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The Initial Credit Facility • The Initial Credit Facility is an irrevocable obligation of the Initial Credit Facility Issuer. The Initial Credit Facility will be issued in an amount equal to $ ,which comprises a principal component of $ ,which is equal to the original principal amount of the Bonds, plus an interest component of $ ,which is equal to 57 days' interest thereon at a rate per annum equal to 12 9b calculated on the basis of a year of 365 or 366 days, as appropriate, for actual days elapsed (the "Cap Interest Rate"). The amount of the Initial Credit Facility and the maximum amount which may be drawn from the Initial Credit Facility Issuer are subject to reduction and reinstatement on the terms summarized below. The Trustee, upon compliance with the terms of the Initial Credit Facility, is authorized to draw on the Initial Credit Facility (by presenting drafts and certificates as provided therein) an amount sufficient to pay (a) principal of the Bonds (other than Pledged Bonds (as defined in the Reimbursement Agreement) and Bonds bearing interest at a Fixed Rate) when due upon redemption, purchase in lieu of redemption or acceleration, (b) the Tender Price of Bonds (other than Pledged Bonds and Bonds bearing interest at a Fixed Rate) upon optional or mandatory tender for purchase, and (c) up to 57 days' of interest on Bonds (other than Pledged Bonds and Bonds bearing interest at a Fixed Rate) at the Cap Interest Rate when due. The amount available under the Initial Credit Facility will be reduced to the extent of any drawing thereunder, subject to reinstatement in certain cases on the terms summarized below. With respect to a drawing by the Trustee solely to pay interest on the Bonds, the amount available under the Initial Credit Facility automatically will be reinstated, in the amount of such drawing, on the calendar day following such drawing, unless (i) the Trustee shall have received notice from the Initial Credit Facility Issuer within such period that the Authority failed to reimburse the Initial Credit Facility Issuer for the amount of such drawing in accordance with the terms of the Reimbursement Agreement and that the Initial Credit Facility Issuer's obligations shall not be reinstated or (ii) such drawing of interest relates to optional or mandatory redemption or purchase in lieu thereof or purchase upon optional or mandatory tender resulting in a cancellation of Bonds. With respect to a drawing to • pay the Tender Price of any Bonds upon optional or mandatory tender for purchase, the amount available under the Initial Credit Facility will be reinstated, in the amount of such drawing, by notice given by the Initial Credit Facility Issuer upon reimbursement to the Initial Credit Facility Issuer of the amount of such drawing plus all accrued interest thereon except that the Initial Credit Facility Issuer may in its discretion (evidenced by a notice from the Initial Credit Facility Issuer to the Trustee) refuse to reinstate all or a portion of the amount available under the Initial Credit Facility which has been automatically reduced by such drawing if there shall have occurred and be continuing a Default or Potential Default (as defined in the Reimbursement Agreement) under the Reimbursement Agreement. The Initial Credit Facility will expire on the earliest of: (a) the Initial Credit Facility Issuer's close of business on ,1999 (the "Termination Date"); (ti)the date on which the Initial Credit Facility Issuer honors. a draw to pay the Bonds (other than Pledged Bonds and Bonds bearing interest at a Fixed Rate) upon their acceleration as a result of an Event of Default under the Indenture; (c) the Initial Credit Facility Issuer's close of business on the day after the Trustee receives written notice from the Initial Credit Facility Issuer that (i) a Default has occurred under the Reimbursement Agreement and (ii) the Initial Credit Facility shall be terminated at the close of business at the office of the Initial Credit Facility Issuer on the day from the day such written notice is received by the Trustee; (d) the Initial Credit Facility Issuer's close of .business on the day the interest on all of the Bonds outstanding has been converted to a Fixed Rate; and (e) the Initial Credit Facility Issuer's close of business on the day following receipt by the Initial Credit Facility Issuer of a certificate from the Trustee to the effect that (i) no Bonds remain Outstanding Bonds within the meaning of the Indenture, or (ii) all drawings required to be made under the Indenture and available under the Initial Credit Facility have been made and honored and, accordingly, the stated amount of the Initial Credit Facility has been permanently reduced to zero. The Initial Credit Facility provides that the Termination Date shall be postponed for an additional one-year period from time to time if the Initial Credit Facility Issuer shall forward to the Trustee by registered mail a written • notice in substantially the form specified in the Initial Credit Facility not later than the date _ days before the Termination Date then in effect. The Initial Credit Facility does not provide that the Initial Credit Facility Issuer -15-