S&P - Public Finance Criteria (2007). - The Global Clearinghouse

Cross Sector Criteriaassets that have greater volatility due to poor creditquality and longer maturity. Market valuation periodsgreater than weekly will lead to larger discountfactors for most assets. Standard & Poor’s alsoneeds to understand the actions an issuer will takeif the valuation falls short of expected level. Oncecollateral levels and valuation periods are determined,including these requirements in the legaldebt documents will be viewed positively in theassignment of ratings.What Are Available Assets?Available assets are defined as cash and fixedincomeinvestments that are not needed to meetdaily operating needs. Should an issuer need toliquidate its assets to cover a failed commercialpaper rollover or VRDO tender, the reduction inthe issuer’s liquidity position should not impair theissuer’s ongoing ability to meet its daily cash flowneeds, including the payment of long-term debtobligations. In short, the liquidation and use ofSample Liquidation Letter (continued)Daily period mode. Optional tender date of one day.To be completed by■ 10:00am–Holder delivers optional tender notice to Tender Agent■ 10:15am–Tender Agent notifies Guarantor, Trustee, and Remarketing Agent of receipt of notice■ 12:00 noon–Remarketing Agent notifies Tender Agent of bonds remarketed and registration instructions■ 12:30pm–Tender Agent notifies Guarantor and Trustee of purchase price and projected additional funding amount■ 1:15pm–Remarketing Agent and Guarantor, if necessary, deliver monies to Tender Agent to be applied for purchase oftendered bonds■ 1:30pm–If necessary, Tender Agent notifies Guarantor of additional funding amount■ 4:30pm–If necessary, Guarantor shall deliver additional funding amount to Tender AgentWeekly period mode. Optional tender ("OTD") of seven days.To be completed by■ 4:00pm–Holder delivers optional tender notice to Tender Agent. OTD of six days.■ 12.00pm–Tender Agent notifies Guarantor, Trustees, and Remarketing Agent of receipt of notice. OTD of one business day.■ 4:00pm–Remarketing Agent notifies Tender Agent of bonds remarketed and registration instructions.Optional tender day. To be completed by■ 10:00am–Holder delivers bonds to Tender Agent; Tender Agent notifies Guarantor and Trustee of purchase price and projectedadditional funding amount■ 12:00pm–Tender Agent makes available to Remarketing Agent new bonds for redelivery■ 1:15pm–Remarketing Agent and Guarantor, if necessary, deliver monies to Tender Agent to be applied for purchase oftendered bonds■ 1:30pm–If necessary, Tender Agent notifies Guarantor of additional funding amount■ 4:30pm–If necessary, Guarantor shall deliver additional funding amount to Tender AgentShort-term period. Mandatory tender date.To be completed by■ 10:00am–Holder delivers bonds to Tender Agent■ 12:00pm–Remarketing Agent notifies Tender Agent of bonds remarketed and registration instructions■ 12:30pm–Tender Agent notifies Trustees of purchase price and projected additional funding amount■ 1:15pm–Remarketing Agent, if necessary, deliver monies to Tender Agent to be applied for purchase of tendered bonds■ 1:30pm–If necessary, Tender Agent notifies Trustees of additional funding amount■ 4:30pm–If necessary, Trustees shall deliver additional funding amount to Tender AgentIf you have questions regarding any of the above, please contact me. Thank you.Sincerely,[NAME]["ISSUER"]24 Standard & Poor’s Public Finance Criteria 2007