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Tab_3:.i JII I II]I 1 i DF!I] Ru I [I]I CERTIFICATE ALASKA MUNICIPAL BOND BANK $80,435,000 GENERAL OBLIGATION AND REFUNDING BONDS 2016 SERIES THREE AND $29,400,000 GENERAL OBLIGATION AND REFUNDING BONDS 2016 SERIES FOUR I, DEVEN J. MITCHELL, Executive Director of the Alaska Municipal Bond Bank (the "Bank"), HEREBY CERTIFY that the attached copy of the General Obligation Bond Resolution adopted by the Board of Directors of the Bank (the "Board") on July 13, 2005, as amended by Resolution No. 2009-03, adopted by the Board on May 28, 2009 and effective as of August 19, 2009 and as further amended by Resolution No. 2013-02, adopted by the Board on February 19, 2013 (as so amended, the "General Bond Resolution"), is a true and correct copy of the General Bond Resolution and that the General Bond Resolution has not been further amended, superseded or repealed and is in full force and effect as of the date hereof. The amendments approved by the Board in Resolution No. 2013-02 will be effective beginning on the date (1) all bonds outstanding under the terms of the General Bond Resolution as of February 19, 2013 cease to be outstanding and (2) the other conditions set forth in Section 203 of Resolution No. 2013-02 are satisfied. IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of November 2016. 1 J. MITCH ye Director [. Adopted July 13, 2005 [Tifis PAGE INTENTIONALLY LEFT BLANK] TABLE OF CONTENTS ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section 101 -Authority for This Resolution . I Section 102 - Resolution Constitutes Contracti Section 103 - Definitions ................1 ARTICLE U AUTHORIZATION AND ISSUANCE OF BONDS Section 201 - Authorization of Bonds and Interest Rate Exchange Agreements .... $ Section 202 Issuance and Delivery of Bonds............................9 Section 203 Provisions for Issuance of Bonds............................9 Section 204.. Provisions for Refunding Bonds...........................10 ARTICLE III GENERAL TERMS AND PROVISIONS OF BONDS Section 301 - Description of Bonds; Payment .........................11 Section 302 - Legends ................12 Section 303 - Execution and Authentication 12 Section 304- Interchangeability of Bonds . 12 Section 305 - Negotiability Transfer and Registry ..........................13 Section 306- Regulations with Respect to Exchanges and Transfers ..........13 Section 307- Bonds Mutilated, Destroyed, Stolen or Lost .....................13 Section 308- Preparation of Definitive Bonds; Temporary Bonds ..................14 ARTICLE IV REDEMPTION OF BONDS Section 401 - Redemption Provisions .... 14 Section 402- Notice of Redemption ......15 Section 403 - Partially Redeemed Fully Registered Bonds ..................16 ARTICLE V CUSTODY AND APPLICATION OF CERTAIN PROCEEDS OF BONDS Section 501 - Application of Certain Proceeds .........................16 ALASKA MUNICIPAL BOND 8ArJK Table of Contents Section 502-Loans ..................18 Section 503 - Retention and Inspection of Documents .......................11 ARTICLE VI ESTABLISHMENT OF FUNDS AND ACCOUNTS AND APPLICATION THEREOF Section 601 - Pledge .................17 Section 602 - Establishment of Funds and Accounts.........................17 Section 603 - Reserve Fund ............18 Section 604 - Interest Account, Principal Account and Redemption Account .....19 Section 605 - Rebate Fund ............20 Section 606 - Operating Fund ..........21 Section 607 - Reduction of Required Debt Service Reserve ...................22 Section 608 -Trustees Maintenance of Records on Payment of Bonds ...............22 Section 609 - Obtaining Credit Enhancements and Interest Rate Exchange Agreements 22 Section 6 10 - Creation of Additional Funds, Accounts and Subaccourits; Separate Credit Enhancement Funds; Pledge with Respect to Credit Enhancements and Interest Rate Exchange Agreements ..........22 ARTICLE VII SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS Section 701 - Security for Deposits ......23 Section 702- Investment of Funds and Accounts Held by the Trustee .........23 Section 703- Liability of Trustee for Investments .......................24 ARTICLE VIII THE TRUSTEE AND THE PAYING AGENT4 Section 801 - Appointment and Acceptance of Duties of Trustee .................24 Section 802- Appointment and Acceptance of Duties Of Paying Agents ...........24 Section 803- Responsibilities of Fiduciaries 24 Section 804 - Evidence on Which Fiduciaries May Act .........................25 Section 805 - Compensation ...........26 Section 806 - Permitted Acts and Functions 26 Section 807 - Resignation of Trustee .....28 Section 808- Removal of Trustee .......26 Section 809 - Appointment of Successor Trustee ..........................26 Po I Section 810 -Transfer of Rights and Property to Successor Trustee ...............27 Section 511 - Merger or Consolidation .. 27 Section 812- Resignation or Removal of the Paying Agents and Appointment of Successors .....................27 Section 813 Evidence of Signatures of Bondholders and Ownership of Bonds .. 27 ARTICLE IX COVENANTS OF THE BANK Section 901 - Payment of Bonds ........ 28 Section 902- Extension of Payment ofBonds .........................28 Section 903- Offices for Servicing Bonds 29 Section 004- Further Assurances .......29 Section 905 - Power to issue Bonds and Make Pledges .....................29 Section 906 - General Covenants of the Bank ........................ 29 Section 907 -Accounts and Reports .....30 Section 908- Personnel and Servicing of Programs .........................30 Section 909 - Waiver of Laws ...........30 Section 910-Fees and Charges ........31 Section 911 - Administration of Reserve Fund ............................31 Section 912-Issuance of Additional Obligations .......................31 Section 913 - Loan Agreement Provisions . 32 Section 914- Modification of Loan Agreement Terms .................. 33 Section 915- Sale of Municipal Bonds by Bank ..........................33 Section 916- Disposition of the Proceeds of Sale or Redemption of Municipal Bonds . 33 Section 917- Enforcement of Municipal Bonds ...........................34 ARTICLE SERIES RESOLUTION AND SUPPLEMENTAL RESOLUTIONS Section 1001 - Modification and Amendment without Consent ...................34 Section 1002- Supplemental Resolutions Effective with Consent of Bondholders .. 35 Section 1003 - General Provisions Relating to Series Resolutions and Supplemental Resolutions .......................35 ALASKA MUNICIPAL 80110 BANK Table of contents ARTICLE XI AMENDMENTS Sedtion 1101 - Powers of Amendment..., 36 Section 1102- Consent of Bondholders... 36 Section 1103- Modifications by Unanimous Consent...........................37 Section 1104- Mailing and Publication ... 37 Section 1105 - Exclusion of Bonds ........37 Section 1106 - Notation on Bonds .......37 ARTICLE XII DEFAULTS AND REMEDIES Section 1201 -Trustee to Exercise Powers of Statutory Trustee ...................38 Section 1202- Events of Default ........38 Section 1203- Remedies ..............38 Section 1204- Priority of Payments After Default ...........................39 Section 1205 -Termination of Proceedings 40 Section 1206 - Bondholders' Direction of Proceedings ......................40 Section 1207 - Limitation on Rights of Bondholders ......................40 Section 1208- Possession of Bonds by Trustee Not Required .......................41 Section 1209 - Remedies Not Exclusive .. 41 Section 1210- No Waiver of Default .....41 Section 1211 - Notice of Event of Default , 41 ARTICLE XIII DEFEASANCE Section 1301 - Defeasance ............42 ARTICLE XIV MISCELLANEOUS Section 1401 - Preservation and Inspection of Documents .......................43 Section 1402- Parties of Interest ........43 Section 1403- No Recourse Under Resolution or on Bonds .......................43 Section 1404 - Severability .............43 Section 1405- Headings ..............44 Section 1406 - Conflict ................44 Section 1407 - Governing Law ..........44 Section 1408 - Effective Date ...........44 Pago GENERAL OBLIGATION BOND RESOLUTION A RESOLUTION CREATING AND ESTABLISHING AN ISSUE OF BONDS OF THE ALASKA MUNICIPAL BOND BANK; PROVIDING FOR THE ISSUANCE FROM TIME TO TIME OF SAID BONDS; PROVIDING FOR THE PAYMENT OF PRINCIPAL OF AND INTEREST ON SAID BONDS; AND PROVIDING FOR THE RIGHTS OF THE HOLDERS THEREOF. BE IT RESOLVED by the Board of Directors of the Alaska Municipal Bond Bank as follows: ARTICLE I STATUTORY AUTHORITY AND DEFINITIONS Section 101 - Authority for This Resolution. This Resolution is adopted pursuant to the provisions of the Act. Section 102 - Resolution Constitutes Contract. In consideration of the purchase and acceptance of the Bonds by those who shall hold the same from time to time, the provisions of this Resolution shall be a part of the contract of the Bank with the Holders of Bonds and shall be deemed to be and shall constitute a contract between the Bank, the Trustee and the Holders from time to time of the Bonds. The pledge hereof and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Bank shall be for the benefit, protection and security of the Holders of any and all of such Bonds. Each Bond, Credit Enhancement facility, and Interest Rate Exchange Agreement, regardless of the time or times of its issue or maturity, shall be of equal rank without preference, priority or distinction over any other Bond, Credit Enhancement facility, or Interest Rate Exchange Agreement except as expressly provided in this Resolution. Section 103 - Definitions. The following terms shall, for all purposes of this Resolution, have the following meanings unless the context shall clearly indicate some other meaning: Accountant's Certificate" shall mean a certificate signed by an independent certified public accountant or a firm of independent certified public accountants selected by the Bank. 'Accreted Amount' shall mean, with respect to Capital Appreciation of Bonds of any Series and as of the date of calculation, the amount established* pursuant to the Series Resolution authorizing such Capital Appreciation Bonds as the amount representing the initial public offering price, plus the accumulated and compounded principal and interest on such Bonds, "Act' shall mean the Alaska Municipal Bond Bank Authority Act, constituting Chapter 85, Title 44, of the Alaska Statutes, as amended to the date of adoption of this Resolution. 'Administrative Expenses' shall mean the Bank's expenses of carrying out and administering its powers, duties and functions, as authorized by the Act, and shall include, without limiting the generality of the foregoing: administrative and operating expenses, legal, accounting and consultant's services and expenses, payments to pension, retirement, health and hospitalization funds, and any other expenses required or permitted to be paid by the Bank under the provisions of the Act or this Resolution or otherwise. "Aggregate Debt Service" far any period shall mean, as of any date of calculation and with respect to all Bonds, the sum of the amounts of Debt Service for such period. "Annual Debt Service" shall mean the total amount of Debt Service for any Outstanding Bonds in any Fiscal Year. "Authorized Denominations' with respect to any Series of Bonds issued hereunder, has the meaning specified in the related Series Resolution. "Authorized Officer" shall mean the Chairman, Vice Chairman, Executive Secretary, or Executive Director of the Bank and any other director, officer or employee of the Bank authorized by resolution of the Bank to perform such act or discharge such debt. 