The long-term, 'AAA' rating assigned to the District of Columbia's bonds is based on a bond insurance policy provided by MBIA ('AAA'). The short-term, 'A-1+' rating is based on an SBPA provided by Bank of America ('AA-/A-1+'). The SBPA provides coverage for the purchase price of tendered bonds that are not successfully remarketed, including the principal of and interest on the bonds for a maximum of 183 days at 10% per annum in the all modes except fixed rate. The SBPA expires three years after issuance of the bonds, unless earlier terminated or extended according to its terms. The bonds will initially bear interest in the weekly rate mode but may be converted at any time to the daily, term,
