The rating on Rhode Island Health and Educational Facilities Building Corp.'s bonds, issued for Rhode Island Hospital, is based on a deposit of U.S. government obligations held in escrow. The bonds were legally defeased on Jan. 7, 1997, at which time a float forward agreement was executed with Bear Stearns Capital Markets Inc. On May 3, 1999, Bear Stearns entered into an agreement whereby Bear Stearns transferred to the trustee of the municipal securities trust certificates trustee series 1999-69 its rights to purchase from the bond trustee $27 million of escrow securities. The assignment option remains in effect until the trust terminates.
