The rating on Louisiana Public Facilities Authority's equipment and capital facilities pool loan program is based solely on a confirming LOC provided by the Federal Home Loan Bank of Dallas. ('AAA/A-1+'). The fronting LOC, provided by Hibernia National Bank of New Orleans, provides coverage for all principal and interest bond payments, including the purchase price of tendered bonds. The LOC covers 45 days' interest at the maximum rate of 12%. The confirming LOC guarantees payment in the event that the fronting bank does not honor the LOC. In that event, the trustee shall call an acceleration of the bonds, and the confirming LOC will make a onetime payment on the bonds. The confirming LOC terminates on Nov. 5, 2007. The