'nJ" shall mean the Alaska Municipal Bond Bank, a public body corporate and politic constituted as a public corporation and instrumentality of the State of Alaska within the Department of Revenue but having a legal existence independent of and separate from the State exercising public and essential governmental functions and created by the Act, or any body, agency or instrumentality of the State which shall hereafter succeed to the powers, duties and functions of the Bank. "Beneficial Owner" shall mean the person in whose name a Bond is recorded as the beneficial owner of such Bond by the respective systems of DTC and the DTC Participants or the Holder of the Bond if the Bond is not then held in book-entry form. "2n" or "gfl' shalt mean any Alaska Municipal Bond Bank Bond or Bonds, or Alaska Municipal Bond Bank Authority Bond or Bonds, as the case may be, authenticated and delivered under this Resolution pursuant to a Series Resolution. "Bondholder" or 'Holder" or words of similar import, when used with reference to a Bond or Bonds, shall mean any person who shall be the registered owner of any Outstanding Bond or Bonds issued in fully registered form or the bearer of any Bond or Bonds issued in bearer form or registered to bearer. When all Bonds of a Series are held by a securities depository, 'Bondholder' or"Holcler" shall mean the beneficial owner of the Series in question determined under the rules of that securities depository; otherwise "Bondholder" or "Holder" means owner of record on the bond register maintained by the Paying Agent. To the extent that the full payment of the interest on and principal of Bonds of a Series is secured by Credit Enhancement, the Credit Enhancement Agency shall be considered to be the "Bondholder" or 'Holder' of all the Bonds of that Series for purposes of exercising any rights with respeotto supplements and amendments to this Resolution if the Credit Enhancement Agreement so provides. 'Bond Year" shall mean each one-year period that ends on an anniversary of the date of Issue of the Bonds. "Book-Entry System" shall mean the system in which the Bonds (represented by one Bond certificate for each maturity of the Bonds) are delivered into the possession of DTC and are issued and fully-registered as to principal and interest in the name of Cede & Co., and whereby beneficial interests in the Bonds are ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 purchased by investors through DTC Participants, such interests shown and transfers thereof effected only through the records maintained by the respective DTC Participants from whom each such Investor acquired such beneficial interest. 'Business Day" shall mean any day other than a Saturday or Sunday or any other day on which banks in New York, Alaska, or the state or states in which any Trustee appointed hereunder performs its duties hereunder are authorized or required to be closed or are closed. "Capital Arrnreciation Bonds" shall mean Bonds, the interest on which (a) is compounded and accumulated at the rates and on the dates set forth in the Series Resolution authorizing the issuance of such Bonds and designating them as Capital Appreciation Bonds, and (b) is payable upon maturity or redemption of such Bonds. "Continuing Disclosure Certificate" shall mean, for each Series, the continuing disclosure certificate executed by the Bank for the purpose of satisfying the continuing disclosure requirements of Rule 15c2-12 of the Securities and Exchange Commission with respect to such Series, as such continuing disclosure certificate Is originally executed and as it may be amended from time to time in accordance with its terms. "Counsel's Opinion" shall mean an opinion signed by an attorney or firm of attorneys of nationally recognized standing in the field of law relating to state and municipal financing (who may be counsel to the Bank) selected by the Bank and acceptable to the Trustee. "Credit Enhancement' shall mean a letter of credit, a line of credit, a credit facility, a surety bond, bond insurance, or any other instrument or arrangement obtained in connection with the issuance of a Series of Bonds to further secure the payment of the Bonds of such Series or to satisfy the Reserve Fund Requirement. "Credit Enhancement Agency" shall mean any bank or other institution that provides Credit Enhancement, Page 2 "Current Interest Bonds' shall mean Bonds not constituting Capital Appreciation Bonds. interest on Current interest Bonds shall be payable periodically on the Interest Payment Dates provided therefor in a Series Resolution, "Debt Service" shall mean for any Series of Bonds Outstanding, an amount equal to the sum of (a) all interest payable during such period of calculation, plus (b) the Principal Installments, if any, payebleduring such period of calculation on such Series of Bonds, "Executive Director" shall mean the Executive Director or Acting Executive Director of the Bank, "Fees and Charges" shall mean all fees and charges authorized to be charged by the Bank pursuant to section 44.85,080(8), (15) and (16) of the Act and charged by the Bank to Governmental Units pursuant to the terms and provisions of Loan Agreements. "Fiduciary' or "Fiduciaries" shall mean the Trustee, and Paying Agent, or any or all of them, as may be appropriate. "Fiscal Year" shall mean any twelve (12) consecutive calendar months commencing with the first day of July and ending on the last day of the following June or such other date as Is authorized by statute and/or selected by the Bank, 'fj" shall mean Fitch Ratings, organized and existing under the laws of the State of Delaware, its successors and their assigns, and, if such organization shall be dissolved orliquidated or shall no longer perform the functions of a securities rating agency, "Fitch" shall be deemed to refer to any other nationally recognized securities rating agency (other than Standard & Poor's or Moody's) designated by the Authorized Officer. "Government Obliflationg" shall mean direct obligations of, or obligations of the payment of and interest on which are unconditionally guaranteed by, the United States of America, "Governmental Unit" shall mean a municipality or such other entity of which the ALASKA MUNICIPAL BOND SANK General Obligation Bond Resolution/Created 711$/05 Bank is authorized by law to purchase its revenue bonds, general obligation bonds, notes, or other forms of indebtedness and which otherwise satisfies conditions found herein and in the Loan Agreement, "Governmental Unit's Allocable, Proportion" shall mean the proportionate amount of the total requirement in respect of which the term is used determined by the ratio that the Loan then outstanding to such Governmental Unit bears to the total of all Loans then outstanding to all Governmental Units; "Interest Account" shall mean the account by that name established by Section 602. "Interest Payment Dat&' shall mean any date upon which interest on any Bonds is payable in accordance with the terms thereof, "Interest Rate Exchange Agreement" shall mean an agreement entered into by the Bank or the Trustee, on behalf of the Bank, providing for an Interest rate cap, floor or swap with respect to any Bonds or Municipal Bonds. "Investment Securities" shall mean the following to the extent permitted by the Act and the laws of the State of Alaska: (1) Governmental Obligations; (2) Bonds debentures, notes or other evidence of indebtedness Issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself); (a) Farmers Home Administration ("FmHA") Certificates of Ownership; (b) Federal Housing Administration ('FHA") Debentures; (c) General Services Administration Participation certificates; 3 (d) Government National Mortgage Association ("GNMA" or "Ginnie Mae") GNMA-guaranteed mortgage-backed bonds or GNMA- guaranteed pass-through obligations (participation certificates); (e) United States Maritime Administration Guaranteed Title XI financing; (f) United States Department of Housing and Urban Development ("HUD") Project Notes Local Authority Bonds; (3) Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following government agencies (stripped securities are only permitted if they have been stripped by the agency itself); (a) Federal Home Loan Bank System. Senior debt obligations (Consolidated d.ebt obligations); (b) Federal Home Loan Mortgage Corporation. ("F}-ILMC" or "Freddie Mac") rated MA by Standard & Poor's and Aaa by Moody's Participation Certificates (Mortgage-backed securities) Senior debt obligations; (c) Federal National Mortgage Association. ("FNMA" or "Fannie Mae") rated AAA by Standard & Poor's and Aaa by Moody's Mortgage-backed securities and senior debt obligations (excluded are stripped mortgage securities which are valued greater than par on the portion of unpaid principal); (d) Student Loan Market Association ("SLMA" or "Sallie Mae") Senior debt obligations; (a) Resolution Funding Corp. ("REFCORP") Only the interest component of REFCORP strips which have been stripped by request of the Federal Reserve Bank of New York in book-entry form are acceptable; and ALASKA MUNICIPAL 80N0 BANK General Obligation Bond ResolutIon/Created 7/13/05 (f) Farm Credit System. Consolidated systemwide bonds, (4) Money marketfunds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of "AAAm-G," "AAAm" or "Mm" or by Moody's of "Aaa" including funds from which the Trustee or its affiliates receive fees for investment advisory or other services to such fund; (5) Certificates of Deposit ("CD") secured at all times by collateral described in (a) and/or (b) above. CD's must have a one-year or less maturity. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks whose short-term obligations are rated "A-l+" or better by S&P, and "Prime-I" or better by Moody's, The collateral must be held by a third party and the third party must have a perfected first security Interest in the collateral; (6) Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully Insured by the Federal Deposit Insurance Corporation ("FDIC"), Including Bank Insurance Fund ('BIF") and Savings Association Insurance Fund ("SAW"); (7) Commercial paper rated "Prime-I" by Moody's and "A-I+' or better by S&P and which matures not more than 210 days after the date of purchase; (8) Bonds or notes Issued by any state or municipality which are rated by Moody's and S&P In the highest long-term rating category assigned by such agencies; (9) Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of "Prime-I" by Moody's and "A-l+" by S&P; (10) Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm (seller/borrower) to a municipal entity (buyer/lender), and the transfer of cash from a municipal entity to the dealer bank or securities firm with an agreement that the dealer Pogo bank or securities firm will repay the cash plus a yield to the municipal entity In exchange for the securities ate specified date; provided, however, that the repurchase agreement must satisfy certain criteria articulated in writing to the Bank by the Rating Agencies and such agreement must be approved in writing prior to its acquisition by each bond insurer then insuring any Series of Bonds; and (11) Investment contracts with providers the long term, unsecured debt obligations of which are rated at Least "Aaa" by the Rating Agencies. "j" shall mean a loan heretofore or hereafter made by the Bank to a Governmental Unit pursuant to the Act and more particularly described in the applicable Series Resolution, 'Loan Agreement" shall mean an agreement, and any amendments thereto, heretofore or hereafter entered Into between the Sank and a Governmental Unit setting forth the terms and conditions of a Loan "Loan Obligation" shall mean that amount of Bonds and the Bonds themselves Issued by the Bank for the purchase of Municipal Bonds of a Governmental Unit. "Maximum Annual Debt Service" shall mean, with respect to any Outstanding Series of Bonds, the highest remaining Annual Debt Service for such Series of Bonds. 