Document:

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                                                                   Exhibit 4.2

                         STANDBY BOND PURCHASE AGREEMENT

                                   dated as of

                                __________, 200__

                                     between

                                 [Name Of Bank],

                                   as Trustee,

                                       and

                         FGIC SECURITIES PURCHASE, INC.

                                   relating to

                                   $---------

                                [Name Of Issuer]

                                 [Name Of Bonds]

<PAGE>

                         STANDBY BOND PURCHASE AGREEMENT

      STANDBY BOND PURCHASE AGREEMENT (the "Agreement") dated as of __________,
200__ between [Name Of Bank], as Trustee (herein, the "Trustee"), and FGIC
SECURITIES PURCHASE, INC., a Delaware corporation (the "Corporation").

      WHEREAS, _________________________, a[n][Insert type of entity], organized
and existing under the laws of _________________ (the "Issuer") has issued
simultaneously herewith $__________principal amount of its ________ Revenue
Bonds ([Insert conduit title of bonds]), Series ______ (herein called the
"Variable Rate Bonds") pursuant to a [Trust Indenture/Resolution/Ordinance]
dated as of __________, 20__, between the Issuer and the Trustee (the
"Authorizing Document"), as in effect on the date hereof;

      WHEREAS, [Insert name of conduit borrower], a[n][Insert type of entity],
organized under the laws of ________________ (the "Borrower") has agreed under a
Loan Agreement dated as of __________, 20__ (the "Loan Agreement") to make loan
repayments to the Issuer in amounts sufficient to pay debt service on the
Variable Rate Bonds; and

      WHEREAS, the Authorizing Document provides that the holders of the
Variable Rate Bonds shall have the option, upon the satisfaction of certain
conditions, to tender Variable Rate Bonds to the Trustee for purchase, upon
notice to the Trustee as provided for in the Authorizing Document and, under
certain circumstances, may be required to tender their Variable Rate Bonds for
purchase thereof in accordance with the terms of the Authorizing Document; and

      WHEREAS, the Corporation has agreed to purchase such tendered Variable
Rate Bonds pursuant to the terms of this Agreement, as consideration for (i) the
Corporation's status under the Authorizing Document as a bondholder of such
purchased tendered Variable Rate Bonds entitled to the payments and interest (at
the Provider Rate prescribed herein), as a [describe type of obligation] of the
Issuer payable from and secured by [describe security], and subject to the
limitations set forth in the Authorizing Document, and the fees and expenses
described herein; (ii) the Corporation's entitlement with respect to such
purchased Variable Rate Bonds to exercise, subject to the provisions hereof, all
rights and remedies afforded bondholders ("Bondholder" or "Bondholders") under
the Authorizing Document; and (iii) the Borrower's execution and delivery of the
Payment Agreement dated the date hereof (the "Payment Agreement") between the
Borrower, the Issuer and the Corporation;

      NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      SECTION 1.01.     Definitions.  The  following  terms,  as used  herein,
have the following meanings:

      "Authorized Representative" means any official of the Trustee or its
agents duly authorized and empowered to execute and deliver this Agreement and
all certificates or other

<PAGE>
documents connected herewith or in connection with the execution and delivery
and subsequent disposition of the Variable Rate Bonds.

      "Available Commitment" as of any day means the sum of the Available
Principal Commitment and the Available Interest Commitment, in each case as of
such day.

      "Available Interest Commitment" initially means $__________ (representing
___ days of interest at an annual rate of ___ per cent) and thereafter means
such initial amount adjusted from time to time as follows: (a) downward by an
amount that bears the same proportion to such initial amount as the amount of
any reduction in the Available Principal Commitment pursuant to the definition
of "Available Principal Commitment" bears to the initial Available Principal
Commitment; and (b) upward by an amount that bears the same proportion to such
initial amount as the amount of any increase in the Available Principal
Commitment pursuant to the definition of "Available Principal Commitment" bears
to the initial Available Principal Commitment.

      "Available Principal Commitment" initially means $__________ and
thereafter means such initial amount adjusted from time to time as follows: (a)
immediately downward by the amount of any termination or reduction of the
Available Principal Commitment pursuant to Section 2.03 or Section 2.05; (b)
immediately downward by the principal amount of any Variable Rate Bonds
purchased by the Corporation pursuant to Section 2.02; and (c) immediately
upward by the principal amount of any Variable Rate Bonds theretofore purchased
by the Corporation pursuant to Section 2.02, which are delivered for sale
pursuant to Section 2.04(b) and the proceeds from which are paid to GE Capital
in accordance with the GE Capital Agreement.

      "Business Day" has the meaning set forth in the Authorizing Document.

      "Commitment" means the Available Commitment calculated without regard to
clauses (b) and (c) of the definition of Available Principal Commitment and the
effect thereof on the amount of the Available Interest Commitment.

      "Default" means any condition or event which constitutes an Event of
Default or which, with the giving of notice or lapse of time or both, would,
unless cured or waived, become an Event of Default.

      "Default Rate" means a rate of interest per annum equal to the Prime Rate
plus 3%; provided, however, that such Default Rate shall not exceed the Maximum
Interest Rate.

      "Effective Date" means the date of execution and delivery of this
Agreement.

      "Event of Default" has the meaning set forth in Section 6.01.

      "Financial Guaranty" means Financial Guaranty Insurance Company (doing
business in California as FGIC Insurance Company), as insurer of the Variable
Rate Bonds.

      "Fitch" means Fitch, Inc., and its successors.

      "GE Capital" means General Electric Capital Corporation.

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<PAGE>

      "GE Capital Agreement" means the Standby Loan Agreement, dated as of the
date hereof, by and between the Corporation and GE Capital Corporation.

      "Maximum Interest Rate" shall have the meaning set forth in the
Authorizing Document.

      "Moody's" means Moody's Investors Service, Inc., and its successors.

      "Notice of Purchase" has the meaning specified in Section 2.02.

      "Person" means an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

      "Prime Rate" means the rate of interest publicly announced by Morgan
Guaranty Trust Company of New York from time to time as its Prime Rate;
provided, however, that in no event shall the Prime Rate exceed the Maximum
Rate.

      "Prospectus Supplement" means the Prospectus Supplement relating to this
Agreement which supplements the Corporation's Prospectus dated __________, 20__
included in the Corporation's Registration Statement on Form S-3 (File No.
_________) and amendments thereto, filed with the Securities and Exchange
Commission.

      "Provider Bonds" means Variable Rate Bonds purchased by the Corporation
which have not been sold pursuant to Section 2.04(b).

      "Provider Rate" means the rate of interest per annum set forth in the
Provider Bonds and equal to the Prime Rate plus 1% or, if applicable, the
Default Rate; provided, however, that such Provider Rate shall not exceed the
Maximum Interest Rate.

      "Purchase Date" has the meaning set forth in Section 2.02(c).

      "Purchase Price" has the meaning set forth in Section 2.01.

      "Purchase Period" means the period from the Effective Date to and
including the earlier of (i) the Scheduled Termination Date (or, if such date is
not a Business Day, the Business Day immediately succeeding such date), (ii) the
date on which all Variable Rate Bonds have been paid in full, prepaid or
defeased in accordance with the terms of such Variable Rate Bonds, and (iii) two
Business Days following the date the Variable Rate Bonds are converted to a
Fixed Rate in accordance with the terms of such Variable Rate Bonds, and (iv)
the date on which the Commitment is terminated pursuant to Section 2.03.

      "Related Documents" means the Authorizing Document (as amended or
supplemented from time to time), the Variable Rate Bonds, the Remarketing
Agreement, the Loan Agreement, the Payment Agreement and all other documents
relating to the issuance of the Variable Rate Bonds and any amendments,
substitutions, or modifications thereof and all other agreements, documents,
certificates and instruments executed and delivered on or before the Effective
Date in

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<PAGE>

connection with the issuance, sale and delivery of the Variable Rate Bonds and
the execution and delivery of this Agreement.

      "Remarketing Agent" means __________, or its successor appointed as
remarketing agent pursuant to the Authorizing Document.

      "Remarketing Agreement" means the Remarketing Agreement, dated as of
__________, 20__ between the Issuer and the Remarketing Agent.

      "Scheduled Termination Date" means the date occurring five years from the
Effective Date.

