55B - RESO - WARNER ASSESSMENT DISTRICT

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(iv) Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by Standard & Poor's of "AAAm -G," "AAA -m" or "AA -m" and, if rated by Moody's, rated "Aaa," "Aal" or "Aa2" by Moody's, including funds for which the Fiscal Agent or any of its affiliates provides investment management services; (v) Certificates of deposit secured at all times by collateral described in clauses (i) and /or (ii) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the Fiscal Agent on behalf of the Owners of the Bonds must have a perfected first security interest in the collateral; (vi) Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by Federal Deposit Insurance Corporation (FDIC), including Bank Insurance Fund (BIF) and Savings Association Insurance Fund (SAIF); (vii) Investment agreements with domestic or foreign banks or corporations the long- term debt or claims paying ability of which or, in the case of a guaranteed corporation, the long- term debt, or, in the case of a monoline financial guaranty insurance company, the financial strength, of the guarantor is rated in at least the double A category by Standard & Poor's and Moody's; provided, that, by the terms of the investment agreement: (a) interest payments are to be made to the Fiscal Agent at times and in amounts as necessary to pay debt service on the Bonds; (b) the invested funds are available for withdrawal without penalty or premium, at any time upon not more than seven (7) days' prior notice; (c) the investment agreement shall provide that it is the unconditional and general obligation of, and is not subordinated to any other obligation of, the provider thereof, (d) the City and the Fiscal Agent receive the opinion of domestic counsel (which opinion shall be addressed to the City) that such investment agreement is legal, valid, binding upon and enforceable against the provider in accordance with its terns and of foreign cormsel (if applicable) in form and substance acceptable, and addressed to, the City; (e) the investment agreement shall provide that if during its term (1) the provider's rating by either Standard & Poor's or Moody's falls below "AA-" or "Aa3", respectively, the provider shall, at its option, within ten (10) days of receipt of publication of such downgrade, either (i) collateralize the investment agreement by delivering or transferring in accordance with the applicable state and federal laws (other than by means of entries on the provider's books) to the City, the Fiscal Agent or a third party acting solely as agent therefor (the "Holder of the Collateral ") collateral free and clear of any third -party liens or claims, the market value of which collateral is maintained at levels and upon such conditions as would be -7- 55B-27