'Moody's" shall mean Moody's Investors Service, Inc., a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors and assigns, except that if such corporation shall be dissolved orliquidated orshall no longer perform the functions of a securities rating agency, then the term "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency (other than Fitch or Standard & Poor's) designated by the Authorized Officer. "Municipal Bonds" shall mean general obligation bonds, revenue bonds, notes or other evidences of debt issued by any Governmental Unit as now or hereafter defined In the Act which have heretofore been or will hereafter be ALASKA MUNICIPAL BOND BANK General obligation Bond RasolulloniC routed 7113/05 acquired by the Bank as evidence of a Loan to the Governmental Unit pursuant to the Act. "Municipal Bonds Interest Payment" shall mean that portion of a Municipal Bonds Payment made or required to be made by a Governmental Unit to the Bank which represents the interest due or to become due on the Governmental Unit's Municipal Bonds. "Municipal Bonds Payment' shall mean the amounts paid or required to be paid, from time to time, for principal and interest by a Governmental Unit to the Bank on the Governmental Unit's Municipal Bonds. "Municipal Bonds Principal Payment' shall mean that portion of a Municipal Bonds Payment made or required to be made by a Governmental Unittothe Bankwhich represents the principal due or to become due on the Governmental Unit's Municipal Bonds, "Notes" shall mean any obligations referred to herein issued by the Bank other than Bonds. "Operating Fund" shall moan the fund by that name established by Section 602, "Outstanding" when used with reference to Bonds, other than Bonds referred to In Section 1105 hereof, shall mean, as of any date, all Bonds theretofore or thereupon being authenticated and delivered under this Resolution except: (1) Any Bonds canceled by the Bank or the Trustee at or prior to such date; (2) Bonds for the transfer or exchange of or In lieu of or in substitution for which other Bonds shall have been authenticated and delivered pursuant to this Resolution; and (3) Bonds deemed to have been paid as provided in subsection (B) of Section 1301. "Paying Agent" for the Bonds of any Series shall mean the bank or trust company and its successor or successors, which may include the Trustee, designated by the Bank as Pa9a5 Paying Agent pursuant to the provisions of this Resolution and a Series Resolution or any other resolution of the Bank adopted prior to authentication and delivery of Bonds for which such Paying Agent or Paying Agents shall be so appointed. "Principal shalt mean the account by that name established by Section 602. "Principal Installment' shall mean, as of any date of calculation and with respect to the Outstanding Bonds of any Series, (i) the principal amount of such Bonds which are due on a certain future date, reduced by the aggregate principal amountof such Bonds which would be retired by reason of the pay ment when due and application in accordance with this Resolution of Sinking Fund Payments payable before such future date for the retirement of such Bonds or (ii) the unsatisfied balance of any Sinking Fund Payment due on a certain future date for such Bonds, plus the aggregate amount of the premiums, if any, which would be applicable on such future date upon the redemption of such Bonds by application of such Sinking Fund Payments in a principal amount equal to said unsatisfied balance or.(iii) if such future dates coincide as to different Bonds of such Series, the sum of such principal amount of Bonds, unsatisfied balance and applicable premiums, if any or (Iv) for any particular Series of Bonds the amount specified in the Supplemental Resolution authorizing such Series of Bonds. "Put Bond" shall mean any Bond that Is part of a Series of Bonds subject to mandatory purchase by the Bank, its agent or a third party from the Owner of the Bond pursuant to provisions of the Series Resolution authorizing the issuance'of the Bond. "Rating Agencies" shall mean Moody's, Standard & Poor's and Fitch or their respective successors and assigns and/or such other securities rating agency selected by the Bank'to provide a rating with respect to a Series of Bonds, or any portion thereof, which Rating Agency, as of the applicable date, shall have assigned a rating to any Series of Bonds or any portion thereof. ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolutlo n/Created 7/13/05 "Rebate Calculation Date" shall mean, with respect to each Series of Bonds, the Interest payment date next preceding the fifth anniversary of the issue date of such Series of Bonds, each fifth anniversary of the initial Rebate Calculation Date for such Series of Bonds, and the date of retirement of the last bond for such Series. "Rebate Fund" shall mean the fund by that name established by Section 602. "Rebate Requirement' shall mean the amount of arbitrage profits earned from the Investment of gross proceeds of the Bonds in nonpurpose investments described in Section 148(f)(2) of the Code and defined as "Rebate Amount" in Section 1.148-3 of the Treasury Regulations, which are payable to the United States at the times and lathe amounts specified in Section 148(D)(3) of the Code and Section 1,148-3 of the Treasury Regulations. "Record Date" shall have the meaning set forth in the Series Resolution authorizing the particular Series of Bonds. "Redemption Account,' shall mean the account by that name established by Section 602. "Redemption Price" shall mean, with respect to any Bond, the principal amount thereof, plus the applicable premium, of any, payable upon redemption thereofpursuantto the provisions of such Bond, this Resolution and the Series Resolution pursuant to which the same was issued. "Refunding Bonds" shall mean all Bonds, whether issued in one or more series, authenticated and delivered on original issuance for the purpose of refunding Bonds or other obligations of the Bank and all Bonds thereafter authenticated and delivered upon the transfer or exchange of or in lieu of or in substitution for such Bond pursuant to this Resolution. "Reular Record Date" shall mean, unless otherwise provided in a Series Resolution, with respect to the Bonds, the fifteenth (15th) day immediately preceding each Interest Payment Date (or the Business Day Immediately preceding such fifteenth (15th) day, Po6 If such fifteenth (15th) day is not a Business Day). "Required Debt Service Reserve" shall mean as of any date of calculation, the amount required to be on deposit in the Reserve Fund which amount shall be at least equal to the Reserve Fund Requirement. 'Reserve Fund" shall mean the 2005 General Obligation Bond Resolution Reserve Account established by Section 602 within the Alaska Municipal Bond Bank Reserve Fund created by Section 44.85.270 of the Act. 'Reserve Fund Obligations" shall mean the amount of Bonds issued by the Bank to obtain funds deposited in the Reserve Fund. 'Reserve Fund Reguiremenr shall mean the least of (I) Maximum Annual Debt Service with respect to all Bonds Outstanding; (ii) 125% of Average Annual Debt Service with respect to all Bonds Outstanding; (iii) 10% of the initial principal amount of each Series of Bonds then Outstanding, or (iv) such lower amount as may be required by law. The Reserve Fund Requirement may be satisfied entirely, or In part, by Credit Enhancement as provided for herein; provided, however, any Credit Enhancement satisfying all or any part of the Reserve Fund Requirement after the Initial issuance of Bonds or Issued in substitution for any prior Credit Enhancement previously issued shall not, by itself, cause a withdrawal or a downward revision of the ratings maintained by any Rating Agency with respect to the Bonds, 'Resolution" shall mean this General Obligation Bond Resolution as from time to time amended or supplemented by Supplemental Resolutions or Series Resolutions in accordance with the terms and provisions hereof. "Security Instrument" shall mean an instrument or other device issued by a Security Instrument Issuer to pay, or to provide security or liquidity for, a Series of Bonds. The term "Security Instrument" includes, by way of example and not of limitation, letters of credit, bond insurance policies, standby bond purchase agreements, lines of credit and other security instruments and credit enhancement or liquidity devices; provided, however, that no such device ALASKA MUNICIPAL BOND DANK General Obligation Bond ResolutioWCreated 7113/05 or instrument shall be a "Security Instrument" for purposes of this Resolution unless specifically so designated in a Series Resolution authorizing the use of such device or instrument. "Security Instrument Agreement" shalt mean any agreement entered into by the Bank and a Security Instrument Issuer pursuant to a Series Resolution and/or the applicable portions of a Series Resolution providing for the issuance by such Security Instrument Issuer of a Security Instrument. "Security, Instrument Costs" shall mean, with respect to any Security Instrument, all fees; premiums, expenses and similar costs, other than Security Instrument Repayment Obligations, required to be paid to a'Security Instrument issuer pursuant to a Security Instrument Agreement or the Series Resolution authorizing the use of such Security Instrument. Such Security Instrument Agreement or Series Resolution shall specify any fees, premiums, expenses and costs constituting Security Instrument Costs "Security Instrument Issue shall mean any bank or other financial Institution, Insurance company, surety company or other institution issuing a Security Instrument. "Security, Instrument Repayment Obligations" shall mean, as of any date of calculation and with respect to any Security Instrument Agreement, any outstanding amounts payable by the Bank under the Security Instrument Agreement or the Series Resolution authorizing the use of such Security Instrument to repay the Security Instrument Issuer for payments previously or concurrently made by the Security Instrument Issuer pursuant to a Security Instrument, There shall not be included in the calculation of the amount of Security Instrument Repayment Obligations any Security. Instrument Costs. Each Security Instrument Agreement or the Series Resolution authorizing the use of such Security Instrument shall specify any amounts payable under it which, when outstanding, shall constitute Security Instrument Repayment Obligations and shall specify the portions of any such amounts that are allocable as principal of and as interest on such Security Instrument Repayment Obligations. Page 7 'Series of Bona' or "Bonds of a Series' or words of similar meaning shall mean the Series of Bonds authorized by a Series Resolution. 'Series Resolution" shall mean a resolution of the Bank authorizing the issuance of a Series of Bonds in accordance with the terms and provisions hereof and adopted in accordance with Article X. "Sinking Fund Installment" shall mean, as of any particular date of calculation and with respect to the Outstanding Bonds of any Series, the amount required to be paid at all events by the Bank on a single future date for the retirement of Bonds of such Series which mature after said future date, but does not include any amount payable by the Bank by reason only of the maturity of a Bond. "Standard & Poor's" shall mean Standard & Poor's Ratings Services, a Division of The McGraw-Hill Companies, Inc., and its successors and assigns, except that if such corporation or division shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term "Standard & Poor's" shall be deemed to refer to any ether nationally recognized securities rating agency (other than Moody's or Fitch) designated by the Authorized Officer. shall mean the State of Alaska. 