      "Standard  &  Poor's"  means  Standard  &  Poor's  Ratings  Services,  a
division of the The McGraw-Hill Companies, Inc., and its successors.

      "State" means the State of __________.

      "Termination Event" has the meaning set forth in Section 6.01.

      "Termination Notice" has the meaning set forth in Section 2.03.

      SECTION 1.02.     Incorporation  of Certain  Definitions  by  Reference.
Each capitalized term used herein and not otherwise  defined herein shall have
the meaning provided therefor in the Authorizing Document.

                                   ARTICLE II

                   COMMITMENT TO PURCHASE VARIABLE RATE BONDS

      SECTION 2.01. Commitment to Purchase Variable Rate Bonds. The Corporation
agrees, on the terms and conditions contained in this Agreement, to purchase the
Variable Rate Bonds bearing interest at a variable rate that are tendered or
deemed tendered to the Trustee from time to time pursuant to the Authorizing
Document during the Purchase Period at the purchase price set forth in the
Authorizing Document (the "Purchase Price"). In accordance with Section 2.3 of
the GE Capital Agreement, such purchase shall be made from Corporation moneys or
moneys made available by GE Capital to the Corporation under the GE Capital
Agreement. In the event such moneys come from those moneys available under the
GE Capital Agreement, the Corporation shall take the necessary steps to obtain
such moneys in accordance with the GE Capital Agreement. The aggregate principal
amount of the Variable Rate Bonds purchased by the Corporation on any Purchase
Date shall not exceed the Available Principal Commitment on such date and the
aggregate amount of the Purchase Price comprising interest on Variable Rate
Bonds purchased by the Corporation on any Purchase Date shall not exceed the
lesser of (1) the Available Interest Commitment and (2) the actual amount of
interest accrued and unpaid on such Variable Rate Bonds to but excluding such
date. The Corporation agrees that in no event shall amounts paid by it in
respect of the Purchase Price be paid from funds or property of the Issuer or
the Borrower. The parties hereto acknowledge that the obligation of the
Corporation hereunder to purchase Variable Rate Bonds pursuant and subject to
the terms and conditions of

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<PAGE>
this Agreement is irrevocable and that the Corporation shall become a Bondholder
under the Authorizing Document of each Variable Rate Bond purchased under this
Agreement and that the Corporation, as such Bondholder, shall be entitled, as
the holder of Variable Rate Bonds bearing interest at the Provider Rate, to all
rights and remedies granted to Bondholders of Variable Rate Bonds under the
Authorizing Document. From and after the Effective Date, the obligation of the
Corporation to purchase Variable Rate Bonds pursuant to this Agreement shall run
to the benefit of those beneficiaries identified in Section 7.09.

      SECTION 2.02. Method of Purchasing. (a) Pursuant to the Authorizing
Document and Section 2.02(b) herein, the Trustee will give notice to the
Corporation if Variable Rate Bonds bearing interest at a Variable Rate are to be
purchased by the Corporation in accordance with the terms of this Agreement and
the Authorizing Document.

            (b) If by 11:30 a.m. (New York City time) on any Business Day during
the Purchase Period the Corporation receives a notice of purchase from the
Trustee substantially in the form of Exhibit 1 hereto (any such notice to be
referred to as a "Notice of Purchase"), the Corporation will, in the manner
contemplated by Section 7.01, (i) immediately provide notice of such Notice of
Purchase to GE Capital that a borrowing will occur under the GE Capital
Agreement, and (ii) pay, unless it determines that any applicable condition
specified in Section 3.02 below is not satisfied, not later than 2:30 p.m. (New
York City time) on the hereinafter defined Purchase Date to the Trustee, in
funds to be available as specified in such Notice of Purchase, an amount equal
to the aggregate Purchase Price.

            (c) The "Purchase Date" for any purchase of Variable Rate Bonds
shall be the date specified in the Notice of Purchase; provided that in no event
shall the Purchase Date be (i) on the same day the Notice of Purchase is
received if the Notice of Purchase is received by the Corporation later than
11:30 a.m. (New York City time) or (ii) after the last day of the Purchase
Period.

      SECTION 2.03. Termination of Commitment. If at any time a Termination
Event shall have occurred and be continuing, the Corporation may deliver a
notice (a "Termination Notice") regarding the termination of the Commitment
substantially in the form of Exhibit 2 hereto to the Trustee, the tender agent
(if any), the Issuer, the Borrower and the Remarketing Agent at the addresses
set forth in Exhibit 3 hereto (or such other addresses as may be specified by
such Persons for such purpose in writing to the Corporation), and the Commitment
shall terminate, effective at the close of business on the thirtieth (30th) day
following the date of the Termination Notice, or if that date is not a business
day, on the next Business Day; provided, however, that before such termination
takes effect, the Variable Rate Bonds shall be subject to mandatory tender for
purchase from the proceeds of a drawing under this Agreement; and the Commitment
shall also terminate immediately upon the effectiveness of an alternate
liquidity facility in accordance with the terms of the Authorizing Document.

      SECTION 2.04.     Sale of Variable Rate Bonds.

            (a) Remarketing Notices. Prior to 12:00 noon (New York City time) on
any Business Day on which the Corporation holds Variable Rate Bonds purchased
pursuant to this

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<PAGE>
Agreement, the Remarketing Agent may deliver a notice (a "Remarketing Notice")
to the Corporation, the Trustee, the Issuer and the Borrower stating that it has
located a purchaser (the "Purchaser") for some or all of such Variable Rate
Bonds and that such Purchaser desires to purchase on such Business Day such
Variable Rate Bonds at the Purchase Price.

            (b) Sale of Purchased Variable Rate Bonds. Upon receipt of a
Remarketing Notice in accordance with subsection (a), the Corporation shall
direct the Trustee to deliver those Variable Rate Bonds held in the account of
the Corporation being remarketed by the Remarketing Agent against payment for
such Variable Rate Bonds in an amount equal to the Purchase Price plus interest
accrued and unpaid.

            (c) Right to Sell Bonds. The Corporation expressly reserves the
right to sell, at any time to institutional investors, Provider Bonds purchased
by it pursuant to this Agreement provided that any such purchaser, including any
purchase by GE Capital pursuant to the terms of the GE Capital Agreement,
acknowledges in writing that (i) its purchase pursuant to this Section 2.04(c)
is subject to the provisions of Sections 2.04(a) and (b) hereof, (ii) the [Fitch
rating,] [the Moody's rating] and [the Standard & Poor's rating] shall no longer
be applicable and (iii) it shall not be entitled to the benefits of tender and
purchase under Sections 2.01 and 2.02 of this Agreement or under the Authorizing
Document.

            (d)   Sale Without  Recourse.  Any sale of a Variable Rate Bond or
portion  thereof  shall  be  without   recourse  to  the  seller  and  without
representation or warranty of any kind except as may be required by law.

      SECTION 2.05. Reduction of Available Commitment. Upon any Variable Rate
Bond ceasing to be outstanding pursuant to the Authorizing Document or upon
conversion to a Bond Interest Term Rate, a Long Rate or a Fixed Interest Rate of
all or any portion of the principal amount of the Variable Rate Bonds, the
aggregate Available Principal Commitment shall automatically be terminated by an
amount equal to the principal amount of such Variable Rate Bonds ceasing to be
outstanding or converted to a Bond Interest Term Rate, a Long Rate or a Fixed
Interest Rate pursuant to the Authorizing Document.

                                   ARTICLE III

                                   CONDITIONS

      SECTION 3.01.     Conditions  to  Effectiveness.  This  Agreement  shall
not  become  effective  until  each  of  the  following  conditions  has  been
satisfied:

            (a) receipt by the Corporation, of an opinion of counsel to the
Trustee, dated the Effective Date, covering the matters represented or warranted
in Sections 4.01, 4.02 and 4.03 hereof;

            (b) receipt by the Trustee and the Issuer, of an opinion of counsel
for the Corporation, dated the Effective Date, covering the matters represented
or warranted in Sections 4.04, 4.05, 4.06 and 4.07 hereof;

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            (c)   receipt by the  Corporation  of an opinion of counsel to the
Borrower in the form attached to the Payment  Agreement or as otherwise agreed
to by the parties;

            (d) reliance letters or opinions shall have been addressed and
delivered to the Corporation with respect to the legal opinions delivered in
connection with the execution of this Agreement and the issuance of the Variable
Rate Bonds;

            (e) receipt by the Corporation of a certificate from an authorized
representative of the Issuer and the Borrower to the effect that as of the
Effective Date, to the Issuer's best knowledge no "event of default" exists
under the Authorizing Document or the Loan Agreement or any Related Document nor
does any event exist which might become an event of default with the passage of
time or giving of notice or both;

            (f) Financial Guaranty shall have issued a policy of municipal bond
insurance guaranteeing payment of the full amount of principal of and interest
on the Variable Rate Bonds in accordance with Financial Guaranty's Commitment
Letter dated __________, 20__, relating to such policy; and

            (g)   receipt of the  executed GE Capital  Agreement  and opinions
related thereto; and

            (h) on the Effective Date, the Corporation shall deliver to the
Issuer and the Trustee its certificate stating that this Agreement has become
effective and that the conditions precedent thereto have been satisfied.

