Document:

ex10-b.htm

    
 

    
      

      

    

                                                                                                                                  

  Exhibit
10(b)
 

    

    
      

       

      Promissory
Note

    

    
      

       

      $65,091,371.66 June
26, 2008

       

      

    

    FOR VALUE
RECEIVED, AMERICA FIRST TAX EXEMPT INVESTORS, L.P., a Delaware limited
partnership (“Borrower”), hereby
promises to pay to the order of Bank of America, N.A., a national banking
association (together with any and all of its successors and assigns and/or any
other holder of this Note, “Lender”), without
offset, in immediately available funds in lawful money of the United States of
America, at 600 Wilshire Boulevard, Los Angeles, California 90017 (or at such
other place as the Lender hereafter may designate), the principal sum of
Sixty-Five Million Ninety-One Thousand Three Hundred Seventy-One Dollars and
66/100 ($65,091,371.66) (or the unpaid balance of all principal advanced against
this Note, if that amount is less), together with interest on the unpaid
principal balance of this Note from day to day outstanding as hereinafter
provided.

     

    Section
1                      Payment Schedule and
Maturity Date.  Prior to maturity, accrued and unpaid interest
shall be due and payable in arrears on the first day of each month commencing on
August 1, 2008. 
The entire principal balance of this Note then unpaid, together with all accrued
and unpaid interest and all other amounts payable hereunder and under the other
Loan Documents (as hereinafter defined), shall be due and payable in full on the
earlier of (a) September 26, 2008 (the “Maturity Date”), the
final maturity of this Note, or (b) the date on which the Lender issues any
letters of credit for the account of the Borrower pursuant to the Shortfall, Fee
and Collateral Agreement of even date herewith (as the same may from time to
time be amended, restated, modified or supplemented, the “Shortfall
Agreement”)  among the Lender, Bank of America, N.A., as LOC
Provider and TOB Liquidity Provider, Bank of America Securities LLC, as TOB
Placement and Remarketing Agent, and the Obligor.  Capitalized terms
used and not defined in this Agreement herein shall have the meanings given such
terms in the Shortfall Agreement.

     

    Section
2                      Security; Loan
Documents.  The security for this Note includes certain
Collateral, as defined in the Shortfall Agreement.  This Note, the
Shortfall Agreement and all other documents now or hereafter securing,
guaranteeing or executed in connection with the loan evidenced by this Note (the
“Loan”), as the
same may from time to time be amended, restated, modified or supplemented, are
herein sometimes called individually a “Loan Document” and
together the “Loan
Documents.”

     

    Section
3                      Interest
Rate

     

    (a)           BBA LIBOR Daily Floating
Rate.  The unpaid principal balance of this Note from day to
day outstanding which is not past due, shall bear interest at a fluctuating rate
of interest per annum equal to the BBA LIBOR Daily Floating Rate plus Two
Hundred Twenty-Five (225) basis points per annum.  The “BBA LIBOR Daily Floating
Rate” shall mean a fluctuating rate of interest per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or other commercially available source providing quotations of BBA LIBOR as
selected by Lender from time to time) as determined for each Business Day at
approximately 11:00 a.m. London time two (2) London Banking Days prior to the
date in question, for U.S. Dollar deposits (for delivery on the first day of
such interest period) with a one month term, as adjusted from time to time in
Lender’s sole discretion for reserve requirements, deposit insurance assessment
rates and other regulatory costs.  If such rate is not available at
such time for any reason, then the rate will be determined by such alternate
method as reasonably selected by Lender.  A “London Banking Day” is a
day on which banks in London are open for business and dealing in offshore
dollars.  Interest shall be computed for the actual number of days
which have elapsed, on the basis of a 360-day year.

     

    (b)           Alternative
Rates.  If Lender determines that no adequate basis exists for
determining the BBA LIBOR Daily Floating Rate or that the BBA LIBOR Daily
Floating Rate will not adequately and fairly reflect the cost to Lender of
funding the Loan, or that any applicable Law or regulation or compliance
therewith by Lender prohibits or restricts or makes impossible the charging of
interest based on the BBA LIBOR Daily Floating Rate and Lender so notifies
Borrower, then until Lender notifies Borrower that the circumstances giving rise
to such suspension no longer exist, interest shall accrue and be payable on the
unpaid principal balance of this Note from the date Lender so notifies Borrower
until the Maturity Date of this Note (whether by acceleration, declaration,
extension or otherwise) at a fluctuating rate of interest equal to the Prime
Rate of Lender plus Two Hundred Twenty-Five (225) basis points per
annum.  The term “Prime Rate” means, on
any day, the rate of interest per annum then most recently established by Lender
as its “prime rate.”  Any such rate is a general reference rate of
interest, may not be related to any other rate, and may not be the lowest or
best rate actually charged by Lender to any customer or a favored rate and may
not correspond with future increases or decreases in interest rates charged by
other lenders or market rates in general, and that Lender may make various
business or other loans at rates of interest having no relationship to such
rate.  Each time the Prime Rate changes, the per annum rate of
interest on this Note shall change immediately and contemporaneously with such
change in the Prime Rate.  If Lender (including any subsequent holder
of this Note) ceases to exist or to establish or publish a prime rate from which
the Prime Rate is then determined, the applicable variable rate from which the
Prime Rate is determined thereafter shall be instead the prime rate reported in
The Wall Street
Journal (or the average prime rate if a high and a low prime rate are
therein reported), and the Prime Rate shall change without notice with each
change in such prime rate as of the date such change is reported.

     

    (c)           Past Due
Rate.  If any amount payable by Borrower under any Loan
Document is not paid when due (without regard to any applicable grace periods),
such amount shall thereafter bear interest at the Past Due Rate (as defined
below) to the fullest extent permitted by applicable Law.  Accrued and
unpaid interest on past due amounts (including interest on past due interest)
shall be due and payable on demand, at a fluctuating rate per annum (the “Past Due Rate”) equal
to the BBA LIBOR Daily Floating Rate plus four hundred (400) basis
points.

     

    Section
4                      Prepayment.  Borrower
may prepay the principal balance of this Note, in full at any time or in part
from time to time, without fee, premium or penalty, provided that: (a) no
prepayment may be made which in Lender’s judgment would contravene or prejudice
funding under any applicable take-out financing; (b) Lender shall have actually
received from Borrower prior written notice of (i) Borrower’s intent to prepay,
(ii) the amount of principal which will be prepaid (the “Prepaid Principal”),
and (iii) the date on which the prepayment will be made; (c) each prepayment
shall be in the amount of $1,000 or a larger integral multiple of $1,000 (unless
the prepayment retires the outstanding balance of this Note in full); and (d)
each prepayment shall be in the amount of 100% of the Prepaid Principal, plus
accrued unpaid interest thereon to the date of prepayment, plus any other sums
which have become due to Lender under the Loan Documents on or before the date
of prepayment but have not been paid.  If this Note is prepaid in
full, any commitment of Lender for further advances shall automatically
terminate.  The Borrower hereby authorizes the Placement and
Remarketing Agent and the Lender to prepay this Note in full from the proceeds
of the TOB Floaters on the Letter of Credit Issuance Date.

     

    Section
5                      Late
Charges.  If Borrower shall fail to make any payment under the
terms of this Note (other than the payment due at maturity) within fifteen (15)
days after the date such payment is due, Borrower shall pay to Lender on demand
a late charge equal to four percent (4%) of the amount of such
payment.  Such fifteen (15) day period shall not be construed as in
any way extending the due date of any payment.  The late charge is
imposed for the purpose of defraying the expenses of Lender incident to handling
such delinquent payment.  This charge shall be in addition to, and not
in lieu of, any other amount that Lender may be entitled to receive or action
that Lender may be authorized to take as a result of such late
payment.

     

    Section
6                      Certain Provisions Regarding
Payments.  All payments made under this Note shall be applied,
to the extent thereof, to late charges, to accrued but unpaid interest, to
unpaid principal, and to any other sums due and unpaid to Lender under the Loan
Documents, in such manner and order as Lender may elect in its sole discretion,
any instructions from Borrower or anyone else to the contrary
notwithstanding.  Remittances shall be made without offset, demand,
counterclaim, deduction, or recoupment (each of which is hereby waived) and
shall be accepted subject to the condition that any check or draft may be
handled for collection in accordance with the practice of the collecting bank or
banks.  Acceptance by Lender of any payment in an amount less than the
amount then due on any indebtedness shall be deemed an acceptance on account
only, notwithstanding any notation on or accompanying such partial payment to
the contrary, and shall not in any way (a) waive or excuse the existence of an
Event of Default (as hereinafter defined), (b) waive, impair or extinguish any
right or remedy available to Lender hereunder or under the other Loan Documents,
or (c) waive the requirement of punctual payment and performance or constitute a
novation in any respect.  Payments received after 2:00 p.m. shall be
deemed to be received on, and shall be posted as of, the following Business
Day.  Whenever any payment under this Note or any other Loan Document
falls due on a day which is not a Business Day, such payment may be made on the
next succeeding Business Day.

     

    Section
7                      Events of
Default.  The occurrence of any one or more of the following
shall constitute an “Event of Default” under this
Note:

     

    (a)           Borrower
fails to pay when and as due and payable any amounts payable by Borrower to
Lender under the terms of this Note.

     

    (b)           Any
covenant, agreement or condition in this Note is not fully and timely performed,
observed or kept, subject to any applicable grace or cure period.

     

    (c)           An
Event of Default (as therein defined) occurs under any of the Loan Documents
other than this Note (subject to any applicable grace or cure
period).

     

    Section
8                      Remedies.  Upon
the occurrence of an Event of Default, Lender may at any time thereafter
exercise any one or more of the following rights, powers and
remedies:

     

    (a)           Lender
may accelerate the Maturity Date and declare the unpaid principal balance and
accrued but unpaid interest on this Note, and all other amounts payable
hereunder and under the other Loan Documents, at once due and payable, and upon
such declaration the same shall at once be due and payable.

     

    (b)           Lender
may set off the amount due against any and all accounts, credits, money,
securities or other property now or hereafter on deposit with, held by or in the
possession of Lender to the credit or for the account of Borrower, without
notice to or the consent of Borrower.

     

    (c)           Lender
may refuse to issue the Letters of Credit and the TOB Liquidity
Facilities.

     

    (d)           Lender
may exercise any of its other rights, powers and remedies under the Loan
Documents or at law or in equity.

     

    Section
9                      Remedies
Cumulative.  All of the rights and remedies of Lender under
this Note and the other Loan Documents are cumulative of each other and of any
and all other rights at law or in equity, and the exercise by Lender of any one
or more of such rights and remedies shall not preclude the simultaneous or later
exercise by Lender of any or all such other rights and remedies.  No
single or partial exercise of any right or remedy shall exhaust it or preclude
any other or further exercise thereof, and every right and remedy may be
exercised at any time and from time to time.  No failure by Lender to
exercise, nor delay in exercising, any right or remedy shall operate as a waiver
of such right or remedy or as a waiver of any Event of Default.

     

    Section
10                                Costs and Expenses of
Enforcement.  Borrower agrees to pay to Lender on demand all
costs and expenses incurred by Lender in seeking to collect this Note or to
enforce any of Lender’s rights and remedies under the Loan Documents, including
court costs and reasonable attorneys’ fees and expenses, whether or not suit is
filed hereon, or whether in connection with bankruptcy, insolvency or
appeal.

     

    Section
11                                Service of
Process.  Borrower hereby irrevocably designates and appoints
the law offices of Kutak Rock LLP, Suite 1100, 1100 Connecticut Avenue, N.W.,
Washington, D.C. 20036-4374, as Borrower’s authorized agent to accept and
acknowledge on Borrower’s behalf service of any and all process that may be
served in any suit, action, or proceeding instituted in connection with this
Note in any state or federal court sitting in the District of
Columbia.  If such agent shall cease so to act, Borrower shall
irrevocably designate and appoint without delay another such agent in the
District of Columbia satisfactory to Lender and shall promptly deliver to Lender
evidence in writing of such agent’s acceptance of such appointment and its
agreement that such appointment shall be irrevocable.

     

    Borrower
hereby consents to process being served in any suit, action, or proceeding
instituted in connection with this Note by (a) the mailing of a copy thereof by
certified mail, postage prepaid, return receipt requested, to Borrower and (b)
serving a copy thereof upon the agent, if any, hereinabove designated and
appointed by Borrower as Borrower’s agent for service of
process.  Borrower irrevocably agrees that such service shall be
deemed to be service of process upon Borrower in any such suit, action, or
proceeding.  Nothing in this Note shall affect the right of Lender to
serve process in any manner otherwise permitted by law and nothing in this Note
will limit the right of Lender otherwise to bring proceedings against Borrower
in the courts of any jurisdiction or jurisdictions, subject to any provision or
agreement for arbitration or dispute resolution set forth in the Shortfall
Agreement.

     

    Section
12                                Heirs, Successors and
Assigns.  The terms of this Note and of the other Loan
Documents shall bind and inure to the benefit of the heirs, devisees,
representatives, successors and assigns of the parties.  The foregoing
sentence shall not be construed to permit Borrower to assign the Loan except as
otherwise permitted under the Loan Documents.

