(2)   Conforming to the requirements of Section 4.05(2) of the Basic Resolution, if,
whenever, and so long as the amount on deposit in the Debt Service Reserve (as part of the Bond
Fund) shall be less than the Required Current Debt Service Reserve Accumulation or the
Required Debt Service Reserve (as defined herein), with respect to Outstanding Bonds for any
future year ending May 1, the Treasurer shall transfer from the first available funds in the
Revenue Fund and deposit in the Bond Fund, whatever additional amounts over and above all
deposits otherwise required to be made into the Bond Fund, as set out in the foregoing paragraph
(1) of this Section, shall be required in order to restore and maintain the Required Current Debt
Service Reserve Accumulation or the Required Debt Service Reserve in the Debt Service
Reserve portion of the Bond Fund.

       (3)   It is further determined by the Board that in calculating the amount of the required
annual payments to be made by the Board into the Bond Fund to meet the principal and interest
requirements of All (Outstanding) Bonds, the Board shall (whenever and so long as the Required
Current Debt Service Reserve Accumulation or the Required Debt Service Reserve has been
accumulated and is being maintained), take credit for the investment income derived from the
investment of funds in the Bond Fund, including funds in the Debt Service Reserve; provided,
further, however, that the Board, in compliance with the arbitrage requirements of the Internal
Revenue Code of 1986, as amended, represents that amounts on deposit in the Bond Fund will be
used within thirteen (13) months from the date of deposit for the payment of principal of and
interest on the Outstanding Bonds; and the Bond Fund will annually be depleted through such
application, for current debt service requirements on the Outstanding Bonds, except for an
amount equal to not more than the greater of (a) one-twelfth (1/12) of the debt service
requirements of the Outstanding Bonds for the then ensuing year, or (b) one year's earnings on
the Bond Fund.

       Section 4.3. Adjustments in the Debt Service Reserve. It is hereby determined that it is
necessary (a) in order to comply with the parity requirements of the Basic Resolution, and (b) for
the marketability of the Series N (Second Series) Bonds, that the Debt Service Reserve shall
continue to be maintained and, when necessary, accumulated and/or restored, in an amount equal
to the "Maximum Aggregate Principal, Interest and Bond Fund Charges" (as defined in the Basic
Resolution) with respect to all Outstanding Bonds for any future year ending May 1 (the
"Required Debt Service Reserve").

      The Debt Service Reserve shall not (except where the amount on deposit therein shall
exceed the Required Debt Service Reserve) be used for any purpose except to make the
payments required to be made from the Bond Fund when there are insufficient funds available in
the Bond Fund for such purposes.

                                    (End of Article IV)



-24-