      SECTION 3.02.     Conditions  to Purchase.  The  following  shall be the
conditions to the  Corporation's  obligation  to purchase  Variable Rate Bonds
under the terms of the Authorizing Document:

            (a) The obligation of the Corporation to purchase Variable Rate
Bonds hereunder on any Purchase Date is subject to receipt by the Corporation of
a Notice of Purchase as required by Section 2.02;

            (b) The Corporation shall not be required to purchase Variable Rate
Bonds beneficially held (or held in certificated form) by or for the account of
or on behalf of the Issuer or the Borrower or any affiliate of the Issuer or the
Borrower; and

            (c) To the extent Variable Rate Bonds are certificated the Trustee
shall hold, as agent for the Corporation, Variable Rate Bonds purchased by the
Corporation hereunder, regardless of whether such certificates have been
purchased by another entity in accordance with Section 2.04(c); the Trustee
shall register such Variable Rate Bonds purchased by the Corporation in the name
of the Corporation or in such other name or names as the Corporation may direct.

      The Corporation shall be obligated to purchase those Variable Rate Bonds,
and only such Variable Rate Bonds, with respect to which the condition set forth
in clause (b) has been satisfied notwithstanding the fact that certain of the
outstanding Variable Rate Bonds for which such

7

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condition has not been satisfied are not required to be purchased. The
Corporation shall notify the Trustee, the tender agent (if any), the Issuer and
the Borrower by telephone no later than 1:30 p.m. (New York City time) on any
Purchase Date in the event any of the conditions set forth in this Section are
not met.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

      The Trustee represents and warrants that, as of the date on which this
Agreement is executed:

      SECTION 4.01. Existence. The Trustee is a validly existing national
banking association having trust powers, with full right and power to execute,
deliver and perform its obligations under this Agreement and each Related
Document to which it is a party.

      SECTION 4.02. Authorization; Contravention. The execution, delivery and
performance by the Trustee of this Agreement are within the Trustee's powers,
have been duly authorized by all necessary action and require no further action
by or in respect of, or filing with, any governmental body, agency or official
having jurisdiction over the trust powers of the Trustee.

      SECTION 4.03. Binding Effect. This Agreement constitutes a valid, binding
and enforceable agreement of the Trustee, subject to bankruptcy, insolvency,
reorganization, arrangement and other applicable laws relating to or affecting
creditors' rights generally, to the exercise of judicial discretion in
appropriate cases and to the application of equitable principles.

      The Corporation represents and warrants that, as of the date on which this
Agreement is executed:

      SECTION 4.04.     Corporate  Existence.  The  Corporation  has been duly
incorporated  and is validly  existing as a corporation in good standing under
the laws of the State of Delaware.

      SECTION 4.05. Authorization; Binding Effect. This Agreement and the GE
Capital Agreement each has been duly executed and delivered by the Corporation
pursuant to due authorization and each of this Agreement and the GE Capital
Agreement constitutes a valid and binding agreement of the Corporation and GE
Capital, respectively, enforceable against the Corporation and GE Capital,
respectively, in accordance with its terms, except as (x) limited by insolvency,
reorganization, receivership, conservatorship, liquidation, moratorium or other
similar laws affecting the enforcement of creditors' rights generally as such
laws would apply in the event of the insolvency, reorganization, receivership,
conservatorship or liquidation of, or other similar occurrence with respect to,
the Corporation or GE Capital, respectively, or in the event of any moratorium
or similar occurrence affecting the Corporation or GE Capital, respectively and
(y) limited by equitable principles (regardless of whether the issue of
enforceability is considered in a proceeding in equity or at law).

      SECTION 4.06. Contravention; No Default. The execution and delivery by the
Corporation of, and the performance by the Corporation of its obligations under,
this Agreement

8

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and the GE Capital Agreement will not contravene any provision of applicable law
or the Certificate of Incorporation or By-laws, each as amended, of the
Corporation or any material agreement or other instrument binding upon the
Corporation, and no consent, approval or authorization of any governmental body
or agency (which has not been obtained) is required for the performance by the
Corporation of its obligations under this Agreement or the GE Capital Agreement.

      SECTION 4.07. Litigation. There is no action, suit or proceeding pending
against, or to the knowledge of the Corporation threatened against, the
Corporation or GE Capital before any court or arbitrator or any governmental
body, agency or official in which there is a reasonable possibility of an
adverse decision which could materially adversely affect the financial position
or results of operations of the Corporation or which in any manner draws into
question the validity or enforceability of this Agreement or the GE Capital
Agreement or the Corporation's ability to perform under this Agreement or the GE
Capital Agreement.

                                    ARTICLE V

                                    COVENANTS

      SECTION 5.01. No Amendment of GE Capital Agreement Without Consent of the
Issuer, Borrower and Trustee. Without the prior written consent of the Trustee,
the Issuer and the Borrower, the Corporation will not agree or consent to any
amendment, supplement or modification of the GE Capital Agreement, nor waive any
provision thereof, nor shall the Corporation reduce, or agree to the reduction
of, any amount it may borrow thereunder to an amount lower than the Available
Commitment hereunder, if such amendment, supplement, modification or waiver
would materially adversely affect the issuer or the Bondholders. The Corporation
hereby repeats, for the benefit of the Trustee, the Issuer, the Borrower and the
holders of the Variable Rate Bonds, the covenants set forth in Section 6.1 of
the GE Capital Agreement, which covenants, as well as the related defined terms
contained therein, are hereby incorporated by reference with the same effect as
if each and every such covenant and defined term were set forth herein in its
entirety.

      SECTION 5.02. Other Liquidity Facilities. The Corporation agrees not to
enter into another standby bond purchase agreement or other similar form of
liquidity facility in support of the tender feature of adjustable rate bonds or
certificates, unless such bonds or certificates are rated by [Fitch,] [Moody's]
or [Standard & Poor's] in their highest short-term and long-term rating
categories (without regard to "+" or "-" or numerical distinction) after giving
effect to such other agreement or liquidity facility in support of the tender
feature of adjustable rate bonds or certificates.

      SECTION 5.03. Disclosure. The Corporation hereby agrees to (i) provide the
Issuer with any disclosure information which the Issuer may reasonably request
relating to the Corporation for inclusion in the preliminary and final official
statement, including providing any prospectus or prospectus supplement for the
initial offering, or any reoffering circular relating to the Variable Rate
Bonds, and (ii) shall promptly provide to the Remarketing Agent any documents,
including any prospectus or prospectus supplements, as may, in the opinion of

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Orrick, Herrington & Sutcliffe LLP or other special securities counsel
acceptable to the Remarketing Agent and the Issuer, be required for the
remarketing of the Variable Rate Bonds.

