The rating assigned to Philadelphia Authority for Industrial Development, Pa.'s debt obligations, issued on behalf of Chemical Heritage Foundation, is based on a direct-pay LOC provided by First Union National Bank. The LOC, which expires on May 10, 2006, provides coverage for principal, the purchase price corresponding to the principal of the bonds, and the interest component of up to 51 days at a maximum rate of 12%. The bonds will initially bear interest at a weekly rate but upon mandatory tender may be converted to a monthly rate, fixed rate, or term rate mode. During the weekly and monthly modes, interest will be paid on the first business day of each calendar month, and with respect to term and