     

    Section
13                                General
Provisions.  Time is of the essence with respect to Borrower’s
obligations under this Note.  If more than one person or entity
executes this Note as Borrower, all of said parties shall be jointly and
severally liable for payment of the indebtedness evidenced
hereby.  Borrower and each party executing this Note as Borrower
hereby severally (a) waive demand, presentment for payment, notice of dishonor
and of nonpayment, protest, notice of protest, notice of intent to accelerate,
notice of acceleration and all other notices (except any notices which are
specifically required by this Note or any other Loan Document), filing of suit
and diligence in collecting this Note or enforcing any of the security herefor;
(b) agree to any substitution, subordination, exchange or release of any such
security or the release of any party primarily or secondarily liable hereon; (c)
agree that Lender shall not be required first to institute suit or exhaust its
remedies hereon against Borrower or others liable or to become liable hereon or
to perfect or enforce its rights against them or any security herefor; (d)
consent to any extensions or postponements of time of payment of this Note for
any period or periods of time and to any partial payments, before or after
maturity, and to any other indulgences with respect hereto, without notice
thereof to any of them; and (e) submit (and waive all rights to object) to
non-exclusive personal jurisdiction of any state or federal court sitting in the
state and county in which payment of this Note is to be made and any other
jurisdiction permitted under the Shortfall Agreement for the enforcement of any
and all obligations under this Note and the other Loan Documents; (f) waive the
benefit of all homestead and similar exemptions as to this Note; (g) agree that
their liability under this Note shall not be affected or impaired by any
determination that any title, security interest or lien taken by Lender to
secure this Note is invalid or unperfected; and (h) hereby subordinate to the
Loan and the Loan Documents any and all rights against Borrower and any security
for the payment of this Note, whether by subrogation, agreement or otherwise,
until this Note is paid in full.  A determination that any provision
of this Note is unenforceable or invalid shall not affect the enforceability or
validity of any other provision and the determination that the application of
any provision of this Note to any person or circumstance is illegal or
unenforceable shall not affect the enforceability or validity of such provision
as it may apply to other persons or circumstances.  This Note may not
be amended except in a writing specifically intended for such purpose and
executed by the party against whom enforcement of the amendment is
sought.  Captions and headings in this Note are for convenience only
and shall be disregarded in construing it.  This Note and its
validity, enforcement and interpretation shall be governed by the laws of the
State of New York (without regard to any principles of conflicts of laws) and
applicable United States federal law.  Whenever a time of day is
referred to herein, unless otherwise specified such time shall be the local time
of the place where payment of this Note is to be made.  The term
“Business Day” shall mean a day on which Lender is open for the conduct of
substantially all of its banking business at its office in the city in which
this Note is payable (excluding Saturdays and Sundays).  Capitalized
terms used herein without definition shall have the meanings ascribed to such
terms in the Shortfall Agreement.  The words “include” and “including”
shall be interpreted as if followed by the words “without
limitation.”

     

    Section
14                                Notices.  Any
notice, request, or demand to or upon Borrower or Lender shall be deemed to have
been properly given or made when delivered in accordance with the terms of the
Shortfall Agreement regarding notices.

     

    Section
15                                No
Usury.  It is expressly stipulated and agreed to be the intent
of Borrower and Lender at all times to comply with applicable state law or
applicable United States federal law (to the extent that it permits Lender to
contract for, charge, take, reserve, or receive a greater amount of interest
than under state law) and that this Section shall control every other covenant
and agreement in this Note and the other Loan Documents.  If
applicable state or federal law should at any time be judicially interpreted so
as to render usurious any amount called for under this Note or under any of the
other Loan Documents, or contracted for, charged, taken, reserved, or received
with respect to the Loan, or if Lender’s exercise of the option to accelerate
the Maturity Date, or if any prepayment by Borrower results in Borrower having
paid any interest in excess of that permitted by applicable law, then it is
Lender’s express intent that all excess amounts theretofore collected by Lender
shall be credited on the principal balance of this Note and all other
indebtedness secured by the Mortgage, and the provisions of this Note and the
other Loan Documents shall immediately be deemed reformed and the amounts
thereafter collectible hereunder and thereunder reduced, without the necessity
of the execution of any new documents, so as to comply with the applicable law,
but so as to permit the recovery of the fullest amount otherwise called for
hereunder or thereunder.  All sums paid or agreed to be paid to Lender
for the use or forbearance of the Loan shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full stated term of the Loan.

     

    Section
16                                Arbitration.  This
Note is subject to arbitration as provided in the Shortfall
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Borrower has duly executed this Note under seal as of the date
first above written.

     

    
      Borrower:

       

      

    

    
      AMERICA
FIRST TAX EXEMPT INVESTORS, L.P.,

    

    
      a
Delaware limited partnership

    

    

    
      	
               
      

            	
              By:

            	
              America
      First Capital Associates Limited Partnership Two, a Delaware
      limited

            

    

    
      	
               
      

            	
              partnership,
      its general partner

            

    

    

    
      	
               
      

            	
              By:

            	
              The
      Burlington Capital Group, LLC, a

            

    

    
      	
               
      

            	
              Delaware
      limited liability company, its general
partner

            

    

    

    

    

    
      	
               
      

            	
              By:

            	
              /s/ Michael J.
      Draper_______________________

            

    

    
      	
               
      

            	 	
              Name:
      Michael J. Draper

            

    

    
      	
               
      

            	 	
              Title:   Chief
      Financial Officerex10-c.htm

    
 

    
      

      

    

    
                                                                                                                             
Exhibit
10(c)

    

                                                                                                                                              

     

    SERIES
TRUST AGREEMENT

    for

    AUSTIN
TRUST, SERIES 10000

    

    for

    $34,086,000
Variable Certificates, SERIES 10000

    and

    $20,000
Inverse Certificates, SERIES 10000

    

    Evidencing
an Interest in

    

    
      	
              $5,431,500

              Enhanced
      Custody Receipt, Series 2008 CDB-1E

              Evidencing
      an Interest in

              $6,005,174

              Unenhanced
      Custody Receipt, Series 2008 CDB-1U

              Relating
      to

              $6,785,000

              Texas
      Department of Housing and

              Community
      Affairs

              Multifamily
      Housing Revenue Bonds

              (Bella
      Vista Apartments) Series 2006

            	
              $6,341,135

              Enhanced
      Custody Receipt, Series 2008 CDB-2E

              Evidencing
      an Interest in

              $6,804,815

              Unenhanced
      Custody Receipt, Series 2008 CDB-2U

              Relating
      to

              $7,745,000

              Florida
      Housing Finance Corporation

              Multifamily
      Mortgage Revenue Refunding Bonds 2001 Series I (Fairmont Oaks
      Apartments)

            
	 
      	 
      
	
              $13,855,072

              Enhanced
      Custody Receipt, Series 2008 CDB-3E

              Evidencing
      an Interest in

              $13,855,072

              Unenhanced
      Custody Receipt, Series 2008 CDB-3U

              Relating
      to

              $16,280,000

              Florida
      Housing Finance Corporation

              Multi-Family
      Housing Revenue Refunding Bonds 2000 Series B (Iona Lakes
      Project)

            	
              $8,479,872

              Enhanced
      Custody Receipt, Series 2008 CDB-4E

              Evidencing
      an Interest in

              $9,560,926

              Unenhanced
      Custody Receipt, Series 2008 CDB-4U

              Relating
      to

              $10,825,000

              Austin
      Housing Finance Corporation

              Multifamily
      Housing Revenue Bonds

              (Runnymede
      Apartments Project) Series 2007A

            

    

    

    by and
between

    

    BANK OF
AMERICA, NATIONAL ASSOCIATION,

    as
Trustor

    

    and

    

    DEUTSCHE
BANK TRUST COMPANY AMERICAS,

    as
Trustee and Tender Agent

    

    Dated as
of July 3, 2008

                                                                                                                                              

                                                                                                                                              

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SERIES
TRUST AGREEMENT

     

    This
Series Trust Agreement of the Series set forth on the cover page hereof (this
“Series Trust Agreement”), dated as of the date set forth on the cover page
hereof, by and between BANK OF AMERICA, NATIONAL ASSOCIATION, as Trustor, and
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee and Tender Agent, for the
Variable Certificates (the “Variable Certificates”) and the Inverse Certificates
(the “Inverse Certificates”) (collectively, the Variable Certificates and the
Inverse Certificates, the “Certificates”) described on the cover page hereof,
incorporates by reference the Standard Terms and Provisions of Trust Agreement,
dated as of October 1, 2002 (the “Standard Terms”), attached as Exhibit A hereto, and
is governed by the Standard Terms as fully as if set forth
herein.  All capitalized terms used and not defined herein shall have
the meanings set forth in the Standard Terms.

     

     

    W I T N E
S S E T H:

     

    Section
1.  A Trust is hereby created under the laws of the State of
New York and in the manner specified in Section 2.1 of the Standard Terms for
the benefit of the Holders and Beneficial Owners of the
Certificates.  The assets of the Trust shall consist of the investment
property (referred to herein and in the Standard Terms as the “Bonds”) described
in Schedule I
hereto, all distributions thereon after the Delivery Date, all right, title and
interest in and to the Bonds and such distributions thereon, and all other
rights and privileges granted to the Holders and Beneficial Owners of
Certificates by this Series Trust Agreement and the Standard Terms. Conveyance
of the Bonds to the Trustee by the Seller is intended to be a sale and not a
secured borrowing for all purposes, including without limitation accounting
purposes.

     

    Section
2.  The name of the Trust is AUSTIN Trust of the Series set
forth on the cover page hereof.

     

    Section
3.  The Variable Certificates and Inverse Certificates shall be
issued in substantially the form set forth in Exhibits A and B to
the Standard Terms and shall have the particular characteristics and terms set
forth in Schedule
I hereto and shall be limited obligations of the Trust payable solely
from payments received by the Trustee attributable to the Bonds and the other
rights and assets contained in the Trust.  With respect to each
Maturity of Bonds and subject only to the requirement to issue Certificates in
Authorized Denominations, the sum of the Related Allocable Variable Certificates
Amount and the Stated Amount of the Related Inverse Certificates on the Delivery
Date shall equal the product of (a) the par amount of such Maturity of Bonds on
the Delivery Date and (b) the lesser of (i) the Base Price of such Maturity of
Bonds on the Delivery Date or (ii) 100%.

     

    Section
4.  The Trustee, the Tender Agent and the Trustor shall,
simultaneously with the execution and effectiveness of this Series Trust
Agreement, enter into a Remarketing Agreement, dated as of the date of this
Series Trust Agreement, with Banc of America Securities LLC, which is hereby
designated as the remarketing agent (together with any replacement or successor
thereto, the “Remarketing Agent”).

     

    The
Trustee and the Tender Agent shall, simultaneously with the execution and
effectiveness of this Series Trust Agreement, enter into a Liquidity Agreement,
dated as of the date of this Series Trust Agreement, with Bank of America,
National Association, which is hereby designated as the liquidity provider
(together with any Successor Liquidity Provider, the “Liquidity
Provider”).

     

    Section
5.  The Trustor hereby authorizes the Trustee and the Tender
Agent to execute and deliver a letter of representations in the form customarily
provided to the Securities Depository, dated the Delivery Date of the
Certificates, by and among the Trustee, the Tender Agent, the Trustor, the
Remarketing Agent and the Securities Depository.

     

    Section
6.  The Trustor shall create a Private Placement Memorandum and
a Supplement to Private Placement Memorandum describing the Certificates for use
in the sale of the Certificates.  In addition, if deemed advisable,
the Trustor shall create a Preliminary Supplement to Private Placement
Memorandum describing the Certificates for use in the initial sale of the
Certificates.

     

    Section
7.                      Modifications
to Section 1.1 of the Standard Terms:

     

    The
definition of “Bond Interest Payment Date” is hereby amended and restated in its
entirety to read as follows:

     

    “Bond
Interest Payment Dates” shall mean, with respect to any Maturity of Bonds, the
date or dates in each year on which interest is payable on the Bonds of such
Maturity and which shall be set forth as such in the related Series Trust
Agreement.  All the Maturities of Bonds underlying a Series are not
required to have the same Bond Interest Payment Dates.

     

    The
definition of “Collection Account” is hereby included in Section 1.1 of the
Standard Terms:

     

    “Collection
Account” shall mean a separate segregated account held by the Trustee for the
deposit of interest payments on the Bonds (other than interest being paid in
connection with a redemption of Bonds) prior to the related Semi-Annual Interest
Payment Date.

     

    The
definition of “Election Letter” is hereby
included in Section 1.1 of the Standard Terms:

     

    “Election Letter” shall mean an election in the form of
Exhibit D to this Series Trust Agreement executed by the Beneficial Owners of
the Related Inverse Certificates.  Any such election shall be
irrevocable and shall bind all future Holders of such Inverse
Certificates.

    

    The
definition of "Maximum Variable Certificates Rate" is hereby amended by adding,
following clause (vi) thereof, the following clause (vii):

    

     

    (vii)           If
a Calculation Period spans more than one calendar month, the Maximum Variable
Certificates Rate shall be computed: (1) for a Variable Certificates Interest
Period that is contained solely within a single calendar month, assuming that
the Calculation Period begins no earlier than the first day of that calendar
month and ends on the last day of that calendar month and (2) for Variable
Certificates Interest Periods that span more than one calendar month, (a)
separately for each portion of the Variable Certificates Interest Period that
falls in any particular calendar month as if such portion were a separate
Variable Certificates Interest Period and each calendar month were a separate
Calculation Period (provided that no such hypothetical separate Calculation
Period shall begin earlier than the beginning of, or end after the end of, the
actual Calculation Period) and (b) the Maximum Variable Certificates Rate shall
be the lowest Maximum Variable Certificates Rate for any such separate Variable
Certificates Interest Period.

     

    The
definition of “Minimum Value Ratio” is hereby included in Section 1.1 of the
Standard Terms:

     

    “Minimum Value Ratio” means, with respect to a Series, the percentage
defined as such in the Series Trust Agreement.

     

     

    The
definition of “Notice Parties” in Section 1.1 of the Standard Terms is hereby
is amended and restated to read in its entirety as follows:

    

    “Notice Parties” shall mean, with respect to any Series, the
Trustor, the Liquidity Provider, the Trustee, the Tender Agent, the Remarketing
Agent and the Beneficial Owner of Inverse Certificates.