                                   ARTICLE VI

                                    DEFAULTS

      SECTION 6.01.     Events  of  Default.  If one or more of the  following
events ("Events of Default") shall have occurred and be continuing:

            (a) (i) any portion of the commitment fee for this Agreement shall
not be paid when due on the quarterly payment date therefor as set forth in the
Payment Agreement, or (ii) any other amount payable thereunder shall not be paid
when due and, in either case, any such failure shall continue for three (3)
Business Days after notice thereof to the Borrower and to the Trustee;

            (b) the State shall take any action which would impair the power of
the Issuer or the Borrower to comply with the covenants and obligations of the
Issuer or the Borrower under the Related Documents or any right or remedy of the
Corporation or any owners of the Variable Rate Bonds from time to time to
enforce such covenants and obligations;

            (c) (i) the Issuer or the Borrower shall fail to observe or perform
any covenant or agreement contained in the Related Documents and, if such
failure is the result of a covenant breach which is capable of being remedied,
such failure continues for ninety (90) days following written notice thereof to
the Issuer, the Trustee and the Borrower from the Corporation, provided that if
any such failure (other than a payment default) shall be such that it cannot be
cured or corrected within such ninety (90) day period, it shall not constitute
an Event of Default hereunder if curative or corrective action is instituted
within such period and diligently pursued until the failure of performance is
cured or corrected, or (ii) there shall not be, at all times a Remarketing Agent
performing the duties thereof contemplated by the Authorizing Document;

            (d)   an event of default has  occurred  and is  continuing  under
any of the Related Documents;

            (e) any representation, warranty, certification or statement made by
the Issuer or the Borrower (or incorporated by reference) in any Related
Document or in any certificate, financial statement or other document delivered
pursuant thereto or any Related Document shall prove to have been incorrect in
any material respect when made;

            (f) any default by the Issuer or the Borrower shall have occurred
and be continuing in the payment of principal of or premium, if any, or interest
on any bond, note or other evidence of indebtedness of the Issuer or the
Borrower which under the Authorizing Document or any Related Document is senior
to, or on parity with, the Variable Rate Bonds;

            (g) the Issuer or the Borrower files a petition in voluntary
bankruptcy, for the composition of its affairs or for its corporate
reorganization under any state or federal bankruptcy or insolvency law, or makes
an assignment for the benefit of creditors, or admits in writing to its

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<PAGE>
insolvency or inability to pay debts as they mature, or consents in writing to
the appointment of a trustee or receiver for itself;

            (h) a court of competent jurisdiction shall enter an order, judgment
or decree declaring the Issuer or the Borrower insolvent, or adjudging it
bankrupt, or appointing a trustee or receiver of the Issuer, or approving a
petition filed against the Issuer or the Borrower seeking reorganization of the
Issuer or the Borrower under any applicable law or statute of the United States
of America or any state thereof, and such order, judgment or decree shall not be
vacated or set aside or stayed within sixty (60) days from the date of the entry
thereof;

            (i) under the provisions of any other law for the relief or aid of
debtors, any court of competent jurisdiction shall assume custody or control of
the Issuer or the Borrower and such custody or control shall not be terminated
within sixty (60) days from the date of assumption of such custody or control;

            (j) any material provision of this Agreement, the Authorizing
Document, the Remarketing Agreement, any Related Document, the Variable Rate
Bonds or the Provider Bonds shall cease for any reason whatsoever to be a valid
and binding agreement of the Issuer or the Borrower or the Issuer or the
Borrower shall contest the validity or enforceability thereof; or

            (k) failure to pay when due any amount payable under the Variable
Rate Bonds or Provider Bonds (regardless of any waiver thereof by the holders of
such Bonds);

then, and in every such event (each such event is herein called a "Termination
Event"), (i) the interest rate payable on Provider Bonds shall increase to the
Default Rate, (ii) the Corporation may terminate the Corporation's obligation to
purchase Variable Rate Bonds pursuant to this Agreement as provided in Section
2.03; provided that an Event of Default shall not affect the obligation of the
Corporation to purchase Variable Rate Bonds in accordance with the provisions of
this Agreement prior to the close of business on the date on which such
obligation terminates pursuant to Section 2.03, and (iii) the Corporation may
declare any amounts due under the Payment Agreement to be immediately due and
payable.

                                   ARTICLE VII

                                  MISCELLANEOUS

      SECTION 7.01. Notices. All notices, requests and other communications to
any party hereunder shall be in writing (including fax or similar writing) and
shall be given to such party at its address or facsimile number set forth on
Exhibit 3 hereof or such other address or facsimile number as such party may
hereafter specify for such purpose by notice to the other parties. Each such
notice, request or other communication shall be effective (i) if given by
facsimile, when such facsimile is transmitted to the facsimile number provided
as specified in this Section and the appropriate answerback is received, (ii) if
given by mail, 72 hours after such communication is deposited in the mails with
first class postage prepaid, addressed as aforesaid or (iii) if given by any
other means, when delivered at the address provided as specified in this
Section; provided that notices to the Corporation under Sections 2.02 and 2.04
shall not be effective until received and that notices under Sections 2.02 and
2.04 may also be given by telephone to the Corporation

11
<PAGE>
at the telephone numbers listed on Exhibit 3 hereof (or such other telephone
number as may be designated by the Corporation, by written notice to the Trustee
and the tender agent (if any), to receive such notice), immediately confirmed in
writing or by facsimile.

      SECTION 7.02.     No Waivers.

            (a) The obligations of the parties hereunder shall not in any way be
modified or limited by reference to any other document, instrument or agreement
(including, without limitation, the Variable Rate Bonds or any other Related
Document) except as set forth herein. The rights of the Corporation hereunder
are separate from and in addition to any rights that any holder of any Variable
Rate Bond may have under the terms of such Variable Rate Bond or any Related
Document or otherwise.

            (b) No failure or delay by the Corporation in exercising any right,
power or privilege hereunder or under the Variable Rate Bonds shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and not
exclusive of any rights or remedies provided by law. No failure or delay by the
Corporation in exercising any right, power or privilege under or in respect of
the Variable Rate Bonds or any other Related Document shall affect the rights,
powers or privileges of the Corporation hereunder or shall operate as a
limitation or waiver thereof.

      SECTION 7.03. Amendments and Waivers. Any provision of this Agreement may
be amended or waived if, but only if, such amendment or waiver is in writing and
is signed by the Trustee and the Corporation. The Trustee shall notify each
rating agency then maintaining a rating on the Variable Rate Bonds in writing of
any amendment to this Agreement, each of which rating agencies must confirm to
the Trustee prior to such amendment or waiver becoming effective that such
amendment or waiver will not result in a change in the rating then assigned to
the Variable Rate Bonds by such rating agency. The Trustee shall notify the
Issuer of the execution and delivery of any such amendment or waiver.

      SECTION 7.04. Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns; provided that neither party may assign or
otherwise transfer any of its rights under this Agreement without the prior
written consent of the other party except to any successor Trustee pursuant to
the terms of the Authorizing Document. The Trustee shall notify each rating
agency then maintaining a rating on the Variable Rate Bonds in writing of any
assignment or transfer for which consent of the Trustee or the Corporation is
required, each of which rating agency must confirm to the Trustee that prior to
such assignment or transfer becoming effective such assignment or transfer will
not result in a change in the rating then assigned to the Variable Rate Bonds by
such rating agency.

      SECTION 7.05.     Term of this  Agreement.  The  term of this  Agreement
shall be until the expiration of the Purchase Period.

      SECTION 7.06.     Governing  Law. This  Agreement  shall be construed in
accordance with and governed by the laws of the State of New York.

12
<PAGE>
      SECTION 7.07.     Counterparts.   This   Agreement   may  be  signed  in
counterparts,  each of which shall be an original,  with the same effect as if
the signatures thereto and hereto were upon the same instrument.

      SECTION 7.08. Trustee May Act through Agents and Appoint Co-Trustees. The
Trustee may execute any of the powers hereof and perform any duties hereunder
either directly or by or through its agents or attorneys. The Trustee may
delegate to one or more co-trustees or co-tender agents such power, rights,
duties and responsibilities as they may deem necessary or desirable in order to
permit the Trustee to lawfully execute and perform the duties set forth in this
Agreement.

