an Officer’s Certificate certifying or stating the opinion
      of each person signing such certificate as to the fair value (within ninety
      (90)
      days of such release) of the property or securities proposed to be released
      and
      stating that in the opinion of such person the proposed release will not impair
      the security under this Indenture in contravention of the provisions
      hereof.

     

    (iv)          Whenever
      the Issuer is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signatory thereof as to
      the
      matters described in clause (iii) above, the Issuer shall also furnish to
      the Indenture Trustee an Independent Certificate as to the same matters if
      the
      fair value of the property or securities and of all other property with respect
      to such Series, or securities released from the Lien of this Indenture (other
      than pursuant to Section 8.02(e)) since the commencement of the
      then-current calendar year, as set forth in the certificates required by
clause (iii) above and this clause (iv), equals 10 percent or more
      of the Outstanding Amount of the Rate Stabilization Bonds of all Series, but
      such certificate need not be furnished in the case of any release of property
      or
      securities if the fair value thereof as set forth in the related Officer’s
      Certificate is less than the lesser of (A) $25,000 or (B) one percent of the
      then Outstanding Amount of the Rate Stabilization Bonds of all
      Series.

     

    (v)           Notwithstanding
      Section 2.16 or any other provision of this Section 10.01, the
      Indenture Trustee may (A) collect, liquidate, sell or otherwise dispose of
      the
      Rate

     

    
      
        
        

      

      
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    Stabilization
      Property and the other Rate Stabilization Bond Collateral as and to the extent
      permitted or required by the Basic Documents and (B) make cash payments out
      of
      each Collection Account as and to the extent permitted or required by the Basic
      Documents.

     

    SECTION
      10.02.  Form of Documents Delivered to Indenture
      Trustee.  In any case where several matters are required to be
      certified by, or covered by an opinion of, any specified Person, it is not
      necessary that all such matters be certified by, or covered by the opinion
      of,
      only one such Person, or that they be so certified or covered by only one
      document, but one such Person may certify or give an opinion with respect to
      some matters and one or more other such Persons as to other matters, and any
      such Person may certify or give an opinion as to such matters in one or several
      documents.

     

    Any
      certificate or opinion of a Responsible Officer of the Issuer may be based,
      insofar as it relates to legal matters, upon a certificate or opinion of, or
      representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which his or her certificate or opinion is
      based are erroneous.  Any such certificate of a Responsible Officer or
      Opinion of Counsel may be based, insofar as it relates to factual matters,
      upon
      a certificate or opinion of, or representations by, an officer or officers
      of
      the Servicer or the Issuer stating that the information with respect to such
      factual matters is in the possession of the Servicer or the Issuer, unless
      such
      counsel knows, or in the exercise of reasonable care should know, that the
      certificate or opinion or representations with respect to such matters are
      erroneous.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report.  The foregoing shall not, however, be
      construed to affect the Indenture Trustee’s right to rely conclusively upon the
      truth and accuracy of any statement or opinion contained in any such document
      as
      provided in Article VI.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    SECTION
      10.03.  Acts of Holders.

     

    (a)           Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Holders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Holders in person or by agents duly appointed in writing;
      and except as herein otherwise expressly provided such action shall become
      effective when such instrument or instruments are delivered to the Indenture
      Trustee, and, where it is hereby expressly required, to the
      Issuer.  Such instrument or 

     

    
      
        
        

      

      
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    instruments
      (and the action embodied therein and evidenced thereby) are herein sometimes
      referred to as the “Act” of the Holders signing such instrument or
      instruments.  Proof of execution of any such instrument or of a
      writing appointing any such agent shall be sufficient for any purpose of this
      Indenture and (subject to Section 6.01) conclusive in favor of the
      Indenture Trustee and the Issuer, if made in the manner provided in this
Section 10.03.

     

    (b)           The
      fact and date of the execution by any Person of any such instrument or writing
      may be proved in any manner that the Indenture Trustee deems
      sufficient.

     

    (c)           The
      ownership of Rate Stabilization Bonds shall be proved by the Rate Stabilization
      Bond Register.

     

    (d)           Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Rate Stabilization Bonds shall bind the Holder
      of
      every Rate Stabilization Bond issued upon the registration thereof or in
      exchange therefor or in lieu thereof, in respect of anything done, omitted
      or
      suffered to be done by the Indenture Trustee or the Issuer in reliance thereon,
      whether or not notation of such action is made upon such Rate Stabilization
      Bond.

     

    SECTION
      10.04.  Notices, etc., to Indenture Trustee, Issuer and Rating
      Agencies.

     

    (a)           Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Holders or other documents provided or permitted by this Indenture to be made
      upon, given or furnished to or filed with:

     

    (i)  
               the Indenture Trustee by
      any Holder or by the Issuer shall be sufficient for every purpose hereunder
      if
      made, given, furnished or filed in writing by facsimile transmission,
      first-class mail or overnight delivery service to or with the Indenture Trustee
      at the Corporate Trust Office,

     

    (ii)           the
      Issuer by the Indenture Trustee or by any Holder shall be sufficient for every
      purpose hereunder if in writing and mailed, first-class, postage prepaid, to
      the
      Issuer addressed to:  RSB BONDCO LLC, Suite 202, 103 Foulk Road,
      Wilmington, Delaware 19803, Attention: Manager, Telephone: (302) 691-6409,
      Facsimile: (302) 652-8667, or at any other address previously furnished in
      writing to the Indenture Trustee by the Issuer.  The Issuer shall
      promptly transmit any notice received by it from the Holders to the Indenture
      Trustee, or

     

    (iii)          the
      PSC by the Seller, the Issuer or the Indenture Trustee shall be sufficient
      for
      every purpose hereunder if in writing and mailed, first-class, postage prepaid,
      to the PSC addressed to: PUBLIC SERVICE COMMISSION OF MARYLAND, William D.
      Schaefer Tower, 6 St. Paul Street, 12th Floor, Baltimore, Maryland
      21202,  Attention: Executive Secretary, Telephone: (410) 767-8000,
      Facsimile: (410) 333-6495.

     

    (b)           Notices
      required to be given to the Rating Agencies by the Issuer or the Indenture
      Trustee shall be in writing, facsimile, personally delivered or mailed by
      certified mail, return receipt requested to:

     

    
      
        
        

      

      
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    (i)   
              in the case of Moody’s, to:
      Moody’s Investors Service, Inc., ABS Monitoring Department, 99 Church Street,
      New York, New York 10007, Telephone: (212) 553-3686, Facsimile
      (212) 553-0573,

     

    (ii)           in
      the case of Standard & Poor’s, to: Standard & Poor’s Ratings Services, a
      division of The McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor, New
      York, New York 10041, Attention: Asset Backed Surveillance Department,
      Telephone: (212) 438-2000, Facsimile: (212) 438-2665,

     

    (iii)          in
      the case of Fitch, to Fitch Ratings, One State Street Plaza, New York, New
      York
      10004, Attention: ABS Surveillance, Telephone: (212) 908-0500, Facsimile: (212)
      908-0355, and

     

    (iv)          as
      to each of the foregoing, at such other address as shall be designated by
      written notice to the other parties.

     

    SECTION
      10.05.  Notices to Holders; Waiver.  Where this
      Indenture provides for notice to Holders of any event, such notice shall be
      sufficiently given (unless otherwise herein expressly provided) if in writing
      and mailed, first-class, postage prepaid to each Holder affected by such event,
      at such Holder’s address as it appears on the Rate Stabilization Bond Register,
      not later than the latest date, and not earlier than the earliest date,
      prescribed for the giving of such notice.  In any case where notice to
      Holders is given by mail, neither the failure to mail such notice nor any defect
      in any notice so mailed to any particular Holder shall affect the sufficiency
      of
      such notice with respect to other Holders, and any notice that is mailed in
      the
      manner herein provided shall conclusively be presumed to have been duly
      given.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such
      notice.  Waivers of notice by Holders shall be filed with the
      Indenture Trustee but such filing shall not be a condition precedent to the
      validity of any action taken in reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event of Holders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute a Default or Event of
      Default.

     

    SECTION
      10.06.  Conflict with Trust Indenture Act.  If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the TIA, such required provision shall control.

     

    The
      provisions of TIA §§ 310 through 317 that impose duties on any person (including
      the provisions automatically deemed included herein unless expressly excluded
      by

     

    
      
        
        

      

      
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    this
      Indenture) are a part of and govern this Indenture, whether or not physically
      contained herein.

     

    SECTION
      10.07.  Effect of Headings and Table of
      Contents.  The Article and Section headings herein and the Table
      of Contents are for convenience only and shall not affect the construction
      hereof.

     

    SECTION
      10.08.  Successors and Assigns.  All covenants and
      agreements in this Indenture and the Rate Stabilization Bonds by the Issuer
      shall bind its successors and assigns, whether so expressed or
      not.  All agreements of the Indenture Trustee in this Indenture shall
      bind its successors.

     

    SECTION
      10.09.  Severability.  Any provision in this
      Indenture or in the Rate Stabilization Bonds that is prohibited or unenforceable
      in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
      of such prohibition or unenforceability without invalidating the remainder
      of
      such provision (if any) or the remaining provisions hereof (unless such
      construction shall be unreasonable), and any such prohibition or
      unenforceability in any jurisdiction shall not invalidate or render
      unenforceable such provision in any other jurisdiction.

     

    SECTION
      10.10.  Benefits of Indenture.  Nothing in this
      Indenture or in the Rate Stabilization Bonds, express or implied, shall give
      to
      any Person, other than the parties hereto and their successors hereunder, and
      the Holders, and any other party secured hereunder, and any other Person with
      an
      ownership interest in any part of the Rate Stabilization Bond Collateral, any
      benefit or any legal or equitable right, remedy or claim under this
      Indenture.

     

    SECTION
      10.11.  Legal Holidays.  In any case where the date
      on which any payment is due shall not be a Business Day, then (notwithstanding
      any other provision of the Rate Stabilization Bonds or this Indenture) payment
      need not be made on such date, but may be made on the next succeeding Business
      Day with the same force and effect as if made on the date on which nominally
      due, and no interest shall accrue for the period from and after any such nominal
      date.

     

    SECTION
      10.12.  GOVERNING LAW.  THIS INDENTURE SHALL BE
      GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK,  WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN
      SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
      RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
      WITH SUCH LAWS; PROVIDED THAT THE CREATION, ATTACHMENT AND PERFECTION OF
      ANY LIENS CREATED HEREUNDER IN RATE STABILIZATION PROPERTY, AND ALL RIGHTS
      AND
      REMEDIES OF THE INDENTURE TRUSTEE AND THE HOLDERS WITH RESPECT TO SUCH RATE
      STABILIZATION PROPERTY, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
      MARYLAND.

     

    SECTION
      10.13.  Counterparts.  This Indenture may be executed
      in any number of counterparts, each of which so executed shall be deemed to
      be
      an original, but all such counterparts shall together constitute but one and
      the
      same instrument.

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

    SECTION
      10.14.  Recording of Indenture.  If this Indenture is
      subject to recording in any appropriate public recording offices, such recording
      is to be effected by the Issuer and at its expense accompanied by an Opinion
      of
      Counsel at the Issuer’s cost and expense (which may be counsel to the Indenture
      Trustee or any other counsel reasonably acceptable to the Indenture Trustee
      or,
      if requested by the Indenture Trustee, external counsel of the Issuer) to the
      effect that such recording is necessary either for the protection of the Holders
      or any other Person secured hereunder or for the enforcement of any right or
      remedy granted to the Indenture Trustee under this Indenture.

     

    SECTION
      10.15.  Issuer Obligation.  No recourse may be taken,
      directly or indirectly, with respect to the obligations of the Issuer or the
      Indenture Trustee on the Rate Stabilization Bonds or under this Indenture or
      any
      certificate or other writing delivered in connection herewith or therewith,
      against (i) the Indenture Trustee or the Managers  in their respective
      individual capacities, (ii) any owner of a limited liability company interest
      in
      the Issuer (including BGE) or (iii) any shareholder, partner, owner,
      beneficiary, agent, officer, or employee of the Indenture Trustee, the Managers
      or any owner of a limited liability company interest in the Issuer (including
      BGE) in its respective individual capacity, or of any successor or assign of
      any
      of them in their respective individual or corporate capacities, except as any
      such Person may have expressly agreed in writing (it being understood that
      none
      of the Indenture Trustee, the Managers or BGE has any such obligations in their
      respective individual or corporate capacities).

     

    SECTION
      10.16.  No Recourse to Issuer.  Notwithstanding any
      provision of this Indenture or any Series Supplement to the contrary, Holders
      shall have no recourse against the Issuer, but shall look only to the Rate
      Stabilization Bond Collateral with respect to any amounts due to the Holders
      hereunder and under the Rate Stabilization Bonds.

     

    SECTION
      10.17.  Basic Documents.  The Indenture Trustee is
      hereby authorized to execute and deliver the Servicing Agreement and to execute
      and deliver any other Basic Document which it is requested to
      acknowledge.  

     

    SECTION
      10.18.  No Petition.  The Indenture Trustee, solely
      in its capacity as a creditor of the Issuer, by entering into this Indenture,
      each Holder, by accepting a Rate Stabilization Bond (or interest therein) issued
      hereunder, hereby covenant and agree that they shall not, prior to the date
      which is one year and one day after the termination of this Indenture,
      acquiesce, petition or otherwise invoke or cause the Issuer or any Manager
      to
      invoke the process of any court or government authority for the purpose of
      commencing or sustaining an involuntary case against the Issuer under any
      insolvency law or appointing a receiver, liquidator, assignee, trustee,
      custodian, sequestrator or other similar official of the Issuer or any
      substantial part of its respective property, or ordering the dissolution,
      winding up or liquidation of the affairs of the Issuer.  Nothing in
      this paragraph shall preclude, or be deemed to estop, such Holder or the
      Indenture Trustee (A) from taking or omitting to take any action prior to such
      date in (i) any case or proceeding voluntarily filed or commenced by or on
      behalf of the Issuer under or pursuant to any such law or the LLC Agreement
      or
      (ii) any involuntary case or proceeding pertaining to the Issuer which is filed
      or commenced by or on behalf of a Person other than such Holder and is not
      joined in by such Holder (or any person to which such Holder shall have
      assigned, transferred or otherwise conveyed any part of the obligations of
      the
      Issuer hereunder) under or pursuant to any 

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

    such
      law,
      or (B) from commencing or prosecuting any legal action which is not an
      involuntary case or proceeding under or pursuant to any such law against the
      Issuer or any of its properties.

     

    [SIGNATURE
      PAGE
      FOLLOWS]

     

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture
      to be duly executed by their respective officers thereunto duly authorized
      and
      duly attested, all as of the day and year first above written.

     

    
      	 	
              RSB
                BONDCO LLC, as Issuer

               

               

            
	 	By:	/s/
              Charles A. Berardesco 
	 	 	
              Name: 
                Charles A. Berardesco

              Title:   
                Secretary

            

    

     

    
      
        
        

      

      
        Issuer
          Signature Page to
          Indenture

        
          

        

      

      
        
        

      

    

     

    
      	 	
              DEUTSCHE
                BANK TRUST COMPANY AMERICAS,
not in its individual capacity
                but solely as Indenture
Trustee and as Securities
                Intermediary

               

               

            
	 	By: 	/s/
              Eileen Hughes 
	 	 	
              Name:  Eileen
                Hughes

              Title:    Vice
                President

               

            
	 	By:	/s/
              Louis Bodi 
	 	 	
              Name: 
                Louis Bodi

              Title:   
                Vice President

            
	 	 	 

    

     

    
      
        
        

      

      
        Trustee
          Signature Page to
          Indenture

        
          

        

      

      
        
        

      

    

     

    STATE
      OF
      NEW
      YORK                     )
                                                              
      ) ss:
CITY
      OF
      BALTIMORE                      
)

     

    

    On
      the
      29th day of June, 2007, before me, Holly Anne Hertsgaard, a Notary
      Public in and for said county and state, personally appeared Charles A.
      Berardesco, personally known to me (or proved to me on the basis of satisfactory
      evidence) to be the person and officer whose name is subscribed to the within
      instrument and acknowledged to me that such person executed the same in such
      person’s authorized capacity, and that by the signature on the instrument
      Deutsche Bank Trust Company Americas, a national banking association, and the
      entity upon whose behalf the person acted, executed this
      instrument.

     

    WITNESS
      my hand and official seal.

     

    

    
      	 	/s/
              Holly Anne Hertsgaard 	 
	 	Notary
              Public	 
	 	My
              commission expires:  2/1/08	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      STATE
        OF
        NEW YORK        )
                       )
        ss:

      COUNTY
        OF
        MANHATTAN              )

    

    

    

    On
      the
      27th day of June, 2007, before me, Winsome Ferguson, a Notary Public
      in and for said county and state, personally appeared Eileen Hughes, personally
      known to me (or proved to me on the basis of satisfactory evidence) to be the
      person and officer whose name is subscribed to the within instrument and
      acknowledged to me that such person executed the same in such person’s
      authorized capacity, and that by the signature on the instrument Deutsche Bank
      Trust Company Americas, a national banking association, and the entity upon
      whose behalf the person acted, executed this instrument.

     

    WITNESS
      my hand and official seal.

     

    

    
      	
            	/s/
              Winsome Ferguson	 
	 	Notary
              Public	 
	 	My
              commission expires:  March 3, 2011	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        STATE
          OF
          MARYLAND                  
)
                                                              
          ) ss:

        COUNTY
          OF
          MANHATTAN  
)

      

    

    

    On
      the
      27th day of June, 2007, before me, Winsome Ferguson, a Notary Public
      in and for said county and state, personally appeared Louis Bodi, personally
      known to me (or proved to me on the basis of satisfactory evidence) to be the
      person whose name is subscribed to the within instrument and acknowledged to
      me
      that he executed the same in his capacity as a manager of RSB BONDCO LLC, and
      that by his signature on the instrument RSB BONDCO LLC, a Delaware limited
      liability company and the entity upon whose behalf such person acted, executed
      this instrument.

     

    WITNESS
      my hand and official seal.

     

     

    
      	
            	/s/
              Winsome Ferguson	 
	 	Notary
              Public	 
	 	My
              commission expires:  March 3, 2011	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      A

     

    FORM
      OF RATE STABILIZATION BOND

     

    UNLESS
      AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE
      REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
      THE
      DEPOSITARY TO THE NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY
      TO
      THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR
      ANY
      SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
      DEPOSITARY.  UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
      REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
      TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
      AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
      OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
      PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
      FOR
      VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
      OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    REGISTERED
      No. _____                                                                    $________

    

    SEE
      REVERSE FOR CERTAIN DEFINITIONS

     

    CUSIP
      NO.

