The 'AAA' rating on the City of Austin, Texas' (Travis and Williamson counties) public improvement refunding bonds, series 2005 is based on an escrow funded with refunding bond proceeds and amounts received as payment under a float forward agreement between Citigroup Financial Products, Inc. and the escrow agent. The bonds were defeased on March 8, 2005, at such time the float forward agreement was entered into with Citigroup Financial Products. The float forward agreement gave Citigroup Financial Products the right to substitute the escrow investment as they matured. Proceeds from the float forward agreement are being used to purchase 'AAA' rated U.S. government obligations, Resolution Funding Corporation interest strip components that have been stripped by request of the Federal Reserve