'i4PIemental Resolution" shall mean a resolution supplemental to or amendatory of this Resolution, (other than a Series Resolution) adopted by the Bank in accordance with Article X. "Trustee ' shall mean the bank or trust company appointed pursuant to Section 601 to act as trustee hereunder, and Its successor or successors and any other bank or trust company at any time substituted in Its place pursuant to this Resolution. "Variable Rate Bonds" shall mean, as of any date of calculation, Bonds the terms of which on such date of calculation are such that interest thereon for any future period of time is expressed to be calculated at a rate which is not susceptible to a precise determination. ALASKA MU!VIC!PAL BOND BANK General ObligaUon Bond P.eso1uUon/Creaed 7/13/05 Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context shall otherwise indicate, words importing the singular number shall include the plural number and vice versa, and words importing persons shall include corporations and associations, including public bodies, as well as natural persons. The terms'hereb," "jn" "hereunder," and any similar terms, as used in this Resolution, refer to this Resolution. ARTICLE II AUTHORIZATION AND ISSUANCE OF BONDS Section 201 - Authorization of Bonds and Interest Rate Echange Agreements. (A) Bonds are hereby authorized for issuance hereunder by the Bank, The Bonds may be issued in one or more Series pursuant to one or more Series Resolutions which shall state the purpose or purpdses for which each Series of Bonds is being issued as hereinafter provided without limitation as to amount except as provided in this Resolution or as may be limited by law. Interest Rate Exchange Agreements may only be executed and deliveredby the Bank in connectioi with the issuance and delivery of a Series of Bonds hereunder or in connection with the renewal, substitution or extension of an Interest Rate Exchange Agreement. (B) There is hereby created by this Resolution, in the manner and to the extent provided herein, a continuing pledge and lien to secure the full and final payment of the principal or Redemption Price of, interest on and Sinking Fund Installments for, all of the Bonds Issued pursuant to this Resolution. The Bonds shall be general obligations of the Bank payable as to principal or Redemption Price of, interest on, and Sinking Fund Installments for the Bonds solely from the sources provided in this Resolution and any Series Resolution. The State shall not be liable on the Bonds and the Bonds shall not be a debt or liability, or constitute a pledge or loan of the faith and credit, of the State. The Bonds shall contain on the face thereof a statement to the effect that the Bank is obligated to pay the principal or Redemption Price, if any, of the Bonds and the Pge8 interest thereon only from revenues or funds of the Bank and that the State is not obligated to pay such principal or Redemption Price, if any, or Interest and that neither the faith and credit nor the taxing power of the State is pledged to the payment of the principal or Redemption Price, if any, of, or the interest on, the Bonds. Section 202 Issuance and Delivery of Boncta. After their authorization by a Series Resolution, Bonds of a Series may be executed by or on behalf of the Bank and delivered to the Trustee for authentication and, upon compliance by the Bank with the requirements, if any, set forth in such Series Resolution and with the requirements of Section 203 or, in the case of Refunding Bonds, Section 204, the Trustee shall thereupon authenticate and deliver such Bonds to or upon the order of the Bank. Section 203- Provisions for Issuance of (A) The issuance of the Bonds shall be authorized by a Series Resolution or Series Resgiutlons of the Bank adopted subsequent hereto and the Bonds may be issued in one or more Series. The Bonds of each Series, including Refunding Bonds, shall, in addition to the title "Alaska Municipal Bond Bank General Obligation Bonds," contain such further appropriate particular designations added to such title and the appropriate Series designation as the Bank may determine in such Series Resolution. Each Bond shall bear upon its face the designations so determined for the Series to which it belongs. (B) Each Series Resolution authorizing the issuance of a Series of Bonds shall specify: (1) The authorized principal amount of said Series of Bonds; (2) The purposes for which such Series of Bonds is being Issued, which shall be one or more of the following: (I) making Loans to Governmental Units, (ii) making payments into the Reserve Fund, (Iii) the funding of Notes theretofore issued by the Bank for any purposes for which Bonds may have been-issued, (iv) the refunding of Bonds and related purposes, as provided in Section 204, and (v) any other purpose authorized by law; ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 (3) The date and the maturity date or dates and amounts of each maturity of the Bonds of said Series or the method of determining the same; (4) (I) The Interest rate or rates (If any) or maximum Interest rate of the Bonds of such Series, or the method of determining such rate or-rates (which may be determinable at one or more specified times set forth in the Series Resolution, which may accrete or compound with such frequencies orin such manner as shall be specified in such Series Resolution and which shall be as otherwise specified in the Series Resolution), and the Interest Payment Dates and Record Dates therefor and (ii) a manner of calculating 'accreted value or compounded principal value during all or any part of the term of the Series of Bonds being authorized, if Interest is not payable currently and the Bank determines that It is necessary or appropriate; (5) The denomination ordenominations of, and the manner of numbering and lettering, the Bonds of such Series, provided that each Bond shall be of the denomination of $5,000 or a multiple thereof, not exceeding the aggregate principal amount of the Bonds of such Series maturing in the year of maturity of the Bond for which the denomination is to be specified unless otherwise provided in the Series Resolution authorizing the issuance of such Bonds; (6) The Paying Agent or Paying Agents and the place or places of payment of the principal and Redemption Price, if any, of and interest on the Bonds of such Series or the manner of appointing and designating the same; (7) The Redemption Price or Prices, if any, and, subject to the provisions of Article IV, the redemption terms for the Bonds of such Series or the method of determining the same; (8) The amount and due date of each Sinking Fund installment, if any, for Bonds of like maturity of such Series, or the method of determining such Sinking Fund Installment; (9) The form or forms of the Bonds of such Series and of the Trustee's certificate of authentication; Page 9 (10) The manner of execution of the Bonds of such Series; (11) If, at the time of issuance of the Bonds of such Series, an Interest Rate Exchange Agreement will apply to such Bonds or such Bonds are to be secured by Credit Enhancement, the form of Credit Enhancement or Interest Rate Exchange Agreement to be obtained, the identity of the Credit Enhancement Agency or of the counterparty to the Interest Rate Exchange Agreement, and the substantial form of the significant documents relating to the Credit Enhancement or Interest Rate Exchange Agreement; (12) If Bonds of such Series are to contain any tender or put options or the like, whether such Bonds are to be remarketed and, if so, the identity of any remarketing .agent and the substantial farm of any remarketing agreement relating to such Bonds; and (13) Any other provisions deemed advisable by the Bank, not in conflict with the provisions of this Resolution, All Bonds of each Series of like maturity shall be identical in all respects, except as to denominations, interest rate, and numbers and letters. (C) All (but not less than alt) the Bonds of each Series shall be executed by the Bank for Issuance under the Resolution and delivered to the Trustee and thereupon shall be authenticated by the Trustee and by it delivered to the Bank or to such other party as may be specified In a written order of the Bank, but only upon the receipt by the Trustee of: (I) A Counsel's Opinion to the effect that (I) the Bank has the right and power to execute and deliver this Resolution and the Series Resolution authorizing such Series under the Act as amended to the date of such Opinion; (II) this Resolution and such Series Resolution has been duly and lawfully executed and delivered by the Bank, is in full force and effect and is valid and binding upon the Bank and enforceable in accordance with its terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium, or other laws affecting ALASKA MUNICIPAL BOND BANK General Obligation Bond ResolulionlCreated 7/13/05 creditors' rights generally from time to time in effect); (iii) this Resolution and such Series Resolution creates the valid pledge and assignment which it purports to create of the Municipal Bonds, subject to the application thereof to the purposes and on the conditions permitted by this Resolution; (iv) the Bonds of such Series are valid and binding general obligations of the Bank, enforceable in accordance with their terms and the terms of this Resolution and such Series Resolution; and (v) the Bonds of such Series have been duly and validly authorized and Issued in accordance with the constitution and statutes of the State, including the Act as amended to the date of such Opinion, and in accordance with this Resolution; (2) A written order as to the delivery of such Bonds, signed by an Authorized Officer; (3) Either an original of the Series Resolution authorizing such Series or a copy thereof certified by an Authorized Officer; (4) Except in the case of Refunding Bonds, a certificate of an Authorized Officer stating that the Bank is not in default in the performance of any of the covenants conditions, agreements or provisions contained in the Resolution; (5) Such further documents moneys and securities as are required by the provisions of this Section 203, and Section 204, or Article X, or any Series Resolution or Supplemental Resolution adopted pursuant to Article X. Section 204 - Provisions for Refunding Bonds. (A) All or any part of one or more Series of Refunding Bonds may be authenticated and delivered to refund all Outstanding Bonds or any part of one or more Series of Outstanding Bonds. Refunding Bonds shall be issued in a principal amount sufficient, together with other moneys available therefor, to accomplish such refunding and to make such deposits as are required by the provisions of the Act, this Section and of the Series Resolution authorizing said Series of Refunding Bonds. (B) A Series of Refunding Bonds may be authenticated and delivered only upon receipt by the Trustee (in addition to the receipt by it of the documents required by Section 203) of; Page IQ (1) Instructions to the Trustee to give due notice of redemption (which notice, in the case of an optional redemption, shall state that the redemption Is conditioned by the Trustee on the receipt of sufficient funds for redemption) of all the Bonds to be refunded on the redemption date specified in such instructions; (2) Either (I) moneys (which may include all or a portion of the proceeds of the Refunding Bonds to be Issued) In an amount sufficient to effect payment at the applicable Redemption Price of the Bonds or other obligations to be refunded, together with accrued Interest on such Bonds or other obligations to the redemption date, or (ii) direct obligations of (including obligations issued or held in book- entry farm on the books of) the Department of the Treasury of the United States of America which are not subject to redemption prior to the dates on which amounts will be needed to make payments on the Bonds or other obligations to be refunded and the principal of and interest on which when due, together with the moneys (which may include all or a portion of the proceeds of the Refunding Bonds to be issued), if any, contemporaneously deposited with the Trustee, will be sufficient to pay when due the applicable Redemption Price of the Bonds or other obligations to be refunded, together with accrued interest on such Bonds or other obligations to the redemption date, which moneys or Investment Securities shall be held by the Trustee or any one or more of the Paying Agents or an escrow agent or trustee for other obligations in a separate account irrevocably in