     

    THE
      PRINCIPAL OF THIS SERIES [    ],
      TRANCHE
[  -  ]
      RATE
      STABILIZATION BOND (“THIS TRANCHE [  - ]
      RATE STABILIZATION BOND”) WILL BE PAID IN INSTALLMENTS AS SET FORTH
      HEREIN.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS TRANCHE
[  -  ]
      RATE
      STABILIZATION BOND AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
      HEREOF.  THE HOLDER OF THIS TRANCHE [  -  ]
      RATE
      STABILIZATION BOND HAS NO RECOURSE TO THE ISSUER HEREOF AND AGREES TO LOOK
      ONLY
      TO THE RATE STABILIZATION BOND COLLATERAL, AS DESCRIBED IN THE INDENTURE AND
      THE
      SERIES SUPPLEMENT REFERRED TO ON THE REVERSE HEREOF, FOR PAYMENT OF ANY AMOUNTS
      DUE HEREUNDER.  ALL OBLIGATIONS OF THE ISSUER OF THIS TRANCHE [  -  ]
      RATE
      STABILIZATION BOND UNDER THE TERMS OF THE INDENTURE WILL BE RELEASED AND
      DISCHARGED UPON PAYMENT IN FULL HEREOF OR AS OTHERWISE PROVIDED IN SECTION
      3.10(b) OR ARTICLE IV OF THE INDENTURE.  THE HOLDER OF THIS
      TRANCHE [  -  ]
      RATE
      STABILIZATION BOND HEREBY COVENANTS AND AGREES THAT PRIOR TO THE DATE WHICH
      IS
      ONE (1) YEAR AND ONE (1) DAY AFTER THE PAYMENT IN FULL OF THE
      SERIES

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          1

        

        
          

        

      

      
        
        

      

    

     

    [     ]
      RATE
      STABILIZATION BONDS, IT WILL NOT ACQUIESCE, PETITION OR OTHERWISE INVOKE OR
      CAUSE THE ISSUER OR ANY MANAGER TO INVOKE THE PROCESS OF ANY COURT OR
      GOVERNMENTAL AUTHORITY FOR THE PURPOSE OF COMMENCING OR SUSTAINING AN
      INVOLUNTARY CASE AGAINST THE ISSUER UNDER ANY INSOLVENCY LAW OR APPOINTING
      A
      RECEIVER, LIQUIDATOR, ASSIGNEE, TRUSTEE, CUSTODIAN, SEQUESTRATOR OR OTHER
      SIMILAR OFFICIAL OF THE ISSUER OR ANY SUBSTANTIAL PART OF ITS RESPECTIVE
      PROPERTY, OR ORDERING THE DISSOLUTION, WINDING UP OR LIQUIDATION OF THE AFFAIRS
      OF THE ISSUER.  NOTHING IN THIS PARAGRAPH SHALL PRECLUDE, OR BE DEEMED
      TO ESTOP, SUCH HOLDER (A) FROM TAKING OR OMITTING TO TAKE ANY ACTION PRIOR
      TO
      SUCH DATE IN (I) ANY CASE OR PROCEEDING VOLUNTARILY FILED OR COMMENCED BY OR
      ON
      BEHALF OF THE ISSUER UNDER OR PURSUANT TO ANY SUCH LAW OR THE LLC AGREEMENT
      OR
      (II) ANY INVOLUNTARY CASE OR PROCEEDING PERTAINING TO THE ISSUER WHICH IS FILED
      OR COMMENCED BY OR ON BEHALF OF A PERSON OTHER THAN SUCH HOLDER AND IS NOT
      JOINED IN BY SUCH HOLDER (OR ANY PERSON TO WHICH SUCH HOLDER SHALL HAVE
      ASSIGNED, TRANSFERRED OR OTHERWISE CONVEYED ANY PART OF THE OBLIGATIONS OF
      THE
      ISSUER HEREUNDER) UNDER OR PURSUANT TO ANY SUCH LAW, OR (B) FROM COMMENCING
      OR
      PROSECUTING ANY LEGAL ACTION WHICH IS NOT AN INVOLUNTARY CASE OR PROCEEDING
      UNDER OR PURSUANT TO ANY SUCH LAW AGAINST THE ISSUER OR ANY OF ITS
      PROPERTIES.

    

    THE
      STATE
      OF MARYLAND AND ANY OTHER GOVERNMENTAL UNIT ARE NOT OBLIGED TO PAY THE PRINCIPAL
      OF OR INTEREST ON RSB BONDCO LLC RATE STABILIZATION BONDS, INCLUDING THIS
      TRANCHE [   ] RATE
      STABILIZATION
      BOND.  NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE
      STATE OF MARYLAND OR ANY OTHER GOVERNMENTAL UNIT IS PLEDGED TO THE PAYMENT
      OF
      THE PRINCIPAL OF OR INTEREST ON RSB BONDCO LLC RATE STABILIZATION BONDS,
      INCLUDING THIS TRANCHE [  
] RATE
      STABILIZATION
      BOND.  THE STATE OF MARYLAND HAS PLEDGED, FOR THE BENEFIT AND
      PROTECTION OF THE HOLDERS OF RSB BONDCO LLC RATE STABILIZATION BONDS,
      INCLUDING THIS TRANCHE [  
] RATE
      STABILIZATION BOND,
      THAT IT WILL NOT TAKE OR ALLOW ANY ACTION THAT WOULD IMPAIR THE VALUE OF THE
      RATE STABILIZATION PROPERTY, OR, EXCEPT AS ALLOWED BY APPLICABLE SECTIONS OF
      THE
      RATE STABILIZATION ACT, REDUCE, ALTER OR IMPAIR THE QUALIFIED RATE STABILIZATION
      CHARGES TO BE IMPOSED, COLLECTED AND REMITTED TO THE INDENTURE TRUSTEE FOR
      THE
      BENEFIT OF THE HOLDERS OF RATE STABILIZATION BONDS, INCLUDING THIS TRANCHE
[  
] RATE
      STABILIZATION BOND,
      UNTIL THE PRINCIPAL, INTEREST AND PREMIUM, AND ANY OTHER CHARGES INCURRED AND
      CONTRACTS TO BE PERFORMED IN CONNECTION WITH THE RSB BONDCO LLC RATE STABILIZATION BONDS,
      INCLUDING THIS TRANCHE [  
] RATE
      STABILIZATION BOND,
      HAVE BEEN PAID AND PERFORMED IN FULL.

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          2

        

        
          

        

      

      
        
        

      

    

     

    RSB
      BONDCO LLC RATE STABILIZATION BONDS,

     

    SERIES
      [  
],
      Tranche
[  -  ].

     

    
      	
              INTEREST

              RATE

            	
              ORIGINAL
                PRINCIPAL

              AMOUNT

            	
              FINAL
                MATURITY

              DATE

            
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    

    

     

    RSB
      BONDCO LLC, a limited liability company formed under the laws of the State
      of
      Delaware (herein referred to as the “Issuer”), for value received, hereby
      promises to pay to [           
],
      or
      registered assigns, the Original Principal Amount shown above [in
      semi-annual
      installments] on
      the
      Payment Dates and in the amounts specified on the reverse hereof or, if less,
      the amounts determined pursuant to Section 8.02 of the Indenture, in each
      year, commencing on the date determined as provided on the reverse hereof and
      ending on or before the Final Maturity Date shown above and to pay interest,
      at
      the Interest Rate shown above, on each April 1st and October
      1st or if any
      such day
      is not a Business Day, the next succeeding Business Day, commencing on [           
]
      and
      continuing until the earlier of the payment in full of the principal hereof
      and
      the Final Maturity Date (each a “Payment Date”), on the principal amount
      of this Series [  
],
      Tranche
[  -  ]
      Rate
      Stabilization Bond (hereinafter referred to as this “Tranche [  -  ]
      Rate Stabilization Bond”).  Interest on this Tranche [  -  ]
      Rate
      Stabilization Bond will accrue for each Payment Date from the most recent
      Payment Date on which interest has been paid to but excluding such Payment
      Date
      or, if no interest has yet been paid, from the date of issuance. Interest will
      be computed on the basis of [specify
      method
      of computation].  Such
      principal of and interest on this Tranche [  -  ]
      Rate
      Stabilization Bond shall be paid in the manner specified on the reverse
      hereof.

     

    The
      principal of and interest on this Tranche [  -  ]
      Rate
      Stabilization Bond are payable in such coin or currency of the United States
      of
      America as at the time of payment is legal tender for payment of public and
      private debts.  All payments made by the Issuer with respect to this
      Tranche [  -  ]
      Rate
      Stabilization Bond shall be applied first to interest due and payable on this
      Tranche [  -  ]
      Rate
      Stabilization Bond as provided above and then to the unpaid principal of and
      premium, if any, on this Tranche [  -  ]
      Rate
      Stabilization Bond, all in the manner set forth in the Indenture.

     

    Reference
      is made to the further provisions of this Tranche [  -  ]
      Rate
      Stabilization Bond set forth on the reverse hereof, which shall have the same
      effect as though fully set forth on the face of this Tranche [  -  ]
      Rate
      Stabilization Bond.

     

    Unless
      the certificate of authentication hereon has been executed by the Indenture
      Trustee whose name appears below by manual signature, this Tranche [  -  ]
      Rate
      Stabilization

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          3

        

        
          

        

      

      
        
        

      

    

     

    Bond
      shall not be entitled to any benefit under the Indenture referred to on the
      reverse hereof, or be valid or obligatory for any purpose.

     

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually
      or
      in facsimile, by its Responsible Officer.

     

    
      

      
        	
                Date:

              	
                RSB
                  BONDCO LLC

                 

                 

              
	 	
                By:

              	 
	 	 	
                Name:

                Title:

              

      

      
        
          
          

        

        
          
            EXHIBIT
              A

            4

          

          
            

          

        

        
          
          

        

         

      

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

    Dated:  __________
      ___, ____

     

    This
      is
      one of the Series [   
],
      Tranche
[  -  ]
      Rate
      Stabilization Bonds, designated above and referred to in the within-mentioned
      Indenture.

     

     

    
      
        	 	
                DEUTSCHE
                  BANK TRUST COMPANY AMERICAS, not in its individual capacity but
                  solely as
                  Indenture Trustee and as Securities Intermediary

                 

                 

              
	 	
                By:

              	 
	 	 	
                Name:

                Title:

                 

              
	 	
                By:

              	 
	 	 	
                Name:

                Title:

              

      

    

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          5

        

        
          

        

      

      
        
        

      

    

     

    REVERSE
      OF RATE STABILIZATION BOND* 1

     

    This
      Series [  
],
      Tranche
[  -  ]
      Rate
      Stabilization Bond is one of a duly authorized issue of Rate Stabilization
      Bonds
      of the Issuer (herein called the “Rate Stabilization Bonds”), issued and
      to be issued in one or more Series, which Series are issuable in one or more
      Tranches, and the Series [  
]
      Rate
      Stabilization Bonds consists of [  
]
      Tranches,
      including this Tranche [  -  ]
      Rate
      Stabilization Bond (herein called the “Tranche [  -  ]
      Rate Stabilization Bonds”), all issued and to be issued under that certain
      Indenture dated as of June 29, 2007 (as supplemented by the Series Supplement
      (as defined below), the “Indenture”), between the Issuer and Deutsche
      Bank Trust Company Americas, in its capacity as indenture trustee (the
“Indenture Trustee”, which term includes any successor indenture trustee
      under the Indenture) and in its separate capacity as a securities intermediary
      (the “Securities Intermediary”, which term includes any successor
      securities intermediary under the Indenture), to which Indenture and all
      indentures supplemental thereto reference is hereby made for a statement of
      the
      respective rights and obligations thereunder of the Issuer, the Indenture
      Trustee and the Holders of the Rate Stabilization Bonds.  For purposes
      herein, “Series Supplement” means that certain Series Supplement dated as of
      June 29, 2007, between the Issuer and the Indenture Trustee.  All
      terms used in this Tranche [  -  ]
      Rate
      Stabilization Bond that are defined in the Indenture, as amended, restated,
      supplemented or otherwise modified from time to time, shall have the meanings
      assigned to such terms in the Indenture.

     

    The
      Tranche [  -  ]
      Rate
      Stabilization Bonds, the other Tranches of Series [  
]
      Rate
      Stabilization Bonds (all of such Tranches being referred to herein as “Series
[  
        ]
      Rate Stabilization Bonds”) and any other Series of Rate Stabilization Bonds
      issued by the Issuer are and will be equally and ratably secured by the Series
      Rate Stabilization Bond Collateral pledged as security therefor as provided
      in
      the Indenture.

     

    The
      principal of this Tranche [  -  ]
      Rate
      Stabilization Bond shall be payable on each Payment Date only to the extent
      that
      amounts in the applicable Collection Account are available therefor, and only
      until the outstanding principal balance thereof on such Payment Date (after
      giving effect to all payments of principal, if any, made on such Payment Date)
      has been reduced to the principal balance specified in the Expected Amortization
      Schedule which is attached to the related Series Supplement as Schedule A,
      unless payable earlier because an Event of Default shall have occurred and
      be
      continuing and the Indenture Trustee or the Bondholders representing not less
      than a majority of the Outstanding Amount of the Rate Stabilization Bonds of
      this Series have declared such Rate Stabilization Bonds to be immediately due
      and payable in accordance with Section 5.02 of the Indenture (unless such
      declaration shall have been rescinded and annulled in accordance with
Section 5.02 of the Indenture).  However, actual principal
      payments may be made in lesser than expected amounts and at later than expected
      times as determined pursuant to Section 8.02 of the
      Indenture.  The entire unpaid principal amount of this Tranche [  -  ]
      Rate
      Stabilization Bond shall be due and payable on the Final Maturity
      Date

     

    
      
        

      

    

    
      *The
        form of the reverse of a
        Rate Stabilization Bond is substantially as follows, unless otherwise specified
        in the related Series Supplement.

    

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          6

        

        
          

        

      

      
        
        

      

    

     

    hereof.  Notwithstanding
      the foregoing, the entire unpaid principal amount of the Rate Stabilization
      Bonds shall be due and payable, if not then previously paid, on the date on
      which an Event of Default shall have occurred and be continuing and the
      Indenture Trustee or the Holders of the Rate Stabilization Bonds representing
      not less than a majority of the Outstanding Amount of the Rate Stabilization
      Bonds of this Series have declared the Rate Stabilization Bonds of this Series
      to be immediately due and payable in the manner provided in Section 5.02
      of the Indenture (unless such declaration shall have been rescinded and annulled
      in accordance with Section 5.02 of the Indenture).  All
      principal payments on the Tranche [  -  ]
      Rate
      Stabilization Bonds shall be made pro rata to the Tranche [  -  ]
      Holders
      entitled thereto based on the respective principal amounts of the Tranche [  -  ]
      Rate
      Stabilization Bonds held by them.

     

    Payments
      of interest on this Tranche [  -  ]
      Rate
      Stabilization Bond due and payable on each Payment Date, together with the
      installment of principal or premium, if any, shall be made by check mailed
      first-class, postage prepaid, to the Person whose name appears as the Registered
      Holder of this Tranche [  -  ]
      Rate
      Stabilization Bond (or one or more Predecessor Rate Stabilization Bonds) on
      the
      Rate Stabilization Bond Register on the Record Date or in such other manner
      as
      may be provided in the Indenture or the related Series Supplement, except that
      (i) upon application to the Indenture Trustee by any Holder owning a Global
      Rate
      Stabilization Bond evidencing this Tranche [  -  ]
      Rate
      Stabilization Bond in the principal amount of $10,000,000 or more not later
      than
      the applicable Record Date payment will be made by wire transfer to an account
      maintained by such Holder and (ii) if this Tranche [  -  ]
      Rate
      Stabilization Bond is held in Book-Entry Form, payments will be made by wire
      transfer in immediately available funds to the account designated by the Holder
      of the applicable Global Rate Stabilization Bond evidencing this Tranche [  -  ]
      Rate
      Stabilization Bond unless and until such Global Rate Stabilization Bond is
      exchanged for Definitive Rate Stabilization Bonds (in which event payments
      shall
      be made as provided above) and except for the final installment of principal
      and
      premium, if any, payable with respect to this Tranche [  -  ]
      Rate
      Stabilization Bond on a Payment Date which shall be payable as provided
      below.  Such checks shall be mailed to the Person entitled thereto at
      the address of such Person as it appears on the Rate Stabilization Bond Register
      as of the applicable Record Date without requiring that this Tranche [  -  ]
      Rate
      Stabilization Bond be submitted for notation of payment.  Any
      reduction in the principal amount of this Tranche [  -  ]
      Rate
      Stabilization Bond (or any one or more Predecessor Rate Stabilization Bonds)
      effected by any payments made on any Payment Date shall be binding upon all
      future Holders of this Tranche [  -  ]
      Rate
      Stabilization Bond and of any Rate Stabilization Bond issued upon the
      registration of transfer hereof or in exchange hereof or in lieu hereof, whether
      or not noted hereon.  If funds are expected to be available, as
      provided in the Indenture, for payment in full of the then remaining unpaid
      principal amount of this Tranche [  -  ]
      Rate
      Stabilization Bond on a Payment Date, then the Indenture Trustee, in the name
      of
      and on behalf of the Issuer, will notify the Person who was the Registered
      Holder hereof as of the Record Date preceding such Payment Date by notice mailed
      no later than five (5) days prior to such final Payment Date and shall specify
      that such final installment will be payable only upon presentation and surrender
      of this Tranche [  -  ]
      Rate
      Stabilization Bond and shall specify the place where this Tranche [  -  ]
      Rate
      Stabilization Bond may be presented and surrendered for payment of such
      installment.

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          7

        

        
          

        

      

      
        
        

      

    

     

    The
      Issuer shall pay interest on overdue installments of interest at the Rate
      Stabilization Bond Interest Rate to the extent lawful.

     

    This
      Rate
      Stabilization Bond is a “Rate Stabilization Bond” as such term is defined in the
      Rate Stabilization Law.  Principal and interest due and payable on
      this Rate Stabilization Bond are payable from and secured primarily by Rate
      Stabilization Property created and established by a Qualified Rate Order
      obtained from the Public Service Commission of Maryland pursuant to the Rate
      Stabilization Law.  Rate Stabilization Property consists of the rights
      and interests of the Seller in the relevant Qualified Rate Order, including
      the
      right to impose, collect and recover certain charges (defined in the Rate
      Stabilization Law as “Qualified Rate Stabilization Charges”) to be
      included in regular electric utility bills of existing and future residential
      electric delivery service customers within the service territory of BGE, a
      Maryland electric utility, or its successors or assigns, as more fully described
      in the Qualified Rate Order.

     

    The
      Rate
      Stabilization Law provides that:  “The state pledges for the benefit
      and protection of financing parties and the electric company, that it will
      not
      take or allow any action that would impair the value of rate stabilization
      property, or, except as allowed in accordance with Sections 7-531, 7-533, and
      7-534 [of the Rate Stabilization Law], reduce, alter, or impair the qualified
      rate stabilization charges to be imposed, collected, and remitted to financing
      parties, until the principal, interest and premium, and any other charges
      incurred and contracts to be performed in connection with the related rate
      stabilization bonds have been paid and performed in full.  Any party
      issuing rate stabilization bonds is authorized to include this pledge in any
      documentation relating to those bonds.”

     

    As
      a
      result of the foregoing pledge, the State of Maryland may not, except as
      provided in the succeeding sentence, in any way reduce, alter or impair the
      Qualified Rate Stabilization Charges until the Rate Stabilization Bonds,
      together with interest thereon, are fully paid and
      discharged.  Notwithstanding the immediately preceding sentence, the
      State of Maryland would be allowed to effect a temporary impairment of the
      Holders’ rights if it could be shown that such impairment was necessary to
      advance a significant and legitimate public purpose.

     

    The
      Issuer and BGE hereby acknowledge that the purchase of this Rate Stabilization
      Bond by the Holder hereof or the purchase of any beneficial interest herein
      by
      any Person are made in reliance on the foregoing pledge.

     

    As
      provided in the Indenture and subject to certain limitations set forth therein,
      the transfer of this Tranche [    -    ]
      Rate
      Stabilization Bond may be registered on the Rate Stabilization Bond Register
      upon surrender of this Tranche [    -    ]
      Rate
      Stabilization Bond for registration of transfer at the office or agency
      designated by the Issuer pursuant to the Indenture, duly endorsed by, or
      accompanied by (a) a written instrument of transfer in form satisfactory to
      the
      Indenture Trustee duly executed by the Holder hereof or such Holder’s attorney
      duly authorized in writing, with such signature guaranteed by an institution
      which is a member of one of the following recognized Signature Guaranty
      Programs:  (i) The Securities Transfer Agent Medallion Program
      (STAMP); (ii)The New York Stock Exchange Medallion Program (MSP); (iii) The
      Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee program
      acceptable to the Indenture Trustee, and (b) such other documents as the
      Indenture Trustee may

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          8

        

        
          

        

      

      
        
        

      

    

     

    require,
      and thereupon one or more new Tranche [    -    ]
      Rate
      Stabilization Bonds of Minimum Denominations and in the same aggregate principal
      amount will be issued to the designated transferee or transferees.  No
      service charge will be charged for any registration of transfer or exchange
      of
      this Tranche [    -    ]
      Rate
      Stabilization Bond, but the transferor may be required to pay a sum sufficient
      to cover any tax or other governmental charge that may be imposed in connection
      with any such registration of transfer or exchange, other than exchanges
      pursuant to Sections 2.04 or 2.06 of the Indenture not involving
      any transfer.