      SECTION 7.09. Beneficiaries. This Agreement is made by the Corporation
with the Trustee for the express benefit of the holders of the Variable Rate
Bonds, the Issuer and the Borrower. Nothing contained herein, express or
implied, is intended to give any person other than the Corporation, the Trustee,
the Issuer, the Borrower and the holders of the Variable Rate Bonds any right,
remedy, or claim hereunder or by reason hereof. Any agreement or covenant
required herein to be performed by or on behalf of the Corporation shall be for
the sole and exclusive benefit of the Trustee, the Issuer, the Borrower and the
holders of the Variable Rate Bonds. Prior to the Scheduled Termination Date and
provided that the Commitment hereunder has not terminated pursuant to the
provisions of Sections 2.03 and 6.01 hereof, the Corporation agrees that it will
not assert any act or failure to act by the Issuer, including without limitation
(A) the commencement of a bankruptcy or similar case by or against the Issuer or
the Borrower, (B) the unenforceability or nonpayment of the Provider Rate in any
such case, (C) the unenforceability of the Payment Agreement, or (D) any default
under any Related Document or Event of Default as a defense to its obligations
hereunder, and that this Agreement shall survive (A) the commencement of a
bankruptcy or similar case by or against the Issuer, (B) the unenforceability or
nonpayment of the Provider Rate in any such case, (C) the unenforceability of
the Payment Agreement, or (D) any default under any Related Document or Event of
Default. The Corporation agrees that, so long as this Agreement is in effect and
has not terminated, the holders of the Variable Rate Bonds, the Issuer and the
Borrower are express beneficiaries of this Agreement and, as such, any holder of
a Variable Rate Bond, the Issuer and the Borrower on behalf of any such holder
shall have the right to bring suit against the Corporation to enforce this
Agreement should the Corporation fail to perform any of its obligations
hereunder.

      SECTION 7.10. Capacity of Trustee. The Trustee is entering into this
Agreement solely in its capacity as Trustee under the Authorizing Document and
the duties, powers, rights and liabilities of the Trustee in acting hereunder as
Trustee shall be subject to the provisions of the Authorizing Document
including, without limitation, [Authorizing Document reference] thereof.

      SECTION 7.11. Responsibility of Corporation for Trustee Actions. The
Corporation shall not have any responsibility for, or incur any liability in
respect of, any act, or any failure to act, by the Trustee which results in the
failure of the Trustee (i) to credit the appropriate account with funds made
available by the Corporation pursuant to this Agreement or (ii) to effect the
purchase for the account of the Corporation of Variable Rate Bonds with such
funds pursuant to this Agreement.

13
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Standby Bond
Purchase Agreement to be duly executed by their respective authorized officers
as of the day and year first above written.

                                    [Name Of Bank], as Trustee

                                    By:
                                       ------------------------------------
                                    Name:
                                         ----------------------------------

                                    Title:
                                          ----------------------------------

                                    FGIC SECURITIES PURCHASE, INC.

                                    By:
                                       ------------------------------------
                                    Name:
                                         ----------------------------------

                                    Title:
                                          ----------------------------------

14
<PAGE>

                                                                       EXHIBIT 1

                         [LETTERHEAD OF THE TRUSTEE]

                               NOTICE OF PURCHASE

                                     [Date]

FGIC Securities Purchase, Inc.

Financial Guaranty Insurance Company

125 Park Avenue, 5th Floor

New York, New York 10017

Attention:  President

      Re:   $_________ [Issuer][Name of Bonds] (the "Variable Rate Bonds")

Ladies and Gentlemen:

      Reference is made to the Standby Bond Purchase Agreement dated as of
__________, 200__ (the "Agreement") between [Name of Bank], as Trustee, and FGIC
Securities Purchase, Inc. Capitalized terms used herein shall have the meanings
given to them in or by reference to the Agreement.

      Pursuant to Section 2.02(a) of the Agreement, we hereby give you notice
that due to the unavailability of remarketing proceeds on the Purchase Date
(hereinafter defined) or the occurrence of such other applicable event as is
described the Authorizing Document, such Variable Rate Bonds are to be purchased
by you on ____________ __, (the "Purchase Date") pursuant to Section 2.02 of the
Agreement. The aggregate Purchase Price of such Variable Rate Bonds is
__________ dollars ($________). Of such aggregate Purchase Price, __________
dollars ($______) comprises principal of such Variable Rate Bonds and _________
dollars ($______) comprises interest accrued on such Variable Rate Bonds to but
excluding the Purchase Date. The Variable Rate Bonds referred to herein bear
interest at a variable rate and have not been defeased.

      The Purchase Price should be provided in immediately available funds on
the Purchase Date at the time specified in the Agreement.

                                    Very truly yours,

                                    [Name Of Bank], as Trustee

                                    By:
                                       ------------------------------------
                                    Name:
                                         ----------------------------------

                                    Title:
                                          ----------------------------------

<PAGE>

                                                                       EXHIBIT 2

                         [LETTERHEAD OF CORPORATION]

                               TERMINATION NOTICE

[Insert Name and Address of Trustee]

      Re:   $_________ [Issuer][Name of Bonds] (the "Variable Rate Bonds")

Ladies and Gentlemen:

      Reference is made to the Standby Bond Purchase Agreement dated as of
__________, 20__ (the "Agreement"), between [Name of Bank], as Trustee, and FGIC
Securities Purchase, Inc. Capitalized terms used herein shall have the meanings
given to them in or by reference to the Agreement.

      We hereby give you notice that a Termination Event [identify the event]
has occurred and is continuing. Pursuant to Section 2.03 of the Agreement, the
Commitment shall terminate, effective at the close of business on [identify the
date], which is the 30th day following the date of receipt of this Termination
Notice, or if such day is not a Business Day, the next succeeding Business Day.

      Please be advised that a Notice of Purchase may not be delivered following
the effective date of the termination of the Commitment.

                                    Very truly yours,
                                    FGIC SECURITIES PURCHASE, INC.

                                    By:
                                       ------------------------------------
                                    Name:
                                         ----------------------------------

                                    Title:
                                          ----------------------------------

<PAGE>
                                                                       EXHIBIT 3

                                NOTICE ADDRESSES

           [Trustee]
           [Street Address]
           [City, State, Zip Code]
           Attention:  __________
           Fax Number:  (___) ___-____
           Telephone Number:  (___) ___-____

           [Conduit Borrower]
           [Street Address]
           [City, State, Zip Code]
           Attention:  __________
           Fax Number:  (___) ___-____
           Telephone Number:  (___) ___-____

           [Issuer]
           [Street Address]
           [City, State, Zip Code]
           Attention:  __________
           Fax Number:  (___) ___-____
           Telephone Number:  (___) ___-____

           FGIC SECURITIES PURCHASE, INC.
           Financial Guaranty Insurance Company
           125 Park Avenue, 5th Floor
           New York, NY 10017
           Attention:  President
           Copy:  Senior Counsel, Public Finance
           Fax Number: (212) 312-3093
           Telephone Number: (212) 312-3000

           [Remarketing Agent]
           [Street Address]
           [City, State, Zip Code]
           Attention:  __________
           Fax Number:  (___) ___-____
           Telephone Number:  (___) ___-____
<PAGE>
                                                                       EXHIBIT 4

                                PAYMENT AGREEMENT

         AGREEMENT (the "Agreement") dated as of __________, 20__ among [Name of
Borrower], a _________________________ under the laws of
_________________________ (the "Borrower"), [Name of Issuer], a[n][Insert type
of entity], organized and existing under the laws of ____________ (the "Issuer")
and FGIC SECURITIES PURCHASE, INC., a Delaware corporation (the "Corporation").

         WHEREAS, the Issuer has issued simultaneously herewith $____________
principal amount of its [Name of Bonds] (herein called, the "Variable Rate
Bonds") pursuant to a [Authorizing Document] dated as of __________, 20__ (the
"Authorizing Document"), between the Issuer and [Name of Trustee], as Trustee
(the "Trustee") as in effect on the date hereof;

         WHEREAS, the Borrower has agreed under a Loan Agreement dated as of
__________, 20__ (the "Loan Agreement") to make loan repayments to the Issuer in
amounts sufficient to pay debt service on the Variable Rate Bonds; and

         WHEREAS, the Authorizing Document provides that the holders of the
Variable Rate Bonds shall have the option, upon the satisfaction of certain
conditions, to tender Variable Rate Bonds to the Trustee for purchase, upon
notice to the Trustee as provided for in the Authorizing Document and, under
certain circumstances, may be required to tender their Variable Rate Bonds for
purchase thereof in accordance with the terms of the Authorizing Document; and

         WHEREAS, the Corporation has agreed to purchase such tendered Bonds
pursuant to the terms of a Standby Bond Purchase Agreement ,dated as of the date
hereof (the "Standby Bond Purchase Agreement"), between the Corporation and the
Trustee;