     

    The
definition of “Reimbursement Agreement” is hereby included in Section 1.1 of the
Standard Terms:

     

    “Reimbursement Agreement” means any agreement a purpose of which is to
provide reimbursement to the Liquidity Provider for amounts paid by the
Liquidity Provider under the Liquidity Agreement and shall include any ISDA
Master Agreement, Schedule, Confirmation and Credit Support Document between the
Liquidity Provider and the Holder of the Inverse Certificates, or any
reimbursement agreement substituted therefor.

    

    The
definition of “Semi-Annual Interest Payment Date” is hereby included in Section
1.1 of the Standard Terms:

     

    “Semi-Annual
Interest Payment Date” shall mean each semi-annual payment date set forth on
Schedule I attached hereto.

     

    The
definition of “Value Ratio” is hereby included in Section 1.1 of the
Standard Terms:

     

    “Value Ratio”  means, with respect to a Series, a
percentage equal to the fair market value of the Bonds related to such Series of
Variable Certificates as determined based on a Quotation of Bond Price, divided
by the Stated Amount of Variable Certificates of such Series.

    

    Section
8.  A Reimbursement Agreement has been entered into with
respect to the Series governed by this Series Trust Agreement.

    

     

    Section 9. Section
2.3 of the Standard Terms is hereby replaced in its entirety with the
following:

     

    Section
2.3                                Obligations of Trustee and
the Trustor

     

    
      	
              (a)  

            	
              With
      respect to each Series of Certificates, the Trustee has no obligation with
      respect to the Bonds or any Liquidity Agreement except as expressly
      provided in the Agreement.

            

    

     

    
      	
              (b)  

            	
              If
      the State Partnership Factors shall have been adopted, the Trustor (but no
      other Holder of Certificates) shall be liable without limitation for all
      debts and obligations of, and claims against, the Trust (other than those
      referred to in Section 13 below); provided that the
      Trustor shall not be responsible for the payment to Holders of
      Certificates of any amount which represents, directly or indirectly,
      principal, interest or premium with respect to the Bonds or the Purchase
      Price.

            

    

     

    
      	
              (c)  

            	
              If
      the State Partnership Factors shall not have been adopted, the Trustor
      shall not be liable for the debts and obligations of, or any claims
      against, the Trust, except that the Trustor shall be liable for penalties
      imposed on the Trust and other costs of the Trust arising from any failure
      to duly and timely file tax returns or information reports (including the
      abbreviated form 1065 referred to in Section 10 of the Series Trust
      Agreement).

            

    

     

    Section
10.  Election under Revenue
Procedure 2003-84.

    

    
      	
              (1)  

            	
              The
      Election.

            

    

     

    
      	
              (a)  

            	
              The
      Trust is making an election  (the “Monthly Closing Election”)
      under Revenue Procedure 2003-84, effective as of the later of the date the
      Trust has more than one owner for tax purposes and the date the Trust has
      more than a de
      minimis amount of assets (the “Start-Up Date”).  This
      election is binding on all present and future Holders and Beneficial
      Owners of Certificates, and other persons treated as partners in the Trust
      for federal income tax purposes and each of their nominees (each, a
      “Partner” for this purpose) and each Partner, by acceptance of its
      Certificate or interest therein, is deemed to consent to this
      election.

            

    

     

    
      	
              (b)  

            	
              The
      Trust shall not have any income producing assets and shall not earn any
      income prior to its Start-Up Date.  The Trust shall not file a
      tax return for the period prior to the Start-Up
  Date.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      Section 2.5(b) of the Standard Terms, the Trust shall not (and no person
      is authorized on behalf of the Trust to) elect to be an association
      taxable as a corporation for federal income tax purposes nor make an
      election under section 761(a) of the Code to be excluded from subchapter K
      of chapter 1 of the Code.

            

    

     

    
      	
              (d)  

            	
              Section
      2.5(e) of the Standard Terms is hereby replaced in its entirety with the
      following:

            

    

     

    For
purposes of maintaining capital accounts and all income tax purposes, including
the Trust’s deemed closing of its books at the end of each calendar month under
Treasury Regulation § 1.706-1(c)(2) that is required by section 6 of Revenue
Procedure 2003-84, the Trust’s tax-exempt income, taxable income, gain, loss,
deduction, and credit will be allocated as for federal income tax and applicable
state and local franchise and income tax purposes as follows:

     

    
      	
              (i)  

            	
              Interest
      on the Bonds (including accrued original issue discount) for any period
      shall be allocated:

            

    

     

    
      	
              (1)  

            	
              first, to the
      Holders of Variable Certificates, an amount equal to accrued interest
      distributable for such period on the Variable Certificates at the Variable
      Certificates Rate, and

            

    

     

     

    
      	
              (2)  

            	
              second, to the
      Holders of the Related Inverse Certificates, the remaining interest on the
      Bonds;

            

    

     

    
      	
              (ii)  

            	
              Gain
      on the sale or redemption of the Bonds of any Maturity shall be
      allocated:

            

    

     

    
      	
              (1)  

            	
              to
      the extent any gain on the sale of such Bonds is treated as ordinary
      income under Section 1276 of the Code, 100% to the Holders of the Related
      Inverse Certificates,

            

    

     

    
      	
              (2)  

            	
              to
      the extent any gain on the sale or deemed sale of such Maturity of Bonds
      is required to be shared with the Holders of the Variable Certificates
      pursuant to this Agreement, to the Holders of the Variable Certificates
      that share in the distribution of such amounts,
  and

            

    

     

    
      	
              (3)  

            	
              to
      the extent of the balance of all other gain, to the Holders of the Related
      Inverse Certificates;

            

    

     

    
      	
              (iii)  

            	
                Loss
      recognized on the sale of the Bonds of any Maturity shall be allocated
      100% to the Holders of the Related Inverse Certificates (except to the
      extent the loss is borne economically by other Partners in which case it
      will be allocated to that extent to such other
  Partners);

            

    

     

    
      	
              (iv)  

            	
                Unrecognized
      loss on any in-kind distribution of the Bonds of any Maturity shall be
      allocated to the Holders of Variable Certificates and Related Inverse
      Certificates in a manner that reflects their respective interests in the
      Trust and the Bonds, their shares of the Bonds distributed, and the
      effects on their respective interests of such distribution (taking account
      of all facts and circumstances);
and

            

    

     

    
      	
              (v)  

            	
              All
      expenses of the Trust (including all Amortized Premium on the Bonds to the
      extent treated as a separate item of expense of the Trust) shall be
      allocated 100% to the Holders of the Related Inverse
      Certificates.

            

    

     

    
      	
              (vi)  

            	
              All
      of the allocations set out above are intended to be made in accordance
      with section 704(b) of the Code.  If allocation of the Trust’s
      tax-exempt income, taxable income, gain, loss, deduction, and credits
      provided above would not be in accordance with section 704(b) of the Code,
      then allocations shall be made in a manner that is in accordance with
      section 704(b) of the Code.  If the Trustor believes in its sole
      judgment that such other allocations are required it shall promptly give
      notice to Holders (or, in the case of Certificates held by a regulated
      investment company (as defined in Section 851(a) of the Code) (each, a
      “RIC”) with respect to which an election is in place for a manager (the
      “Electing Manager”) to be responsible for collecting, retaining, and
      providing beneficial ownership information to the Internal Revenue Service
      (the “IRS”), the Trustor shall promptly give notice to the Electing
      Manager).

            

    

     

    
      	
              (2)  

            	
              Limitations on
      Activities and Income and Expense of the
  Trust.

            

    

     

    Notwithstanding
anything herein or in the Standard Terms to the contrary:

     

    
      	
              (a)  

            	
              the
      Trust shall not acquire any asset unless the Trustee has received an
      Officer’s Certificate of the Trustor that the acquisition of that asset
      will not cause less than 95 percent of the Trust’s gross income (for this
      purpose, including the gross amount of interest income that is excluded
      from gross income) to be (or reasonably expected to be)
    from:

            

    

     

    
      	
              (i)  

            	
              interest
      on tax-exempt obligations as defined in section 1275(a)(3) of the Code and
      Treasury Regulation § 1.1275-1(e),

            

    

     

    
      	
              (ii)  

            	
              exempt-interest
      dividends as defined in section 852(b)(5) of the Code that are paid by a
      RIC, and

            

    

     

    
      	
              (iii)  

            	
              gain
      from the sale, redemption, or other disposition of assets generating the
      income described in clauses (i) and (ii), above, and income from the
      temporary investment (for a period no greater than seven months) of the
      proceeds of the disposition, but only if the assets that are sold,
      redeemed, or disposed are original assets of the Trust.  For
      this purpose, an asset is an original asset of the Trust if the asset is
      contributed to the Trust or is acquired with capital contributed to the
      Trust (and not with the proceeds of the sale, redemption, or other
      disposition of a Trust asset).

            

    

     

    The Trust
shall distribute (or make payments of expenses with) the proceeds of any of the
assets that are sold, redeemed, or disposed of, and shall not reinvest such
proceeds unless otherwise permitted and in any event shall not invest such
proceeds other than (1) for a temporary period (not exceeding seven months)
prior to distribution (or payment) in investments having a remaining maturity of
less than seven months and maturing on or before the next Variable Certificates
Interest Payment Date (or date when expenses are expected to be paid) or (2)
reinvestment in a fund commonly known as a tax-exempt money market fund (very
generally, a RIC that seeks to maintain a stable net asset value per share of
$1.00 and pay solely exempt-interest dividends as defined in section 852(b)(5)
of the Code), but nothing in this sentence implies that any such right to
reinvest exists.  The Trust may assume that amounts treated as
interest for federal income tax purposes on fixed income investments for which
an Opinion of Counsel was rendered satisfy the requirement of clause (i) of
Section (2)(a) until it has received notice from its tax advisors or the Trustor
or Remarketing Agent to the contrary.

     

    
      	
              (b)  

            	
              The
      Trust shall not incur any liability or expense, if doing so would prevent
      substantially all of the Trust’s expenses and deductions from being
      properly allocable to:

            

    

     

    
      	
              (i)  

            	
              producing,
      collecting, managing, protecting, and conserving the income described in
      Section (a)(i), (ii), or (iii),
above,

            

    

     

    
      	
              (ii)  

            	
              acquiring,
      managing, conserving, maintaining, or disposing of property held for the
      production of the income described in Section 8(2)(a)(i), (ii), or (iii),
      above, and

            

    

     

    
      	
              (iii)  

            	
               servicing
      the equity in the Trust, and

            

    

     

    
      	
              (iv)  

            	
              Payments
      of Remarketing and Liquidity Charges and Trustee Fees comply with Section
      8(2)(b).  Furthermore, for purposes of Section 8(2)(b), the
      costs of collecting, managing, computing, and supplying the information
      required, under Revenue Procedure 2003-84, to be provided to the IRS and
      to the Partners, shall not be taken into
  account.

            

    

     

    
      	
              (3)  

            	
              Initial
      Filing.

            

    

     

    
      	
              (a)  

            	
              In
      connection with its formation, the Trust shall obtain an employer
      identification number.  The Trustor and, at the Trustor’s
      direction, the Trustee, and each of their accountants, are each authorized
      to obtain such number and each of the foregoing is authorized to delegate
      such authority to its agents.  Each Partner, by acceptance of
      its Certificate or interest therein, is deemed to consent to the
      foregoing.

            

    

     

    
      	
              (b)  

            	
              The
      Trust shall file an abbreviated Form 1065, “U.S. Return of Partnership
      Income,” as required by, and in the format outlined in section 8.01 of,
      Revenue Procedure 2003-84, for its first taxable year as soon as
      reasonably possible after the Start-Up Date but in no event later than the
      date that the partnership's income tax return for that taxable year would
      ordinarily be due.  The Trustor and, at the Trustor’s direction,
      the Trustee, and each of their accountants, are each authorized to sign
      the abbreviated Form 1065, and each of the foregoing is authorized to
      delegate such authority to its agents.  Each Partner, by
      acceptance of its Certificate or interest therein, is deemed to consent to
      the foregoing and to authorize the filing of the abbreviated Form 1065 on
      behalf of the Trust and itself.  Copies of the abbreviated Form
      1065 will be made available to Partners upon
  request.

            

    

     

    
      	
              (4)  

            	
              Information Reporting
      and Record Retention.

            

    

     

    
      	
              (a)  

            	
              The
      Trust shall, within 45 days of a request by the IRS or a Partner (or a
      Beneficial Owner or nominee of a Beneficial Owner of a Certificate), make
      available all the information necessary to compute a Partner’s monthly
      tax-exempt income, taxable income, gain, loss, deduction, or credit,
      including sufficient information for a partner to determine the portion of
      the tax-exempt interest that may be subject to the alternative minimum tax
      and information regarding each Partner’s share of any bond premium
      amortization under section 171 of the Code, any market or original issue
      discount, and capital gain or loss.  The Trust shall not charge
      any fee to the IRS or a Partner for providing the information required to
      be provided by this paragraph.  If any Partner specifically
      requests such information for any tax reporting reason, however, the
      Trustor may charge such Partner a reasonable fee (disclosed in advance)
      but not the IRS) for providing any information required to be provided to
      or on behalf of such Partner by Section
8(4)(a).

            

    

     

    
      	
              (b)  

            	
              Except
      in the case of a RIC with respect to which a manager or advisor (an
      “Electing Manager”) has elected under section 8.04 of Revenue Procedure
      2003-84 to be responsible for collecting, retaining and providing to the
      IRS the beneficial ownership information otherwise required to be
      collected, retained and provided to the IRS, each Holder, Beneficial Owner
      of a Certificate or Partner on whose behalf another person holds an
      interest in a Certificate as a nominee shall, and by its acceptance of its
      Certificate or any interest therein is deemed to agree to, notify the
      Trustor on behalf of the Trust of its beneficial ownership of a
      Certificate and provide the Trustor on behalf of Trust all information as
      required by section 8.04 of Revenue Procedure 2003-84 substantially
      contemporaneously with, or immediately following, the acquisition of any
      Certificate.  No particular format is required of such notice;
      provided,
      however, such notice must be in writing, by fax, e-mail, or other similar
      electronic communication medium and in a format reasonably satisfactory to
      the Trust (or its designated
agent).

