The rating on District of Columbia's bonds, issued on behalf of the American National Red Cross, is based on an irrevocable direct-pay LOC provided by Bank One N.A. The LOC, which expires on Feb. 7, 2003, provides sufficient coverage for principal and interest, including the purchase price of tendered bonds at the maximum bond interest rate of 15%. The bonds initially will bear at a flexible-rate period, but upon mandatory tender may be converted to a daily, weekly, or term rate period. During the flexible rate, interest is payable on the first business day immediately following the last day of each period. No flexible rate period may exceed the number of days of interest coverage provided by the LOC, minus