         NOW, THEREFORE, as consideration for the issuance by the Corporation of
the Standby Bond Purchase Agreement and the Corporation's assumption of the
liabilities and undertakings of the Corporation thereunder, the parties hereto
agree as follows (hereinafter, all capitalized terms not otherwise defined
herein shall have the same meanings set forth in the Standby Bond Purchase
Agreement or in the Authorizing Document, wherever such terms appear):

         1.       Fees. (a) Until the Commitment has terminated, the Borrower
shall pay to the Corporation a commitment fee at the rate of ____% per annum on
the daily average amount of the Available Commitment. Such commitment fee shall
accrue from and including the Effective Date to but excluding the date of
termination of the Commitment in its entirety and shall be payable quarterly in
arrears on the first day of each March, June, September and December, commencing
__________ 1, 20__ and upon the date of termination of the Commitment in its
entirety. The Corporation shall use its best efforts to mail to the Borrower and
the Trustee, not fewer than thirty (30) days prior to each quarterly due date,
an invoice for the amount of the commitment fee next due. The commitment fee
shall be computed on the basis of a year of 365/366 days and paid for the actual
number of days elapsed.
<PAGE>
                  (b)      The Borrower shall also pay a fee equal to (i) the
amount paid under the Standby Bond Purchase Agreement that is applied to pay the
interest portion of the Purchase Price, multiplied by (ii) the Provider Rate,
divided by (iii) 365 and multiplied by (iv) the number of days from the date
such Purchase Price is paid to (but not including) the date such interest
portion is repaid to the Corporation. Such fee shall be payable on the Interest
Payment Date for the Bonds next following the date on which such Purchase Price
was paid by the Corporation or the date such Provider Bonds are remarketed,
whichever is first.

                  (c)      Whenever any payment hereunder shall be due on a day
which is not a Business Day, the date for payment thereof shall be extended to
the next succeeding Business Day.

         2.       General Provisions as to Payments; Security. (a)
Notwithstanding any provision contained in the Variable Rate Bonds, any Related
Document, or any other instrument, so long as any of the Variable Rate Bonds are
owned by the Corporation under the Standby Bond Purchase Agreement, the Trustee
on behalf of the Issuer shall cause each payment of principal of and interest on
such Variable Rate Bonds so owned by the Corporation to be paid not later than
2:30 p.m., New York City time on the date when due in immediately available
funds, to the account of the Corporation at Bankers Trust, ABA No. 021001033,
A/C No. 50-256-143. Commitment fees due to the Corporation pursuant to Section 1
hereof shall be paid by the Borrower not later than 2:00 p.m., New York City
time on the date when due in immediately available funds, or on the prior day in
next day funds, to the account of the Corporation.

                  (b)      As security for the payment of all amounts due
hereunder, the Issuer hereby pledges and grants to the Corporation a subordinate
lien on Revenues, which lien shall be of equal standing and priority with the
pledge of Revenues for the Variable Rate Bonds, Provider Bonds, Prior Bonds and
any Additional Parity Bonds hereinafter issued. The lien of the pledge shall be
valid and binding against all parties having claim in tort, contract or
otherwise against the Issuer (except for the holders of the Variable Rate Bonds,
Prior Bonds and any Additional Parity Bonds) irrespective of whether such
parties have notice of the lien

         3.       Expenses. The Borrower shall pay all reasonable out-of-pocket
Corporation expenses, including (i) fees and disbursements of counsel for the
Corporation (as set forth in the Commitment Letter dated __________, 20__ from
the Corporation to the Issuer, such fees and disbursements equal to $_______) in
connection with the preparation and review of the Standby Bond Purchase
Agreement, this Agreement, initial Securities and Exchange Commission filings,
the preliminary official statement and the final official statement relating to
the Variable Rate Bonds and the Related Documents, (ii) fees and disbursement of
KPMG LLP, accountants to the Corporation and GE Capital, such fees and
disbursements equal to $____, (iii) fees associated with Securities and Exchange
Commission filings, such fee to equal 1/29th of one percent (1%) of the
Available Commitment, (iv) fees and disbursements in connection with any waiver
or consent hereunder or under any Related Document or any amendment hereof or
thereof or any default or alleged default hereunder or thereunder, and (v) if an
Event of Default occurs under the Standby Bond Purchase Agreement, reasonable
out-of-pocket expenses incurred by the Corporation, including reasonable fees
and disbursements of counsel, in connection with such Event of Default and
collection and other enforcement proceedings resulting therefrom.

2

<PAGE>

         4.       Indemnification. To the extent permitted by law, the Borrower
hereby indemnifies and holds harmless the Corporation from and against the cost
of defending any and all third party claims and all costs, losses, expenses,
fines, penalties and all other liabilities whatsoever that the Corporation may
incur (or may be claimed against the Corporation by any person whatsoever) by
reason of any untrue statement or alleged untrue statement relating to the
Borrower of any material fact contained or incorporated by reference in the
preliminary official statement or the final official statement, or supplements
thereto, relating to the Variable Rate Bonds, or the omission or alleged
omission to state therein a material fact relating to the Borrower necessary to
make such statements, in the light of the circumstances under which they are or
were made, not misleading (excluding any materials expressly provided for
inclusion therein by the Corporation or Financial Guaranty); provided that the
Borrower shall not be required to indemnify the Corporation for any costs of
defending third party claims or liabilities to the extent, but only to the
extent, such claims or liabilities arise due to the willful misconduct or
negligence of the Corporation or are attributable to information concerning the
Corporation or Financial Guaranty provided by them expressly for use in the
preliminary official statement or the final official statement, or supplements
thereto relating to the Variable Rate Bonds or to the information contained in
or omitted from the Corporation's Prospectus, Prospectus Supplement or
Registration Statement. The Corporation will promptly notify the Borrower upon
becoming aware of any claims or liabilities giving rise to a right to
indemnification hereunder and will cooperate with the Borrower in the defense of
such claims or liabilities. Nothing in this Section is intended to limit the
Borrower's obligations contained in other parts of this Agreement. The Borrower
will not refer to the Corporation in any materials used in marketing the
Variable Rate Bonds without the prior written consent of the Corporation.

         5.       Term of the Standby Bond Purchase Agreement. As further
provided in the Standby Bond Purchase Agreement, the term of the Standby Bond
Purchase Agreement shall be until the termination of the Purchase Period. Any
termination by the Corporation or by the Trustee shall be subject to the
Borrower's payment in full of all sums due pursuant to this Agreement and,
notwithstanding a termination of the Standby Bond Purchase Agreement by either
the Corporation or the Trustee, the provisions of Section 4 shall survive such
termination and shall remain in full force and effect.

         6.       Borrower Representations and Warranties. The Borrower
represents and warrants that, as of the date on which this Agreement is
executed:

                  (a)      Existence. The Borrower a [describe type of entity]
formed pursuant to laws of the State of __________ and is validly organized and
existing in accordance with the laws of the State of __________, with full right
and power to issue, execute, deliver and perform its obligations under this
Agreement and each Related Document to which the Borrower is a party.

                  (b)      Authorization; Contravention. The execution, delivery
and performance by the Borrower of this Agreement and each Related Document to
which the Borrower is a party are within the Borrower's powers, have been duly
authorized by all necessary action, require no action by or in respect of, or
filing with, any governmental body, agency or official by the Borrower and do
not violate or contravene, or constitute a default under, any provision of

3

<PAGE>
applicable law, charter, ordinance or regulation or of any material agreement,
judgment, injunction, order, decree or other instrument binding upon the
Borrower except as set forth in the Authorizing Document, or result in the
creation or imposition of any lien or encumbrance on any asset of the Borrower
except for liens in favor of the Trustee as contemplated by the Authorizing
Document.

                  (c)      Binding Effect. This Agreement and each Related
Document to which Borrower is a party constitute a valid, binding and
enforceable agreement of the Borrower, subject to applicable laws (and equitable
principles) affecting creditors' rights generally.

                  (d)      No Default. The Borrower is not, in any material
respect, in breach of or default under its charter or other similar documents,
or any applicable law or administrative regulation of the State or of the United
States, relating, in each case, to the issuance of debt securities by it, or any
applicable material judgment, decree, loan agreement, note, resolution,
ordinance, agreement or other instrument to which it is a party or is otherwise
subject.