            

    

     

    Each
Electing Manager shall, and by notifying the Trust of its election is deemed to
agree to, collect, retain and provide to the IRS or the Trust the information
required to be collected, retained and provided to the IRS or the Trust as
required under Revenue Procedure 2003-84.  In addition, each Electing
Manager shall (or cause one of its agents to) notify the Trust (or its
designated agent) of the names, CUSIP numbers or other identifying information
and amounts of Certificates that are owned or have been owned by all of the
regulated investment companies that it manages or advises (i) either (a)
substantially contemporaneously with, or immediately following, the acquisition
of any Certificate or (b) otherwise, at least quarterly and (ii) within 10
business days of a request for such information if the IRS (or a regulated
investment company it manages) has requested such information from the Trust or
the Sponsor.  No particular format is required of such notice, provided, however, that such
notice must be in writing, by fax, e-mail, or other similar electronic
communication medium and in a format reasonable satisfactory to the Trust (or
its designated agent).

     

    
      	
              (c)  

            	
              The
      Trust shall retain sufficient records, including records regarding the
      legal and beneficial ownership of Certificates provided to it by Partners
      and by Electing Managers, to comply with its obligations under Revenue
      Procedure 2003-84.

            

    

     

    Section
11.  Intention of the Parties;
Notification.

    

               It
is the intention of the parties hereto that Sections 10-12 of this Series Trust
Agreement fulfill the requirements of making a Monthly Closing Election under
Revenue Procedure 2003-84 and shall be interpreted consistently
therewith.

     

               The
Trustor will notify the Holders or Beneficial Owners of the Certificates or
their nominees (or, in the case of Certificates held by a regulated investment
company with respect to which an election is in place for a manager to be
responsible collecting, retaining, and providing beneficial ownership
information to the IRS, the Trustor will notify the Electing Manager) and the
Trustee if it becomes aware (in its sole but reasonable judgment) that there is
a material risk that the Trust does not qualify for the Monthly Closing
Election.

     

    Section
12.  Trustor’s Obligations with
respect to Revenue Procedure 2003-84.

     

    
      	
              (1)  

            	
              Obligations of the
      Trustor.  Notwithstanding anything herein or in the
      Standard Terms to the contrary, the Trustor (and not the Trustee) shall
      undertake, on behalf of the Trust, the Trust’s obligations under Revenue
      Procedure 2003-84 (or successor guidance), including the obligations of
      the Trust under Section 11 of the Series Trust Agreement
    to:

            

    

     

    
      	
              (a)  

            	
              obtain
      (or cause to be obtained) a taxpayer identification number for the
      Trust;

            

    

     

    
      	
              (b)  

            	
              file
      (or cause to be filed) an abbreviated Form 1065, “U.S. Return of
      Partnership Income,” for the Trust’s first taxable
  year;

            

    

     

    
      	
              (c)  

            	
              provide,
      within 45 days of a request by the Internal Revenue Service or a Partner,
      all the information necessary to compute a partner’s income which is
      excluded from gross income for purposes of federal income taxes, taxable
      income, gain, loss, deduction, or credit, including sufficient information
      for a Partner to determine the portion of the interest which is excluded
      from gross income for purposes of federal income taxes that may be subject
      to the alternative minimum tax and information regarding each partner’s
      share of any bond premium amortization under section 171 of the Code, any
      market or original issue discount, and capital gain or
    loss;

            

    

     

    
      	
              (d)  

            	
              retain
      sufficient records, including records regarding the beneficial ownership
      of Certificates provided to it by a Partner and by Electing Managers as
      required by Revenue Procedure 2003-84, to comply with its obligation to
      provide information for as long as the Trust is required to provide such
      information.; and

            

    

     

    
      	
              (e)  

            	
              at
      the request of the Trustee, confirm whether or not an expense or liability
      to be incurred by the Trust would prevent substantially all of the Trust’s
      expenses and deductions from being properly allocable pursuant to the
      provisions of Section 8(2)(b)
hereof.

            

    

     

    
      	
              (2)  

            	
              Cooperation.  The
      Trustee will cooperate with the Trustor and provide the Trustor with
      information available to it that may be reasonably necessary or helpful
      for the Trustor to comply with its obligations under Section 13 of the Series Trust
      Agreement.

            

    

     

    Section
13.   Section 3.2(a) of the Standard Terms is hereby
amended and restated in its entirety to read as follows:

    

     “(a)           With
respect to each Series, interest on the Bonds shall be distributed as provided
in Section 3.2(b) on each Semi-Annual Interest Payment Date; provided, that if the Trustee
on the Semi-Annual  Interest Payment Date has not confirmed receipt of
such interest in immediately available funds, notwithstanding any other
provision hereof, such distribution may be delayed until the Business Day on
which the Trustee confirms receipt of immediately available funds; and provided
further that if the Semi-Annual  Interest Payment Date is not a
Business Day, then the interest distribution otherwise payable on such
Semi-Annual  Interest Payment Date shall be payable on the Business
Day next succeeding such Semi-Annual  Interest Payment Date or the
Business Day succeeding such Semi-Annual  Interest Payment Date on
which the Trustee confirms receipt of interest in immediately available funds,
whichever is later, as though paid on such Semi-Annual Interest Payment
Date.

    

    Interest
payments on the Bonds received by the Trustee during each such semi–annual
period prior to a Semi-Annual Interest Payment Date (other than interest being
paid in connection with a redemption of Bonds) shall be deposited by the Trustee
into the Collection Account and remain uninvested.  Upon termination
of the Trust and payment in full of all interest payable on the Variable
Certificates, any amounts remaining in the Collection Account shall be
distributed to the Holders of the Inverse Certificates.

    

    Notwithstanding
the foregoing provisions with respect to the semi-annual payment of interest on
the Certificates, the Trustee will distribute payments identified to the Trust
by the paying agent for the Bonds as payments of principal and premium on the
Bonds not later than the Business Day following Trustee’s receipt of such
payments, as required by the Standard Terms.

    

    The
Trustor hereby grants to the Trustee a first-priority security interest in the
Collection Account, the Bonds and other financial assets credited thereto, and
all proceeds thereof.”

    

    A new
Section 3.2(c) is hereby added to the Standard Terms immediately following
Section 3.2(b) thereof, as follows:

    

    “(c)           With
respect to each Series, amounts received by the Trustee with respect to the
Related Bonds that have been identified to the Trustee as payments received from
or on behalf of the applicable Issuer (rather than from the related Principal
Credit Source), after reimbursement in full of the related Principal Credit
Source for the amount of the related drawing(s) on the applicable Credit
Enhancement, shall be distributed to Holders of the Inverse Certificates of such
Series.”

    

    Section
14.   Section 3.3 of the Standard Terms is hereby amended
by adding, following clause (d) thereof, the following clause (e):

    

    (e)           Any
change in the Remarketing Agent Fee Rate and the Liquidity Fee Rate and any
material change in the Trustee Fee Rate shall require the consent of the Inverse
Certificates Holder.

    

    Section
15.   Section 3.4 of the Standard Terms is hereby amended
and restated in its entirety to read as follows:

    

    “Section
3.4.                                Interest Distributable on
Variable Certificates.  Interest distributions on the Variable
Certificates will be made on each Semi-Annual Interest Payment Date or other
date on which interest is distributed pursuant to Section 3.2(a) (each, a
“Variable Certificates Interest Payment Date”), in arrears for interest which
shall have accrued in the Calculation Period ending on the day before the
related Semi-Annual Interest Payment Date and shall be the amount determined as
the “Variable Certificates Interest Amount” by the Trustee.  Such
interest shall be payable to Holders of record as of the related Regular Record
Date to the extent of interest on the Bonds, if any, received and distributed by
the Trustee on or about such Variable Certificates Interest Payment Date
pursuant to Section 3.2.  The Variable Certificates Interest Amount in
respect of each Calculation Period for each Variable Certificate shall be
calculated on the Actual/Actual Basis by multiplying the Stated Amount of such
Variable Certificates by the Variable Certificates Rate or Rates in effect from
time to time for such Calculation Period.”

     

    Section
16.   Section 5.2(d)(vi) of the Standard Terms is amended
and restated to read in its entirety as follows:

     

    (vi)           in
the case of any other Mandatory Tender Event, a Business Day at least 5 days
after the notice required by this subsection (d); provided, however, that such
Mandatory Tender Date shall not be less than five days prior to the Liquidity
Agreement Termination Date.

     

    Section
17.   Sections 5.2(h) and
5.2(i) are amended and restated in their entirety to read as follows,
respectively:

    

    (h)  On the Mandatory Tender Date (other than
with respect to a Mandatory Tender Event under Section 5.2(a)(xi) through
(xiv)), the Trustee shall proceed to cause the sale of or deliver out the Bonds
of each affected Maturity separately as follows:

     

    (i)           If the Election Letter states that the provisions of
clause (i) of Section 5.2(h) shall apply and the Quotation of Bond Price,
including accrued interest, with respect to such Maturity required by Section
5.2(e) is such that, if all the Bonds of such Maturity were sold at such
Quotation of Bond Price, the total proceeds would result, if distributed in
accordance with Section 5.2(i), in the Liquidity Provider receiving less than an
amount equal to the Stated Amount of the Variable Certificates subject to
mandatory tender on such Mandatory Tender Date plus accrued interest thereon at
the Variable Certificates Rate multiplied by the Related Allocation Fraction on
the Mandatory Tender Date:

     

     

    (A)           the Trustee shall instruct the Remarketing Agent to sell
a principal amount of the Bonds of such Maturity sufficient to pay the accrued
and unpaid Trustee Fee and Remarketing and Liquidity Charges with respect to the
Certificates to the date of such delivery multiplied by the Related Allocation
Fraction;

     

     

    (B)           the Trustee shall instruct DTC to transfer an amount of
the Bonds of such Maturity as promptly as practicable through the facilities of
DTC to the Liquidity Provider such that the Liquidity Provider receives a
principal amount of the Bonds of such Maturity with a market value (based on
such Quotation of Bond Price) equal to the Stated Amount of Variable
Certificates subject to mandatory tender on such Mandatory Tender Date plus
accrued interest thereon at the Variable Certificates Rate multiplied by the
Related Allocation Fraction; and

     

    (C)           any remaining Bonds and proceeds from the sale of Bonds
pursuant to clause (A) shall be distributed to the Holders of Related Inverse
Certificates.

     

    (ii)           If the Election Letter states that the provisions of
clause (i) of Section 5.2(h) shall apply and the Quotation of Bond Price,
including accrued interest, with respect to such Maturity required by Section
5.2(e) is such that, if all the Bonds of such Maturity were sold at such
Quotation of Bond Price, the total proceeds would result, if distributed in
accordance with Section 5.2(i), in the Liquidity Provider receiving at least an
amount equal to the Stated Amount of the Variable Certificates subject to
mandatory tender on such Mandatory Tender Date plus accrued interest thereon at
the Variable Certificates Rate multiplied by the Related Allocation Fraction,
the Remarketing Agent shall sell the Bonds of such Maturity in such manner as
the Remarketing Agent deems advisable at the highest obtainable price under
current market conditions, on the Mandatory Tender Date, any such sale to
conform to the further requirements set forth herein. 

     

    (iii)           If the Election Letter states that the provisions of
clause (iii) of Section 5.2(h) shall apply (or no Election Letter is delivered)
and the Quotation of Bond Price, including accrued interest, with respect to
such Maturity required by Section 5.2(e) is such that, if all the Bonds of such
Maturity were sold at such Quotation of Bond Price, the total proceeds would
result, if distributed in accordance with Section 5.2(i), in either the
Liquidity Provider receiving less than an amount equal to the Stated Amount of
the Variable Certificates subject to mandatory tender on such Mandatory Tender
Date plus accrued interest thereon at the Variable Certificates Rate multiplied
by the Related Allocation Fraction or the Inverse Certificates receiving less
than an amount equal to the Stated Amount thereof, on the Mandatory Tender
Date:

     

     

    (A)           the Trustee shall instruct the Remarketing Agent to sell
a principal amount of the Bonds of such Maturity sufficient to pay the accrued
and unpaid Trustee Fee and Remarketing and Liquidity Charges with respect to the
Certificates to the date of such delivery multiplied by the Related Allocation
Fraction;

     

     

    (B)           the Trustee shall instruct DTC to transfer an amount of
the Bonds of such Maturity as promptly as practicable through the facilities of
DTC to the Liquidity Provider and Beneficial Owners Selected by Lot of Related
Inverse Certificates, such that the Liquidity Provider and Beneficial Owners
Selected by Lot of Related Inverse Certificates each receives a pro rata
principal amount of the Bonds of such Maturity based on the aggregate Stated
Amount of Variable Certificates and the aggregate Stated Amount of the Related
Inverse Certificates, in each case multiplied by the Related Allocation
Fraction; and

     

    (C)           any remaining Bonds and proceeds from the sale of Bonds
pursuant to clause (A) shall be distributed to the Holders of Related Inverse
Certificates.

     

    (iv)           If the Election Letter states that the provisions of
clause (iii) of Section 5.2(h) shall apply (or no Election Letter is delivered)
and the Quotation of Bond Price, including accrued interest, with respect to
such Maturity required by Section 5.2(e) is such that, if all the Bonds of such
Maturity were sold at such Quotation of Bond Price, the total proceeds would
result, if distributed in accordance with Section 5.2(i), in the Liquidity
Provider receiving at least an amount equal to the Stated Amount of the Variable
Certificates subject to mandatory tender on such Mandatory Tender Date plus
accrued interest thereon at the Variable Certificates Rate multiplied by the
Related Allocation Fraction and the Inverse Certificates receiving at least an
amount equal to the Stated Amount thereof, the Remarketing Agent shall sell the
Bonds of such Maturity in such manner as the Remarketing Agent deems advisable
at the highest obtainable price under current market conditions, on the
Mandatory Tender Date, any such sale to conform to the further requirements set
forth herein.