     

    Each
      Rate
      Stabilization Bond holder, by acceptance of a Rate Stabilization Bond, covenants
      and agrees that no recourse may be taken, directly or indirectly, with respect
      to the obligations of the Issuer or the Indenture Trustee on the Rate
      Stabilization Bonds or under the Indenture or any certificate or other writing
      delivered in connection therewith, against (i) the Indenture Trustee or the
      Managers in their respective individual capacities, (ii) any owner of a limited
      liability company interest in the Issuer (including BGE) or (iii) any
      shareholder, partner, owner, beneficiary, agent, officer or employee of the
      Indenture Trustee, the Managers or any owner of a limited liability company
      interest in the Issuer (including BGE) in its respective individual or corporate
      capacities, or of any successor or assign of any of them in their individual
      or
      corporate capacities, except as any such Person may have expressly agreed in
      writing (it being understood that none of the Indenture Trustee, the Managers
      or
      BGE has any such obligations in their respective individual or corporate
      capacities).

     

    Prior
      to
      the due presentment for registration of transfer of this Tranche [    -    ]
      Rate
      Stabilization Bond, the Issuer, the Indenture Trustee and any agent of the
      Issuer or the Indenture Trustee may treat the Person in whose name this Tranche
      [    -    ]
      Rate
      Stabilization Bond is registered (as of the day of determination) as the owner
      hereof for the purpose of receiving payments of principal of and premium, if
      any, and interest on this Tranche [    -    ]
      Rate
      Stabilization Bond and for all other purposes whatsoever, whether or not this
      Tranche [    -    ]
      Rate
      Stabilization Bond be overdue, and neither the Issuer, the Indenture Trustee
      nor
      any such agent shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Rate Stabilization Bonds under the Indenture at
      any
      time by the Issuer with the consent of the Bondholders representing not less
      than a majority of the Outstanding Amount of all Rate Stabilization Bonds at
      the
      time outstanding of each Series or Tranche to be affected.  The
      Indenture also contains provisions permitting the Bondholders representing
      specified percentages of the Outstanding Amount of the Rate Stabilization Bonds
      of all Series, on behalf of the Holders of all the Rate Stabilization Bonds,
      to
      waive compliance by the Issuer with certain provisions of the Indenture and
      certain past defaults under the Indenture and their consequences.  Any
      such consent or waiver by the Holder of this Tranche [  -  ]
      Rate
      Stabilization Bond (or any one of more Predecessor Rate Stabilization Bonds)
      shall be conclusive and binding upon such Holder and upon all future Holders
      of
      this Tranche [  -  ]
      Rate
      Stabilization Bond and of any Rate Stabilization Bond issued upon the
      registration of transfer hereof or in exchange hereof or in lieu hereof whether
      or not notation of such consent or waiver is made upon this Tranche [  -  ]
      Rate
      Stabilization Bond.  The Indenture also permits the Indenture Trustee
      to amend or waive

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          9

        

        
          

        

      

      
        
        

      

    

     

    certain
      terms and conditions set forth in the Indenture without the consent of Holders
      of the Rate Stabilization Bonds issued thereunder.

     

    The
      Indenture contains provisions for defeasance at any time of (a) the entire
      indebtedness of the Issuer on this Tranche [  -  ]
      Rate
      Stabilization Bond and (b) certain restrictive covenants and the related Events
      of Default, upon compliance by the Issuer with certain conditions set forth
      therein, which provisions apply to this Tranche [  -  ]
      Rate
      Stabilization Bond.

     

    The
      term
“Issuer” as used in this Tranche [  -  ]
      Rate
      Stabilization Bond includes any successor to the Issuer under the
      Indenture.

     

    The
      Issuer is permitted by the Indenture, under certain circumstances, to merge
      or
      consolidate, subject to the rights of the Indenture Trustee and the Bondholders
      under the Indenture.

     

    The
      Tranche [  -  ]
      Rate
      Stabilization Bonds are issuable only in registered form in denominations as
      provided in the Indenture and the related Series Supplement subject to certain
      limitations therein set forth.

     

    THIS
      TRANCHE [  -  ]
      RATE
      STABILIZATION BOND, THE INDENTURE AND THE RELATED SERIES SUPPLEMENT SHALL BE
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
      REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
      NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
      OF
      THE PARTIES HEREUNDER AND THEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
      SUCH
      LAWS; PROVIDED THAT THE CREATION, ATTACHMENT AND PERFECTION OF ANY LIENS
      CREATED UNDER THE INDENTURE IN RATE STABILIZATION PROPERTY, AND ALL RIGHTS
      AND
      REMEDIES OF THE INDENTURE TRUSTEE AND THE HOLDERS WITH RESPECT TO SUCH RATE
      STABILIZATION PROPERTY, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
      MARYLAND.

     

    No
      reference herein to the Indenture and no provision of this Tranche [  -  ]
      Rate
      Stabilization Bond or of the Indenture shall alter or impair the obligation,
      which is absolute and unconditional, to pay the principal of and interest on
      this Tranche [  -  ]
      Rate
      Stabilization Bond at the times, place, and rate, and in the coin or currency
      herein prescribed.

     

    The
      Holder of this Tranche [  -  ]
      Rate
      Stabilization Bond by the acceptance hereof agrees that, notwithstanding any
      provision of the Indenture or the related Series Supplement to the contrary,
      the
      Holder shall have no recourse against the Issuer, but shall look only to the
      Rate Stabilization Bond Collateral, with respect to any amounts due to the
      Holder under this Tranche [  -  ]
      Rate
      Stabilization Bond.

     

    The
      Issuer and the Indenture Trustee, by entering into the Indenture, and the
      Holders and any Persons holding a beneficial interest in any Tranche [  -  ]
      Rate
      Stabilization Bond, by acquiring any Tranche [  -  ]
      Rate
      Stabilization

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          10

        

        
          

        

      

      
        
        

      

    

     

    Bond
      or
      interest therein, (i) express their intention that, solely for the purpose
      of
      federal taxes and, to the extent consistent with applicable state, local and
      other tax law, solely for the purpose of state, local and other taxes, the
      Tranche [  -  ]
      Rate
      Stabilization Bonds qualify under applicable tax law as indebtedness of the
      sole
      owner of the Issuer secured by the Rate Stabilization Bond Collateral and (ii)
      solely for purposes of federal taxes and, to the extent consistent with
      applicable state, local and other tax law, solely for purposes of state, local
      and other taxes, so long as any of the Tranche [  -  ]
      Rate
      Stabilization Bonds are outstanding, agree to treat the Tranche [  -  ]
      Rate
      Stabilization Bonds as indebtedness of the sole owner of the Issuer secured
      by
      the Rate Stabilization Bond Collateral unless otherwise required by appropriate
      taxing authorities.

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          11

        

        
          

        

      

      
        
        

      

    

     

    ABBREVIATIONS

     

    The
      following abbreviations, when used in the inscription of the face of this
      Tranche [  -  ]
      Rate
      Stabilization Bond, shall be construed as though they were written out in full
      according to applicable laws or regulations.

     

    
      	
              TEN
                COM

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              as
                joint tenants with right of survivorship and not as tenants

              in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              ___________________
                Custodian ______________________

              (Custodian)                                              
                (minor)

            
	 	
              Under
                Uniform Gifts to Minor Act (____________________)

                                          (State)

               

            

    

    Additional
      abbreviations may also be used though not in the above list.

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          12

        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

     

    Social
      Security or taxpayer I.D. or other identifying number of assignee
      _______________________

     

    

    FOR
      VALUE
      RECEIVED, the undersigned2 hereby sells,
      assigns and transfers unto

     

    (name
      and
      address of assignee)

     

    the
      within Tranche [  -  ]
      Rate
      Stabilization Bond and all rights thereunder, and hereby irrevocably constitutes
      and appoints
      ______              ,
      attorney, to transfer said Tranche [  -  ]
      Rate
      Stabilization Bond on the books kept for registration thereof, with full power
      of substitution in the premises.

     

    
      
        	
                Dated:
                  ________________

              	 
	 	
                Signature
                  Guaranteed:

                 

              
	 	
                 

              

      

    

     

    
      
2    RATE
      STABILIZATION BOND:  The signature to this assignment must correspond
      with the name of the registered owner as it appears on the face of the within
      Tranche [  -  ]
      Rate
      Stabilization Bond in every particular, without alteration, enlargement or
      any
      change whatsoever.

    
       

      NOTE:  Signature(s)
        must be
        guaranteed by an institution which is a member of one of the following
        recognized Signature Guaranty Programs:  (i) The Securities Transfer
        Agent Medallion Program (STAMP), (ii) The New York Stock Exchange Medallion
        Program (MSP), (iii) the Stock Exchange Medallion Program (SEMP) or (iv)
        such
        other guarantee program acceptable to the Indenture Trustee.

       

      
        
          
          

        

        
          
            EXHIBIT
              A

            13

          

          
            

          

        

        
          
          

        

         

      

    

    EXHIBIT
      B

     

    FORM
      OF SERIES SUPPLEMENT

     

    This
      SERIES SUPPLEMENT dated as of June 29, 2007 (this “Series Supplement”),
      by and between RSB BONDCO LLC, a limited liability company formed under the
      laws
      of the State of Delaware (the “Issuer”), and DEUTSCHE BANK TRUST COMPANY
      AMERICAS, a New York banking corporation (“Deutsche Bank”), in its capacity as
      indenture trustee (the “Indenture Trustee”) for the benefit of the
      Secured Parties under the Indenture dated as of June 29, 2007, by and between
      the Issuer and Deutsche Bank, in its capacity as Indenture Trustee and in its
      separate capacity as a securities intermediary (the
“Indenture”).

     

    PRELIMINARY
      STATEMENT

     

    Section
      2.02 of the Indenture provides, among other things, that the Issuer and the
      Indenture Trustee may at any time and from time to time enter into one or more
      Series Supplements for the purposes of authorizing the issuance by the Issuer
      of
      a Series of Rate Stabilization Bonds and establishing the terms
      thereof.  The Issuer has duly authorized the creation of a Series of
      Rate Stabilization Bonds with an initial aggregate principal amount of
      $623,200,000 to be known as RSB BondCo LLC Rate Stabilization Bonds, Series
      A
      (the “Series A Rate Stabilization Bonds”), and the Issuer and the
      Indenture Trustee are executing and delivering this Series Supplement in order
      to provide for the creation of the Series A Rate Stabilization
      Bonds.

     

    All
      terms
      used in this Series Supplement that are defined in the Indenture, either
      directly or by reference therein, have the meanings assigned to them therein,
      except to the extent such terms are defined or modified in this Series
      Supplement or the context clearly requires otherwise.  In the event
      that any term or provision contained herein shall conflict with or be
      inconsistent with any term or provision contained in the Indenture, the terms
      and provisions of this Series Supplement shall govern.

     

    GRANTING
      CLAUSE

     

    With
      respect to the Series A Rate Stabilization Bonds, the Issuer hereby Grants
      to
      the Indenture Trustee, as Indenture Trustee for the benefit of the Secured
      Parties of the Series A Rate Stabilization Bonds, all of the Issuer’s right,
      title and interest (whether now owned or hereafter acquired or arising) in
      and
      to the following (collectively, the “Series A Rate Stabilization Bond
      Collateral”): (a) the Rate Stabilization Property created under and pursuant
      to the Applicable Qualified Rate Order, and transferred by the Seller to the
      Issuer pursuant to the Sale Agreement (including, to the fullest extent
      permitted by law, the right to impose, collect and receive Qualified Rate
      Stabilization Charges, all revenues, collections, claims, rights, payments,
      money or proceeds of or arising from the Qualified Rate Stabilization Charges
      authorized in the Applicable Qualified Rate Order and any Tariffs filed pursuant
      thereto and any contractual rights to collect such Qualified Rate Stabilization
      Charges from Customers and Third-Party Collectors), (b) all Qualified Rate
      Stabilization Charges related to such Rate Stabilization Property, (c) the
      Sale
      Agreement and each Bill of Sale executed in connection therewith and all
      property and interests in property transferred under the Sale Agreement and
      such
      Bills of Sale with respect to

     

    
      
        
        

      

      
        
          EXHIBIT
            B

          1

        

        
          

        

      

      
        
        

      

    

     

    such
      Rate
      Stabilization Property and the Series A Rate Stabilization Bonds, (d) the
      Servicing Agreement, the Administration Agreement and any subservicing, agency,
      administration, collection or other agreements executed in connection therewith,
      to the extent related to the foregoing Rate Stabilization Property and the
      Series A Rate Stabilization Bonds, (e) the Collection Account for such Series,
      all subaccounts thereof and all amounts of cash, instruments, investment
      property or other assets on deposit therein or credited thereto from time to
      time and all financial assets and securities entitlements carried therein or
      credited thereto, (f) all rights to compel the Servicer to file for and obtain
      adjustments to the Qualified Rate Stabilization Charges in accordance with
      Section 7-531 of the Rate Stabilization Law, the Applicable Qualified Rate
      Order
      or any Tariff filed in connection therewith, (g) all deposits, guarantees,
      surety bonds, letters of credit and other forms of credit support provided
      by or
      on behalf of Third-Party Collectors pursuant to such Applicable Qualified Rate
      Order or Tariff, including investment earnings thereon and all amounts on
      deposit in the TPC Deposit Accounts, (h) all present and future
      claims, demands, causes and choses in action in respect of any or all of the
      foregoing, whether such claims, demands, causes and choses in action constitute
      Rate Stabilization Property, accounts, general intangibles, instruments,
      contract rights, chattel paper or proceeds of such items or any other form
      of
      property, (i) all accounts, chattel paper, deposit accounts, documents, general
      intangibles, goods, instruments, investment property, letters of credit,
      letters-of-credit rights, money, commercial tort claims and supporting
      obligations related to the foregoing, and (j) all payments on or under, and
      all
      proceeds in respect of, any or all of the foregoing; it being understood that
      the following do not constitute Series A Rate Stabilization Bond Collateral:
      (i) following retirement of all Outstanding Series of Rate Stabilization Bonds,
      cash that has been released pursuant to Section 8.04(c) of the Indenture,
      (ii) amounts deposited with the Issuer on any Series Issuance Date, including
      the Closing Date, for payment of costs of issuance with respect to the related
      Series (together with any interest earnings thereon) and (iii) the Initial
      Capital Contribution by the Member to the Issuer pursuant to Section 2.01
      of the LLC Agreement, it being understood that such amounts described in
clauses (i),(ii) and (iii) above shall not be subject to
Section 3.17 of the Indenture.

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      premium, if any, interest on, and any other amounts owing in respect of, the
      Series A Rate Stabilization Bonds and all fees, expenses, counsel fees and
      expenses and other amounts due and payable to the Indenture Trustee
      (collectively, the “Secured Obligations”) equally and ratably without
      prejudice, priority or distinction, except as expressly provided in the
      Indenture, to secure compliance with the provisions of the Indenture with
      respect to the Series A Rate Stabilization Bonds, all as provided in the
      Indenture and to secure the performance by the Issuer of all of its obligations
      under the Indenture.  The Indenture and this Series Supplement
      constitutes a security agreement within the meaning of the Rate Stabilization
      Law and under the UCC to the extent that the provisions of the UCC are
      applicable hereto.  In addition, the Issuer shall cause the filing of
      one or more financing statements to evidence the security interest of the
      Indenture Trustee in the Series A Rate Stabilization Bond
      Collateral.

     

    The
      Indenture Trustee, as indenture trustee on behalf of the Secured Parties of
      the
      Series A Rate Stabilization Bonds, acknowledges such Grant and accepts the
      trusts under this Series Supplement and the Indenture in accordance with the
      provisions of this Series Supplement and the Indenture.

     

    
      
        
        

      

      
        
          EXHIBIT
            B

          2

        

        
          

        

      

      
        
        

      

    

     

    SECTION
      1. Designation.  The Series A Rate Stabilization Bonds shall be
      designated generally as the Rate Stabilization Bonds, Series A and further
      denominated as Tranches A-1 through A-3.

     

    SECTION
      2. Initial Principal Amount; Rate Stabilization Bond Interest Rate; Scheduled
      Final Payment Date; Final Maturity Date.  The Series A Rate
      Stabilization Bonds of each Tranche shall have the initial principal amount,
      bear interest at the rates per annum (as to each Tranche, the “Rate
      Stabilization Bond Interest Rate”) and shall have the Scheduled Final
      Payment Dates and the Final Maturity Dates set forth below:

     

    
      	
              Tranche

            	
              Initial
                Principal

              Amount

            	
              Rate
                Stabilization

              Bond

              Interest
                Rate

            	
              Scheduled
                Final

              Payment
                Date

            	
              Final

              Maturity
                Date

            
	
              Tranche
                A-1

            	
              $284,000,000

            	
              5.47%

            	
              10/1/2012

            	
              10/1/2014

            
	
              Tranche
                A-2

            	
              $220,000,000

            	
              5.72%

            	
              4/1/2016

            	
              4/1/2018

            
	
              Tranche
                A-3

            	
              $119,200,000

            	
              5.82%

            	
              4/1/2017

            	
              6/28/2019

            

    

    

     

    The
      Rate
      Stabilization Bond Interest Rate shall be computed on the basis of a 360-day
      year of twelve (12) 30-day months.

     

    SECTION
      3.  Authentication Date; Payment Dates; Expected Amortization
      Schedule for Principal; Periodic Interest; No Premium; Other
      Terms.

     

    (a)           Authentication
      Date.  The Series A Rate Stabilization Bonds that are
      authenticated and delivered by the Indenture Trustee to or upon the order of
      the
      Issuer on June 29, 2007 (the “Series Issuance Date”) shall have as their
      date of authentication June 29, 2007.

     

    (b)           Payment
      Dates.  The Payment Dates for the Series A Rate Stabilization
      Bonds are April 1 and October 1 of each year or, if any such date is not a
      Business Day, the following Business Day, commencing on April 1, 2008 and
      continuing until the earlier of repayment of the Series A, Tranche A-3 Rate
      Stabilization Bonds in full and the Final Maturity Date for the Series A,
      Tranche A-3 Rate Stabilization Bonds.

     

    (c)           Expected
      Amortization Schedule for Principal.  Unless an Event of Default
      shall have occurred and be continuing on each Payment Date, the Indenture
      Trustee shall distribute to the Holders of record as of the related Record
      Date
      amounts payable pursuant to Section 8.02(e) of the Indenture as
      principal, in the following order and priority: (1) to the holders of the
      Tranche A-1 Rate Stabilization Bonds, until the Outstanding Amount of such
      Tranche of Rate Stabilization Bonds thereof has been reduced to zero; (2) to
      the
      holders of the Tranche A-2 Rate Stabilization Bonds, until the Outstanding
      Amount of such Tranche of Rate Stabilization Bonds thereof has been reduced
      to
      zero; and (3) to the holders of the Tranche A-3 Rate Stabilization Bonds, until
      the Outstanding Amount of such Tranche of Rate Stabilization Bonds thereof
      has
      been reduced to zero; provided, however, that in no event shall a
      principal payment pursuant to this Section 3(c) on any Tranche on a
      Payment Date be greater than the

     

    
      
        
        

      

      
        
          EXHIBIT
            B

          3

        

        
          

        

      

      
        
        

      

    

     

    amount
      necessary to reduce the Outstanding Amount of such Tranche of Rate Stabilization
      Bonds to the amount specified in the Expected Amortization Schedule which is
      attached as Schedule A hereto for such Tranche and Payment
      Date.