                  (e)      Litigation. Except as disclosed in the official
statement relating to the Variable Rate Bonds, there is no action, suit or
proceeding pending against, or to the knowledge of the Borrower threatened
against or affecting, the Borrower before any court or arbitrator or any
governmental body, agency or official in which there is a reasonable possibility
of an adverse decision which could materially adversely affect the financial
position or results of operations of the Borrower or which in any manner draws
into question the validity or enforceability of this Agreement or any Related
Document.

         7.       Governing Law. This Agreement shall be construed in accordance
with and governed by the law of the State of __________. Concurrently with the
execution and delivery hereof, the Borrower shall deliver an opinion of its
counsel, addressed to, and in form and substance acceptable to, the Corporation,
as to the power, authority and valid and binding effect of this Agreement upon
the Borrower, substantially in the form attached as Exhibit A.

         8.       Covenants. The Borrower agrees that so long as the Corporation
has a Commitment hereunder or any amount payable hereunder or under any Variable
Rate Bond purchased by the Corporation pursuant to this Agreement remains
unpaid:

                  (a)      Information. The Borrower will deliver to the
Corporation as soon as possible and in any event within 180 days after the end
of each Fiscal Year of the Borrower, a balance sheet of the Borrower as of the
end of such Fiscal Year and the related statements of revenue and expense, all
certified as to the fairness of presentation, generally accepted accounting
principles and consistency by a firm of independent certified public
accountants.

                  (b)      No Amendment Without Consent of the Corporation.
Without the prior written consent of the Corporation, the Borrower will not
agree or consent to any amendment, supplement or modification of any Related
Document, nor waive any provision thereof; provided, however, that the Borrower
may agree or consent to amendments to the Variable Rate Bonds and the
Authorizing Document to the extent that (i) such amendments are permitted under
the Authorizing Document without the consent of Bondholders or the provider of
liquidity for the Variable Rate Bonds, and (ii) such amendments do not
materially adversely affect the

4

<PAGE>
Corporation or the performance of this Agreement and the Standby Bond Purchase
Agreement, and may agree or consent to amendments to any Related Document to the
extent such amendments do not materially adversely affect the Corporation or the
performance of this Agreement and the Standby Bond Purchase Agreement.

                  (c)      Maintenance of Remarketing Agent. The Borrower will
cause the Issuer to at all times have a Remarketing Agent performing the duties
thereof contemplated by the Authorizing Document.

         9.       Disclosure. The Corporation hereby agrees to (i) provide the
Borrower with any disclosure information which the Borrower may reasonably
request relating to the Corporation for inclusion in the preliminary official
statement and the final official statement relating to the Variable Rate Bonds,
including any prospectus or prospectus supplement for the initial offering, or
any reoffering circular relating to the Variable Rate Bonds, and (ii) promptly
provide to the Remarketing Agent any documents, including any prospectus or
prospectus supplements, as may, in the opinion of Orrick, Herrington & Sutcliffe
LLP or other special securities counsel acceptable to the Remarketing Agent and
the Borrower, be required for the remarketing of the Variable Rate Bonds.

         10.      Counterparts. This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

5

<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                        [Name of Borrower], as Borrower

                        By:
                           --------------------------------------
                        Name:
                             ------------------------------------
                        Title:
                              -----------------------------------

                        [Insert Address and
                        Contact information]

                        Attention:
                                  -------------------------------
                        Fax Number:
                                   ------------------------------
                        Telephone Number:
                                         ------------------------

                        [Name of Issuer]

                        By:
                           --------------------------------------
                        Name:
                             ------------------------------------
                        Title:
                              -----------------------------------

                        [Insert Address and
                        Contact information]

                        Attention:
                                  -------------------------------
                        Fax Number:
                                   ------------------------------
                        Telephone Number:
                                         ------------------------

                        FGIC SECURITIES PURCHASE, INC.

                        By:
                           --------------------------------------
                        Name:
                             ------------------------------------
                        Title: Vice President

                        Financial Guaranty Insurance Company
                        125 Park Avenue, 5th Floor
                        New York, New York 10017

                        Attention: President
                        Copy: Senior Counsel, Public Finance
                        Fax Number: (212) 312-3093
                        Telephone Number: (212) 312-3000

6

<PAGE>
                                                                       EXHIBIT A

                       OPINION OF COUNSEL FOR THE BORROWER

                                __________, 20__

FGIC Securities Purchase, Inc.
Financial Guaranty Insurance Company
125 Park Avenue, 5th Floor
New York, New York 10017

Re:    $__________ [Issuer] [Name of Bonds] ([Insert name of Conduit Project)

Dear Ladies and Gentlemen:

         We have acted as counsel for ____________________ (the "Borrower") in
connection with (i) the Standby Bond Purchase Agreement dated as of __________,
20__ (the "Standby Bond Purchase Agreement") between FGIC Securities Purchase,
Inc. and _________________, as Trustee (the "Trustee"), (ii) the Payment
Agreement among the Borrower, the Issuer and FGIC Securities Purchase, Inc.
dated as of __________, 20__ (the "Payment Agreement"), (iii) a [Name of
Authorizing Document] dated as of __________, 20__, between the Issuer and the
Trustee (the "Authorizing Document"), as in effect on the date hereof and (iv) a
Loan Agreement dated as of __________, 20__, between the Issuer and the
Borrower. The Standby Bond Purchase Agreement, the Payment Agreement, the
Authorizing Document, the Loan Agreement and all other documents (to which the
Borrower is a party) relating to the issuance of the captioned Bonds or the
security therefor are hereinafter referred to as the "Agreements". You have
requested our opinion as to certain matters concerning the Agreements. Terms
defined in the Standby Bond Purchase Agreement or in the Payment Agreement are
used herein as defined therein.

         Based on our examination of existing law, the Agreements, such legal
proceedings and such other documents as we deem necessary to render this
opinion, we are of the opinion that:

         1.       The Payment Agreement has been duly executed and delivered by
the Borrower pursuant to due authorization and constitutes the valid and binding
agreement of the Borrower enforceable against the Borrower in accordance with
its terms, except as (x) limited by insolvency, reorganization, receivership,
conservatorship, liquidation, moratorium or other similar laws affecting the
enforcement of creditors' rights generally as such laws would apply in the event
of the insolvency, reorganization, receivership, conservatorship or liquidation
of, or other similar occurrence with respect to, the Borrower or in the event of
any moratorium or similar occurrence affecting the Borrower, and (y) limited by
equitable principles (regardless of whether the issue of enforceability is
considered in a proceeding in equity or at law).
<PAGE>
         2.       The execution and delivery by the Borrower of, and the
performance by the Borrower of its obligations under, the Payment Agreement will
not contravene any provision of law applicable to the Borrower or any material
agreement or other instrument binding upon the Borrower known to us, and no
consent, approval or authorization of any governmental body or agency (which has
not been obtained) is required for the performance by the Borrower of its
obligations under the Payment Agreement.

         3.       Except as disclosed in the Official Statement relating to the
Variable Rate Bonds, there is no action, suit or proceeding pending against, or
to the best of our knowledge, threatened against, the Borrower before any court
or arbitrator or any governmental body, agency or official in which there is a
reasonable possibility of an adverse decision which could materially adversely
affect the financial position or results of operations of the Borrower or which
in any manner draws into question the validity or enforceability of the
Agreements.

