The rating on Washington State Housing Finance Commission's bonds reflects: * Assets consisting of GNMA and FNMA mortgage-backed securities-payments of principal and interest on the GNMA securities, backed by the full faith and credit of the U.S. government, while the FNMA pavements have an implied backing of the U.S. government; * Sufficiency of payments on the GNMA and FNMA securities to pay debt service on the bonds and fees; and * Float and acquisition monies invested with FGIC ('AAA'). Bond proceeds initially are deposited into an acquisition fund and invested in a guaranteed investment contract provided by FGIC. Acquisition monies not used to acquire GNMA or FNMA certificates by November 26, 1996 will redeem bonds on December 1, 1996. In