     

    (d)           Periodic
      Interest.  Periodic Interest will be payable on each Tranche of
      the Series A Rate Stabilization Bonds on each Payment Date in an amount equal
      to
      one-half of the product of (i) the applicable Rate Stabilization Bond Interest
      Rate and (ii) the Outstanding Amount of the related Tranche of Series A Rate
      Stabilization Bonds as of the close of business on the preceding Payment Date
      (or, with respect to the Initial Payment Date, the Outstanding Amount of the
      related Tranche of Series A Rate Stabilization Bonds on the Series Issuance
      Date) after giving effect to all payments of principal made to the Holders
      of
      the related Tranche of Series A Rate Stabilization Bonds on such preceding
      Payment Date.

     

    (e)           Book-Entry
      Rate Stabilization Bonds.  The Series A Rate Stabilization Bonds
      shall be Book-Entry Rate Stabilization Bonds and the applicable provisions
      of
Section 2.11 of the Indenture shall apply to such Rate Stabilization
      Bonds.

     

    (f)           Waterfall
      Caps.

     

    (i)           The
      amount payable with respect to the Series A Rate Stabilization Bonds pursuant
      to
Section 8.02(e)(i) of the Indenture shall not exceed $850,000
      annually.

     

    (ii)           The
      amount payable with respect to the Series A Rate Stabilization Bonds pursuant
      to
Section 8.02(e)(ii) of the Indenture shall not exceed on an annual basis
      (A) for so long as BGE is the Servicer, 0.05% of the aggregate initial principal
      amount of Series A Rate Stabilization Bonds, provided that BGE may seek
      approval from the PSC to recover from Customers, in accordance with the
      Financing Credit Order, any incremental costs it incurs to service the Rate
      Stabilization Property to the extent such incremental costs exceed 0.05% of
      the
      aggregate initial principal amount of Series A Rate Stabilization Bonds, and
      furtherprovided that such excess amount shall neither be
      considered an Operating Expense nor be paid out of the Collection Account or
      included in the calculation of True-Up Adjustments, or (B) if BGE is not the
      Servicer, 1.25% of the aggregate initial principal amount of Series A Rate
      Stabilization Bonds, provided, however, that BGE may seek approval
      from the PSC for a higher fee to be payable under Section 8.02(e)(ii) of
      the Indenture if it can reasonably demonstrate to the PSC that the services
      cannot be obtained under then-current market conditions for a fee of 1.25%
      of
      the aggregate initial principal amount of Series A Rate Stabilization
      Bonds.

     

    (iii)           The
      amount payable for the Series A Rate Stabilization Bonds pursuant to Section
      8.02(e)(iii) of the Indenture, shall not exceed $100,000 in the aggregate
      annually, provided that BGE may seek approval from the PSC to recover
      from Customers, in accordance with the Financing Credit Order, any incremental
      costs it incurs to provide administrative support services to the Issuer to
      the
      extent such incremental costs exceed $100,000, and furtherprovided
      that such excess amount shall neither be considered an Operating Expense nor
      be
      paid out of the Collection Account or included in the calculation of True-Up
      Adjustments.

     

    
      
        
        

      

      
        
          EXHIBIT
            B

          4

        

        
          

        

      

      
        
        

      

       

    

    (iv)           The
      amount payable with respect to the ordinary periodic Operating Expenses not
      described above pursuant to Section 8.02(e)(iv) shall not exceed $250,000
      in the aggregate annually.

     

    SECTION
      4.  Minimum Denominations.  The Series A Rate
      Stabilization Bonds shall be issuable in the Minimum Denomination and in
      integral multiples  of $1,000 thereof.

     

    SECTION
      5.  Certain Defined Terms.  Article I of the
      Indenture provides that the meanings of certain defined terms used in the
      Indenture shall, when applied to the Rate Stabilization Bonds of a particular
      Series, be as defined in Appendix A to the
      Indenture.  Additionally, Article II of the Indenture provides
      that with respect to a particular Series of Rate Stabilization Bonds, certain
      terms will have the meanings specified in the related Series
      Supplement.  With respect to the Series A Rate Stabilization Bonds,
      the following definitions shall apply:

     

    “Initial
      Payment Date” shall mean the first Payment Date for a Tranche
      of  Series A Rate Stabilization Bonds specified in the Expected
      Amortization Schedule which is attached as Schedule A
      hereto.

     

    “Minimum
      Denomination” shall mean $100,000, or integral multiples of $1,000 in excess
      thereof, except for one Rate Stabilization Bond of each Tranche which may be
      of
      a smaller denomination.

     

     “Rate
      Stabilization Bond Interest Rate” has the meaning set forth in Section
      2 of this Series Supplement.

     

    “Payment
      Date” has the meaning set forth in Section 3(b) of this Series
      Supplement.

     

    “Periodic
      Interest” has the meaning set forth in Section 3(d) of this Series
      Supplement.

     

    “Series
      Issuance Date” has the meaning set forth in Section 3(a) of this
      Series Supplement.

     

    SECTION
      6.  Delivery and Payment for the Series A Rate Stabilization Bonds;
      Form of the Series  A Rate Stabilization Bonds.  The
      Indenture Trustee shall deliver the Series A Rate Stabilization Bonds to the
      Issuer when authenticated in accordance with Section 2.03 of the
      Indenture.  The Series  A Rate Stabilization Bonds of each
      Tranche shall be in the form of Exhibits A-1 through A-3 hereto.

     

    SECTION
      7.  Ratification of Agreement.  As supplemented by
      this Series Supplement, the Indenture is in all respects ratified and confirmed
      and the Indenture, as so supplemented by this Series Supplement, shall be read,
      taken, and construed as one and the same instrument.  This Series
      Supplement amends, modifies and supplements the Indenture only in so far as
      it
      relates to the Series A Rate Stabilization Bonds.

     

    
      
        
        

      

      
        
          EXHIBIT
            B

          5

        

        
          

        

      

      
        
        

      

    

     

    SECTION
      8.  Counterparts.  This Series Supplement may be
      executed in any number of counterparts, each of which when so executed shall
      be
      deemed to be an original, but all of such counterparts shall together constitute
      but one and the same instrument.

     

    SECTION
      9.
GOVERNING LAW.  THIS SERIES SUPPLEMENT SHALL BE GOVERNED
      BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
      REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
      NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
      OF
      THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS; PROVIDED
      THAT THE CREATION, ATTACHMENT AND PERFECTION OF ANY LIENS CREATED UNDER THE
      INDENTURE IN RATE STABILIZATION PROPERTY, AND ALL RIGHTS AND REMEDIES OF THE
      INDENTURE TRUSTEE AND THE HOLDERS WITH RESPECT TO SUCH RATE STABILIZATION
      PROPERTY, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND.

     

    SECTION
      10.  Issuer Obligation.  No recourse may be taken
      directly or indirectly, by the Holders with respect to the obligations of the
      Issuer on the Rate Stabilization Bonds, under the Indenture or under this Series
      Supplement or any certificate or other writing delivered in connection herewith
      or therewith, against (i) the Indenture Trustee or the Managers in their
      respective individual capacities, (ii) any owner of a limited liability company
      interest in the Issuer (including BGE) or (iii) any shareholder, partner, owner,
      beneficiary, agent, officer, director, employee or agent of the Indenture
      Trustee, the Managers or any owner of a limited liability company interest
      in
      the Issuer (including BGE) in its individual capacity, or of any successor
      or
      assign of any of them in their respective individual or corporate capacities,
      except as any such Person may have expressly agreed (it being understood that
      none of the Indenture Trustee, the Managers and BGE have any such obligations
      in
      their respective individual or corporate capacities).

     

    
      
        
        

      

      
        
          EXHIBIT
            B

          6

        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Series
      Supplement to be duly executed by their respective officers thereunto duly
      authorized as of the first day of the month and year first above
      written.

     

     

    
      
        	 	
                RSB
                  BONDCO LLC, as Issuer

                 

                 

              
	 	
                By:

              	
                 

              
	 	 	
                Name:

                Title: 

              
	 	 	
                 

                 

              
	 	
                DEUTSCHE
                  BANK TRUST COMPANY AMERICAS,

                not
                  in its individual capacity but solely in its capacity as Indenture
                  Trustee

                 

                 

              
	 	
                By:

              	 
	 	 	
                Name:

                Title:

                 

              
	 	
                By:

              	 
	 	
                 

              	
                Name:

                Title:

              

      

    

     

     

    
      
        Signature
          Page to Series Supplement

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    EXPECTED
      AMORTIZATION SCHEDULE

     

    OUTSTANDING
      PRINCIPAL BALANCE PER TRANCHE

     

     

    
      	
              Payment
                Date

            	
              Tranche
                A-1

            	
              Tranche
                A-2

            	
              Tranche
                A-3

            
	
              Series
                Issuance Date

            	
              $284,000,000    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              4/1/2008

            	
              $251,147,488    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              10/1/2008

            	
              $225,773,339    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              4/1/2009

            	
              $199,185,443    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              10/1/2009

            	
              $172,316,247    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              4/1/2010

            	
              $144,282,204    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              10/1/2010

            	
              $115,926,471    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              4/1/2011

            	
              $86,273,891    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              10/1/2011

            	
              $56,255,454    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              4/1/2012

            	
              $24,982,323    

            	
              $220,000,000    

            	
              $119,200,000    

            
	
              10/1/2012

            	
              $0    

            	
              $213,247,968    

            	
              $119,200,000    

            
	
              4/1/2013

            	
              $0    

            	
              $180,215,385    

            	
              $119,200,000    

            
	
              10/1/2013

            	
              $0    

            	
              $146,608,497    

            	
              $119,200,000    

            
	
              4/1/2014

            	
              $0    

            	
              $111,665,142    

            	
              $119,200,000    

            
	
              10/1/2014

            	
              $0    

            	
              $76,055,636    

            	
              $119,200,000    

            
	
              4/1/2015

            	
              $0    

            	
              $39,080,909    

            	
              $119,200,000    

            
	
              10/1/2015

            	
              $0    

            	
              $1,349,098    

            	
              $119,200,000    

            
	
              1/15/2016

            	
              $0    

            	
              $0    

            	
              $81,425,243    

            
	
              10/1/2016

            	
              $0    

            	
              $0    

            	
              $41,426,899    

            
	
              4/1/2017

            	
              $0    

            	
              $0    

            	
              $0    

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    FORM
      OF INVESTOR LETTER OF REPRESENTATION

     

    [Date]

     

    DEUTSCHE
      BANK TRUST COMPANY AMERICAS,

    as
      Indenture Trustee

    60
      Wall
      Street

    MS-NY
      C60-2606

    26th
      Floor

    New
      York,
      New York  10015

    Attention:  Asset
      Backed Securities Unit – Mark DiGiacomo

    

    RSB
      BONDCO LLC,

    as
      Issuer

    Suite
      202

    103
      Foulk
      Road

    Wilmington,
      Delaware  19803

    Attention:  Manager

    

    
      	
               

            	
              Re:

            	
              RSB
                BONDCO LLC Rate Stabilization Bonds - Series [    
                ],
                Tranche [_-_]

            

    

     

    Ladies
      and Gentlemen:

     

    [___________________]
      (the
“Purchaser”) intends to purchase from [___________________]
      the [designate
      Rate
      Stabilization Bond] (the
“Rate
      Stabilization Bond”), issued pursuant to that certain Indenture (the
“Indenture”), dated as of June 29, 2007, among RSB BONDCO LLC, as Issuer
      (the “Issuer”), and Deutsche Bank Trust Company Americas, a New York
      banking corporation, as indenture trustee (the “Indenture Trustee”) and
      that certain Series Supplement, dated as of [__________],
      2007 (the
“Series Supplement”) among the Issuer and the Indenture
      Trustee.  Capitalized terms used herein and not otherwise defined
      herein shall have the meanings set forth in the Indenture and, if not defined
      therein, as defined in the Series Supplement.

     

    In
      connection with the proposed transfer, the Purchaser represents and warrants
      to
      the Issuer and the Indenture Trustee that on [insert
      date of
      transfer],
      the
      Purchaser is either:

     

    (a)           a
      “qualified institutional buyer” as such term is defined in Rule 144A under
      the Securities Act of 1933, as amended (the “Securities Act”),
      or

     

    (b)           
      an “institutional accredited investor” as described in Rule 501(a)(l), (2), (3)
      or (7) under the Securities Act.

     

    
      
        
        

      

      
        
          EXHIBIT
            C

          1

        

        
          

        

      

      
        
        

      

    

     

                                                              Very
      truly yours,

     

                                                        [PURCHASER]

     

                        By:  __________________________

                                Name:

                                Title:

     

    
      
        
        

      

      
        
          EXHIBIT
            C

          2

        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      D

     

    FORM
      OF ERISA REPRESENTATION LETTER

     

    [Date]

     

    DEUTSCHE
      BANK TRUST COMPANY AMERICAS,

    as
      Indenture Trustee

    60
      Wall
      Street

    MS-NY
      C60-2606

    26th
      Floor

    New
      York,
      New York  10015

    Attention:  Asset
      Backed Securities Unit – Mark DiGiacomo

    

    RSB
      BONDCO LLC,

    as
      Issuer

    Suite
      202

    103
      Foulk
      Road

    Wilmington,
      Delaware  19803

    Attention:  Manager

    

    
      	
               

            	
              Re:

            	
              RSB
                BONDCO LLC Rate Stabilization Bonds - Series [    
                ],
                Tranche [_-_]

            

    

     

    Ladies
      and Gentlemen:

     

    [___________________]
      (the
“Purchaser”) intends to purchase from [___________________]
      the [designate
      Rate
      Stabilization Bond] (the
“Rate
      Stabilization Bond”), issued pursuant to that certain Indenture (the
“Indenture”), dated as of June 29, 2007 among RSB BONDCO LLC, as Issuer
      (the “Issuer”), and Deutsche Bank Trust Company Americas, a New York
      banking corporation, as indenture trustee (the “Indenture Trustee”) and
      that certain Series Supplement, dated as of [__________],
      2007 (the
“Series Supplement”) among the Issuer and the Indenture
      Trustee.  Capitalized terms used herein and not otherwise defined
      herein shall have the meanings set forth in the Indenture and, if not defined
      therein, as defined in the Series Supplement.

     

    In
      connection with the proposed transfer, the Purchaser represents and warrants
      to
      the Issuer and the Indenture Trustee that the Purchaser is not, and on [insert
      date of
      transfer]
      will not be, and on such date will not be investing the funds of, (a) an
“employee benefit plan” as defined in and subject to Title I of the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), (b) a
“plan” as defined in and subject to Section 4975 of the Internal Revenue Code
      of
      1986, as amended (the "Code"), (c) an entity whose underlying assets include
      the
      assets of such employee benefit plan or plan or (d) a governmental or church
      plan which is subject to any federal, state or local law that is substantially
      similar to the provisions of Section 406 of ERISA or Section 4975 of the
      Code.

     

    
      
        
        

      

      
        
          EXHIBIT
            D

          1

        

        
          

        

      

      
        
        

      

    

     

                        Very
      truly
      yours,

     

                      [PURCHASER]

     

                        By:  ____________________

                                Name:

                                Title:

    

    
      
        
        

      

      
        
          EXHIBIT
            D

          2

        

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      E

     

    SERVICING
      CRITERIA TO BE ADDRESSED

    BY
      INDENTURE TRUSTEE IN ASSESSMENT OF COMPLIANCE

    

    

    
      	
              Reg
                AB

              Reference

            	
              Servicing
                Criteria

            	
              Applicable
                Indenture

              Trustee

              Responsibility

            

    

    
      	 	
              General
                Servicing Considerations

            	 
	
              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	 
	
              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	 
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the pool assets are maintained.

            	 
	
              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 
	 	
              Cash
                Collection and Administration

            	 
	
              1122(d)(2)(i)

            	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two (2) business
                days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	
              X

            
	
              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	
              X

            
	
              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	 
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of overcollateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	
              X

            
	
              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 
	
              1122(d)(2)(vii)

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within thirty (30) calendar days after the bank statement
                cutoff
                date, or such other number of days specified in the transaction
                agreements; (C) reviewed and approved by someone other than the person
                who
                prepared the reconciliation; and (D) contain explanations for reconciling
                items. These reconciling items are resolved within ninety (90) calendar
                days of their original identification, or such other number of days
                specified in the transaction agreements.

            	 
	 	
              Investor
                Remittances and Reporting

            	 
	
              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the SEC, are maintained
                in
                accordance with the transaction agreements and applicable SEC
                requirements. Specifically, such reports (A) are prepared in accordance
                with timeframes and other terms set forth in the transaction agreements;
                (B) provide information calculated in accordance with the terms specified
                in the transaction agreements; (C) are filed with the SEC as required
                by
                its rules and regulations; and (D) agree with investors’ or the trustee’s
                records as to the total unpaid principal balance and number of pool
                assets
                serviced by the servicer.

            	 
	
              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	
              X

            
	
              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two (2) business days to the
                servicer’s investor records, or such other number of days specified in the
                transaction agreements.

            	
              X

            

    

     

    
      
        
        

      

      
        
          EXHIBIT
            E

          1

        

        
          

        

      

      
        
        

      

    

    
      

      
        	
                Reg
                  AB

                Reference

              	
                Servicing
                  Criteria

              	
                Applicable
                  Indenture

                Trustee

                Responsibility

              

      

    

    
      	
              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	
              X

            
	 	
              Pool
                Asset Administration

            	 
	
              1122(d)(4)(i)

            	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related pool asset documents.

            	 
	
              1122(d)(4)(ii)

            	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements.

            	 
	
              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 
	
              1122(d)(4)(iv)

            	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset documents are posted to the servicer’s obligor records
                maintained no more than two (2) business days after receipt, or such
                other
                number of days specified in the transaction agreements, and allocated
                to
                principal, interest or other items (e.g., escrow) in accordance with
                the
                related pool asset documents.

            	 
	
              1122(d)(4)(v)

            	
              The
                servicer’s records regarding the pool assets agree with the servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 
	
              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor's pool assets (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 
	
              1122(d)(4)(vii)

            	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	 
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents.

            	 
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset documents,
                on at least an annual basis, or such other period specified in the
                transaction agreements; (B) interest on such funds is paid, or credited,
                to obligors in accordance with applicable pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within thirty
                (30)
                calendar days of full repayment of the related pool assets, or such
                other
                number of days specified in the transaction agreements.

            	 
	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least thirty (30) calendar days
                prior
                to these dates, or such other number of days specified in the transaction
                agreements.

            	 
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two (2) business days
                to
                the obligor’s records maintained by the servicer, or such other number of
                days specified in the transaction agreements.

            	 
	
              1122(d)(4)(xiv)

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	 
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 

    

    

    
      
        
        

      

      
        
          EXHIBIT
            E

          2

        

        
          

        

      

      
        
        

      

    

     

    
      APPENDIX
        A

       

      DEFINITIONS

       

      This
        is
Appendix A to the Indenture.

       

      A.           Defined
        Terms.  As used in the Indenture, the Sale Agreement, the LLC
        Agreement, the Servicing Agreement, the Administration Agreement, any Series
        Supplement or any other Basic Document as hereinafter defined, as the case
        may
        be (unless the context requires a different meaning), the following terms
        have
        the following meanings:

       

      “Act”
        is defined in Section 10.03(a) of the Indenture.

       

      “Actual
        QRSC Collections” means the sum of the QRSC Payments which are actually
        received by the Servicer, directly or indirectly (including through a
        Third-Party Collector), from or on behalf of Customers less an allowance
        for
        Charge-Offs.

