The rating on Burnsville, Minn.'s bonds reflects: The quality of the mortgage loan collateral, Sufficiency of reserves to cover any potential shortfalls, Sufficiency of assets and revenues to pay debt service and expenses, An asset-to-liability position of 118.8% as of Oct. 15, 1998, and The quality of investments. The mortgage loan is insured by FHA under section 221(d)(4) of the National Housing Act. Accordingly, should the mortgagor default under his obligations under the mortgage note, the trustee will be entitled to file mortgage insurance benefits. To preserve timely debt service to bondholders, there is a debt service reserve fund (DSRF) sized at seven months' maximum annual debt service. The trustee, U.S. Bank Trust N.A., is familiar with the FHA assignment