    

    (i)           On the Mandatory Tender Date, the proceeds of the sale,
if any, of each Maturity separately pursuant to Section 5.2(h)(ii) or (iv) shall
be distributed in the following order of priority, each priority being fully
paid before proceeds are used to pay any lower priority and no payment being
made on any priority if the proceeds have been exhausted in the payment of
higher priorities:

     

    (A) to the Trustee, the accrued Trustee Fee multiplied
by the Related Allocation Fraction;

     

    (B)(1) if the Election Letter states that the provisions
of clause (i) of Section 5.2(h) shall apply, to the Liquidity Provider an amount
equal to the Stated Amount of the Variable Certificates purchased with funds
provided under the Liquidity Facility by the Liquidity Provider multiplied by
the Related Allocation Fraction, and (2) if the Election Letter states that the
provisions of clause (iii) of Section 5.2(h) shall apply (or no Election Letter
is delivered), to the Liquidity Provider an amount equal to the Stated Amount of
the Variable Certificates purchased with funds provided under the Liquidity
Facility by the Liquidity Provider multiplied by the Related Allocation Fraction
and to the Inverse Certificates an amount equal to the Stated Amount thereof on
a pari passu
basis;

     

    (C) to the parties entitled thereto, an amount equal to
the accrued Remarketing and Liquidity Charges multiplied by the Related
Allocation Fraction;

     

    (D)  to the Holders of the Related Inverse
Certificates, an amount up to but not exceeding the aggregate amount of any
Accrued Market Discount, Accrued OID and Unamortized Premium on the Bonds of
such Maturity;

     

    (E)  to the Holders of Variable Certificates
tendered on the Mandatory Tender Date and, except in the case of a Mandatory
Tender Event under Section 5.2(a)(i) or (v) with respect to less than all the
Maturities, to Liquidity Variable Certificates outstanding at the opening of
business on the Mandatory Tender Date, an amount equal to the product of (x) 10%
for all Bonds other than Enhanced Custody Receipts Series 2008 CDB 3-E, for
which the applicable percentage is 98%, (y) a fraction the numerator of which is
the Related Variable Certificates amount and the denominator of which is the
aggregate principal amount of Bonds for such Maturity, and (z) the excess, if
any, of the sale price (not including accrued interest) over the Bond Base Price
of such Maturity; and

     

    (F)  to such Holders of Related Inverse
Certificates, the balance remaining.

     

    Section
18.   With respect to Series 2008 CDB 3-E, the reference
to “10%” in each of Section 5.1(d), 6.2(b) and 11.1(a) of the Standard Terms is
hereby deleted and replaced with “98%”.

    

    Section
19.   Article VI of the Standard Terms is hereby amended
as follows:

    

    The
reference to "fourteen (14) days" in Section 6.2(iv) of the Standard Terms is
hereby deleted and replaced with "five (5) Business Days ".

     

    The
following Section 6.3 is hereby added to the Standard Terms following Section
6.2 thereof:

    

    Section
6.3: Increase or Decrease of Variable Certificate/Inverse Certificate
Ratio.

     

    (a) Any
Holder of all the Outstanding Inverse Certificates of a particular Maturity and
any Stated Amount of Variable Certificates may obtain, on any Variable
Certificates Interest Payment Date or any Rate Determination Date, additional
Inverse Certificates for such Maturity with a Stated Amount of Inverse
Certificates equal to the Stated Amount of such Variable
Certificates.  In order to obtain such Inverse Certificates, the
Inverse Certificates Holder shall deliver notice to the Trustee (with a copy to
the Remarketing Agent and the Liquidity Provider) in the form of Exhibit C to
the Series Trust Agreement at least five Business Days prior to such date of
delivery.  On the Business Day following receipt of such notice, the
Trustee shall transmit a copy of such notice to the Securities Depositories for
transmission to the Holders of Certificates.  The Inverse Certificates
Holder shall deliver such Variable Certificates free to the Trustee by
book-entry transfer, and shall pay to the Trustee any tax or other governmental
or Securities Depository charge that may be imposed in relation to the
transfer.

     

    (b) Upon
satisfaction of the requirements of Section 6.3(a), the Trustee on behalf of the
Trust shall, on the Variable Certificates Interest Payment Date or the Rate
Determination Date specified in the notice delivered by such Holder, execute
additional Inverse Certificates for such Maturity with a Stated Amount of
Inverse Certificates equal to the Stated Amount of Variable Certificates,
deliver the same to the Holder as specified in such notice and cancel the
Variable Certificates so delivered.

     

    (c) If a
notice has been delivered to the Trustee pursuant to Section 6.3(a), then any
Holder of all Outstanding Inverse Certificates of a particular Maturity may
obtain, on any Variable Certificates Interest Payment Date or any Rate
Determination Date, delivery of additional Variable Certificates of such
Maturity by:

     

    (i) causing
the Securities Depository to deliver a specified Stated Amount of Inverse
Certificates free to the Trustee by book-entry transfer into the Trustee’s
accounts at such Securities Depository;

     

    (ii) delivering
a notice to the Trustee in the form of Exhibit C at least 10 Business Days prior
to such date of delivery, which notice shall specify the new Variable
Certificate/Inverse Certificate ratio for such Maturity;

     

    (iii) paying to
the Trustee a sum sufficient to pay any tax or other governmental or Securities
Depository charge or any other charges that may be imposed in relation thereto;
and

     

    (iv) delivering
or causing to be delivered to the Trustee the written consent of the Liquidity
Provider to such execution and delivery of additional Variable Certificates and
evidence that the Amount Available under the Liquidity Agreement has been
increased to reflect the issuance of the additional Variable Certificates in
accordance with the terms of the Standard Terms and the Liquidity
Agreement.

     

    The
Trustor shall also deliver to the Trustee a certificate of the Trustor
demonstrating that the Variable Certificates Rate, following the delivery of the
additional Variable Certificates, (y) if such delivery is on a Variable
Certificates Interest Payment Date, will not exceed the Maximum Variable
Certificates Rate or (z) if such delivery is on an Rate Determination Date, will
not exceed the Maximum Variable Certificates Rate assuming that the issuance of
the additional Variable Certificates had occurred as of the immediately
preceding Bond Interest Payment Date.

     

    On the
Business Day following receipt of any notice pursuant to the foregoing clause
(ii), the Trustee shall transmit a copy of such notice to the Remarketing Agent
and to the Securities Depositories for transmission to the Holders of
Certificates.

     

    (d) Upon
satisfaction of the requirements of Section 6.3(c), the Trustee on behalf of the
Trust shall, on the Variable Certificates Interest Payment Date or the Rate
Determination Date specified in the notice delivered by such Holder, execute
additional Variable Certificates with a Stated Amount equal to the Stated Amount
of the Inverse Certificates delivered to the Trustee by such Holder, deliver the
same to such Holder as specified in such notice and cancel the Inverse
Certificates so delivered.

     

    Section
20.  With respect to Series 2008 CDB 3-E, Article VI of the
Standard Terms is hereby amended by adding the following new Section 6.4 and
Section 6.5 at the end thereof:

     

    “Section
6.4.                                Withdrawal
of Bonds by Beneficial Owners of Variable Certificates.

     

    (a)           Upon
receipt of a notice of redemption for all or a portion of the Bonds of a
specified Maturity, on any Business Day that occurs thereafter and prior to
either (x) the occurrence of a Tender Option Termination Event or (y) the
sending of any notice of redemption pursuant to Section 11.3 for the Variable
Certificates, a Beneficial Owner of Variable Certificates may submit a written
request (a “Withdrawal Notice”) to the Trustor, a copy of which shall be
delivered to the Trustee and the Remarketing Agent, setting forth a Stated
Amount of Related Variable Certificates owned by such Beneficial Owner, less
than or equal to the principal amount of Bonds of such specified Maturity that
are designated by the trustee for such Bonds as being called for redemption, for
which such Beneficial Owner requests that a corresponding principal amount of
such Bonds of such specified Maturity be withdrawn from the Trust in accordance
with the procedures set forth in this Section 6.4 for delivery, after a portion
of such Bonds are sold to make the payments described in this Section 6.4, to
such Beneficial Owner in redemption of such Variable Certificates.  If
Beneficial Owners submit Withdrawal Notices with respect to a principal amount
of Bonds of a specified Maturity in excess of the principal amount of Bonds of
such Maturity being called for redemption, each  Beneficial Owner’s
Withdrawal Notice shall be deemed to be submitted with respect to their pro rata
share of the principal amount of Bonds of such Maturity being called for
redemption.

     

    (b)           Not
later than the first Business Day after the Withdrawal Notice is received by the
Remarketing Agent, the Remarketing Agent shall obtain a Quotation of Bond
Price.  If the Quotation of Bond Price, expressed as a percentage of
par, is not greater than or equal to 100%, the Withdrawal Notice shall be deemed
withdrawn and cancelled by the Beneficial Owner, without any further action by
any Person, and no delivery of Bonds shall occur under this Section
6.4.

     

    (c)           If
the Quotation of Bond Price, expressed as a percentage of par, obtained by the
Remarketing Agent pursuant to Section 6.4(b) is greater than or equal to 100%,
then on the fifth Business Day after the date of the Withdrawal Notice (the
“Bond Delivery Date”): (A) the Remarketing Agent shall cause the sale of a
portion of such Bonds at the Quotation of Bond Price obtained pursuant to
Section 6.4(b) sufficient to equal (1) the accrued and unpaid Trustee Fee and
accrued and unpaid Remarketing and Liquidity Charges, in each case with respect
to the Stated Amount of Variable Certificates identified in the Withdrawal
Request and (2) an amount (the “Inverse Certificates Gain Amount”) equal to 2%
of the excess, if any, of a hypothetical sale price of the principal amount of
Bonds of the Maturity identified in the Withdrawal Request (based upon the
Quotation of Bond Price obtained in Section 6.4(b) and not including accrued and
unpaid interest) over the portion of the Bond Base Price of such Bonds that is
allocable to such principal amount of Bonds (or, if the original Base Price for
such Bonds is less than or equal to 100%, the principal amount of Bonds
identified in the Withdrawal Request instead of such Bond Base Price), (B) the
Trustee shall use the proceeds of such sale to pay (1) the parties entitled
thereto the accrued and unpaid Trustee Fee and accrued and unpaid Remarketing
and Liquidity Charges, in each case with respect to the Stated Amount of
Variable Certificates identified in the Withdrawal Request and (2) the
Beneficial Owner of Inverse Certificates the Inverse Certificates Gain Amount
and (C) the remaining Bonds shall be distributed to the Beneficial Owner of
Variable Certificates in accordance with Section 6.4(d).

     

    (d)           On
the Bond Delivery Date: (i) the Beneficial Owner of the Variable Certificates
shall cause the Securities Depository to deliver the Stated Amount of Variable
Certificates identified in the Withdrawal Request free to the Trustee by
book-entry transfer into the Trustee’s account at DTC and (ii) the Trustee shall
deliver free from its account at DTC by book-entry transfer as specified in the
Withdrawal Request the principal amount of Bonds identified in such
Liquidation/Withdrawal Request, less any Bonds sold pursuant to Section
6.4(c).

     

    (e)           Upon
the delivery of Bonds pursuant to this Section 6.4 to the Beneficial Owner of
Variable Certificates identified in the Withdrawal Request, the applicable
Variable Certificates shall be cancelled and interest on such Variable
Certificates shall cease to accrue.  The Trustee shall notify the
Liquidity Provider of the Stated Amount of Variable Certificates so cancelled
and the Amount Available under the related Liquidity Agreement shall be reduced
accordingly.

     

    (f)           Notwithstanding
anything herein to the contrary, with respect to any Maturity of Bonds that are
custody receipts issued pursuant to a custodial agreement (with respect to such
Bonds, the “Custodial Agreement”), which Bonds evidence beneficial ownership
interests in certain underlying bonds (the “Underlying Bonds”) and certain
rights under a credit enhancement related to such Underlying Bonds (the “Credit
Enhancement”):

     

    (i)  any Beneficial Owner of
Variable Certificates submitting a Withdrawal Notice as described above shall
specify a particular Maturity of Underlying Bonds, and the principal amount
thereof, which such Beneficial Owner of Variable Certificates requests be
withdrawn as described herein;

     

    (ii)  the Remarketing Agent
will determine whether the Quotation of Bond Price as a percentage of par is
greater than or equal to 100%, as of the Withdrawal Date, as
applicable;

     

    (iii)   immediately upon
a determination that the Quotation of Bond Price as a percentage of par is
greater than or equal to 100% as set forth in clause (B), the Trustee, in its
capacity under the Custodial Agreement as Holder of the Bonds related to such
Underlying Bonds, will exercise its right, pursuant to the Custodial Agreement,
to withdraw the specified principal amount of  Underlying Bonds,
without the benefit of the related Credit Enhancement, in order that such
Underlying Bonds may be withdrawn as described herein.

    

    

    Section
6.5.                                Liquidation of Bonds by
Beneficial Owners of Variable Certificates.

     

    (a)           On
any Business Day that occurs on or after May 11, 2009 and occurs prior to either
(x) the occurrence of a Tender Option Termination Event or (y) the sending of
any notice of redemption pursuant to Section 11.3 for the Variable Certificates,
a Beneficial Owner of Variable Certificates may submit a written request (a
“Liquidation Notice”) to the Trustor, a copy of which shall be delivered to the
Trustee and the Remarketing Agent, setting forth a Stated Amount of Variable
Certificates owned by such Beneficial Owner for which such Beneficial Owner
requests that a principal amount of Bonds of a specified Maturity equal to such
Stated Amount of Variable Certificates be sold in accordance with the procedures
set forth in this Section 6.5 with the proceeds of such Bonds being used to make
the payments described in this Section 6.5, including a payment in redemption of
such Variable Certificates.