       

      “Addition
        Notice” means, with respect to the transfer of Subsequent Rate Stabilization
        Property to the Issuer pursuant to Section 2.02 of the Sale Agreement,
        notice, which shall be given by the Seller to the Issuer and the Rating Agencies
        not later than ten (10) days prior to the related Subsequent Transfer Date,
        specifying the Subsequent Transfer Date for such Subsequent Rate Stabilization
        Property.

       

      “Administration
        Agreement” means the Administration Agreement, dated as of June 29, 2007, by
        and between BGE and the Issuer, as the same may be amended, restated,
        supplemented or otherwise modified from time to time.

       

      “Administration
        Fee” is defined in Section 2 of the Administration
        Agreement.

       

      “Affiliate”
        means, with respect to any specified Person, any other Person controlling
        or
        controlled by or under common control with such specified Person.  For
        the purposes of this definition, “control” when used with respect to any
        specified Person means the power to direct the management and policies of
        such
        Person, directly or indirectly, whether through the ownership of voting
        securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

       

      “Agency
        Office” means the office of the Issuer maintained pursuant to Section
        3.02 of the Indenture.

       

      “Amendatory
        Tariff” means an amendment or revision to a Tariff regarding the Qualified
        Rate Stabilization Charge filed with the PSC.

       

      “Annual
        Accountant’s Report” is defined in Section 3.04 of the Servicing
        Agreement.

       

       “Applicable
        Qualified Rate Order” means, with respect to any Series, the Qualified Rate
        Order authorizing the creation of the Rate Stabilization Property pledged
        as
        collateral for such Series.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Applicable
        Third-Party Collector” means, with respect to each Customer, the Third-Party
        Collector, if any, responsible for billing and collecting all charges to
        such
        Customer, including the Qualified Rate Stabilization Charges.

       

      “Application”
        means the Application of BGE for a Qualified Rate Order to securitize rate
        stabilization and other qualified costs filed by BGE with the PSC dated November
        3, 2007 pursuant to the Rate Stabilization Law, or any subsequent similar
        Application of BGE.

       

      “Bankruptcy
        Code” means Title 11 of the United States Code (11 U.S.C. § 101 et
        seq.), as amended from time to time.

       

      “Basic
        Documents” means the Indenture, the Rate Stabilization Bonds, the
        Administration Agreement, the Sale Agreement, the Certificate of Formation,
        the
        LLC Agreement, the Servicing Agreement, each Series Supplement, each Letter
        of
        Representations, each Underwriting Agreement and all other documents and
        certificates delivered in connection therewith.

       

      “Benefit
        Plan” means, with respect to any Person, any defined benefit plan (as
        defined in Section 3(35) of ERISA) that (a) is or was at any time during
        the
        past six years maintained by such Person or any ERISA Affiliate of such person,
        or to which contributions by any such Person are or were at any time during
        the
        past six (6) years required to be made or under which such Person has or
        could
        have any liability or (b) is subject to the provisions of Title IV of
        ERISA.

       

      “BGE”
        means Baltimore Gas and Electric Company, a Maryland corporation and any
        of its
        successors or permitted assigns.

       

      “Bill”
        or “Bills” means each of the regular monthly bills, summary bills,
        Opening Bills and Closing Bills issued to Customers by BGE or Third-Party
        Collectors or to Third-Party Collectors by BGE on its own behalf and in its
        capacity as Servicer.

       

      “Bill
        of Sale” means a bill of sale substantially in the form of Exhibit A to the
        Sale Agreement and delivered pursuant to Section 2.03(i) of the Sale
        Agreement.

       

      “Billed
        QRSCs” is defined in Annex I to the Servicing Agreement.

       

      “Billing
        Period” means the period created by dividing the calendar year into twelve
        (12) consecutive periods of approximately twenty-one (21) Servicer Business
        Days.

       

      “Book-Entry
        Form” means, with respect to any Rate Stabilization Bond or Series of Rate
        Stabilization Bonds, that such Rate Stabilization Bond or Series is not
        certificated and the ownership and transfers thereof shall be made through
        book
        entries by a Clearing Agency as described in Section 2.11 of the
        Indenture and the applicable Series Supplement pursuant to which such Rate
        Stabilization Bond or Series was issued.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Book-Entry
        Rate Stabilization Bonds” means any Rate Stabilization Bonds issued in
        Book-Entry Form; provided, however, that after the occurrence of a
        condition whereupon book-entry registration and transfer are no longer permitted
        and Definitive Rate Stabilization Bonds are to be issued to the Holder of
        such
        Rate Stabilization Bonds, such Rate Stabilization Bonds shall no longer be
        “Book-Entry Rate Stabilization Bonds”.

       

      “Business
        Day” means any day other than a Saturday, a Sunday or a day on which banking
        institutions in Baltimore, Maryland or New York, New York are, or DTC is,
        authorized or obligated by law, regulation or executive order to remain
        closed.

       

      “Calculation
        Period” for any Series means initially, the period commencing on its Series
        Issuance Date and ending on the six month anniversary date of the Series
        Issuance Date and, thereafter, each period of six Collection Periods ending
        immediately preceding the next Semi-Annual True-Up Adjustment Date;
provided, that, with respect to a Quarterly True-Up Adjustment, the
        Calculation Period for such Quarterly True-Up Adjustment shall mean each
        period
        of three Collection Periods ending immediately preceding the next Quarterly
        True-Up Adjustment Date; and, provided, that, if an Interim True-Up
        Adjustment is required, then the Calculation Period for such Interim True-Up
        Adjustment shall mean the Collection Periods commencing with the date on
        which
        such Interim True-Up Adjustment is implemented and ending on the date
        immediately preceding the next Semi-Annual True-Up Adjustment Date, or
        Quarterly  True-Up Adjustment Date, as applicable.

       

      “Capital
        Contribution” means the amount of cash contributed to the Issuer by the
        Member as specified in the LLC Agreement.

       

      “Capital
        Subaccount” is defined in Section 8.02(a) of the
        Indenture.

       

      “Certificate
        of Compliance” means the certificate referred to in Section 3.03 of
        the Servicing Agreement and substantially in the form of Exhibit B
        attached to the Servicing Agreement.

       

      “Certificate
        of Formation” means the Certificate of Formation filed with the Secretary of
        State of the State of Delaware on March 8, 2007 pursuant to which the Issuer
        was
        formed, as amended or amended and restated from time to time.

       

      “Charge-Offs”
        means arrears that that have been written off to bad debt expense in accordance
        with generally accepted accounting principles.

       

      “Claim”
        means a “claim” as defined in Section 101(5) of the Bankruptcy
        Code.

       

      “Clearing
        Agency” means an organization registered as a “clearing agency” pursuant to
        Section 17A of the Exchange Act.

       

      “Clearing
        Agency Participant” means a securities broker, dealer, bank, trust company,
        clearing corporation or other financial institution or other Person for whom
        from time to time a Clearing Agency effects book entry transfers and pledges
        of
        securities deposited with the Clearing Agency.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Closing
        Bill” means the final Bill issued to a Customer at the time electric service
        is terminated.

       

      “Closing
        Date” means June 29, 2007.

       

      “Code”
        means the Internal Revenue Code of 1986, as amended.

       

      “Collection
        Account” means, with respect to any Series, the account established and
        maintained by the Indenture Trustee in accordance with Section 8.02(a) of
        the Indenture and any subaccounts contained therein.

       

      “Collection
        Period” means any period commencing on the first Servicer Business Day of
        any Billing Period and ending on the last Servicer Business Day of such Billing
        Period.

       

      “Collections
        Curve” means a forecast, prepared on an annual basis for twelve-month
        periods, of the percentages of amounts billed in each Billing Period that
        are
        expected to be received, without regard to Charge-Offs, on each Business
        Day
        during that Billing Period and during each of the following six
        months.

       

      “Corporate
        Trust Office” means the principal office of the Indenture Trustee at which,
        at any particular time, its corporate trust business shall be administered,
        which office as of the Closing Date is located at 60 Wall Street, MS-NYC60-2606,
        26th Floor,
        New
        York, New York  10005 Attention: Asset Backed Securities Unit-Mark
        DiGiacomo, Telephone: (908) 608-4091, Facsimile: (212) 553-2459 or at such
        other
        address as the Indenture Trustee may designate from time to time by notice
        to
        the Holders of Rate Stabilization Bonds and the Issuer, or the principal
        corporate trust office of any successor trustee by like notice.

       

      “Covenant
        Defeasance Option” is defined in Section 4.01(b) of the
        Indenture.

       

      “Customers”
        means all existing and future residential electric customers of BGE and all
        other existing and future residential electric customers who are obligated
        to
        pay Qualified Rate Stabilization Charges pursuant to any Qualified Rate Order
        or
        any Tariff.

       

      “Daily
        Remittance” is defined in Section 6.10(a) of the Servicing
        Agreement.

       

      “Default”
        means any occurrence that is, or with notice or the lapse of time or both
        would
        become, an Event of Default as defined in Section 5.01 of the
        Indenture.

       

      “Definitive
        Rate Stabilization Bonds” means Rate Stabilization Bonds issued in
        definitive form in accordance with  Section 2.13 of the
        Indenture.

       

      “Delaware
        Financing Statements” means one or more Uniform Commercial Code financing
        statements to be filed in the appropriate filing office in the State of
        Delaware.

       

      “Delaware
        UCC” means the Uniform Commercial Code as in effect on the date hereof in
        the State of Delaware.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      “Depositing
        TPC” means a Third-Party Collector who provides a cash deposit pursuant to
        Section 3.05(e) of the Servicing Agreement.

       

      “DTC”
        means The Depository Trust Company or any successor thereto.

       

      “Electric
        Bill” or “Electric Bills” means the portion of each of the regular
        monthly bills, summary bills, Opening Bills and Closing Bills issued to
        Customers by BGE or Third-Party Collectors or to Third-Party Collectors by
        BGE
        on its own behalf and in its capacity as Servicer reflecting the amount owed
        by
        the Customer for electric service, including, but not limited to Billed
        QRSCs.

       

      “Eligible
        Account” means either a segregated non-interest-bearing trust account (a)
        with an Eligible Institution or (b) with the corporate trust department of
        a
        depository institution organized under the laws of the United States of America
        or any State (or any domestic branch of a foreign bank), having corporate
        trust
        powers and acting as trustee for funds deposited in such account, so long
        as any
        of the securities of such depository institution shall have a credit rating
        from
        each Rating Agency in one of its generic rating categories which signifies
        investment grade.

       

      “Eligible
        Institution” means:

       

      (a)           the
        corporate trust department of the Indenture Trustee or a subsidiary thereof,
        so
        long as any of the securities of the Indenture Trustee or a subsidiary thereof
        have a credit rating from each Rating Agency in one of its generic rating
        categories which signifies investment grade; or

       

      (b)           a
        depository institution organized under the laws of the United States of America
        or any State (or any domestic branch of a foreign bank), which (i) has either
        (A) a long-term unsecured debt rating of AAA by Standard & Poor’s, A2 by
        Moody’s, and AAA by Fitch or (B) a certificate of deposit rating of A-1+ by
        Standard & Poor’s and P-1 by Moody’s or any other long-term, short-term or
        certificate of deposit rating acceptable to the Rating Agencies and (ii)
        whose
        deposits are insured by the FDIC.

       

      If
        so
        qualified under clause (b) above, the Indenture Trustee may be considered
        an Eligible Institution for the purposes of clause (a) of this
        definition.

       

      “Eligible
        Investments” mean instruments or investment property which
        evidence:

       

      (a)           direct
        obligations of, and obligations fully and unconditionally guaranteed as to
        timely payment by, the United States of America;

       

      (b)           demand
        deposits, time deposits, certificates of deposit or bankers’ acceptances of
        depository institutions meeting the requirements of clause (b) of the
        definition of Eligible Institution;

       

      (c)           commercial
        paper (other than commercial paper of BGE or any of its Affiliates) having,
        at
        the time of the investment or contractual commitment to invest

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

        
         therein, a rating from each of the Rating Agencies from which a rating is
        available in the highest investment category granted thereby;

       

      (d)           investments
        in money market funds having a rating in the highest investment category
        granted
        thereby (including funds for which the Indenture Trustee or any of its
        Affiliates is investment manager or advisor) from Moody’s, Standard & Poor’s
        and Fitch, if rated by Fitch;

       

      (e)           repurchase
        obligations with respect to any security that is a direct obligation of,
        or
        fully guaranteed by, the United States of America or any agency or
        instrumentality thereof the obligations of which are backed by the full faith
        and credit of the United States of America, in either case entered into with
        depository institutions or trust companies meeting the requirements of clause
        (b) of the definition of Eligible Institutions;

       

      (f)           repurchase
        obligations with respect to any security or whole loan entered into
        with:

       

      (g)                        (i)           a
        depository institution or trust company (acting as principal) meeting the
        requirements of clause (b) of the definition of Eligible
        Institutions,

       

      (ii)           a
        broker/dealer (acting as principal) registered as a broker or dealer under
        Section 15 of the Exchange Act (any broker/dealer being referred to in this
        definition as a “broker/dealer”), the unsecured short-term debt obligations of
        which are rated at least “P-1” by Moody’s, “A-1+” by Standard & Poor’s and,
        if Fitch provides a rating thereon, “F-1+” by Fitch at the time of entering into
        this repurchase obligation, or

       

      (iii)           an
        unrated broker/dealer, acting as principal, that is a wholly-owned subsidiary
        of
        a non-bank or bank holding company the unsecured short-term debt obligations
        of
        which are rated at least “P-1” by Moody’s, “A-1+” by Standard & Poor’s and,
        if Fitch provides a rating thereon, “F-1+” by Fitch at the time of purchase so
        long as the obligations of such unrated broker/dealer are unconditionally
        guaranteed by such non-bank or bank holding company; and

       

      (h)           any
        other investment permitted by each of the Rating Agencies;

       

      in
        each
        case maturing not later than the Business Day immediately preceding the next
        Payment Date or Special Payment Date, if applicable (for the avoidance of
        doubt,
        investments in money market funds or similar instruments which are redeemable
        on
        demand shall be deemed to satisfy the foregoing
        requirement).  Notwithstanding the foregoing, any securities or
        investments which mature in thirty-two (32) days or more shall not be “Eligible
        Investments” unless the issuer thereof has a long-term unsecured debt rating of
        at least A1 from Moody’s and A+ from Standard & Poor’s, any securities or
        investments described in clauses (b) through (f) above which
        have  maturities of less than or equal to three (3) months shall not
        be “Eligible Investments” unless the issuer thereof has a long-term and
        short-term unsecured debt rating of at least A1/P-1 from Moody’s and any
        securities or investments described in clauses (b) through (f)
        above which  have maturities of more than three (3) months shall not
        be an “Eligible Investment”

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      unless
        the issuer thereof has a long-term and short-term unsecured debt rating of
        at
        least Aa3/P-1 from Moody’s.

       

      “ERISA”
        means the Employee Retirement Income Security Act of 1974, as
        amended.

       

      “ERISA
        Affiliate” means with respect to any Person at any time, each trade or
        business (whether or not incorporated) that would, at that time, be treated
        together with such Person as a single employer under Section 401 of ERISA
        or
        Section 414(b), (c), (m) or (o) of the Code.

       

      “Estimated
        QRSC Collections” means the sum of the QRSC Payments which are deemed to
        have been received by the Servicer, directly or indirectly (including through
        a
        Third-Party Collector), from or on behalf of Customers, based on the Collections
        Curve less an allowance for Charge-Offs, to be remitted to the Collection
        Account.

       

      “Event
        of Default” is defined in Section 5.01 of the Indenture.

       

      “Excess
        Funds Subaccount” is defined in Section 8.02(a) of the
        Indenture.

       

      “Excess
        Remittance” means the amount, if any, calculated for a particular
        Reconciliation Period, by which all Estimated QRSC Collections remitted to
        the
        Collection Account during such Reconciliation Period exceed Actual QRSC
        Collections during such Reconciliation Period.

       

      “Exchange
        Act” means the Securities Exchange Act of 1934, as amended.

       

      “Expected
        Amortization Schedule” means, with respect to any Series or Tranche, the
        expected amortization schedule for such Series or Tranche set forth in the
        related Series Supplement.

       

      “FDIC”
        means the Federal Deposit Insurance Corporation or any Governmental Authority
        succeeding to the duties of such agency.

       

      “Federal
        Book-Entry Regulations” means 31 C.F.R. Part 357 et seq. (Department of
        Treasury).

       

      “Federal
        Book-Entry Securities” means securities issued in book-entry form by the
        United States Treasury.

       

      “FERC”
        means the Federal Energy Regulatory Commission or any Governmental Authority
        succeeding to the duties of such commission.

       

      “Final”
        means, with respect to any Qualified Rate Order, that such Qualified Rate
        Order
        has become final, is not being appealed and that the time for filing an appeal
        therefrom has expired.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      “Final
        Maturity Date” means, with respect to any Series or Tranche of Rate
        Stabilization Bonds, the Final Maturity Date therefor, as specified in the
        related Series Supplement.

       

      “Financial
        Asset” means “financial asset” as set forth in Section 8-102(a)(9) of the NY
        UCC.

       

      “Financing
        Credit Order” means the Financing Credit Order dated December 28, 2006, as
        corrected on January 2, 2007, issued by the PSC (Order No. 81182).

       

       “Fitch”
        means Fitch, Inc. or any successor thereto.

       

      “General
        Subaccount” is defined in Section 8.02(a) of the
        Indenture.

       

      “Global
        Rate Stabilization Bond” means a Rate Stabilization Bond evidencing all or
        any part of a Series of Rate Stabilization Bonds to be issued to the Holders
        thereof in Book-Entry Form, which Global Rate Stabilization Bond shall be
        issued
        to the Clearing Agency, or its nominee, for such Series, in accordance with
        Section 2.11 of the Indenture and the applicable Series Supplement
        pursuant to which the Rate Stabilization Bond is issued.

       

      “Governmental
        Authority” means any nation or government, any federal, state, local or
        other political subdivision thereof and any court, administrative agency
        or
        other instrumentality or entity exercising executive, legislative, judicial,
        regulatory or administrative function of government.

       

      “Grant”
        means mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
        convey, grant, transfer, create, and grant a lien upon and a security interest
        in and right of set-off against, deposit, set over and confirm pursuant to
        the
        Indenture and the related Series Supplement.  A Grant of the Rate
        Stabilization Bond Collateral or of any other agreement or instrument included
        therein shall include all rights, powers and options (but none of the
        obligations) of the Granting party thereunder, including the immediate and
        continuing right to claim for, collect, receive and give receipt for payments
        in
        respect of the Rate Stabilization Bond Collateral and all other moneys payable
        thereunder, to give and receive notices and other communications, to make
        waivers or other agreements, to exercise all rights and options, to bring
        Proceedings in the name of the Granting party or otherwise and generally
        to do
        and receive anything that the Granting party is or may be entitled to do
        or
        receive thereunder or with respect thereto.

       

      “Holder”,
        “Registered Holder” or “Bondholder” means the Person in whose name a Rate
        Stabilization Bond is registered on the Rate Stabilization Bond
        Register.

       

      “Indenture”
        means the Indenture, dated as of June 29, 2007, by and between the Issuer
        and
        Deutsche Bank Trust Company Americas, a New York banking corporation, as
        Indenture Trustee and as Securities Intermediary, as originally executed
        and, as
        from time to time supplemented or amended by one or more Series Supplements
        or
        indentures supplemental thereto entered into pursuant to the applicable
        provisions of the Indenture,

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      as
        so
        supplemented or amended, or both, and shall include the forms and terms of
        the
        Rate Stabilization Bonds established thereunder.

       

      “Indenture
        Trustee” means Deutsche Bank Trust Company Americas, a New York banking
        corporation, as indenture trustee for the benefit of the Secured Parties,
        or any
        successor indenture trustee under the Indenture.