trust for and assigned to the respective Holders of the Bonds or other obligations to be refunded; and (3) A certificate of an Authorized Officer containing such additional statements as maybe reasonably necessary to show compliance with the requirements of subsection (A) and this subsection (B) of this Section 204. (C) From and after the delivery of the Refunding Bonds of a Series, the Trustee shall make appropriate adjustment between the Interest Account and Principal Account when disbursing and applying Municipal Bonds Payments deposited in the Debt Service Fund pursuant to the provisions of Section 604 to the end that such portion of the Municipal Bonds AMSI<4 MUNICIPAL BOND BANK General Obligation Bond IesoIuSlon/Created 7/13/05 Payment as shall represent Municipal Bonds Interest Payment not required for deposit in the Interest Account for the purpose of paying interest accruing upon the Bonds shall be deposited in the Principal Account. Any surplus which might result upon and after such deposit shall be disposed of in the manner specified in the Series Resolution authorizing such Series. (D) Neither Investment Securities nor moneys deposited with the Trustee oran escrow agent or trustee for other obligations pursuant to paragraph (B)(2) of this Section nor principal or interest payments on any such Investment Securities shall be withdrawn or used for any purpose other than, and shall be held in trust for; the payment of the applicable Redemption Price of the Bonds or other obligations to be refunded, together with accrued Interest on such Bonds or other obligations to the redemption date, and any cash received from such principal or interest payments, If not then needed for such purpose, shall, to the extent practicable, be reinvested In such Investment Securities as are described in clause (II) of said paragraph maturing at times and in amounts sufficient to pay when due the applicable Redemption Price of such Bonds or other obligations, together with such accrued interest. ARTICLE Ill GENERAL TERMS AND PROVISIONS OF BONDS Section 301 Description of Bonds: Payment, (A) The Bonds of each Series issued under the provisions hereof may be issued only as registered bonds and subject to Section 303 hereof, each Bond shall be entitled 'General Obligation Bonds" and shall bear such additional letter or number series designation as shall be determined in the Series Resolution authorizing the Bonds of the Series of which such Bond is one. Unless otherwise specified in the Series Resolution authorizing such Series of Bonds, Bonds of each Series shall be in Authorized Denominations each or any integral multiple thereof, shall be numbered consecutively from I upwards and shall bear interest payable on Interest Payment Dates. (B) The Bonds of each Series issued hereunder shall be dated as of and bear Interest from the date specified in the Series Resolution Page 11 that authorized such Series, which date may be contemporaneous with or prior to or after the date of issuance of such Bonds. (C) Both the principal of and the interest on the Bonds shall be payable in any coin or currency of the United States of America, as at the respective time of payment shall be legal tender for payment of public and private debts. Payment of the interest on any Bond shall be made to the person appearing on the Bond registration books of the Bank kept for such purpose by the Trustee, the registrar hereinafter provided for as the Holder thereof, by check or draft mailed to the Holder at her or his address as it appears on such registration books or to owners of $1,000,000 or more In aggregate principal amount of Bonds by wire transfer to a bank accountdesignated by the Holder in written instructions furnished to the Trustee. The interest on Bonds so payable, and punctually paid or duly provided for, on any Interest Payment Date will be paid to the person who Is the Holder thereof at the close of business on the applicable Record Date for such Interest. The principal of and premium, if any, on Bonds are payable upon presentation and surrender thereof at the principal corporate trust office of the Trustee, as paying agent, except as otherwise provided by Series Resolution, All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (0) The Bonds of each Series may contain or have endorsed thereon such provisions, specifications and descriptive words not inconsistent with the provisions hereof as may be necessary or desirable to comply with custom, the rules of any securities exchange or commission or brokerage board or otherwise, as may be specified in the Series Resolution authorizing such Series of Bonds. Section 302. Legends The Bonds of each Series shall contain or have endorsed thereon a statement to the effect that the State shall not be liable thereon and that such Bond shall not be a debt of the State and may contain or have endorsed thereon such provisions, specifications and descriptive words not inconsistent with the provisions of this Resolution as may be necessary or desirable to comply with custom, or otherwise, as may be ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7115/05 determined by the Bank prior to the delivery thereof to the Bondholder. Section 303 - Execution and Authentication. (A) The Bands shall be executed in the name of the Bank by the manual or facsimile signature of its Chairman or Vice- Chairman and its corporate seal (or a facsimile thereof) shall be thereunto affixed, imprinted, engraved or otherwise reproduced, and attested by the manual or facsimile signature of its Secretary or such officer or employee of the Bank as shall be directed by the Series Resolution authorizing the issuance thereof, or in such other manner as may be required by law. In case any one or more of the officers or employees who shall have signed or sealed any of the Bonds shall cease to be such officer or employee before the Bonds so signed and sealed shall have been actually authenticated and delivered by the Trustee, such Bonds may, nevertheless, be authenticated and delivered as herein provided, and may be issued as if the persons who signed or sealed such Bonds had not ceased to hold such offices or be so employed. Any Bonds of a Series may be signed and sealed on behalf of the Bank by such persons as at the actual time of the execution of such Bond shall be duly authorized or hold the proper office in or employment by the Bank, although at the date of the Bonds of such Series such persons may not have been so authorized or have held such office or employment. (B) The Bonds of each Series shall bear• thereon a certificate of authentication, in the form set forth in the Series Resolution authoriz- ing such Bonds, executed manually by the Trustee. Only such Bonds as shall bear thereon such certificate of authentication shall be entitled to any right or benefit under the Resolution and no Bond shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the Trustee. Such certificate of the Trustee upon any Bond executed on behalf of the Bank shalt be conclusive evidence that the Bond so authenti- cated has been duly authenticated and delivered under the Resolution and that the Holder thereof is entitled to the benefits of the Resolution. Section 304 - Interchangeability of Bonds, upon surrender thereof at the corporate trust office of the Trustee with a Pop 12 written instrument of transfer satisfactory to the Trustee, duly executed by the registered owner or their attorney duly authorized in writing, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of registered Bonds of the same Series, maturity, and interest rate as the surrendered Bond. Section 305- NepotiabUi, Transfer and Reoistrv. All the Bonds issued under this Resolution shall be negotiable as provided In the Act, subject to the provisions for registration and transfer contained in this Resolution and in the Bonds. So long as any of the Bonds shall remain Outstanding, the Bank shall maintain and keep, at the corporate trust office of the Trustee, books for the registration and transfer of Bonds: and, upon presentation thereof for such purpose at said office, the Bank shall register or cause to be registered therein, and permit to be trans- ferred thereon, under such reasonable regulations as it or the Trustee may prescribe, any Bond entitled to registration or transfer. So long as any of the Bonds remain Outstanding, the Bank shall make all necessary provisions to permit the exchange of Bonds at the corporate trust office of the Trustee. The Bank and each Fiduciary may deem and treat the person in whose name any Bond shall be registered upon the books of the Bank as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal and Redemption Price, if any, of and interest on such Bond and for all other Purposes, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the Bank nor any Fiduciary shall be affected by any notice to the contrary. The Bank agrees to indemnify and save each Fiduciary harmless from and against any and all loss, cost, charge, expense judgment or liability incurred by it, acting In good faith and without negligence under this Resolution, in so treating any such registered owner. Section 306.- Regulations with Respect to Exchanges and Transfers. In all cases in which the privilege of exchanging Bonds or ALASKA MUNICIPAL BOND BANK General Obligation Bond RoaolutionlCreated 1/13/05 transferring Bonds is exercised, the Bank shall execute and the Trustee shall authenticate and deliver Bonds in accordance with the provisions of this Resolution. All Bonds surrendered in any such exchanges or transfers shall forthwith be cancelled by the Trustee. For every such exchange or transfer of Bonds, whether temporary or definitive, the Bank or the Trustee may, as a condition precedent to the privilege of making such exchange or transfer, make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer. Notwithstanding any other provision of this Resolution the cost of preparing each registered Bond upon each exchange or transfer, and any other expenses of the Bank or the Trustee incurred in connection therewith (except any applicable tax, fee or other governmental charge) shall be paid by the Bank as an Administrative Expense, Neitherthe Bank orthe Trustee shall be required (I) to make any exchange or transfer of Bonds of any Series during the ten (10) days (or such other period of time as may be specified in the Series Resolution authorizing such Series) next preceding an interest payment date on the Bonds of such Series or preceding any selection of Bond of such Series to be redeemed or (II) to transfer or exchange any Bonds previously called for redemption. Section 307 - Bonds Mutilated, Destroyed. Stolen or Lost. