The 'AAA' rating on Tennessee Housing Development Agency's notes reflects investments rated 'AAA'. At closing, bond proceeds will be deposited into the note escrow fund and invested in either U.S. Treasury Bills or Freddie Mac Discount Notes. The bonds will bear interest at a rate equal to 99% of the return on the investment. Excess interest earnings will be rebated back to the federal government. The bonds are subject to mandatory tender from remarketing proceeds on June 10, 2004. If there are insufficient remarketing proceeds to purchase all of the bonds outstanding, the bonds will be subject to a special mandatory redemption in whole on such remarketing date.