       

      “Independent”
        means, when used with respect to any specified Person, that the Person (a)
        is in
        fact independent of the Issuer, any other obligor on the Rate Stabilization
        Bonds, the Seller, the Servicer and any Affiliate of any of the foregoing
        Persons, (b) does not have any direct financial interest or any material
        indirect financial interest in the Issuer, any such other obligor, the Seller,
        the Servicer or any Affiliate of any of the foregoing Persons and (c) is
        not
        connected with the Issuer, any such other obligor, the Seller, the Servicer
        or
        any Affiliate of any of the foregoing Persons as an officer, employee, promoter,
        underwriter, trustee, partner, director (other than as an independent director
        or manager) or person performing similar functions.

       

      “Independent
        Certificate” means a certificate or opinion to be delivered to the Indenture
        Trustee under the circumstances described in, and otherwise complying with,
        the
        applicable requirements of Section 10.01 of the Indenture, made by an
        Independent appraiser or other expert appointed by an Issuer Order and consented
        to by the Indenture Trustee, and such opinion or certificate shall state
        that
        the signer has read the definition of “Independent” in the Indenture and that
        the signer is Independent within the meaning thereof.

       

      “Independent
        Manager” is defined in Section 4.01 of the LLC
        Agreement.

       

      “Independent
        Manager Fee” is defined in Section 4.01(a) of the LLC
        Agreement.

       

      “Indirect
        Participant” means a securities broker, dealer, bank, trust company or other
        Person that clears through or maintains a custodial relationship with a Clearing
        Agency Participant, either directly or indirectly.

       

      “Initial
        Payment Date” means the first Payment Date set forth in the Expected
        Amortization Schedule relating to any Series or Tranche.

       

      “Initial
        Qualified Rate Order ” means the final Qualified Rate Order dated December
        28, 2006 issued by the PSC pursuant to the Rate Stabilization Law, Case No.
        9089
        (Order No. 81181).

       

      “Initial
        Rate Stabilization Bonds” means the Series A Rate Stabilization Bonds issued
        pursuant to the Initial Qualified Rate Order.

       

      “Initial
        Rate Stabilization Property” means all Rate Stabilization Property created
        in favor of the Issuer pursuant to the Initial Qualified Rate Order, including
        the right to impose, collect and receive the Qualified Rate Stabilization
        Charges authorized in the Initial Qualified Rate Order, and sold, transferred,
        assigned, set over and conveyed by the Seller to the Issuer as of the Closing
        Date pursuant to the Sale Agreement.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      “Initial
        Tariff” means the initial Tariff filed with the PSC to evidence the
        Qualified Rate Stabilization Charges pursuant to the Initial Qualified Rate
        Order.

       

      “Insolvency
        Event” means, with respect to a specified Person, (a) the filing of a decree
        or order for relief by a court having jurisdiction in the premises in respect
        of
        such Person or any substantial part of its property in an involuntary case
        under
        any applicable federal or state bankruptcy, insolvency or other similar law
        now
        or hereafter in effect, or appointing a receiver, liquidator, assignee,
        custodian, trustee, sequestrator or similar official for such Person or for
        any
        substantial part of its property, or ordering the winding-up or liquidation
        of
        such Person’s affairs, and such decree or order shall remain unstayed and in
        effect for a period of sixty (60) consecutive days; or (b) the commencement
        by
        such Person of a voluntary case under any applicable federal or state
        bankruptcy, insolvency or other similar law now or hereafter in effect, or
        the
        consent by such Person to the entry of an order for relief in an involuntary
        case under any such law, or the consent by such Person to the appointment
        of or
        taking possession by a receiver, liquidator, assignee, custodian, trustee,
        sequestrator or similar official for such Person or for any substantial part
        of
        its property, or the making by such Person of any general assignment for
        the
        benefit of creditors, or the failure by such Person generally to pay its
        debts
        as such debts become due, or the taking of action by such Person in furtherance
        of any of the foregoing.

       

      “Insolvency
        Law” means any applicable federal or state bankruptcy, insolvency or other
        similar law now or hereafter in effect.

       

      “Interim
        True-Up Adjustment” means each adjustment to the Qualified Rate
        Stabilization Charges made pursuant to the terms of the related Qualified
        Rate
        Order and in accordance with Section 4.01(b)(ii) of the Servicing
        Agreement.

       

      “Interim
        True-Up Adjustment Date” means the effective date of any Interim True-Up
        Adjustment.

       

      “Internal
        Revenue Service” means the Internal Revenue Service of the United States of
        America.

       

      “Investment
        Company Act” means the Investment Company Act of 1940, as
        amended.

       

      “Investment
        Earnings” means investment earnings on funds deposited in the Collection
        Account net of losses and investment expenses.

       

      “Issuance
        Advice Letter” means the final Issuance Advice Letter filed with the PSC
        pursuant to the Qualified Rate Order with respect to any Qualified Rate
        Stabilization Charges.

       

      “Issuer”
        means RSB BondCo LLC, a Delaware limited liability company, named as such
        in the
        Indenture until a successor replaces it and, thereafter, means the successor
        and, for purposes of any provision contained herein and required by the TIA,
        each other obligor on the Rate Stabilization Bonds.

       

      
        
          
          

        

        
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      “Issuer
        Order” and “Issuer Request” mean a written order or request signed in
        the name of the Issuer by any one of its Responsible Officers and delivered
        to
        the Indenture Trustee or Paying Agent, as applicable.

       

      “Legal
        Defeasance Option” is defined in Section 4.01(b) of the
        Indenture.

       

      “Letter
        of Representations” means any applicable agreement between the Issuer and
        the applicable Clearing Agency, with respect to such Clearing Agency’s rights
        and obligations (in its capacity as a Clearing Agency) with respect to any
        Book-Entry Rate Stabilization Bonds, as the same may be amended, supplemented,
        restated or otherwise modified from time to time.

       

      “Lien”
        means a security interest, lien, mortgage, charge, pledge, claim, equity
        or
        encumbrance of any kind.

       

      “LLC
        Act” means the Delaware Limited Liability Company Act, as
        amended.

       

      “LLC
        Agreement” means the Amended and Restated Limited Liability Company
        Agreement of RSB BondCo LLC, dated as of June 29, 2007, as the same may be
        amended, restated, supplemented or otherwise modified from time to
        time.

       

      “Losses”
        means (i) any and all amounts of principal and interest on the Rate
        Stabilization Bonds not paid when due or when scheduled to be paid in accordance
        with their terms and the amounts of any deposits by or to the Issuer required
        to
        have been made in accordance with the terms of the Basic Documents or any
        Qualified Rate Order which are not made when so required and (ii) any and
        all
        other liabilities, obligations, losses, claims, damages, payments, costs
        or
        expenses of any kind whatsoever.

       

      “Manager”
        means each manager of the Issuer under the LLC Agreement.

       

      “Maryland
        UCC” means the Uniform Commercial Code as in effect on the date hereof in
        the State of Maryland.

       

      “Member”
        has the meaning specified in the first paragraph of the LLC
        Agreement.

       

      “Minimum
        Denomination” shall mean $100,000, or integral multiples of $1,000 in excess
        thereof, except for one Rate Stabilization Bond of each Tranche which may
        be of
        a smaller denomination.

       

      “Monthly
        Servicer’s Certificate” means a certificate, substantially in the form of
Exhibit A to the Servicing Agreement, completed and executed by a
        Responsible Officer of the Servicer pursuant to Section 3.01(b)(i) of the
        Servicing Agreement.

       

      “Moody’s”
        means Moody’s Investors Service, Inc. or any successor thereto.

       

      “Notice
        of Default” is defined in Section 5.01 of the Indenture.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      “NY
        UCC” means the Uniform Commercial Code as in effect on the date hereof in
        the State of New York.

       

      “Officer’s
        Certificate” means a certificate signed by a Responsible Officer of the
        Issuer under the circumstances described in, and otherwise complying with,
        the
        applicable requirements of Section 10.01 of the Indenture, and delivered
        to the Indenture Trustee.

       

      “Opening
        Bill” means the first Bill issued to a Customer at the time electric service
        is initiated.

       

      “Operating
        Expenses” means all fees, costs, expenses and indemnity payments of the
        Issuer, including all amounts owed by the Issuer to the Indenture Trustee,
        any
        Manager, including any Independent Manager, legal and accounting fees of
        the
        Issuer, Rating Agency fees, costs and expenses of the Servicer under the
        Servicing Agreement, including legal costs of the Servicer under Section
        5.02(d)
        of the Servicing Agreement, costs and expenses of the Seller under the Sale
        Agreement, including legal costs of the Seller under Section 4.07 of the
        Sale
        Agreement, and any taxes owed on investment income in the Collection Account,
        but excluding the Servicing Fee and the Administration Fee.

       

      “Opinion
        of Counsel” means one or more written opinions of counsel who may, except as
        otherwise expressly provided in the Basic Documents, be employees of or counsel
        to the party providing such opinion of counsel, which counsel shall be
        reasonably acceptable to the party receiving such opinion of counsel, and
        shall
        be in form and substance reasonably acceptable to such party.

       

      “Outstanding”
        means, as of the date of determination, all Rate Stabilization Bonds theretofore
        authenticated and delivered under this Indenture except:

       

      (a)           Rate
        Stabilization Bonds theretofore canceled by the Rate Stabilization Bond
        Registrar or delivered to the Rate Stabilization Bond Registrar for
        cancellation;

       

      (b)           Rate
        Stabilization Bonds or portions thereof the payment for which money in the
        necessary amount has been theretofore irrevocably deposited with the Indenture
        Trustee or any Paying Agent in trust for the Holders of such Rate Stabilization
        Bonds; and

       

      (c)           Rate
        Stabilization Bonds in exchange for or in lieu of other Rate Stabilization
        Bonds
        which have been issued pursuant to this Indenture unless proof satisfactory
        to
        the Indenture Trustee is presented that any such Rate Stabilization Bonds
        are
        held by a Protected Purchaser;

       

      provided
        that in determining whether the Holders of the requisite Outstanding Amount
        of
        the Rate Stabilization Bonds or any Series or Tranche thereof have given
        any
        request, demand, authorization, direction, notice, consent or waiver hereunder
        or under any Basic Document, Rate Stabilization Bonds owned by the Issuer,
        any
        other obligor upon the Rate Stabilization Bonds, the Member, the Seller,
        the
        Servicer or any Affiliate of any of the foregoing Persons shall be

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      disregarded
        and deemed not to be Outstanding, except that, in determining whether the
        Indenture Trustee shall be protected in relying upon any such request, demand,
        authorization, direction, notice, consent or waiver, only Rate Stabilization
        Bonds that the Indenture Trustee actually knows to be so owned shall be so
        disregarded.  Rate Stabilization Bonds so owned that have been pledged
        in good faith may be regarded as Outstanding if the pledgee establishes to
        the
        satisfaction of the Indenture Trustee the pledgee’s right so to act with respect
        to such Rate Stabilization Bonds and that the pledgee is not the Issuer,
        any
        other obligor upon the Rate Stabilization Bonds, the Member, the Seller,
        the
        Servicer or any Affiliate of any of the foregoing Persons.

       

      “Outstanding
        Amount” means the aggregate principal amount of all Rate Stabilization Bonds
        or, if the context requires, all Rate Stabilization Bonds of a Series or
        Tranche, Outstanding at the date of determination.

       

      “Paying
        Agent” means with respect to the Indenture, the Indenture Trustee and any
        other Person appointed as a paying agent for the Rate Stabilization Bonds
        pursuant to the Indenture.

       

      “Payment
        Date” means, with respect to any Series or Tranche of Rate Stabilization
        Bonds, the dates specified in the related Series Supplement; provided
        that if any such date is not a Business Day, the Payment Date shall be the
        Business Day immediately succeeding such date.

       

      “Periodic
        Billing Requirement” means, for any Calculation Period, the aggregate amount
        of Qualified Rate Stabilization Charges calculated by the Servicer as necessary
        to be billed during such period in order to collect the Periodic Payment
        Requirements on or before the end of the Collection Period immediately preceding
        the next Semi-Annual True-Up Adjustment Date, or Quarterly True-Up Adjustment
        Date, as applicable.

       

      “Periodic
        Interest” means, with respect to any Payment Date and any Series of Rate
        Stabilization Bonds, the periodic interest for such Payment Date and Series
        as
        specified in the related Series Supplement.

       

      “Periodic
        Payment Requirement” for any Calculation Period means the total dollar
        amount of QRSC Collections reasonably calculated by the Servicer in accordance
        with Section 4.01 of the Servicing Agreement as necessary to be received
        during such period (after giving effect to the allocation and distribution
        of
        amounts on deposit in the Excess Funds Subaccount at the time of calculation
        and
        which will be available for payments on the Rate Stabilization Bonds at the
        end
        of such Calculation Period and including any shortfalls in Periodic Payment
        Requirements for any prior Calculation Period) in order to ensure that, as
        of
        the last Payment Date occurring in such Calculation Period, (1) all accrued
        and
        unpaid interest on the Rate Stabilization Bonds then due shall have been
        paid in
        full, (2) the Outstanding Amount of the Rate Stabilization Bonds is equal
        to the
        Projected Unrecovered Balance, (3) the balance on deposit in the Capital
        Subaccount equals the aggregate Required Capital Level and (4) all other
        fees
        and expenses due and owing and required or allowed to be paid under Section
        8.02 of the Indenture as of such date shall have been paid in full;
provided that, with respect to any

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      Quarterly
        True-Up Adjustment or Interim True-Up Adjustment occurring after the last
        Scheduled Final Payment Date for any Rate Stabilization Bonds, the Periodic
        Payment Requirements shall be calculated to ensure that sufficient Qualified
        Rate Stabilization Charges will be collected to retire such Rate Stabilization
        Bonds in full as of the earlier of (x) the Payment Date preceding the next
        Quarterly True-Up Adjustment Date and (y) the Final Maturity Date for such
        Rate
        Stabilization Bonds.

       

      “Periodic
        Principal” means, with respect to any Payment Date and any Series of Rate
        Stabilization Bonds, the excess, if any, of the Outstanding Amount of such
        Series of Rate Stabilization Bonds over the outstanding Unrecovered Balance
        specified for such Payment Date on the Expected Amortization
        Schedule.

       

      “Permitted
        Lien” means the Lien created by the Indenture.

       

      “Permitted
        Successor” is defined in Section 5.02 of the Sale
        Agreement.

       

      “Person”
        means any individual, corporation, limited liability company, estate,
        partnership, joint venture, association, joint stock company, trust (including
        any beneficiary thereof), unincorporated organization or government or any
        agency or political subdivision thereof.

       

      “PJM”
        means PJM Interconnection, LLC, a limited liability company.

       

      “Predecessor
        Rate Stabilization Bond” means, with respect to any particular Rate
        Stabilization Bond, every previous Rate Stabilization Bond evidencing all
        or a
        portion of the same debt as that evidenced by such particular Rate Stabilization
        Bond, and, for the purpose of this definition, any Rate Stabilization Bond
        authenticated and delivered under Section 2.06 of the Indenture in lieu
        of a mutilated, lost, destroyed or stolen Rate Stabilization Bond shall be
        deemed to evidence the same debt as the mutilated, lost, destroyed or stolen
        Rate Stabilization Bond.

       

      “Proceedings”
        means any suit in equity, action at law or other judicial or administrative
        proceeding.

       

      “Projected
        Unrecovered Balance” means, as of any Payment Date, the sum of the projected
        outstanding principal amount of each Series of Rate Stabilization Bonds for
        such
        Payment Date set forth in the Expected Amortization Schedule.

       

      “Protected
        Purchaser” has the meaning specified in Section 8-303 of the
        UCC.

       

      “PSC”
        means the Public Service Commission of Maryland, or any Governmental Authority
        succeeding to the duties of such commission.

       

      “PSC
        Regulations” means the regulations, including proposed or temporary
        regulations, promulgated under the Utilities Code.

       

      “QRSC
        Collections” means Qualified Rate Stabilization Charges remitted to the
        Collection Account.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      “QRSC
        Payments” means the payments, including any partial payments allocated in
        accordance with Section 6(b) of Annex 1 of the Servicing Agreement, made
        by or on behalf of Customers (including through a Third-Party Collector)
        based
        on the Qualified Rate Stabilization Charges.

       

      “Qualified
        Costs” means all rate stabilization costs as defined in Section 7-520(g)(1)
        and (2) of the Rate Stabilization Law.

       

      “Qualified
        Rate Order” means, as the context may require, (i) the Initial Qualified
        Rate Order and/or (ii) any Subsequent Qualified Rate Order.

       

      “Qualified
        Rate Stabilization Charge” means any qualified rate stabilization charge as
        defined in Section 7-520(e) of the Rate Stabilization Law which is
        authorized by a Qualified Rate Order.

       

      “Quarterly
        True-Up Adjustment” means each adjustment to the Qualified Rate
        Stabilization Charges made pursuant to the terms of the related Qualified
        Rate
        Order in accordance with Section 4.01(b)(iv) of the Servicing
        Agreement.

       

      “Quarterly
        True-Up Adjustment Date” means the rolling three month anniversary date of
        the Series Issuance Date of the Initial Rate Stabilization Bonds, commencing
        on
        June 29, 2017 (or, in the case of any subsequent Series, the rolling three
        month
        anniversary date of such Series, based on its Series Issuance Date, beginning
        with the first such date after the Scheduled Final Payment Date of the last
        Tranche of such Series).

       

      “Rate
        Stabilization Bond Collateral” has the meaning specified in the
        Indenture.

       

      “Rate
        Stabilization Bond Interest Rate” means, with respect to any Series or
        Tranche of Rate Stabilization Bonds, the rate at which interest accrues on
        the
        Rate Stabilization Bonds of such Series or Tranche, as specified in the related
        Series Supplement.

       

      “Rate
        Stabilization Bond Register” means the register maintained pursuant to
Section 2.05 of the Indenture, providing for the registration of the Rate
        Stabilization Bonds and transfers and exchanges thereof.

       

      “Rate
        Stabilization Bond Registrar” means the registrar at any time of the Rate
        Stabilization Bond Register, appointed pursuant to Section 2.05 of the
        Indenture.

       

      “Rate
        Stabilization Bonds” means one or more Series of Rate Stabilization Bonds
        authorized by the Initial Qualified Rate Order and any Subsequent Qualified
        Rate
        Order and issued under the Indenture.

       

      “Rate
        Stabilization Law” means §§7-520 – 7-549 of the Maryland Public Utility
        Companies Article, as amended from time to time.

       

      “Rate
        Stabilization Property” means all rate stabilization property as defined in
        Section 7-520(i)(1) and (2) of the Rate Stabilization Law created pursuant
        to a
        Qualified

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      Rate
        Order and sold or otherwise conveyed to the Issuer under the Sale Agreement,
        including the Initial Rate Stabilization Property and any Subsequent Rate
        Stabilization Property.  As used in the Basic Documents, unless the
        context requires otherwise, the term “Rate Stabilization Property” when used
        with respect to BGE includes the contract rights of BGE that exist prior
        to the
        time that such rights are first transferred in connection with the issuance
        of
        the Rate Stabilization Bonds, at which time they become rate stabilization
        property in accordance with Section 7-537 of the Rate Stabilization
        Law.

       

      “Rate
        Stabilization Property Notices” means rate stabilization property notices
        filed with the Maryland State Department of Assessments and Taxation pursuant
        to
        Section 7-542 of the Rate Stabilization Law.

       

      “Rate
        Stabilization Property Records” is defined in Section 5.01 of the
        Servicing Agreement.

       

      “Rating
        Agency” , with respect to any Series or Tranche of Rate Stabilization Bonds,
        means any of Moody’s, Standard & Poor’s or Fitch which provides a rating
        with respect to such Series of Rate Stabilization Bonds.  If no such
        organization or successor is any longer in existence, “Rating Agency” shall be a
        nationally recognized statistical rating organization or other comparable
        Person
        designated by the Issuer, notice of which designation shall be given to the
        Indenture Trustee and the Servicer.