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Bank shall execute and the Trustee shall authenticate and deliver a new Bond of like Series, maturity and principal amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond, upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or lost upon filing with the Bank evidence satisfactory to the Bank and the Trustee that such Bond have been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Bank and the Trustee with indemnity satisfactory to them and complying with such other reasonable regulations as the Bank and the Trustee may prescribe and paying such expenses as the Bank and the Trustee may incur in connection therewith. All Bonds so surrendered to the Trustee shall be cancelled by it and evidence of Page 13 such cancellation shall be given to the Bank. Any such new Bonds issued pursuant to this section in substitution for Bonds alleged to be destroyed, stolen or lost shall constitute original additional contractual obligations on the part of the Bank, regardless of whether the Bonds so alleged to be destroyed, stolen or lost be at any time enforceable by anyone, and shall be equally secured by and entitled to equal and proportionate benefits with all other Bonds issued under this Resolution, in any moneys or securities held by the Bank or the Fiduciaries for the benefit of the Bondholders, If a Bondholder satisfies the conditions set forth In this section for the replacement of a mutilated Bond or a Bond alleged to be destroyed, stolen, orlost and such Bond has matured or all principal thereof and interest thereon shall become due for any other reason, then the Trustee may pay.suth principal of and interest on such Bond without issuing a replacement Bond. Section 308 - Preparation of Definitive Bonds: Temporary Bonds. Until the, definitive Bonds of any Series are prepared, the Bank may execute, in the same manner as is provided In Section 303, and upon the request of the Bank, the Trustee shall authenticate and deliver, in lieu of definitive Bonds, but subject to the same provisions, limitations and conditions as the definitive Bonds, except as to the denominations thereof and as to exchangeability for registered Bonds,' one or more temporary Bonds, substantially of the tenor of the definitive Bonds In lieu of which such temporary Bond or Bonds are issued in such denominations as may be authorized by the Bank,- and with such omissions, insertions and variations as may be appropriate to temporary Bonds. The Bank at its own expense shall prepare and execute and, upon the surrender thereof of such temporary Bonds to the Trustee. The Trustee shall authenticate and, without charge to the holder thereof, deliver in exchange therefor definitive Bonds of the same aggregate principal amount and Series and maturity as the temporary Bonds • surrendered. Until so exchanged, the temporary Bonds shall in all respects be entitled to the same benefits and security as definitive Bonds authenticated and issued pursuant to this Resolution. If the Bank shall authorize the issuance of temporary Bonds In more than one ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolutlon/Creatoct 7/13105 denomination, the holder of any temporary Bond or Bonds may, at his option, surrender the same to the Trustee in exchange for another temporary Bond or Bonds of like aggregate principal amount, Series and maturity of any other authorized denomination' or denominations, and thereupon the Bank shall execute and the Trustee shall authenticate and, in exchange for the temporary Bond or Bonds so surrendered and upon payment of the taxes, fees and charges provided for in Section 306, shall deliver a temporary Bond or Bonds of like aggregate principal amount, Series and maturity in such other authorized denomination or denominations as shall be requested by such holder. All temporary Bonds surrendered in exchange either for another temporary Bond or Bonds or for a definitive Bond or Bonds shall be forthwith cancelled by the Trustee. Section 309 - Cancellation and Destruction of Bncia. All Bonds paid or redeemed, either at or before maturity, shall be delivered to the Trustee when such payment or redemption is made, and such Bonds, together with all Bonds purchased by the Trustee, shall thereupon be promptly cancelled. Bonds so cancelled may, at any time, be. cremated or otherwise destroyed by the Trustee, who shall execute a Certificate of cremation or destruction In duplicate by the signature of one of Its authorized officers describing the Bonds so cremated or otherwise destroyed, and ohe executed Certificate shall be filed with the Bank and the other executed Certificate shall be retained by the Trustee. ARTICLE IV REDEMPTION OF BONDS Section 401 - Redemotiori Provisions. The Bonds of each Series may be subject to redemption prior to maturity at such times and upon such terms as shall be fixed by the related Series Resolution, If less than all of the Bonds of any one maturity of a Series shall be called for redemption, the particular units of Bonds, as determined in accordance with Section 403 herein, to be redeemed shall be selected by lot by the Trustee, or in any manner as the Trustee, In Its sole discretion, may deem appropriate and fair. F-806 14 Section 402- Notice of Redemption. (A) In the event any of the Bonds are to be redeemed, the Registrar shall cause notice to be given as provided in this Section 402. Unless otherwise specified in the Series Resolution authorizing the Issuance of the applicable Series of Bonds, notice of redemption (i) shall be filed with the paying agent designated for the Bonds being redeemed and (ii) shall be mailed by first class mall, postage prepaid, to all Bondholder of Bonds to be redeemed at their addresses as they appear on the registration books of the Trustee, at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption. Such notice shall state the following information: - (1) the complete official name of the Bonds, including Series, to be redeemed, the identification numbers of Bonds and the CUSIP numbers, if any, of the Bonds being redeemed, provided that any such notice shall state that no representation Is made as to the correctness of CUSIP numbers eitheras printed on such Bonds or as contained In the notice of redemption and that reliance may be placed only on the Identification numbers contained In the notice or printed on such Bonds; (2) any other descriptive information needed to identify accurately the Bonds being redeemed, including, but not limited to the original issue date or dated date of and interest rate on such Bonds; (3) in the case of partial redemption of any Bands, the respective principal amounts thereof to be redeemed; (4) the date of mailing of redemption notices and the redemption date; (5) the redemption price; (6) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that Interest thereon shall cease to accrue from and after said date; and (7) the place where such Bonds are to be surrendered for payment of the redemption price, designating the name and address of the ALASKA MUNICIPAL BOND BANK General Obligation Bond ResolutIon/Created 7flI05 redemption agent with the name of a contact person and telephone number. (B) In addition to the foregoing, further notice of any redemption of Bonds hereunder shall be given by the Trustee, at least two (2) Business Days in advance of the mailed notice to Bondholders, by registered or certified mail or overnight delivery service, to all registered securities depositories then in the business of holding substantial amounts (as reasonably determined by the Bondholders) of obligations of types comprising the Bonds and to at least two national information services that disseminate notices of redemption of obligations such as the Bonds. Such further notice shall contain the information required in clause (a) above. Failure to give all or any portion of such further notice shall not in any manner defeat the effectiveness of a call for redemption. (C) Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by Issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. (D) If at the time of mailing of any notice of redemption there shall not be on deposit with the Trustee moneys sufficient to redeem all the Bonds called for redemption, such notice shall state that such redemption is subject to the deposit of the redemption moneys with the Trustee not later than the redemption date and that such notice shall be of no effect unless such moneys are so deposited. (E) A second notice of redemption shall be given, not later than ninety (90) days subsequent to the redemption date, to Bondholders of Bonds or portions thereof redeemed but who failed to deliver Bonds for redemption prior to the 60th day following such redemption date. Any notice mailed shall be conclusively presumed to have been duly given, whether or not the owner of such Bonds receives the notice. Receipt of such notice shall not be a condition precedent to Such redemption, and failure so to receive any such notice by any of such Bondholders shall not affect the validity of the proceedings for the redemption of the Bonds. P400 16 (F) In case any Bond is to be redeemed in part only, the notice of redemption which relates to such Bond shall state also that on or after the redemption date, upon surrender of such Bond, a new Bond in principal amount equal to the unredeemed portion of such Bond will be issued. Section 403 - Partially Redeemed Fully Registered Bonds. Unless otherwise specified in the Series Resolution authorizing the issuance of the applicable Series of Bonds, in case any registered Bond shall be redeemed in part only, upon the presentation of such Bond for such • partial redemption, the Bank shall execute and the Trustee shall authenticate and shall deliver • or cause to be delivered to or upon the written order of the Holder thereof, at the expense of the Bank, a Bond or Bonds of the same Series, interest rate and maturity, in aggregate principal • amount equal to the unredeemed portion of such registered Bond. Unless otherwise provided by Series Resolution, a portion of any Bond of a denomination of more than the minimum Authorized Denomination to be redeemed will be in the principal amount of the minimum Authorized Denomination or an integral multiple thereof, and in selecting portions of such Bonds for redemption, the Trustee will treat each such Bond as representing that number of Bonds of the minimum Authorized Denomination which is obtained by dividing the principal amount of such Bonds by the minimum Authorized Denomination, ARTICLE V CUSTODY AND APPLICATION OF CERTAIN PROCEEDS OF BONDS Section 501 - Anolication of Certain Proceeds. (A) Each Series Resolution authorizing the issuance of a Series of Bonds, a portion ofihe proceeds derived from the sale of which is to be applied to the purchase of Municipal Bonds, shall specify the name of each Governmental Unit which is to receive a Loan by the Bank from such proceeds and the amount of such proceeds to be applied to the making of each such Loan which shall be the amount of each such Loan. Contemporaneously with the issuance, sale and delivery of any Series of Bonds, the Bank shall apply the amount of the proceeds derived from the sale of such Series of Bonds, if any, as shall be specified in said Series ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13105 Resolution for the purpose of making such Loans to each of the Governmental Units specified in the Series Resolution authorizing the issuance of such Series of Bonds. (B) Accrued Interest, if any, received upon the delivery of such Series of Bonds shall be deposited in the Interest Account, The amountreceived as a premium over the principal amount of such Series of Bonds, if any, upon the delivery of such Series of Bonds shall be applied as provided in the Series Resolution authorizing such Series of Bonds. (C) The amount, if any, necessary to cause the amount on deposit in the Reserve Fund to satisfy the Reserve Fund Requirement. (D) Any remaining proceeds derived from the sale of a Series of Bonds shall be applied as provided in the Series Resolution authorizing such Series of Bonds. Section 502 - Loans, (A) A Loan to each Governmental Unit shall be made from the portion of the proceeds derived from the sale of each Series of Bonds specified In the Series Resolution authorizing the issuance of such Series of Bonds and the amount of each such Loan shall be the amount specified in such Series Resolution. All such payments made pursuant to such Series Resolution shalt be subject to the provisions and restrictions of this Article V, and the Bank covenants that it will not cause or permit to be paid from such portion of the proceeds derived from the sale of such Series of Bonds any sums except In accordance with such provisions and restrictions. (B) The Trustee shall pay to 'each Governmental Unit the amount of the Loan upon receipt by the Trustee of; (1) a written requisition of the Bank signed by an Authorized Officer stating (I) the name of the Governmental Unit to which the payment Is to be made; and (ii) the amount to be paid; (2) a certificate signed by an Authorized Officer and attached to the requisition certifying that the terms and provisions of the Loan Page 16 Agreement providing for such