     

    (b)           Not
later than the first Business Day after the Liquidation Notice is received by
the Remarketing Agent, the Remarketing Agent shall obtain a Quotation of Bond
Price.  If the Quotation of Bond Price, expressed as a percentage of
par, is not greater than or equal to 100%, the Liquidation Notice shall be
deemed withdrawn and cancelled by the Beneficial Owner, without any further
action by any Person, and no liquidation of Bonds shall occur under this Section
6.5.

     

    (c)           If
the Quotation of Bond Price, expressed as a percentage of par, obtained by the
Remarketing Agent pursuant to Section 6.5(b) is greater than or equal to 100%,
then:  (A) the Remarketing Agent shall cause the sale of such Bonds at
the Quotation of Bond Price, plus accrued and unpaid interest, for settlement on
a date specified in such the Liquidation Request (the “Liquidation Date”), which
shall be a Business Day at least five Business Days after the date of the
Liquidation Notice and (B) the proceeds therefrom shall be distributed pursuant
to Section 6.5(d); provided, that the Beneficial Owner of Variable Certificates
that has submitted a Liquidation Request and the Beneficial Owner of the Inverse
Certificates Related to the Bonds to be sold shall each have a right of first
refusal to purchase the Bonds to be sold on the Liquidation Date, at a price
equal to the Quotation of Bond Price plus accrued and unpaid interest, which
rights of first refusal shall be offered to such Beneficial Owners no later than
11:00 a.m. on the Business Day following the day on which the Remarketing Agent
obtains the Quotation of Bond Price; provided further, that (1) such rights of
first refusal shall only be effective if exercised by such Beneficial Owners no
later than 12:00 noon on such Business Day, (2) if only one such Beneficial
Owner has exercised its right of first refusal to purchase the Bonds to be sold
on the Liquidation Date, such Beneficial Owner shall purchase the Bonds at a
price equal to the Quotation of Bond Price with respect to such Bonds, plus
accrued and unpaid interest, and (3) if both such Beneficial Owners have
exercised their rights of first refusal to purchase the Bonds to be sold on the
Liquidation Date, then the Beneficial Owner of Variable Certificates that has
submitted the Liquidation Request and the Beneficial Owner of the Inverse
Certificates Related to the Bonds to be sold shall each purchase half of the
Bonds to be sold, at a price equal to the Quotation of Bond Price with respect
to such Maturity, plus accrued and unpaid interest.

     

    (d)           On
the Liquidation Date, the proceeds of the sale pursuant to Section 6.5(c) of the
principal amount of Bonds of the Maturity identified in the Liquidation Request
shall be distributed by the Trustee in the following order of priority, each
priority being fully paid before proceeds are used to pay any lower priority and
no payment being made on any priority if the proceeds have been exhausted in the
payment of higher priorities:

     

    (i)           to
the Trustee, the accrued and unpaid Trustee Fee allocable to the Variable
Certificates identified in the Liquidation Request;

     

    (ii)           to
the parties entitled thereto, the accrued and unpaid Remarketing and Liquidity
Charges allocable to the Variable Certificates identified in the Liquidation
Request;

     

    (iii)           to
the Beneficial Owner of Variable Certificates identified in the Liquidation
Request, an amount equal to the Stated Amount of such Variable
Certificates;

     

    (iv)           to
the Beneficial Owner of Variable Certificates identified in the Liquidation
Request, an amount equal to 98% of the excess, if any, of the proceeds of the
sale of the Bonds that were sold exclusive of accrued interest in excess of (x)
if the original Base Price for such Bonds is less than or equal to 100%, the
principal amount of such Bonds, or (y) if the original Base Price for such Bonds
is greater than 100%, the Bonds Base Price for such Bonds allocable to the Bonds
that were sold on the Liquidation Date; and

     

    (v)           to
the Holder of Inverse Certificates Related to the Bonds that were sold, the
balance remaining of such sale proceeds.

     

    (e)           Upon
the payment of liquidation proceeds pursuant to this Section 6.5 to the
Beneficial Owner of Variable Certificates identified in the Liquidation Request,
the applicable Variable Certificates shall be cancelled and interest on such
Variable Certificates shall cease to accrue.  The Trustee shall notify
the Liquidity Provider of the Stated Amount of Variable Certificates so
cancelled and the Amount Available under the related Liquidity Agreement shall
be reduced accordingly.

     

    (f)           Notwithstanding
anything herein to the contrary, with respect to any Maturity of Bonds that are
custody receipts issued pursuant to a Custodial Agreement, which Bonds evidence
beneficial ownership interests in certain Underlying Bonds and certain rights
under a Credit Enhancement:

     

    (i)  any Beneficial Owner of
Variable Certificates submitting a Liquidation Notice as described above shall
specify a particular Maturity of Underlying Bonds, and the principal amount
thereof, which such Beneficial Owner of Variable Certificates requests be
liquidated as described herein;

     

    (ii)  the Remarketing Agent
will determine whether the Quotation of Bond Price as a percentage of par is
greater than or equal to 100%, as of the Liquidation Date, as
applicable;

     

    (iii)   immediately upon
a determination that the Quotation of Bond Price as a percentage of par is
greater than or equal to 100% as set forth in clause (B), the Trustee, in its
capacity under the Custodial Agreement as Holder of the Bonds related to such
Underlying Bonds, will exercise its right, pursuant to the Custodial Agreement,
to withdraw the specified principal amount of Underlying Bonds, without the
benefit of the related Credit Enhancement, in order that such Underlying Bonds
may be liquidated as described herein.

    

    

    Section
21.  Exhibit E to the
Standard Terms is hereby replaced in its entirety by the Form of Purchaser’s
Letter in the form attached as Exhibit B
hereto.

    

               Section
22.  Each of the following events constitute Additional
Mandatory Tender Events under the Agreement:

    

    (i) The
Value Ratio is less than the Minimum Value Ratio, and the Liquidity Provider
notifies the Trustee to establish a Mandatory Tender Date.

    

    (ii) A
termination event, a default or event of default occurs under any Reimbursement
Agreement related to the Trust Agreement, and the Liquidity Provider provides
notice to the Trustee to establish a Mandatory Tender Date.

    

    (iii)  Notice
shall have been given to the Trustee by the Liquidity Provider that the
financial condition of the Principal Credit Source has, in the reasonable
opinion of the Liquidity Provider, deteriorated in a materially adverse manner
since the Trust was established.

    

    The
Mandatory Tender Date for any Mandatory Tender Event set forth in Section 20
shall be the fifth Business Day following the day that the Trustee is notified
to establish a Mandatory Tender Date.

    

    Section
23.  Upon presentation of Liquidity Variable Certificates on or
before 11:00 a.m. on any Business Day, the Trustee shall direct the Remarketing
Agent to obtain a Quotation of Bond Price and to determine the Accrued Market
Discount, Accrued OID and Unamortized Premium, if any, separately with respect
to each Maturity on the same Business Day as the day of presentation to the
Trustee of the Liquidity Variable Certificates.  On the same Business
Day on which the Quotation of Bond Price is obtained, the Trustee shall instruct
the Remarketing Agent to sell a portion of the Bonds of each Maturity sufficient
in the aggregate to pay the accrued and unpaid Trustee Fees, the accrued and
unpaid Remarketing and Liquidity Charges and the Stated Amount of such Liquidity
Variable Certificates together with accrued and unpaid interest thereon as of
such date and all other amounts due the Liquidity Provider, and distribute such
proceeds to the Trustee, Remarketing Agent and Liquidity Provider as applicable
with the balance of such proceeds being paid to the Beneficial Owner of the
Inverse Certificates; provided that no more than the principal amount of the
Bonds of a particular Maturity multiplied by a fraction the numerator of which
is the Stated Amount of Liquidity Variable Certificates and the denominator of
which is the Stated Amount of all Variable Certificates shall be sold for this
purpose; provided, further, that, if no Variable Certificates other than
Liquidity Variable Certificates are Outstanding, then any Maturity of Bonds may
be sold for this purpose and in the event any proceeds remain after such sale
and the payment of the amounts described above, then such excess shall be paid
to the Beneficial Owner of the Inverse Certificates.

    

               Section 24.  Section
8.1 of the Standard Terms is hereby amended by adding following Section 8.1(c),
the following Section 8.1(d):

    

    (d)           Any
material amendment to the Liquidity Agreement shall require the prior written
consent of the Inverse Certificates Holder.

    

    Section
25.                                Section
10.1(b) is amended and restated in its entirety to read as follows:

    

    (b)  In the event of any
action or consent requiring the vote of the owners of any Bonds, the Trustee
shall, within three Business Days of its being informed of any such action or
consent, deliver to the Holders of the Certificates such Holder’s proxies for
such vote, returnable to the Trustee, which shall vote solely in accordance with
such proxies, weighted by the Stated Amount of the Variable Certificates and the
Stated Amount of Inverse Certificates held by each Holder; provided, however,
the Trustee shall not exercise its right to exchange Bonds for the underlying
bonds pursuant to Section 9.10 of the Custody Agreement, unless the Trustee has
been directed by 100% of the Beneficial Owners of the Certificates.

     

    Section
26.   Sections 11.1(a)(ii) and (iii) of the Standard Terms
are hereby amended and restated in their entirety to read as
follows:

    

     “(ii)
upon a redemption in whole, (A) principal of the Bonds so redeemed shall be
applied first to the payment to the Holders of the Variable Certificates
selected for redemption pursuant to Section 11.2 in an amount up to the Stated
Amount thereof, then to the payment to the Holders of the Related Inverse
Certificates, and (B) any remaining principal amount paid in redemption in whole
of the Bonds and not applied due to the last sentence of Section 11.2 shall be
paid into the Odd-Lot Subaccount pursuant to Section 11.8; provided that if the
Certificates selected for redemption pursuant to Section 11.2 shall have been
redeemed pursuant to this clause (iii) in an amount equal to the Stated Amount
thereof, then any remaining principal amount paid in redemption of Bonds up to
the Bond Base Price shall be paid to the Holders of the Related Inverse
Certificates, and any remaining principal amount paid in redemption of Bonds in
excess of the Bond Base Price shall be applied as redemption
premium;

    

    (ii) upon
a redemption in whole, (A) principal of the Bonds so redeemed shall be applied
first to the payment to the Holders of the Variable Certificates selected for
redemption pursuant to Section 11.2 in an amount up to the Stated Amount
thereof, then to the payment to the Holders of the Related Inverse Certificates,
and (B) any remaining principal amount paid in redemption in whole of the Bonds
and not applied due to the last sentence of Section 11.2 shall be paid into the
Odd-Lot Subaccount pursuant to Section 11.8; provided that if the Certificates
selected for redemption pursuant to Section 11.2 shall have been redeemed
pursuant to this clause (iii) in an amount equal to the Stated Amount thereof,
then any remaining principal amount paid in redemption of Bonds up to the Bond
Base Price shall be paid to the Holders of the Related Inverse Certificates, and
any remaining principal amount paid in redemption of Bonds in excess of the Bond
Base Price shall be applied as redemption premium;”

    

    Section
27.   Section 14.4(a) of the Standard Terms is hereby
amended by adding the following as the second paragraph of Section
14.4(a):

    

    The
Trustor may and, at the direction of the Trustor, the Trustee shall, amend the
terms of this Agreement, without the consent of any of the Holders or Beneficial
Owners of Certificates, to the extent that any such amendment is, in the opinion
of qualified tax counsel, necessary for the Trust to reduce a material risk of
non-compliance with Revenue Procedure 2003-84 (including any amendment or
successor thereto); provided that (1) the Trustee
has received an Officer’s Certificate of the Trustor that such amendment will
not adversely affect the interests of any Holders of Certificates or the
Trustee, and (2) the Trustee has received an Opinion of Counsel of appropriate
special tax and securities counsel to the effect that such amendment will not
result in the withdrawal of, or modification of the conclusions of, any opinion
previously delivered regarding tax and securities law treatment of the
Certificates; and (3) notice of such amendment when given pursuant to Section
14.4(e) with respect to Certificates held by a regulated investment companies
with respect to which an election is in place for a manager to be responsible
collecting, retaining, and providing beneficial ownership information to the
IRS, shall be given to the manager.

    

    Section
28.   Section 5.1(a) of the Standard Terms is hereby
amended as follows:

    

    Section
5.1 (a) (i) is hereby deleted and replaced in its entirety with the
following:

    

    “(i)
Provided that the Bonds are not Prerefunded Bonds, (A) a Bankruptcy shall occur
with respect to the Issuer or (B) if a Principal Credit Source shall be
identified as such in the related Series Trust Agreement, a Bankruptcy shall
occur with respect to both (1) the Principal Credit Source and (2) the Issuer of
the Bonds; provided that, in the case of Bonds for which the payment of
principal and interest constitutes a limited obligation of the Issuer of the
Bonds, payable solely from amounts received from a third party for whose benefit
the Bonds were issued, the reference to Issuer shall be deemed to refer to such
third party for whose benefit those Bonds were issued;”

    

    Section
29.   Section 5.1 (a) (iii) is hereby deleted and replaced
in its entirety with the following:

    

     “(iii)
the highest publicly available long-term rating on such Bonds shall have been
downgraded by each Bond Rating Agency below the lowest rating of such Bond
Rating Agency that is commonly regarded as “investment grade,” being BBB- in the
case of S&P and Fitch and Baa3 in the case of Moody's.

    

    Section
30.   For purposes of Section 11.1 of the Standard Terms,
payments made by the Credit Enhancer with respect to the Enhanced Custody
Receipts in connection with an Early Termination Date or the occurrence of a
Termination Event (as such terms are defined in the Credit Enhancement) shall
constitute proceeds of a redemption of the Bonds and shall result in redemption
of the Certificates as provided in Section 11.1 of the Standard
Terms.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Series Trust Agreement to
be executed by their respective duly authorized officers as of the date first
above written.