       

      “Rating
        Agency Condition” means, with respect to any action, the notification in
        writing by the Issuer of such action to each Rating Agency , and written
        confirmation from Standard & Poor’s to the Seller, the Servicer, the
        Indenture Trustee and the Issuer that such action will not result in a
        suspension, reduction or withdrawal of the then current rating by such Rating
        Agency of any Outstanding Series or Tranche of Rate Stabilization
        Bonds.

       

      “Reconciliation
        Date” means the last Business Day of September of each year, commencing with
        September 30, 2008 and continuing through September 30, 2019  (or such
        earlier month as the Servicer shall have specified to the Issuer and the
        Indenture Trustee by not less than thirty days prior written
        notice).

       

      “Reconciliation
        Period” means, with respect to the twelve-month period ending the last day
        of June of each year; provided, that the initial Reconciliation Period
        shall commence on the Closing Date and that a shorter Reconciliation Period
        may
        be established pursuant to Section 6.10(d) of the Servicing
        Agreement.

       

      “Record
        Date” means, with respect to a Payment Date, in the case of Definitive Rate
        Stabilization Bonds, the close of business on the last day of the calendar
        month
        preceding the calendar month in which such Payment Date occurs, and, in the
        case
        of Book-Entry Rate Stabilization Bonds, the close of business one Business
        Day
        prior to such Payment Date.

       

      “Registration
        Statement” means the registration statement of the Sponsor and the Issuer on
        Form S-3 (File No. 333-141366), filed with the SEC under the Securities
        Act

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      relating
        to the offering and sale of the Rate Stabilization Bonds and including all
        amendments thereto, and any subsequent registration statement relating to
        Rate
        Stabilization Bonds and including all amendments thereto.

       

      “Regulation
        AB” means the rules of the SEC promulgated under Subpart 229.1100 – Asset
        Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be
        amended from time to time.

       

      “Remittance
        Requirement” means, with respect to any Third-Party Collector, the
        requirement that such Third-Party Collector remit Qualified Rate Stabilization
        Charges to the Servicer within a prescribed number of days of billing by
        the
        Servicer in accordance with applicable Requirements of Law or any agreement
        with
        BGE.

       

      “Remittance
        Shortfall” means the amount, if any, calculated for a particular
        Reconciliation Period, by which Actual QRSC Collections during such
        Reconciliation Period exceed all Estimated QRSC Collections remitted to the
        Collection Account during such Reconciliation Period.

       

      “REP”
        means a retail electric provider as defined in the Qualified Rate
        Order.

       

       “Required
        Capital Level” means, with respect to each Series of Rate Stabilization
        Bonds, an amount equal to 0.50% of the initial principal amount of such Series,
        or such other amount as may be permitted or required under the Applicable
        Qualified Rate Order and applicable Internal Revenue Service rulings, deposited
        into the Capital Subaccount by the Member prior to or upon the issuance of
        such
        Series.

       

      “Requirements
        of Law” means any foreign, federal, state or local laws, statutes,
        regulations, rules, codes or ordinances enacted, adopted, issued or promulgated
        by any Governmental Authority or common law, including the Utilities Code
        (including the Rate Stabilization Law), PSC Regulations, any applicable
        Qualified Rate Order, any Tariff and Regulation AB.

       

      “Responsible
        Officer” means with respect to (a) the Issuer, any Manager or any duly
        authorized officer; (b) the Indenture Trustee, any officer within the Corporate
        Trust Office of such trustee (including the President, any Vice President,
        Assistant Vice President, Secretary or Assistant Treasurer, Trust Officer
        or any
        other officer of the Indenture Trustee customarily performing functions similar
        to those performed by persons who at the time shall be such officers,
        respectively, and that has direct responsibility for the administration of
        the
        Indenture and also, with respect to a particular matter, any other officer
        to
        whom such matter is referred to because of such officer’s knowledge and
        familiarity with the particular subject); (c) any corporation (other than
        the
        Indenture Trustee), the Chief Executive Officer, the President, any Vice
        President, the Chief Financial Officer, the Treasurer, the Assistant Treasurer
        or any other duly authorized officer of such Person who has been authorized
        to
        act in the circumstances; (d) any partnership, any general partner thereof;
        and
        (e) any other Person (other than an individual or the Indenture Trustee),
        any
        duly authorized officer or member of such

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      Person,
        as the context may require, who is authorized to act in matters relating
        to such
        Person.

       

      “Restricted
        Plan” means (a) an “employee benefit plan” as defined in and subject to
        Title I of ERISA, (b) a “plan” as defined in and subject to section 4975 of the
        Code, (c) an entity whose underlying assets include the assets of such employee
        benefit plan or (d) a governmental or church plan which is subject to any
        federal, state or local law that is substantially similar to the provisions
        of
        section 406 of ERISA or section 4975 of the Code.

       

      “Retirement
        of the Rate Stabilization Bonds” means any day on which the final
        distribution is made to the Indenture Trustee in respect of the last Outstanding
        Rate Stabilization Bonds.

       

      “Sale
        Agreement” means the Rate Stabilization Property Purchase and Sale
        Agreement, dated as of June 29, 2007, by and between BGE and the Issuer,
        as the
        same may be amended, restated, supplemented or otherwise modified from time
        to
        time.

       

      “Scheduled
        Final Payment Date” means, with respect to each Series or, if applicable,
        each Tranche of Rate Stabilization Bonds, the date when all interest and
        principal is scheduled to be paid with respect to that Series or Tranche
        in
        accordance with the Expected Amortization Schedule, as specified in the related
        Series Supplement.  For the avoidance of doubt, the Scheduled Final
        Payment Date with respect to any Series or Tranche shall be the last Payment
        Date set forth in the Expected Amortization Schedule relating to such Series
        or
        Tranche.

       

      “SEC”
        means the U.S. Securities and Exchange Commission, or any Governmental Authority
        succeeding to the duties of such commission.

       

      “Secretary
        of State” means the Secretary of State of the State of Delaware or the
        Secretary of State of the State of Maryland, as the case may be, or any
        Governmental Authority succeeding to the duties of such offices.

       

      “Secured
        Obligations” is defined in the applicable Series Supplement with respect to
        each Series or Tranche of Rate Stabilization Bonds.

       

      “Secured
        Parties” means, with respect to each Series, the Indenture Trustee, the
        relevant Bondholders and any credit enhancer described in the applicable
        Series
        Supplement.

       

      “Securities
        Account” means the Collection Account (to the extent it constitutes a
        securities account as defined in the NY UCC and Federal Book-Entry
        Regulations).

       

      “Securities
        Act” means the Securities Act of 1933, as amended.

       

      “Securities
        Intermediary” means Deutsche Bank Trust Company Americas, a New York banking
        corporation, solely in the capacity of a “securities intermediary”
as

       

      
        
          
          

        

        
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      defined
        in the NY UCC and Federal Book-Entry Regulations or any successor securities
        intermediary under the Indenture.

       

       “Security
        Entitlement” means “security entitlement” (as defined in Section
        8-102(a)(17) of the NY UCC) with respect to Financial Assets now or
        hereafter credited to the Securities Account and, with respect to Federal
        Book-Entry Regulations, with respect to Federal Book-Entry Securities now
        or
        hereafter credited to the Securities Account, as applicable.

       

      “Seller”
        is defined in the preamble of the Sale Agreement.

       

      “Semi-Annual
        True-Up Adjustment” means each adjustment to the Qualified Rate
        Stabilization Charges made pursuant to the terms of the related Qualified
        Rate
        Order in accordance with Section 4.01(b)(i) of the Servicing
        Agreement.

       

      “Semi-Annual
        True-Up Adjustment Date” means the rolling six month anniversary date of the
        Series Issuance Date of the Initial Rate Stabilization Bonds, commencing
        on
        December 29, 2007 (or, in the case of any subsequent Series, the corresponding
        rolling six month anniversary date of such Series based on its Series Issuance
        Date).

       

      “Series”
        means each series of Rate Stabilization Bonds issued and authenticated pursuant
        to the Indenture and a related Series Supplement.

       

      “Series
        Issuance Date” means, with respect to any Series, the date on which the Rate
        Stabilization Bonds of such Series are to be originally issued in accordance
        with Section 2.10 of the Indenture and the related Series
        Supplement.

       

      “Series
        Supplement” means an indenture supplemental to the Indenture that authorizes
        the issuance of a particular Series of Rate Stabilization Bonds, a form of
        which
        is attached as Exhibit B to the Indenture.

       

      “Series
        Rate Stabilization Bond Collateral” has the meaning specified in the
        Indenture.

       

      “Servicer”
        means BGE, as Servicer under the Servicing Agreement, or any successor Servicer
        to the extent permitted under the Servicing Agreement.

       

      “Servicer
        Business Day” means any day other than a Saturday, Sunday or holiday on
        which the Servicer maintains normal office hours and conducts
        business.

       

      “Servicer
        Default” is defined in Section 7.01 of the Servicing
        Agreement.

       

      “Servicer’s
        Certificate” means a certificate, substantially in the form of Exhibit
        C to the Servicing Agreement, completed and executed by a Responsible
        Officer of the Servicer pursuant to Section 4.01(c)(ii) of the Servicing
        Agreement.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      “Servicing
        Agreement” means the Rate Stabilization Property Servicing Agreement, dated
        as of June 29, 2007, by and between the Issuer and BGE, as the same may be
        amended, restated, supplemented or otherwise modified from time to
        time.

       

      “Servicing
        Fee” means the fee payable to the Servicer on each Payment Date for services
        rendered during the period from, but not including, the preceding Payment
        Date
        (or from the Closing Date in the case of the first Payment Date) to and
        including the current Payment Date, determined pursuant to Section 6.05
        of the Servicing Agreement.

       

      “Servicing
        Standard” means the obligation of the Servicer to calculate, apply, remit
        and reconcile proceeds of the Rate Stabilization Property, including QRSC
        Payments, and all other Rate Stabilization Bond Collateral for the benefit
        of
        the Issuer and the Holders (i) with the same degree of care and diligence
        as the
        Servicer applies with respect to payments owed to it for its own account,
        (ii)
        in accordance with all applicable procedures and requirements established
        by the
        PSC for collection of electric utility tariffs and (iii) in accordance with
        the
        other terms of the Servicing Agreement.

       

      “Special
        Member” is defined in Section 1.02 of the LLC Agreement.

       

      “Special
        Payment” means with respect to any Series or Tranche of Rate Stabilization
        Bonds, any payment of principal of or interest on (including any interest
        accruing upon default), or any other amount in respect of, the Rate
        Stabilization Bonds of such Series or Tranche that is not actually paid within
        five (5) days of the Payment Date applicable thereto.

       

      “Special
        Payment Date” means the date on which a Special Payment is to be made by the
        Indenture Trustee to the Holders.

       

      “Special
        Record Date” means with respect to any Special Payment Date, the close of
        business on the fifteenth (15th) day
        (whether or
        not a Business Day) preceding such Special Payment Date.

       

      “Sponsor”
        means BGE, in its capacity as “sponsor” of the Rate Stabilization Bonds within
        the meaning of Regulation AB.

       

      “Standard
        & Poor’s” means Standard & Poor’s Ratings Services, a division of
        The McGraw-Hill Companies, Inc., or any successor thereto.

       

      “State”
        means any one of the fifty states of the United States of America or the
        District of Columbia.

       

      “State
        Pledge” means the pledge of the State of Maryland as set forth in
        Section 7-535(d) of the Rate Stabilization Law.

       

      “Subaccounts”
        is defined in Section 8.02(a) of the Indenture.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      “Subsequent
        Closing Date” means any date (other than the Closing Date) specified in a
        Series Supplement under which Rate Stabilization Bonds of any Series or Tranche
        are issued.

       

      “Subsequent
        Creation Date” means any date on which Subsequent Rate Stabilization
        Property is created in favor of BGE pursuant to a Subsequent Qualified Rate
        Order.

       

      “Subsequent
        Qualified Rate Order” means a qualified rate order (other than the Initial
        Qualified Rate Order ) issued hereafter by the PSC in favor of BGE.

       

      “Subsequent
        Sale” means the sale of Initial Rate Stabilization Property or Subsequent
        Rate Stabilization Property after the Closing Date, subject to the satisfaction
        of the conditions specified in the Sale Agreement and the
        Indenture.

       

      “Subsequent
        Tariff” means a Tariff filed with the PSC in connection with a Subsequent
        Qualified Rate Order.

       

      “Subsequent
        Transfer Date” means any date on which a Subsequent Sale will be effective,
        as specified in an Addition Notice.

       

      “Subsequent
        Rate Stabilization Property” means Rate Stabilization Property (identified
        in the related Bill of Sale) sold by the Seller to the Issuer as of a Subsequent
        Transfer Date pursuant to the Sale Agreement.

       

      “Successor
        Servicer” is defined in Section 3.07(e) of the
        Indenture.

       

      “Tariff”
        means any tariff filed by BGE  with the PSC pursuant to the Rate
        Stabilization Law to evidence any Qualified Rate Stabilization Charges, or any
        other applicable tariff filed by BGE with the PSC.

       

      “Temporary
        Rate Stabilization Bonds” means Rate Stabilization Bonds executed, and upon
        the receipt of an Issuer Order, authenticated and delivered by the Indenture
        Trustee pursuant to Section 2.04 of the Indenture, pending the
        preparation of Definitive Rate Stabilization Bonds.

       

      “Termination
        Notice” is defined in Section 7.01 of the Servicing
        Agreement.

       

      “Third-Party
        Collector” means each third party, including each REP, electric utility,
        municipally owned utility and/or cooperative, which, pursuant to applicable
        Requirements of Law or any agreement with BGE, is obligated to bill, pay
        or
        collect Qualified Rate Stabilization Charges.

       

      “TPC
        Credit Requirements” means the credit and collection policies applicable to
        Third-Party Collectors pursuant to applicable Requirements of Law or contractual
        obligations.

       

      “TPC
        Deposit Accounts” is defined in Section 8.02(g) of the
        Indenture.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      “TPC
        Deposit Requirements” means the deposit, credit rating and alternative
        credit support requirements applicable to Third-Party Collectors pursuant
        to
        applicable Requirements of Law or contractual obligations.

       

      “Tranche”
        means, with respect to any Series of Rate Stabilization Bonds, any one of
        the
        tranches of Rate Stabilization Bonds of that Series.

       

      “Transfer
        Date” means, with respect to the Initial Rate Stabilization Property, the
        Closing Date and, with respect to any Subsequent Rate Stabilization Property,
        the Subsequent Transfer Date related thereto.

       

      “Transferred
        Rate Stabilization Property” means, collectively, the Initial Rate
        Stabilization Property and any Subsequent Rate Stabilization
        Property.

       

      “Treasury
        Regulations” means the regulations, including proposed or temporary
        regulations, promulgated under the Code.  References herein to
        specific provisions of proposed or temporary regulations shall include analogous
        provisions of final Treasury Regulations or other successor Treasury
        Regulations.

       

      “True-Up
        Adjustment” means any Semi-Annual True-Up Adjustment or Interim True-Up
        Adjustment, as the case may be.

       

      “True-Up
        Adjustment Mechanism” means the mechanism by which the Servicer adjusts the
        Qualified Rate Stabilization Charge through a True-Up Adjustment pursuant
        to
Section 4.01(b) of the Servicing Agreement.

       

      “Trust
        Indenture Act” or “TIA” means the Trust  Indenture Act of
        1939, as amended by the Trust Indenture Reform Act of 1990, as in force on
        the
        Closing Date, unless otherwise specifically provided.

       

      “UCC”
        means, unless the context otherwise requires, the Uniform Commercial Code,
        as in
        effect in the relevant jurisdiction, as amended from time to time.

       

      “Underwriters”
        means the underwriters who purchase Rate Stabilization Bonds of any Series
        or
        Tranche from the Issuer and resell such Rate Stabilization Bonds in a public
        offering pursuant to the Registration Statement.

       

      “Underwriting
        Agreement” means (i) with respect to the initial Series, the Underwriting
        Agreement, dated as of June 22, 2007, by and among BGE, the Underwriters
        and the
        Issuer, as the same may be amended, restated, supplemented or otherwise modified
        from time to time, and (ii) with respect to any subsequent Series, an
        underwriting agreement by and among BGE, the Underwriters and the Issuer,
        as the
        same may be amended, restated, supplemented or otherwise modified from time
        to
        time.

       

      “Unrecovered
        Balance” means, as of any Payment Date, the sum of the Outstanding Amount of
        each Series of Rate Stabilization Bonds less the amount in the Excess Funds
        Subaccount available to make principal payments on such Series of Rate
        Stabilization Bonds.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      “Unregistered
        Rate Stabilization Bonds” means any Rate Stabilization Bonds not registered
        under the Securities Act or the securities laws of any other
        jurisdiction.

       

      “Utilities
        Code” means the Maryland Public Utility Companies Article of the Annotated
        Code of Maryland, as amended from time to time.

       

      “U.S.
        Government Obligations” means direct obligations (or certificates
        representing an ownership interest in such obligations) of the United States
        of
        America (including any agency or instrumentality thereof) for the payment
        of
        which the full faith and credit of the United States of America is pledged
        and
        which are not callable at the option of the issuer thereof.

       

      B.           Other
        Terms.  All accounting terms not specifically defined herein shall
        be construed in accordance with United States generally accepted accounting
        principles.  To the extent that the definitions of accounting terms in
        any Basic Document are inconsistent with the meanings of such terms under
        generally accepted accounting principles or regulatory accounting principles,
        the definitions contained in such Basic Document shall control.  As
        used in the Basic  Documents, the term “including” means
“including without limitation,” and other forms of the verb “to include” have
        correlative meanings.  All references to any Person shall include such
        Person’s permitted successors.

       

      C.           Computation
        of Time Periods.  Unless otherwise stated in any of the Basic
        Documents, as the case may be, in the computation of a period of time from
        a
        specified date to a later specified date, the word “from” means “from and
        including” and the words “to” and “until” each means “to but
        excluding”.

       

      D.           Reference;
        Captions.  The words “hereof”, “herein” and “hereunder” and words
        of similar import when used in any Basic Document shall refer to such Basic
        Document as a whole and not to any particular provision of such Basic Document;
        and references to “Section”, “subsection”, “Schedule” and “Exhibit” in any Basic
        Document are references to Sections, subsections, Schedules and Exhibits
        in or
        to such Basic Document unless otherwise specified in such Basic
        Document.  The various captions (including the tables of contents) in
        each Basic  Document are provided solely for convenience of reference
        and shall not affect the meaning or interpretation of any Basic
        Document.

       

      E.           The
        definitions contained in this Appendix A are applicable to the singular as
        well
        as the plural forms of such terms and to the masculine as well as to the
        feminine and neuter forms of such terms.

       

      
        
          
          

        

        
          23Unassociated Document

     

    Exhibit
      4.2

     

    
      EXECUTION
        COPY

       

      SERIES
        SUPPLEMENT

       

      This
        SERIES SUPPLEMENT dated as of June 29, 2007 (this “Series Supplement”),
        by and between RSB BONDCO LLC, a limited liability company formed under the
        laws
        of the State of Delaware (the “Issuer”), and DEUTSCHE BANK TRUST COMPANY
        AMERICAS, a New York banking corporation (“Deutsche Bank”), in its capacity as
        indenture trustee (the “Indenture Trustee”) for the benefit of the
        Secured Parties under the Indenture dated as of June 29, 2007, by and between
        the Issuer and Deutsche Bank, in its capacity as Indenture Trustee and in
        its
        separate capacity as a securities intermediary (the
“Indenture”).

