The rating on Portland, Ore.'s bonds reflects: * The FNMA credit enhancement of the mortgage backing the bonds through a collateral agreement and MBS guarantee, * 'AAA' rated investments, and * Cash flows evidencing the full and timely payment of debt service and program fees. Bond proceeds will be used to fund a $9.27 million mortgage that is backed by a FNMA collateral agreement upon closing on the bonds. FNMA pledges under the collateral agreement to cover missed mortgage payments and any shortfalls following an involuntary mortgage prepayment, or acceleration of bond maturities. FNMA's collateral agreement is a GO of the entity and extends to all trust estate funds deemed a preference and to funds subject to the stay provisions