     

    BANK OF
AMERICA, NATIONAL ASSOCIATION as Trustor

     

    

     

    

     

    

     

    By/s/ Laura
Sheehan

     

    Authorized Signatory

     

    DEUTSCHE
BANK TRUST COMPANY AMERICAS, as Trustee and Tender Agent

     

    

     

    

     

    

     

    By/s/ Safet
Kalabovic

     

    Authorized Signatory

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              SCHEDULE
      I

            

    

    

     

    SUPPLEMENTAL
DESCRIPTION OF THE CERTIFICATES:

     

    “Additional Mandatory Tender
Event” shall mean
the additional mandatory tender events specified as such herein.

     

    “Authorized Denomination”
shall mean (i) with respect to the Variable Certificates, $25,000 or integral
multiples of $1,000 in excess thereof and (ii) with respect to the Inverse
Certificates, $5,000 or integral multiples of $1,000 in excess
thereof.

     

    “Bond Interest Payment Dates”
shall mean, with respect to each Bond, the following payment dates:

     

    
      	
              Series
      2008 CDB-1E

            	
              April
      1 and October 1

            
	
              Series
      2008 CDB-2E

            	
              April
      1 and October 1

            
	
              Series
      2008 CDB-3E

            	
              April
      1 and October 1

            
	
              Series
      2008 CDB-4E

            	
              Monthly
      through October 1, 2008, and then semiannually on each April 1 and October
      1, commencing April 1, 2009

            

    

    

     

    “Certificates Rating Agency”
shall mean Moody’s Investors Service Inc.

     

    “Delivery Date” shall mean
July 3, 2008.

     

    “Initial Variable Certificates
Interest Period” shall mean the initial Rate Period which is the Weekly
Period.

     

    “Liquidity Agreement Termination
Date” shall mean July 2, 2009, as such date may be extended from time to
time by the Liquidity Provider in accordance with the related Liquidity
Agreement.

     

    “Liquidity Provider” shall
mean Bank of America, National Association or any Successor Liquidity
Provider.

     

    “Liquidity Fee Rate” shall
mean 0.20% as such rate may be changed in accordance with the Liquidity
Agreement and the Standard Terms.

     

    “Minimum Value Ratio” shall
not be applicable.

     

    “Rating Threshold” shall mean
Aa3 for Moody’s and AA- for S&P (or equivalent ratings if other rating
agencies are the Bond Rating Agencies).

     

    “Remarketing Agent Fee Rate”
shall mean 0.10% as such rate may be changed in accordance with the Remarketing
Agreement and the Standard Terms.

     

    “Scheduled Termination Date”
shall mean, with respect to each Maturity of Bond, the following
dates:

     

    
      	
              Series
      2008 CDB-1E

            	
              April
      1, 2023

            
	
              Series
      2008 CDB-2E

            	
              April
      1, 2019

            
	
              Series
      2008 CDB-3E

            	
              October
      1, 2017

            
	
              Series
      2008 CDB-4E

            	
              October
      1, 2022

            

    

    

    “Seller” shall mean Banc of
America Securities LLC, who is the seller of the Bonds to the
Trustee.

     

    “Semi-Annual Interest Payment
Dates” shall mean April 1 and October 1 of each year.

     

    “State Partnership Factors”
The State Partnership Factors have not been adopted for the Certificates
of the Series.

     

    “Stated Amount” for the
Certificates are as follows:

     

    
      	 
      	
              Stated
      Amount

            	
              CUSIP
      Number

            
	
              Variable
      Certificates

               

            	
              $34,086,000

               

            	
              05248P5S0

               

            
	
               

              Inverse
      Certificates, Series 10000 CDB-1E

            	
              $5,000

            	
              05248P5W1

            
	
               

              Inverse
      Certificates, Series 10000 CDB-2E

            	
              $5,000

            	
              05248P5X9

            
	
               

              Inverse
      Certificates, Series 10000 CDB-3E

            	
              $5,000

            	
              05248P5Y7

            
	
               

              Inverse
      Certificates, Series 10000 CDB-4E

            	
              $5,000

            	
              05248P5Z4

            

    

     

    “Trustee Fee Rate” shall mean
0.015% as such rate may be changed in accordance with the Standard
Terms.

     

    “Trustor's Required Interest”
shall not be applicable.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    I.

     

     

    DESCRIPTION
OF THE BONDS:

     

    
      	
              Bonds:

            	
              $5,431,500
      Enhanced Custody Receipts, Series 2008 CDB-1E, relating to $6,005,174
      Unenhanced Custody Receipts, Series 2008 CDB-1U, evidencing an interest in
      Multifamily Housing Revenue Bonds (Bella Vista Apartments) Series
      20061

            

    

     

    
      	
              Issuer:

            	
              Texas
      Department of Housing and Community
Affairs

            

    

     

    
      	
               
      

            	
              Credit
      Enhancer

            

    

    
      	
              (Principal
      Credit Source):

            	
              Bank
      of America, N.A.

            

    

    

    
      	
              Credit
      Enhancement:

            	
              Irrevocable
      Direct Pay Letter of Credit No. 3094316, dated July 3,
    2008.

            

    

    

    
      	
              Custody
      Agreement:

            	
              Enhancement
      Custodial Agreement, dated as of July 3, 2008, with respect to the
      Enhanced Custody Receipts, Series 2008 CDB-1E, among Deutsche Bank Trust
      Company Americas, as custodian, Bank of America, N.A., as
      administrator.2

            

    

    

    
      	
              Principal
      Coverage Factor:

            	
              100%

            

    

     

    
      	
               
      

            	
              Credit
      Enhancement Stated

            

    

    
      	
              Expiration
      Date:

            	
              July
      2, 2009 (subject to extension)

            

    

     

    
      	
              Early
      Termination:

            	
              The
      Credit Enhancer can terminate the Credit Enhancement on five days notice
      resulting in a mandatory tender of the Enhanced Custody Receipts and a
      redemption of the Certificates.

            

    

     

    
      	
              Bond
      Rate:

            	
              6.15%

            

    

     

    

     

    Bond
Rating
Agencies:                                                              Moody’s:
Aaa

     

    
      	
              Accrued
      Interest on Underlying Bonds:

            	
              $94,381.32
      payable to Holders of Inverse Certificates in accordance with Section 10.8
      of the Agreement.

            

    

     

    
      	
              Alternate
      Deposit Yield:

            	
              N/A

            

    

     

    
      	
              Base
      Price:

            	
              90.447%

            

    

     

     

    
      	
              Bond
      CUSIP Number:

            	
              88275BNB0

            

    

     

    
      	
              Bond
      Interest Payment Dates:

            	
              April
      1 and October 1

            

    

     

     

    
      	
              Bond
      Maturity Date:

            	
              April
      1, 2046

            

    

     

    
      	
              Deposit
      Yield:

            	
              6.860%

            

    

    

     

    

     

     

    DESCRIPTION
OF THE UNDERLYING BONDS:

     

    
      	
              Underlying
      Bonds:

            	
              $6,785,000
      Multifamily Housing Revenue Bonds (Bella Vista Apartments) Series
      2006

            

    

     

    
      	
              Underlying
      Bond Issuer:

            	
              Texas
      Department of Housing and Community
Affairs

            

    

     

    
      	
              Underlying
      Bond Rate:

            	
              6.15%

            

    

     

    Underlying
Bond Rating
Agencies:                                                                                                   NR

    

    Underlying
Bond
Counsel:                                                              Vinson
& Elkins LLP

    

    
      	
              Federal
      and State Income Taxes:

            	
              Bond
      counsel rendered its opinion at the time of original issuance of the
      Underlying Bonds generally to the effect that, based on then existing
      laws, regulations and decisions and subject to certain conditions,
      interest on the Underlying Bonds is excludable from gross income for
      federal income tax purposes under existing law, except with respect to
      interest on any Underlying Bond during any period while it held by a
      “substantial user” of the project or a “related person” within the meaning
      of Section 147(a) of the Code.  No opinion, however, was
      expressed regarding the treatment of the interest on the Underlying Bonds
      under the tax laws of the State of Texas.

            
	
              AMT:

            	
              The
      opinion of Bond Counsel, rendered as described above, also was generally
      to the effect that, based on then existing laws, regulations and decisions
      and subject to certain conditions, interest on the Underlying Bonds is an
      item of tax preference that is includable in alternative minimum taxable
      income for purposes of determining the alternative minimum tax imposed on
      individuals and corporations and the environmental tax imposed on
      corporations.

            

    

     

    Underlying
Bond CUSIP
Number:                                                                          88275BNB0

     

    
      	
              Bond
      Interest Payment Dates:

            	
              April
      1 and October 1

            

    

     

    
      	
              Underlying
      Bond Maturity Date:

            	
              April
      1, 2046

            

    

     

    First par
call date listed in the

    
      	
               
      

            	
              Official
      Statement:

            	
              The
      Underlying Bonds are subject to the
following:

            

    

    

    
      	
               
      

            	
              Optional
      redemption on or after April 1, 2016, in whole or in part at a price of
      100%;

            

    

    

    
      	
               
      

            	
              Sinking
      fund redemption in whole or in part on any April 1, at a price and
      schedule set forth in the Official Statement;
  and

            

    

    

    
      	
               
      

            	
              Extraordinary
      redemption on April 1, 2023, at the direction of Significant Bondholder,
      with notice given to the Borrower on or before October 1, 2002, at a price
      of 100% plus any accrued interest.

            

    

    

    Mandatory
redemption as defined and set forth in the Official Statement.

    
      	
               
      

            	
              .

            

    

    

      

    

      
      1 The
Underlying Bond is represented by a custody receipt evidencing a partial
interest in such Underlying Bond.  A copy of the custodial agreement
creating such partial interest is available from the Remarketing Agent upon
request.

    

      
      2 A copy
of the Enhancement Custodial Agreement is available from the Remarketing Agent
upon request.

    

    
      
        
          D-

          

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    II.

     

     

    DESCRIPTION
OF THE BONDS:

     

    
      	
              Bonds:

            	
              $6,341,135
      Enhanced Custody Receipts, Series 2008 CDB-2E, relating to $6,804,815
      Unenhanced Custody Receipts, Series 2008 CDB-2U, evidencing an interest in
      Multifamily Mortgage Revenue Refunding Bonds 2001 Series I (Fairmont Oaks
      Apartments)3

            

    

     

    
      	
              Issuer:

            	
              Florida
      Housing Finance Corporation

            

    

     

    
      	
               
      

            	
              Credit
      Enhancer

            

    

    
      	
              (Principal
      Credit Source):

            	
              Bank
      of America, N.A.

            

    

    

    
      	
              Credit
      Enhancement:

            	
              Irrevocable
      Direct Pay Letter of Credit No. 3094317, dated July 3,
    2008.

            

    

    

    
      	
              Custody
      Agreement:

            	
              Enhancement
      Custodial Agreement, dated as of July 3, 2008, with respect to the
      Enhanced Custody Receipts, Series 2008 CDB-2E, among Deutsche Bank Trust
      Company Americas, as custodian, Bank of America, N.A., as
      administrator.4

            

    

    

    
      	
              Principal
      Coverage Factor:

            	
              100%

            

    

     

    
      	
               
      

            	
              Credit
      Enhancement Stated

            

    

    
      	
              Expiration
      Date:

            	
              July
      2, 2009 (subject to extension)

            

    

     

    
      	
              Early
      Termination:

            	
              The
      Credit Enhancer can terminate the Credit Enhancement on five days notice
      resulting in a mandatory tender of the Enhanced Custody Receipts and a
      redemption of the Certificates.

            

    

     

    
      	
              Bond
      Rate:

            	
              6.30%

            

    

     

    

     

    Bond
Rating
Agencies:                                                              Moody’s:
Aaa

     

    
      	
              Accrued
      Interest on Underlying Bonds:

            	
              $107,856.32
      payable to Holders of Inverse Certificates in accordance with Section 10.8
      of the Agreement.

            

    

     

    
      	
              Alternate
      Deposit Yield:

            	
              N/A

            

    

     

    
      	
              Base
      Price:

            	
              93.186%

            

    

     

     

    
      	
              Bond
      CUSIP Number:

            	
              34073JHD4

            

    

     

    
      	
              Bond
      Interest Payment Dates:

            	
              April
      1 and October 1

            

    

     

     

    
      	
              Bond
      Maturity Date:

            	
              April
      1, 2033

            

    

     

    
      	
              Deposit
      Yield:

            	
              6.770%

            

    

    

     

    

     

     

    DESCRIPTION
OF THE UNDERLYING BONDS:5

     

    
      	
              Underlying
      Bonds:

            	
              $7,745,000
      Multifamily Mortgage Revenue Refunding Bonds 2001 Series I (Fairmont Oaks
      Apartments)

            

    

     

    
      	
              Underlying
      Bond Issuer:

            	
              Florida
      Housing Finance Corporation

            

    

     

    
      	
              Underlying
      Bond Rate:

            	
              6.30%

            

    

     

    Underlying
Bond Rating
Agencies:                                                                                                   NR

    

    Underlying
Bond
Counsel:                                                              Bryant,
Miller and Olive, P.A. and Law Offices of Steve

    E. Bullock, P.A.

    

    Bond
Counsel
Opinion:                                                              

    
      	
              Federal
      and State Income Taxes:

            	
              Bond
      Counsel rendered its opinion at the time of original issuance of the
      Underlying Bonds generally to the effect that, based on then existing
      laws, regulations and decisions and subject to certain conditions, under
      existing law interest on the Underlying Bonds is excludable from gross
      income for federal income tax purposes, except no opinion is expressed as
      to the exclusion of such interest from gross income for any period during
      which an Underlying Bond is held by a person who, within the meaning of
      Section 103(b)(13) of the Internal Revenue Code of 1954, as amended prior
      to 1986, is a “substantial user” of a development or a “related person” to
      a “substantial user”.  The Underlying Bonds are the interest
      thereon are exempt from taxation under the laws of the State of Florida,
      except as to estate taxes imposed by Chapter 198, Florida Statutes, as
      amended, and net income and franchise taxes imposed by Chapter 220, Florida Statutes, as
      amended.