       

      PRELIMINARY
        STATEMENT

       

      Section
        2.02 of the Indenture provides, among other things, that the Issuer and the
        Indenture Trustee may at any time and from time to time enter into one or
        more
        Series Supplements for the purposes of authorizing the issuance by the Issuer
        of
        a Series of Rate Stabilization Bonds and establishing the terms
        thereof.  The Issuer has duly authorized the creation of a Series of
        Rate Stabilization Bonds with an initial aggregate principal amount of
        $623,200,000 to be known as RSB BondCo LLC Rate Stabilization Bonds, Series
        A
        (the “Series A Rate Stabilization Bonds”), and the Issuer and the
        Indenture Trustee are executing and delivering this Series Supplement in
        order
        to provide for the creation of the Series A Rate Stabilization
        Bonds.

       

      All
        terms
        used in this Series Supplement that are defined in the Indenture, either
        directly or by reference therein, have the meanings assigned to them therein,
        except to the extent such terms are defined or modified in this Series
        Supplement or the context clearly requires otherwise.  In the event
        that any term or provision contained herein shall conflict with or be
        inconsistent with any term or provision contained in the Indenture, the terms
        and provisions of this Series Supplement shall govern.

       

      GRANTING
        CLAUSE

       

      With
        respect to the Series A Rate Stabilization Bonds, the Issuer hereby Grants
        to
        the Indenture Trustee, as Indenture Trustee for the benefit of the Secured
        Parties of the Series A Rate Stabilization Bonds, all of the Issuer’s right,
        title and interest (whether now owned or hereafter acquired or arising) in
        and
        to the following (collectively, the “Series A Rate Stabilization Bond
        Collateral”): (a) the Rate Stabilization Property created under and pursuant
        to the Applicable Qualified Rate Order, and transferred by the Seller to
        the
        Issuer pursuant to the Sale Agreement (including, to the fullest extent
        permitted by law, the right to impose, collect and receive Qualified Rate
        Stabilization Charges, all revenues, collections, claims, rights, payments,
        money or proceeds of or arising from the Qualified Rate Stabilization Charges
        authorized in the Applicable Qualified Rate Order and any Tariffs filed pursuant
        thereto and any contractual rights to collect such Qualified Rate Stabilization
        Charges from Customers and Third-Party Collectors), (b) all Qualified Rate
        Stabilization Charges related to such Rate Stabilization Property, (c) the
        Sale
        Agreement and each Bill of Sale executed in connection therewith and all
        property and interests in property transferred under the Sale Agreement and
        such
        Bills of Sale with respect to

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      such
        Rate
        Stabilization Property and the Series A Rate Stabilization Bonds, (d) the
        Servicing Agreement, the Administration Agreement and any subservicing, agency,
        administration, collection or other agreements executed in connection therewith,
        to the extent related to the foregoing Rate Stabilization Property and the
        Series A Rate Stabilization Bonds, (e) the Collection Account for such Series,
        all subaccounts thereof and all amounts of cash, instruments, investment
        property or other assets on deposit therein or credited thereto from time
        to
        time and all financial assets and securities entitlements carried therein
        or
        credited thereto, (f) all rights to compel the Servicer to file for and obtain
        adjustments to the Qualified Rate Stabilization Charges in accordance with
        Section 7-531 of the Rate Stabilization Law, the Applicable Qualified Rate
        Order
        or any Tariff filed in connection therewith, (g) all deposits, guarantees,
        surety bonds, letters of credit and other forms of credit support provided
        by or
        on behalf of Third-Party Collectors pursuant to such Applicable Qualified
        Rate
        Order or Tariff, including investment earnings thereon and all amounts on
        deposit in the TPC Deposit Accounts, (h) all present and future
        claims, demands, causes and choses in action in respect of any or all of
        the
        foregoing, whether such claims, demands, causes and choses in action constitute
        Rate Stabilization Property, accounts, general intangibles, instruments,
        contract rights, chattel paper or proceeds of such items or any other form
        of
        property, (i) all accounts, chattel paper, deposit accounts, documents, general
        intangibles, goods, instruments, investment property, letters of credit,
        letters-of-credit rights, money, commercial tort claims and supporting
        obligations related to the foregoing, and (j) all payments on or under, and
        all
        proceeds in respect of, any or all of the foregoing; it being understood that
        the following do not constitute Series A Rate Stabilization Bond Collateral:
        (i) following retirement of all Outstanding Series of Rate Stabilization
        Bonds,
        cash that has been released pursuant to Section 8.04(c) of the Indenture,
        (ii) amounts deposited with the Issuer on any Series Issuance Date, including
        the Closing Date, for payment of costs of issuance with respect to the related
        Series (together with any interest earnings thereon) and (iii) the Initial
        Capital Contribution by the Member to the Issuer pursuant to Section 2.01
        of the LLC Agreement, it being understood that such amounts described in
        clauses (i),(ii) and (iii) above shall not be subject to
Section 3.17 of the Indenture.

       

      The
        foregoing Grant is made in trust to secure the payment of principal of and
        premium, if any, interest on, and any other amounts owing in respect of,
        the
        Series A Rate Stabilization Bonds and all fees, expenses, counsel fees and
        expenses and other amounts due and payable to the Indenture Trustee
        (collectively, the “Secured Obligations”) equally and ratably without
        prejudice, priority or distinction, except as expressly provided in the
        Indenture, to secure compliance with the provisions of the Indenture with
        respect to the Series A Rate Stabilization Bonds, all as provided in the
        Indenture and to secure the performance by the Issuer of all of its obligations
        under the Indenture.  The Indenture and this Series Supplement
        constitutes a security agreement within the meaning of the Rate Stabilization
        Law and under the UCC to the extent that the provisions of the UCC are
        applicable hereto.  In addition, the Issuer shall cause the filing of
        one or more financing statements to evidence the security interest of the
        Indenture Trustee in the Series A Rate Stabilization Bond
        Collateral.

       

      The
        Indenture Trustee, as indenture trustee on behalf of the Secured Parties
        of the
        Series A Rate Stabilization Bonds, acknowledges such Grant and accepts the
        trusts under this Series Supplement and the Indenture in accordance with
        the
        provisions of this Series Supplement and the Indenture.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      SECTION
        1.  Designation.  The Series A Rate Stabilization Bonds
        shall be designated generally as the Rate Stabilization Bonds, Series A and
        further denominated as Tranches A-1 through A-3.

       

      SECTION
        2.  Initial Principal Amount; Rate Stabilization Bond Interest Rate;
        Scheduled Final Payment Date; Final Maturity Date.  The Series A
        Rate Stabilization Bonds of each Tranche shall have the initial principal
        amount, bear interest at the rates per annum (as to each Tranche, the “Rate
        Stabilization Bond Interest Rate”) and shall have the Scheduled Final
        Payment Dates and the Final Maturity Dates set forth below:

       

      
        	
                Tranche

              	
                Initial
                  Principal

                Amount

              	
                Rate
                  Stabilization

                Bond

                Interest
                  Rate

              	
                Scheduled
                  Final

                Payment
                  Date

              	
                Final

                Maturity
                  Date

              
	
                Tranche
                  A-1

              	
                $284,000,000

              	
                5.47%

              	
                10/1/2012

              	
                10/1/2014

              
	
                Tranche
                  A-2

              	
                $220,000,000

              	
                5.72%

              	
                4/1/2016

              	
                4/1/2018

              
	
                Tranche
                  A-3

              	
                $119,200,000

              	
                5.82%

              	
                4/1/2017

              	
                6/28/2019

              

      

      

      The
        Rate
        Stabilization Bond Interest Rate shall be computed on the basis of a 360-day
        year of twelve (12) 30-day months.

       

      SECTION
        3.  Authentication Date; Payment Dates; Expected Amortization
        Schedule for Principal; Periodic Interest; No Premium; Other
        Terms.

       

      (a)           Authentication
        Date.  The Series A Rate Stabilization Bonds that are
        authenticated and delivered by the Indenture Trustee to or upon the order
        of the
        Issuer on June 29, 2007 (the “Series Issuance Date”) shall have as their
        date of authentication June 29, 2007.

       

      (b)           Payment
        Dates.  The Payment Dates for the Series A Rate Stabilization
        Bonds are April 1 and October 1 of each year or, if any such date is not
        a
        Business Day, the following Business Day, commencing on April 1, 2008 and
        continuing until the earlier of repayment of the Series A, Tranche A-3 Rate
        Stabilization Bonds in full and the Final Maturity Date for the Series A,
        Tranche A-3 Rate Stabilization Bonds.

       

      (c)           Expected
        Amortization Schedule for Principal.  Unless an Event of Default
        shall have occurred and be continuing on each Payment Date, the Indenture
        Trustee shall distribute to the Holders of record as of the related Record
        Date
        amounts payable pursuant to Section 8.02(e) of the Indenture as
        principal, in the following order and priority: (1) to the holders of the
        Tranche A-1 Rate Stabilization Bonds, until the Outstanding Amount of such
        Tranche of Rate Stabilization Bonds thereof has been reduced to zero; (2)
        to the
        holders of the Tranche A-2 Rate Stabilization Bonds, until the Outstanding
        Amount of such Tranche of Rate Stabilization Bonds thereof has been reduced
        to
        zero; and (3) to the holders of the Tranche A-3 Rate Stabilization Bonds,
        until
        the Outstanding Amount of such Tranche of Rate Stabilization Bonds thereof
        has
        been reduced to zero; provided, however, that in no event shall a
        principal payment pursuant to this Section 3(c) on any Tranche on a
        Payment Date be greater than the amount necessary to reduce the Outstanding
        Amount of such Tranche of Rate Stabilization

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Bonds
        to
        the amount specified in the Expected Amortization Schedule which is attached
        as
Schedule A hereto for such Tranche and Payment Date.

       

      (d)           Periodic
        Interest.  Periodic Interest will be payable on each Tranche of
        the Series A Rate Stabilization Bonds on each Payment Date in an amount equal
        to
        one-half of the product of (i) the applicable Rate Stabilization Bond Interest
        Rate and (ii) the Outstanding Amount of the related Tranche of Series A Rate
        Stabilization Bonds as of the close of business on the preceding Payment
        Date
        (or, with respect to the Initial Payment Date, the Outstanding Amount of
        the
        related Tranche of Series A Rate Stabilization Bonds on the Series Issuance
        Date) after giving effect to all payments of principal made to the Holders
        of
        the related Tranche of Series A Rate Stabilization Bonds on such preceding
        Payment Date.

       

      (e)           Book-Entry
        Rate Stabilization Bonds.  The Series A Rate Stabilization Bonds
        shall be Book-Entry Rate Stabilization Bonds and the applicable provisions
        of
Section 2.11 of the Indenture shall apply to such Rate Stabilization
        Bonds.

       

      (f)           Waterfall
        Caps.

       

      (i)           The
        amount payable with respect to the Series A Rate Stabilization Bonds pursuant
        to
Section 8.02(e)(i) of the Indenture shall not exceed $850,000
        annually.

       

      (ii)           The
        amount payable with respect to the Series A Rate Stabilization Bonds pursuant
        to
Section 8.02(e)(ii) of the Indenture shall not exceed on an annual basis
        (A) for so long as BGE is the Servicer, 0.05% of the aggregate initial principal
        amount of Series A Rate Stabilization Bonds, provided that BGE may seek
        approval from the PSC to recover from Customers, in accordance with the
        Financing Credit Order, any incremental costs it incurs to service the Rate
        Stabilization Property to the extent such incremental costs exceed 0.05%
        of the
        aggregate initial principal amount of Series A Rate Stabilization Bonds,
        and
furtherprovided that such excess amount shall neither be
        considered an Operating Expense nor be paid out of the Collection Account
        or
        included in the calculation of True-Up Adjustments, or (B) if BGE is not
        the
        Servicer, 1.25% of the aggregate initial principal amount of Series A Rate
        Stabilization Bonds, provided, however, that BGE may seek approval
        from the PSC for a higher fee to be payable under Section 8.02(e)(ii) of
        the Indenture if it can reasonably demonstrate to the PSC that the services
        cannot be obtained under then-current market conditions for a fee of 1.25%
        of
        the aggregate initial principal amount of Series A Rate Stabilization
        Bonds.

       

      (iii)           The
        amount payable for the Series A Rate Stabilization Bonds pursuant to Section
        8.02(e)(iii) of the Indenture, shall not exceed $100,000 in the aggregate
        annually, provided that BGE may seek approval from the PSC to recover
        from Customers, in accordance with the Financing Credit Order, any incremental
        costs it incurs to provide administrative support services to the Issuer
        to the
        extent such incremental costs exceed $100,000, and furtherprovided
        that such excess amount shall neither be considered an Operating Expense
        nor be
        paid out of the Collection Account or included in the calculation of True-Up
        Adjustments.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (iv)           The
        amount payable with respect to the ordinary periodic Operating Expenses not
        described above pursuant to Section 8.02(e)(iv) shall not exceed $250,000
        in the aggregate annually.

       

      SECTION
        4.  Minimum Denominations.  The Series A Rate
        Stabilization Bonds shall be issuable in the Minimum Denomination and in
        integral multiples  of $1,000 thereof.

       

      SECTION
        5.  Certain Defined Terms.  Article I of the
        Indenture provides that the meanings of certain defined terms used in the
        Indenture shall, when applied to the Rate Stabilization Bonds of a particular
        Series, be as defined in Appendix A to the
        Indenture.  Additionally, Article II of the Indenture provides
        that with respect to a particular Series of Rate Stabilization Bonds, certain
        terms will have the meanings specified in the related Series
        Supplement.  With respect to the Series A Rate Stabilization Bonds,
        the following definitions shall apply:

       

      “Initial
        Payment Date” shall mean the first Payment Date for a Tranche
        of  Series A Rate Stabilization Bonds specified in the Expected
        Amortization Schedule which is attached as Schedule A
        hereto.

       

      “Minimum
        Denomination” shall mean $100,000, or integral multiples of $1,000 in excess
        thereof, except for one Rate Stabilization Bond of each Tranche which may
        be of
        a smaller denomination.

       

       “Rate
        Stabilization Bond Interest Rate” has the meaning set forth in Section
        2 of this Series Supplement.

       

      “Payment
        Date” has the meaning set forth in Section 3(b) of this Series
        Supplement.

       

      “Periodic
        Interest” has the meaning set forth in Section 3(d) of this Series
        Supplement.

       

      “Series
        Issuance Date” has the meaning set forth in Section 3(a) of this
        Series Supplement.

       

      SECTION
        6.  Delivery and Payment for the Series A Rate Stabilization Bonds;
        Form of the Series  A Rate Stabilization Bonds.  The
        Indenture Trustee shall deliver the Series A Rate Stabilization Bonds to
        the
        Issuer when authenticated in accordance with Section 2.03 of the
        Indenture.  The Series  A Rate Stabilization Bonds of each
        Tranche shall be in the form of Exhibits A-1 through A-3 hereto.

       

      SECTION
        7.  Ratification of Agreement.  As supplemented by
        this Series Supplement, the Indenture is in all respects ratified and confirmed
        and the Indenture, as so supplemented by this Series Supplement, shall be
        read,
        taken, and construed as one and the same instrument.  This Series
        Supplement amends, modifies and supplements the Indenture only in so far
        as it
        relates to the Series A Rate Stabilization Bonds.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      SECTION
        8.  Counterparts.  This Series Supplement may be
        executed in any number of counterparts, each of which when so executed shall
        be
        deemed to be an original, but all of such counterparts shall together constitute
        but one and the same instrument.

       

      SECTION
        9.
GOVERNING LAW.  THIS SERIES SUPPLEMENT SHALL BE GOVERNED
        BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
        REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF
        THE
        NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES
        OF
        THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS; PROVIDED
        THAT THE CREATION, ATTACHMENT AND PERFECTION OF ANY LIENS CREATED UNDER THE
        INDENTURE IN RATE STABILIZATION PROPERTY, AND ALL RIGHTS AND REMEDIES OF
        THE
        INDENTURE TRUSTEE AND THE HOLDERS WITH RESPECT TO SUCH RATE STABILIZATION
        PROPERTY, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MARYLAND.

       

      SECTION
        10.  Issuer Obligation.  No recourse may be taken
        directly or indirectly, by the Holders with respect to the obligations of
        the
        Issuer on the Rate Stabilization Bonds, under the Indenture or under this
        Series
        Supplement or any certificate or other writing delivered in connection herewith
        or therewith, against (i) the Indenture Trustee or the Managers in their
        respective individual capacities, (ii) any owner of a limited liability company
        interest in the Issuer (including BGE) or (iii) any shareholder, partner,
        owner,
        beneficiary, agent, officer, director, employee or agent of the Indenture
        Trustee, the Managers or any owner of a limited liability company interest
        in
        the Issuer (including BGE) in its individual capacity, or of any successor
        or
        assign of any of them in their respective individual or corporate capacities,
        except as any such Person may have expressly agreed (it being understood
        that
        none of the Indenture Trustee, the Managers and BGE have any such obligations
        in
        their respective individual or corporate capacities).

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Series
        Supplement to be duly executed by their respective officers thereunto duly
        authorized as of the first day of the month and year first above
        written.

       

      
        	 	
                RSB
                  BONDCO LLC, as Issuer

                 

                 

              
	 	
                By:

              	/s/
                Charles A. Berardesco 
	 	 	
                Name:  Charles
                  A. Berardesco

                Title:    Secretary

              

      

       

       

      
        
          Issuer
            Signature Page to Series Supplement

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                DEUTSCHE
                  BANK TRUST COMPANY AMERICAS,

                not
                  in its individual capacity but solely in its capacity as Indenture
                  Trustee

                 

                 

              
	 	
                By:

              	/s/
                Eileen Hughes 
	 	 	
                Name:  Eileen
                  Hughes

                Title:    Vice
                  President

                 

              
	 	
                By:

              	/s/
                Louis Bodi 
	 	
                 

              	
                Name: 
                  Louis Bodi

                Title:   
                  Vice President

              

      

       

       

      
        
          Trustee
            Signature Page to Series Supplement

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        A

       

      EXPECTED
        AMORTIZATION SCHEDULE

       

      OUTSTANDING
        PRINCIPAL BALANCE PER TRANCHE

      
 

      
        	
                Payment
                  Date

              	
                Tranche
                  A-1

              	
                Tranche
                  A-2

              	
                Tranche
                  A-3

              
	
                Series
                  Issuance Date

              	
                $284,000,000    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                4/1/2008

              	
                $250,741,286    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                10/1/2008

              	
                $225,198,598    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                4/1/2009

              	
                $198,590,708    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                10/1/2009

              	
                $171,674,318    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                4/1/2010

              	
                $143,549,922    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                10/1/2010

              	
                $115,131,815    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                4/1/2011

              	
                $85,457,334    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                10/1/2011

              	
                $55,423,848    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                4/1/2012

              	
                $24,142,900    

              	
                $220,000,000    

              	
                $119,200,000    

              
	
                10/1/2012

              	
                $0    

              	
                $212,419,156    

              	
                $119,200,000    

              
	
                4/1/2013

              	
                $0    

              	
                $179,418,862    

              	
                $119,200,000    

              
	
                10/1/2013

              	
                $0    

              	
                $145,855,662    

              	
                $119,200,000    

              
	
                4/1/2014

              	
                $0    

              	
                $110,970,180    

              	
                $119,200,000    

              
	
                10/1/2014

              	
                $0    

              	
                $75,433,398    

              	
                $119,200,000    

              
	
                4/1/2015

              	
                $0    

              	
                $38,549,788    

              	
                $119,200,000    

              
	
                10/1/2015

              	
                $0    

              	
                $925,060    

              	
                $119,200,000    

              
	
                4/1/2016

              	
                $0    

              	
                $0    

              	
                $81,127,235    

              
	
                10/1/2016

              	
                $0    

              	
                $0    

              	
                $41,269,298    

              
	
                4/1/2017

              	
                $0    

              	
                $0    

              	
                $0    

              

      

       

       

      
        
          SCHEDULE
            A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]