The 'AAA/A-1+' rating assigned to Oceanside, Calif.'s bonds is based on a credit and liquidity facility provided by Freddie Mac. The bonds bear interest at a variable rate, including daily, weekly, monthly, quarterly, semi-annual, SAVRS, or they may be fixed. Bondholders have optional tender rights in all modes except the fixed. The bonds are subject to mandatory and option redemptions and may be subject to mandatory tender in lieu of redemption for conversion to another mode of interest, the day the bonds are converted to the fixed-rate mode, and upon termination or replacement of the credit facility with an entity that does not maintain the rating.