Loan are In compliance with Section 913, and that to the knowledge of such Authorized Officer such Governmental Unit is not in default under any of the terms or provisions of said Loan Agreement; (3) a Counsel's Opinion stating thatsuch Municipal Bonds are valid obligations of such Governmental Unit as required by the Act and that the Loan Agreement has been duly authorized and executed by the Governmental Unit and constitutes a valid and binding obligation of the Governmental Unit enforceable In accordance with its terms; and (4) such Municipal Bonds of such Governmental Unit, registered as to both principal and interest in the name of the Bank or the Trustee and delivered in accordance with the Act Upon receipt of such requisition, accompanying certificate, Counsels Opinion and Municipal Bonds, the Trustee shall pay such amount directly to the Governmental Unit entitled thereto as named in such requisition. Section 503 - Retention and Inspection of Documents. All requisitions and certificates and Counsel's Opinions and Municipal Bonds received by the Trustee, as required in this Article V as conditions of payment may be relied upon by and shall be retained in the possession of the Trustee, subject at all times during normal business hours to the inspection of the Bank and, after written request received by the Trustee at least five business days prior to the date of inspection, by any Holder of at least five per cent In principal amount of the Series of Outstanding Bonds. ARTICLE VI ESTABLISHMENT OF FUNDS AND ACCOUNTS AND APPLICATION THEREOF Section 601 - Pledge. (A) The Bonds shall be direct and general obligations of the Bank, and its full faith and credit are pledged to the payment of the principal and redemption premium, if any, of and interest on the Bonds, subject to any agreements heretofore and hereafter made with the Holders of any other notes or bonds of the Bank pledging any ALASKA MUNICIPAL BOND BANK General Obligation Bond ResolutIOn/Created 7/13/05 particular revenues or assets not pledged under this Resolution. (B) The Municipal Bonds and the Municipal Bonds Payment, the investments thereof and the proceeds of such investments, if any, and all funds and accounts established by this Resolution to be held by the Trustee are hereby pledged and assighed for the payment of the principal of, Redemption Price of, intereston, and Sinking Fund Installments for, the Bonds in accordance with the terms and provisions of this Resolution, subject only to theprovisions of this Resolution permitting the application thereof for the purposes and on the terms and conditions set forth in this Resolution authorizing the Bank to create Security Interests in said Municipal Bonds and Municipal Bonds Payment in favor of Credit Enhancement Agencies and counterparties to Interest Rate Exchange Agreements. Subject to the provisions of Section 805 of this Resolution, this pledge shall be valid and binding from and after the date of adoption of this Resolution, and the Municipal Bonds and the Municipal Bonds Payment and all other monies and securities In the funds and accounts established by this Resolution to be held by the Trustee hereby pledged shall Immediately be subject to the lien of such pledge without any further act, and such lien shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Bank, regardless of whether such parties have notice thereof. Section 602 - Establishment of Funds and Accounts. (A) The Alaéka Municipal Bond Bank Debt Service Fund (the "Debt Service Fund') is hereby established and shall be maintained and held by the Trustee pursuant to the provisions of this Resolution. There is hereby created and established in the Debt Service Fund an "Interest Account," a "Principal Account" and a "Redemption Account' each of which shall be held by the Trustee. Amounts in the Interest Account, the Principal Account and the Redemption Account shall be used solely for the purpose of paying the principal of, Redemption Price of, interest on and Sinking Fund Installments for, the Bonds and of retiring such Bonds at or prior to maturity in the manner provided herein andin any Series Resolution. Amounts deposited in the Interest Account and the Principal Account shall be disbursed and l'eg, 17 applied by the Trustee at the times and in the manner provided in this Article VI and In paragraph (3) of Section 203. (B) There is hereby established within the Alaska Municipal Bond Bank Reserve Fund created by Section 44,85.270 of the Act, a 2005 General Obligation Bond Resolution Reserve Account (the "Reserve Fund") which shalt be maintained and held by the Trustee pursUant to the provisions of this Resolution. (C) There is hereby established a Rebate Fund, and within such fund, a separate account for each Series of Bonds. (D) There Is hereby established an Operating Fund which shall be held by the Bank pursuant to the provisions of this Resolution. Section 603- Reserve Fund. (A) On or before the first day of each month, the Trustee shall set aside from amounts in the Reserve Fund derived from income or interest earned and profits realized by the Reserve Fund due to the investment thereof, an amount which, when added to the amounts theretofore set aside for such purpose and not paid into the Interest Account, will on such day be equal to the unpaid interest on the Reserve Fund Obligations accrued and to accrue to the last day of such month. If the Trustee so determines, said amounts may be deposited in an account which the Trustee may create in the Reserve Fund under the name of 'Reserve Fund Obligations Interest Account". On or before each interest payment date of the Reserve Fund Obligations, said amounts shall be deposited In the Interest Account. (B) On or before each principal payment date and Sinking Fund Installment payment date of Reserve Fund Obligations, the Trustee shalt withdraw from amounts in the Reserve Fund and deposit in the Principal Account, an amount which, when added to the amount then on deposit in the Principal Account and derived from sources other than Municipal Bonds Payment, will be equal to the Principal Installment of the Reserve Fund Obligations falling due on such date. (C) On or before December 31 of each year, after complying with the provisions of ALASKA MUNICIPAL BONO BANK General Obligation Bond ResolutIon/Cia ated 7113/05 paragraphs (1) and (2) above to the extent required by such date, the Trustee shall withdraw from the Reserve Fund, any amount remaining therein derived from income or interest earned and profits realized by the Reserve Fund due to the investment thereof, and pay over said amount to the Bank for deposit In the Operating Fund but only to the extent that there remains after such withdrawal an amount in the Reserve Fund at least equal to the Required Debt Service Reserve. (0) The Reserve Fund Requirement may be satisfied with (I) monies made available by the State and paid to the Bank for the purpose of the Alaska Municipal Bond Bank Reserve Fund created by Section 44.85.270 of the Act in the amount provided by a Series Resolution; (ii) all monies paid to the Bank pursuant to the Act for the purpose of restoring the Reserve Fund to the amount of the Required Debt Service Reserve; (iii) such portion of the proceeds of sale of Bonds, if any, as shall be provided by any Series Resolution; (iv) Credit Enhancement: (v) any other monies which may be made available to the Bank for the purposes of the Reserve Fund from any other source or sources; or (vi) any combination of the foregoing. (E) in the event there shall be, on any interest payment date, a deficiency in the Interest Account, or, In the event there shall be, on any principal payment date or Sinking Fund Installment payment date, a deficiency In the Principal Account, the Trustee shall make up such deficiencies from the Reserve Fund by the withdrawal of cash therefrom for that purpose and by the sale or redemption of securities held In the Reserve Fund, if necessary, in such amounts as will, at the respective times, provide monies in the Interest Account and Principal Account sufficient to make up any such deficiency. If a deficiency still exists immediately priorto a debt service payment date and after the withdrawal of cash, the Bank shall then draw from any Credit Enhancement for the Bonds in sufficient amount to make up such difference. Drawings under the Credit Enhancement shall be made on a pro-rata basis (In proportion to the respective maximum coverages) available under the Credit Enhancement. Such draw shall be made at Pace 10 such times and under such conditions as such Credit Enhancement shall provide. Section 604- Interest Account, Principal Account and Redemption Account. (A) Except as otherwise provided in paragraph (3) of Section 204, the Trustee shall deposit Municipal Bonds Interest Payments and any other monies available for the payment of interest in the Interest Account upon receipt thereof. The Trustee shall, on or before each interest payment date of the Bonds, pay, out of amounts then held for the credit of the Interest Account, to itself and the Paying Agents, the amounts required for the payment by it and such Paying Agents of the interest becoming due on the Bonds on such Interest payment date, and such amounts so withdrawn are hereby irrevocably pledged for and shall be applied to the payment of such interest. The Trustee shall also pay out of the Interest Account to itself and the appropriate Paying Agents, on or before any redemption date for Bonds being refunded by Refunding Bonds, the amount required for the payment of interest on the Bonds then to be redeemed, to the extent not otherwise provided in this Resolution. (B) The Trustee shall deposit Municipal Bonds Principal Payments and any other monies available for the payment of principal in the Principal Account, upon receipt thereof. The Trustee shall, on or before each principal payment date of or Sinking Fund Installment date for, the Bonds, pay, out of the monies then held for the credit of the Principal Account, to itself and the Paying Agents, the amounts required for the payment by it and such Paying Agents of the principal or Sinking Fund Installment due on the Bonds on such date, and such amounts so withdrawn are hereby irrevocably pledged for and shall be applied to the payment of such principal or Sinking Fund Installment. (C) The Trustee shall establish in the Redemption Account separate sub-acco u nt for the Bonds of each Series Outstanding. (1) Any monies deposited into the Redemption Accountfrom any source other than pursuant to Section 607 or Section 916 shall be applied to the purchase or redemption of Bonds ALASKA MUNICIPAL BOND BANK G eneral Obligation Bond Resolution/Created 7113/05 in a manner to be determined by the Bank in accordance with Article IV. Any monies deposited into the Redemption Account pursuant to Section 607 shall be applied to the purchase or redemption of Reserve Fund Obligations in a manner to be determined by the Bank in accordance with Article IV. (2) The Bank shall deposit or cause to be deposited in the Redemption Account such portion of the monies received as the proceeds of sale or redemption of Municipal Bonds, as required by Section 916 hereof, and, upon any such deposit, shall advise the Trustee in writing of the Series of Bonds to which the same relates. Upon receipt, such monies shall be set aside by the Trustee In the appropriate Series sub-account. Monies so held in each separate sub-account by the Trustee shall be applied to the purchase or retirement of the Bonds of the Series in respect of which such sub-accountws created as follows: (i) The Trustee shall promptly apply such monies to the purchase of Bonds of the Series in respect ofwh'lch such sub-account was created having the same maturity date or dates and in the same principal amount within each maturity as the Municipal Bonds Principal Payments required to be made for the Municipal Bonds sold by the Bank or redeemed by the Governmental