            
	
              AMT:

            	
              The
      opinion of Bond Counsel, rendered as described above, also was generally
      to the effect that, based on then existing laws, regulations and decisions
      and subject to certain conditions, interest on the Underlying Bonds will
      not be treated as an item of tax preference for purposes of the
      alternative minimum tax imposed on individuals or corporations; however,
      interest is taken into account in determining adjusted, current earnings
      for purposes of alternative minimum tax imposed on
      corporations.

            

    

    

     Underlying
Bond CUSIP
Number:                                                                           34073JHD4

     

    
      	
              Bond
      Interest Payment Dates:

            	
              April
      1 and October 1

            

    

     

    
      	
              Underlying
      Bond Maturity Date:

            	
              April
      1, 2033

            

    

     

    First par
call date listed in the

    
      	
               
      

            	
              related
      Bond documents:

            	
              N/A

            

    

    

      

    

      
      3 The
Underlying Bond is represented by a custody receipt evidencing a partial
interest in such Underlying Bond.  A copy of the custodial agreement
creating such partial interest is available from the Remarketing Agent upon
request.

    

      
      4 A copy
of the Enhancement Custodial Agreement is available from the Remarketing Agent
upon request.

    

      
      5 There is
no Official Statement or other offering document for the Underlying
Bonds.  Copies of the Underlying Bonds, bond indenture, Bond Counsel
opinion and related documents (if any) are available from the Remarketing Agent
upon request.

        
          
            
              C-

              

            

             

          

          
             

            
              

            

          

          
             

          

        

    

     

    III.

     

     

    DESCRIPTION
OF THE BONDS:

     

    
      	
              Bonds:

            	
              $13,855,072
      Enhanced Custody Receipts, Series 2008 CDB-3E relating to $13,855,072
      Unenhanced Custody Receipts, Series 2008 CDB-3U, evidencing an interest in
      Multi-Family Housing Revenue Refunding Bonds 2000 Series B (Iona Lakes
      Project)6

            

    

     

    
      	
              Issuer:

            	
              Florida
      Housing Finance Corporation

            

    

     

    
      	
               
      

            	
              Credit
      Enhancer

            

    

    
      	
              (Principal
      Credit Source):

            	
              Bank
      of America, N.A.

            

    

    

    
      	
              Credit
      Enhancement:

            	
              Irrevocable
      Direct Pay Letter of Credit No. 3094318, dated July 3,
    2008.

            

    

    

    
      	
              Custody
      Agreement:

            	
              Enhancement
      Custodial Agreement, dated as of July 3, 2008, with respect to the
      Enhanced Custody Receipts, Series 2008 CDB-3E, among Deutsche Bank Trust
      Company Americas, as custodian, Bank of America, N.A., as
      administrator.7

            

    

    

    
      	
              Principal
      Coverage Factor:

            	
              100%

            

    

     

    
      	
               
      

            	
              Credit
      Enhancement Stated

            

    

    
      	
              Expiration
      Date:

            	
              July
      2, 2009 (subject to extension)

            

    

     

    
      	
              Early
      Termination:

            	
              The
      Credit Enhancer can terminate the Credit Enhancement on five days notice
      resulting in a mandatory tender of the Enhanced Custody Receipts and a
      redemption of the Certificates.

            

    

     

    
      	
              Bond
      Rate:

            	
              6.90%

            

    

     

    

     

    Bond
Rating
Agencies:                                                              Moody’s:
Aaa

     

    
      	
              Accrued
      Interest on Underlying Bonds:

            	
              $244,311.10
      payable to Holders of Inverse Certificates in accordance with Section 10.8
      of the Agreement.

            

    

     

    
      	
              Alternate
      Deposit Yield:

            	
              N/A

            

    

     

    
      	
              Base
      Price:

            	
              100%

            

    

     

     

    
      	
              Bond
      CUSIP Number:

            	
              34073JAD1

            

    

     

    
      	
              Bond
      Interest Payment Dates:

            	
              April
      1 and October 1

            

    

     

     

    
      	
              Bond
      Maturity Date:

            	
              April
      1, 2030

            

    

     

    
      	
              Deposit
      Yield:

            	
              6.680%

            

    

    

     

    

     

     

    DESCRIPTION
OF THE UNDERLYING BONDS:8

     

    
      	
              Underlying
      Bonds:

            	
              $16,280,000
      Multi-Family Housing Revenue Refunding Bonds 2000 Series B (Iona Lakes
      Project)

            

    

     

    
      	
              Underlying
      Bond Issuer:

            	
              Florida
      Housing Finance Corporation

            

    

     

    
      	
              Underlying
      Bond Rate:

            	
              6.90%

            

    

     

    Underlying
Bond Rating
Agencies:                                                                                                   NR

    

    Underlying
Bond
Counsel:                                                              Bryant,
Miller and Olive, P.A. and Law Offices of Steve

    E. Bullock, P.A.

    

    
      	
              Federal
      and State Income Taxes:

            	
              Bond
      Counsel rendered its opinion at the time of original issuance of the
      Underlying Bonds generally to the effect that, based on then existing
      laws, regulations and decisions and subject to certain conditions, under
      existing law interest on the Underlying Bonds is excluded from gross
      income for federal income tax purposes, except that no opinion is
      expressed as to the exclusion of such interest from gross income for any
      period during which an Underlying Bond is held by a person who, within the
      meaning of Section 103(b)13 of the Internal Revenue Code of 1954, as
      amended prior to 1986, is a “substantial user” of the project or a
      “related person” to a “substantial user”.  The Underlying Bonds
      and the interest thereon are exempt from taxation under the laws of the
      State of Florida, except as to estate taxes imposed by Chapter 198, Florida Statutes, as
      amended, and net income and franchise taxes imposed by Chapter 220, Florida Statutes, as
      amended.

            
	
              AMT:

            	
              The
      opinion of Bond Counsel, rendered as described above, also was generally
      to the effect that, based on then existing laws, regulations and decisions
      and subject to certain conditions, interest on the Underlying Bonds will
      not be treated as an item of tax preference for purposes of the
      alternative minimum tax imposed on individuals or corporations; however,
      interest is taken into account in determining adjusted, current earnings
      for purposes of the alternative minimum tax imposed on
      corporations.

            

    

     

    
      	
              Underlying
      Bond CUSIP Number:

            	
              34073JAD1

            

    

     

    
      	
              Bond
      Interest Payment Dates:

            	
              April
      1 and October 1

            

    

     

    
      	
              Underlying
      Bond Maturity Date:

            	
              April
      1, 2030

            

    

     

    First par
call date listed in the

    
      	
               
      

            	
              related
      Bond documents:

            	
              The
      Underlying Bonds are subject to the
following:

            

    

    

    
      	
               
      

            	
              Optional
      redemption, in whole or in part, on any date at a redemption price equal
      to the principal amount thereof, without premium, plus accrued but unpaid
      Base Interest to such redemption
date.

            

    

    

    
      	
               
      

            	
              Sinking
      fund redemption on each April 1 and October 1, following the amounts set
      forth in the Official Statement at a price equal to 100% of the principal
      amount redeemed plus accrued but unpaid Base
  Interest.

            

    

    

    
      	
               
      

            	
              Extraordinary
      or mandatory redemption as set forth in the Official
      Statement.

            

    

    

      

    

      
      6 The
Underlying Bond is represented by a custody receipt evidencing a partial
interest in such Underlying Bond.  A copy of the custodial agreement
creating such partial interest is available from the Remarketing Agent upon
request.

    

      
      7 A copy
of the Enhancement Custodial Agreement is available from the Remarketing Agent
upon request.

    

      
      8 There is
no Official Statement or other offering document for the Underlying
Bonds.  Copies of the Underlying Bonds, bond indenture, Bond Counsel
opinion and related documents (if any) are available from the Remarketing Agent
upon request.

    

    
      
        
          C-

          

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    IV.

     

     

    DESCRIPTION
OF THE BONDS:

     

    
      	
              Bonds:

            	
              $8,479,872
      Enhanced Custody Receipts, Series 2008 CDB-4E relating to $9,560,926
      Unenhanced Custody Receipts, Series 2008 CDB-4U, evidencing an interest in
      Multifamily Housing Revenue Bonds (Runnymede Apartments Project) Series
      2007A.9

            

    

     

    
      	
              Issuer:

            	
              Austin
      Housing Finance Corporation

            

    

     

    
      	
               
      

            	
              Credit
      Enhancer

            

    

    
      	
              (Principal
      Credit Source):

            	
              Bank
      of America, N.A.

            

    

    

    
      	
              Credit
      Enhancement:

            	
              Irrevocable
      Direct Pay Letter of Credit No. 3094319, dated July 3,
    2008.

            

    

    

    
      	
              Custody
      Agreement:

            	
              Enhancement
      Custodial Agreement, dated as of July 3, 2008, with respect to the
      Enhanced Custody Receipts, Series 2008 CDB-4E, among Deutsche Bank Trust
      Company Americas, as custodian, Bank of America, N.A., as
      administrator.10

            

    

    

    
      	
              Principal
      Coverage Factor:

            	
              100%

            

    

     

    
      	
               
      

            	
              Credit
      Enhancement Stated

            

    

    
      	
              Expiration
      Date:

            	
              July
      2, 2009 (subject to extension)

            

    

     

    
      	
              Early
      Termination:

            	
              The
      Credit Enhancer can terminate the Credit Enhancement on five days notice
      resulting in a mandatory tender of the Enhanced Custody Receipts and a
      redemption of the Certificates.

            

    

     

    
      	
              Bond
      Rate:

            	
              6.00%

            

    

     

    

     

    Bond
Rating
Agencies:                                                              Moody’s  Aaa

     

    
      	
              Accrued
      Interest on Underlying Bonds:

            	
              $146,600.87
      payable to Holders of Inverse Certificates in accordance with Section 10.8
      of the Agreement.

            

    

     

    
      	
              Alternate
      Deposit Yield:

            	
              N/A

            

    

     

    
      	
              Base
      Price:

            	
              88.693%

            

    

     

     

    
      	
              Bond
      CUSIP Number:

            	
              052425HJ7

            

    

     

    
      	
              Bond
      Interest Payment Dates:

            	
              Monthly
      through October 1, 2008, and then semiannually on each April 1 and October
      1, commencing April 1, 2009

            

    

     

     

    
      	
              Bond
      Maturity Date:

            	
              October
      1, 2042

            

    

     

    
      	
              Deposit
      Yield:

            	
              6.860%

            

    

    

     

    

     

     

    DESCRIPTION
OF THE UNDERLYING BONDS:

     

    
      	
              Underlying
      Bonds:

            	
              $10,825,000
      Multifamily Housing Revenue Bonds (Runnymede Apartments Project) Series
      2007A

            

    

     

    
      	
              Underlying
      Bond Issuer:

            	
              Austin
      Housing Finance Corporation

            

    

     

    
      	
              Underlying
      Bond Rate:

            	
              6.00%

            

    

     

    Underlying
Bond Rating
Agencies:                                                                                                   NR

    

    Underlying
Bond
Counsel:                                                              McCall,
Parkhurst & Horton L.L.P.

    

    
      	
              Federal
      and State Income Taxes:

            	
              Bond
      Counsel rendered its opinion at the time of original issuance of the
      Underlying Bonds generally to the effect that, based on then existing
      laws, regulations and decisions and subject to certain conditions,
      interest on the Underlying Bonds is for federal income tax purposes is
      excludable from the “gross income” of the holders thereof, except for any
      holder who is treated pursuant to section 147(a) of the Code as a
      “substantial user” of the project or, a “related person” to such
      user.  No opinion, however, was expressed regarding the
      treatment of the interest on the Underlying Bonds under the tax laws of
      the State of Texas.

            
	
              AMT:

            	
              The
      opinion of Bond Counsel, rendered as described above, also was generally
      to the effect that, based on then existing laws, regulations and decisions
      and subject to certain conditions, interest on the Underlying Bonds is an
      item of tax preference as defined in Section 57(a)(5) of the Code, for
      purposes of determining the alternative minimum tax imposed on individuals
      and corporations under Section 59 of the
Code.

            

    

     

    
      	
              Underlying
      Bond CUSIP Number:

            	
              052425HJ7

            

    

     

    
      	
              Bond
      Interest Payment Dates:

            	
              Monthly
      through October 1, 2008, and then semiannually on each April 1 and October
      1, commencing April 1, 2009

            

    

     

    
      	
              Underlying
      Bond Maturity Date:

            	
              October
      1, 2042

            

    

     

    First par
call date listed in the

    
      	
               
      

            	
              Official
      Statement:

            	
              The
      Underlying Bonds are subject to the
following:

            

    

    

    
      	
               
      

            	
              Optional
      redemption on or after October 1, 2017 at
100%

            

    

    

    
      	
               
      

            	
              Sinking
      fund redemption on any April 1 and October 1 in the amounts set forth in
      the Official Statement, at a price of 100% of the principal amount of
      Underlying Bonds to be redeemed plus accrued and unpaid interest thereon;
      and

            

    

    

    
      	
               
      

            	
              Extraordinary or mandatory
      redemption as set forth in the Official
  Statement.

            

    

    

      

    

      
      9 The
Underlying Bond is represented by a custody receipt evidencing a partial
interest in such Underlying Bond.  A copy of the custodial agreement
creating such partial interest is available from the Remarketing Agent upon
request.

    

      
      10 A copy
of the Enhancement Custodial Agreement is available from the Remarketing Agent
upon request.

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