Rhode Island Health and Educational Building Corp.

The 'AA-/A-1+' rating on Rhode Island Health and Educational Building Corp.'s variable rate hospital financing revenue refunding bonds, series 2003B and 2003C (taxable), is based on a direct-pay LOC issued by Citizens Bank of Rhode Island ('AA-/A-1+'). The scheduled expiration date of the LOC is Nov. 15, 2007. The LOC will initially provide payment for regularly scheduled principal and interest, as well as for unremarketed tendered bonds, for a maximum of 210 days of interest at the initial rate established at closing until Nov. 15, 2007. Thereafter, the LOC will provide payments for principal, interest, and unremarketed bonds for a maximum of 210 days of interest at 12% annually. Interest automatically reinstates 10 calendar days after a draw for interest.

...The '##-/A-1+' rating on Rhode Island Health and Educational Building Corp.'s variable rate hospital financing revenue refunding bonds, series 2003B and 2003C (taxable), is based on a direct-pay LOC issued by Citizens Bank of Rhode Island ('##-/A-1+'). The scheduled expiration date of the LOC is Nov. 15, 2007. The LOC will initially provide payment for regularly scheduled principal and interest, as well as for unremarketed tendered bonds, for a maximum of 210 days of interest at the initial rate established at closing until Nov. 15, 2007. Thereafter, the LOC will provide payments for principal, interest, and unremarketed bonds for a maximum of 210 days of interest at 12% annually. Interest automatically reinstates 10 calendar days after a draw for interest. Notice of nonreinstatement is to be provided within 10 calendar days after the draw is made. The remedy for nonreinstatement is acceleration of the bonds. Initially, the bonds shall bear interest in an initial rate that pays interest...

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