                                    Very truly yours,

                                    -----------------------------------
                                    Counsel for the Borrower

<PAGE>
<TABLE>
<S>                                                                           <C>
ARTICLE I   DEFINITIONS ...................................................    1
     SECTION 1.01.  Definitions ...........................................    1
     SECTION 1.02.  Incorporation of Certain Definitions by Reference .....    4
ARTICLE II  COMMITMENT TO PURCHASE VARIABLE RATE BONDS ....................    4
     SECTION 2.01.  Commitment to Purchase Variable Rate Bonds ............    4
     SECTION 2.02.  Method of Purchasing ..................................    4
     SECTION 2.03.  Termination of Commitment .............................    5
     SECTION 2.04.  Sale of Variable Rate Bonds ...........................    5
     SECTION 2.05.  Reduction of Available Commitment .....................    6
ARTICLE III CONDITIONS ....................................................    6
     SECTION 3.01.  Conditions to Effectiveness ...........................    6
     SECTION 3.02.  Conditions to Purchase ................................    7
ARTICLE IV  REPRESENTATIONS AND WARRANTIES ................................    7
     SECTION 4.01.  Existence .............................................    7
     SECTION 4.02.  Authorization; Contravention ..........................    7
     SECTION 4.03.  Binding Effect ........................................    7
     SECTION 4.04.  Corporate Existence ...................................    8
     SECTION 4.05.  Authorization; Binding Effect .........................    8
     SECTION 4.06.  Contravention; No Default .............................    8
     SECTION 4.07.  Litigation ............................................    8
ARTICLE V   COVENANTS .....................................................    8
     SECTION 5.01.  No Amendment of GE Capital Agreement Without Consent
                    of Issuer, Borrower and Trustee .......................    8
     SECTION 5.02.  Other Liquidity Facilities ............................    9
     SECTION 5.03.  Disclosure ............................................    9
ARTICLE VI  DEFAULTS ......................................................    9
     SECTION 6.01.  Events of Default .....................................    9
ARTICLE VII MISCELLANEOUS .................................................   11
     SECTION 7.01.  Notices ...............................................   11
     SECTION 7.02.  No Waivers ............................................   11
     SECTION 7.03.  Amendments and Waivers ................................   11
     SECTION 7.04.  Successors and Assigns ................................   11
     SECTION 7.05.  Term of this Agreement ................................   12
     SECTION 7.06.  Governing Law .........................................   12
     SECTION 7.07.  Counterparts ..........................................   12
     SECTION 7.08.  Trustee May Act through Agents and Appoint Co-Trustees    12
</TABLE>
<PAGE>
<TABLE>
<S>                                                                           <C>
     SECTION 7.09.  Beneficiaries .........................................   12
     SECTION 7.10.  Capacity of Trustee ...................................   13
     SECTION 7.11.  Responsibility of Corporation for Trustee Actions .....   13
</TABLE>

EXHIBIT 1 - NOTICE OF PURCHASE
EXHIBIT 2 - TERMINATION NOTICE
EXHIBIT 3 - NOTICE ADDRESSES
EXHIBIT 4 - PAYMENT AGREEMENT

2<PAGE>
                                                                     Exhibit 4.1

            UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. 1
Cusip No.   637432600

                                      7,000,000 Subordinated Deferrable Interest
                                   Debentures (QUICS), $25 principal amount each

            NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

                    7.40% QUARTERLY INCOME CAPITAL SECURITIES
             (SUBORDINATED DEFERRABLE INTEREST DEBENTURES DUE 2050)

            NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION, a
cooperative association duly organized and existing under the laws of the
District of Columbia (herein referred to as the "Company", which term includes
any successor Person under the Indenture), for value received, hereby promises
to pay to CEDE & CO., or registered assigns, the principal sum of $175,000,000
on November 1, 2050, to pay interest on said principal sum from November 2, 2001
or from the most recent Interest Payment Date through which interest has been
paid or duly provided for, quarterly in arrears on February 1, May 1, August 1,
and November 1 of each year, commencing February 1, 2002, at the rate of 7.40%
per annum to, but not including, the date on which the principal hereof is paid
or made available for payment. The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
months. In the event that any date on which interest is payable on the
Securities is not a Business Day, then payment of the interest payable on such
date will be made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of any such delay), except
that, if such Business Day is in the next succeeding calendar year, such payment
will be made on the immediately preceding Business Day, in each case with the
same force and effect as if made on such date. A "Business Day" is any day other
than a day on which banking institutions in New York City are authorized or
obligated by law to close. The interest so payable, and punctually paid or duly
<PAGE>
provided for, on any Interest Payment Date will, as provided in such Indenture,
be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be the Business Day next preceding such Interest
Payment Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in the Indenture referred to on the reverse hereof.

            Payment of the principal of and interest on this Security will be
made at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, the City and State of New York, in such coin or currency
of the United States of America at the time of payment is legal tender for
payment of public and private debts.

            Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

            Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

            IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed.

                                    NATIONAL RURAL UTILITIES
                                    COOPERATIVE FINANCE CORPORATION

                                    By:_______________________________

ATTEST:

__________________________________
<PAGE>
                          CERTIFICATE OF AUTHENTICATION

Dated: November 2, 2001

            This is one of the Securities of the series designated herein
referred to in the within-mentioned Indenture.

                                    BNY MIDWEST TRUST COMPANY

                                    By:______________________________
                                          Authorized Signatory
<PAGE>
                                REVERSE OF QUICS

            This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of October 15, 1996, as amended (herein
called the "Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and BNY Midwest Trust Company, as successor
trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof in
the initial principal amount of $175,000,000 (which principal amount may be
increased in accordance with the Indenture).

            The Securities of this series are subject to redemption upon not
less than 30 nor more than 60 days' notice by mail, at any time on or after
November 1, 2006 as a whole or in part, at the election of the Company, at a
Redemption Price equal to 100% of the principal amount, together in the case of
any such redemption with accrued interest to, but not including, the Redemption
Date, but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holder of such Security, or one or more
Predecessor Securities, of record at the close of business on the related
Regular Record Date referred to on the face hereof, all as provided in the
Indenture. If a partial redemption would result in a delisting of the Securities
from any national securities exchange on which the Securities are then listed,
the Company may redeem such Securities only in whole.

            In the event of redemption of this Security in part only, a new
Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

            The indebtedness evidenced by this Security is, to the extent
provided in the Indenture, subordinated and subject in right of payment to the
prior payment in full of all Senior Indebtedness, and this Security is issued
subject to the provisions of the Indenture with respect thereto. Each Holder of
this Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee his attorney-in-fact for
any and all such purposes. Each Holder hereof, by his acceptance hereof, hereby
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such Holder upon
said provisions.

            The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security upon compliance with certain conditions set
forth in the Indenture.

            If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.
<PAGE>
            In addition to the events of default set forth in the Indenture, the
following will constitute an Event of Default under the Indenture with respect
to the Securities: the Company shall pay any dividend or interest on, or
principal of, or redeem, purchase, acquire or make a liquidation payment with
respect to, any Members' Subordinated Certificates, Members' Equity or patronage
capital, if such payment is made during an Extension Period, and either (i) such
Extension Period has not expired or been terminated or (ii) the Company has not
made all payments due on the Securities as a result of such expiration or
termination.

            The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

            As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 33-1/3% in aggregate
principal amount of the Securities of this series at the time Outstanding shall
have made written request to the Trustee to institute proceedings in respect of
such Event of Default as Trustee and offered the Trustee reasonable indemnity,
and the Trustee shall not have received from the Holders of a majority in
aggregate principal amount of Securities of this series at the time Outstanding
a direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice, request and offer
of indemnity. The foregoing shall not apply to any suit instituted by the Holder
of this Security for the enforcement of any payment of principal hereof or
interest hereon on or after the respective due dates expressed herein.

            No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

            The Company shall have the right at any time and from time to time
during the term of the Securities of this series to extend the interest payment
period to a period not exceeding 20 consecutive quarters (an "Extended Interest
Payment Period"), and at the end of such Extended Interest Payment Period or
upon the date of the termination of the Extended Interest Payment Period if
prior to the end, the Company shall pay all interest then accrued and unpaid
(together with interest thereon at the same rate as specified for the Securities
of this series to the extent permitted by applicable law) through the last day
of such Extended Interest
<PAGE>
Payment Period, provided that if any principal amount of this Security is paid
on such day, then not including interest for such day with respect to such
principal amount; provided, that during such Extended Interest Payment Period
the Company may not declare or pay any dividend on, or redeem, purchase, acquire
or make a liquidation payment with respect to, any of its Members' Subordinated
Certificates, Members' Equity or patronage capital. Prior to the termination of
any such Extended Interest Payment Period, the Company may further extend the
interest payment period, provided that such Extended Interest Payment Period,
together with all such previous and further extensions thereof, may not exceed
20 consecutive quarters or extend beyond the Stated Maturity of the Securities
of this series. Upon the termination of any such Extended Interest Payment
Period and the payment of all amounts then due, the Company may select a new
Extended Interest Payment Period, subject to the above requirements. No interest
during an Extended Interest Payment Period, except at the end thereof, shall be
due and payable. The Company shall give the Holder of this Security notice of
its selection of such Extended Interest Payment Period as provided in the
Indenture.

            The Securities of this series are issuable only in registered form
without coupons in denominations of $25 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor and of authorized denominations,
as requested by the Holder surrendering the same.

            No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

            The Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the absolute
owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

            All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

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