Unit at the most advantageous price obtainable with reasonable diligence, such price, however, not to exceed the Redemption Price which would be payable on the next ensuing date on which the Bonds of the Series so purchased are redeemable according to their terms. The Trustee shall pay the interest accrued on the Bonds so purchased to the date of sale or redemption of the Municipal Bonds from the Interest account and the balance of the purchase price from the applicable sub-account In the Redemption Account, as hereinabove provided, but no such purchase shall be made by the Trustee within the period of forty-five (45) days next preceding a date on which such Bonds are subject to redemption under the provisions of the Series Resolution authorizing the issuance thereof. (ii) In the event the Trustee is able to purchase the requisite principal amount of Bonds from a sub-account in accordance with and under the foregoing provisions of this Pe 19 subparagraph (b) at a purchase price less than the sum of the deposits to such sub-account from the proceeds from the sale or redemption of Municipal Bonds and the applicable transfers from the Interest Account, upon the payment by the Trustee of the purchase price of such Bonds, the Trustee shall transfer the balance of monies remaining in such sub-account to the Bank for deposit in the Operating Fund. (iii) In the event the Trustee is unable to purchase the requisite principal amount of Bonds the Trustee shall call for redemption on the next ensuing redemption date such amount of Bonds of the Series in respect of which such sub-account was created having the same maturity date or dates and in the same principal amount within each maturity as the Municipal Bonds Principal Payments required to be made for the Municipal Bonds sold by the Bank or redeemed by the Governmental Unit, as, at the Redemption Price thereof, will exhaust said sub- account as nearly as may be. Such redemption shall be made pursuant to the provisions of Article IV hereof. The Trustee shall pay the interest accrued on the Bonds so redeemed to he date of sale or redemption of the Municipal Bonds from the Interest Account and the balance of such interest to the date of redemption of the Bonds and the Redemption Price from the applicable sub-account. (3) The Bank may, from time to time, by written instructions direct the Trustee to make purchases under subparagraph (b) above only after receipt of tenders. The Bank may specify the Length of notice to be given and the date on which tenders are to be accepted or may authorize the Trustee to determine the same In Its discretion. All such tenders shall be by sealed proposals and no tenders shall be considered or accepted at any price exceeding the price specified under subparagraph (b) above for the purchase of Bonds. The Trustee shall accept tenders with the lowest price, as determined by the Trustee, and if the monies available for purchase pursuant to such tenders are not sufficient to permit acceptance of all tenders and there shall be tenders at an equal price above the amount of monies available for purchase then the Trustee shall select by lot, in such manner as the Trustee shall determine in its discretion, the Bonds tendered which shall be purchased. No purchase of Bonds, either on ALASKA MUNICIPAL BOND BANK Genera! Obligation Bend Reselutlon/Created 7/13/08 tenders or otherwise, shall be made by the Trustee within the period of forty-five (45) days next preceding any date on which such Bonds are subject to redemption. (D) Monies set aside from time to time with the Trustee and Paying Agents for the payment of principal or Redemption Price of, interest on and Sinking Fund Installments for, the Bonds shall be held in trust for the Holders of the Bonds. Until so set aside for the payment of such principal, Redemption Price, interest, and Sinking Fund Installments, all monies in such accounts shall be held in trust for the benefit of the Holders of all Bonds at the time Outstanding equally and ratably and without any preferetice or distinction as between Bonds of different Series, except that monies on deposit in the separate sub-accounts established in the Redemption Account shall be held In trust for and applied to the payment of the Bonds of the Series fcrwhich the applicable sub-account was established. Section 605 - Rebate Fund. (A) The Trustee shall establish and thereafter maintain, so long as the Bonds are Outstanding, a Rebate Fund which shall be held separate and apart from all other funds and accounts established under this Resolution and from all other moneys of the Trustee. (B) All amounts in the Rebate Fund, including income earned from investment of the fund, shall be held by the Trustee free and clear of the lien of this Resolution. In the event the amount on deposit in the Rebate Fund exceeds the aggregate amount of the Rebate Requirement for all Series of Bonds, as verified In writing by an independent public accountant 'or other qualified professional selected by the Bank at the time the Rebate Requirement -is determined, less amounts of the Rebate Requirement theretofore paid to the United States for all Series of Bonds, the Trustee shall, upon the Bank's request, withdraw from the Rebate Fund and pay to or upon the order of the Bank an amount not to exceed such excess to the Bank for deposit in the Operating Fund. (C) The Bank shall determine the amount of the Rebate Requirement with respect to each Series of Bonds on each applicable Rebate Calculation Date. The Bankshall deposit Page 20 into the Rebate Fund the Rebate Requirement, if any, with respect to each Series of Bonds. The Bank shall Instruct the Trustee to withdraw from the Rebate Fund and pay over to the United States Government with respect to each Series of Bonds: (1) not less frequently than once each five years commencing no later than 60 days after the first Rebate Calculation Date for such Series of Bonds and upon each fifth anniversary of such date, an amount which when added to all previous rebate payments made with respect to such Series of Bonds equals 90% of the sum of the Rebate Requirement pertaining to such Series of Bonds plus the amount, if any, of Rebate Requirement theretofore paid to the United States with respect to such Series of Bonds, and (2) not laterthan 60 days after the retirement of the last Bond of such Series, 100% of the Rebate Requirement with respect to such Series. The determination of rebatabie arbitrage made with respect to each such payment date and with respect to any withdrawal and payment to the Bank from the Rebate Fund pursuant to this Resolution must be verified in writing by an independent public accountant or other qualified professional selected by the Bank (D) The Trustee shall, at least sixty (60) days prior to each Rebate Calculation Date, notify the Bank of the requirements of this Section. By agreeing to give this notice, the Trustee assumes no responsibility whatsoever for compliance by the Bank with the requirements of Section 148 of the Code or any successor. The Bank expressly agrees that (notwithstanding any other provision of this Resolution) any failure of the Trustee to give any such notice, for any reason whatsoever, shall not cause the Trustee to be responsible for any failure of the Bank to comply with the requirements of said Section 148 or any successor thereof. (E) The Trustee, on behalf of the Bank, shall keep and retain, until the date six years after the retirement of the last of the Bonds of each Series, records with respect to each Series of the Bonds and the investment and expenditure of amounts on deposit with the Trustee to comply with the aforementioned arbitrage rebate requirements, including without limitation a complete list of all Investments and reinvestments of amounts on deposit with the ALASKA MUNICIPAL BOND SANK General Obligation Bond Resolution/Created 7/13/05 Trustee with respect to each Series of the Bonds. For purposes of the computation required above, the Trustee shall, upon request, furnish to the Bank all information In the Trustee's control which is necessary for such computations. (F) The Bank hereby covenants and agrees that it will not enter, and will not cause the Trustee to enter Into, any transaction or cause any transaction to be entered into with respect to the Investment of gross proceeds of the Bonds, or otherwise, which reduces the amount which may be required to be paid to the United States pursuant to the arbitrage rebate requirements specified herein above, because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the yield on each Series of the Bonds not been relevant to either party, (G) The provisions of this Section may be amended or deleted, with respect to any or all series of the Bonds, from this Resolution upon receipt by the Bank and the Trustee of an opinion of bond counsel that such amendment or deletion will not adversely affect the exclusion from gross income of interest on the Bonds. Section 606 Operating Fund. There shall be deposited in the Operating Fund all Fees and Charges collected by the Bank or the Trustee, to the extent not otherwise encumbered or pledged, and any other monies which may be 'made available to the Bank for the purposes of the Operating Fund from any other source or sources including, without limiting the generality of the foregoing, amounts transferred pursuant to paragraph (3) of Section 803, subparagraph (b)(ii) of paragraph (3) of Section 604 and the amount received as a premium over the principal amount of a Series of Bonds, if any, to the extent provided in the Series Resolution authorizing such Series, Monies at any time held for the credit of the Operating Fund shall be used for and applied solely to the following purposes: (a) To pay the Administrative Expenses of the Bank; (b) To pay the fees and expenses of the Trustee and Paying Agents; Pe 21 (c) To pay financing costs incurred with respect to a Series of Bonds, including fees and expenses of the attorneys, initial Trustee's and Paying Agents' fees and expenses, costs and expenses of financial consultants, printing costs and expenses, the payment to any officers, departments, boards, agencies, divisions and commissions of, or reimbursement to, the State of any statement of cost and expense or advances rendered to the Bank pursuant to the Act, and all other financing and other miscella- neous costs; and (d) To pay any expenses in carrying out any other purpose then authorized by the Act. All amounts in the Operating Fund shall be free and clear of any lien or pledge created by this Resolution but shall be held and applied in accordance with this section. Section 607 . Reduction of Reguired Debt Service Reserve. Whenever the amount of the Required Debt Service Reserve is reduced, the Trustee, only upon the written request of the Bank signed by an Authorized Officer, shall withdraw from any amounts on deposit in the Reserve Fund and deposit in the Redemption Account any amount not exceeding the amount Of such reduction of the Required Debt Service Reserve, The amount to be withdrawn from the Reserve Fund in each instance pursuant to the provisions of this paragraph shall be determined by the Bank and the amount thereof certified to the Trustee in writing signed by an Authorized Officer. Section 608 . Trustee's Maintenance of Records on Payment of Bonds, In connection with the payment, redemption or purchase of all Bonds under the provisions of this Resolution, the Trustee shall keep accurate records of the source of the monies used to pay, redeem or purchase such Bonds. Section 609 - Obtaining Credit Enhancements and Interest Rate Exchange Mreements. Except as otherwise provided in a Series Resolution authorizing the issuance of a Series of Bonds, the Bank may obtain Credit Enhancement or an Interest Rate Exchange Agreement with respect to such Bonds either at the time of Issuance of the Bonds or any time thereafter. ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 ection_610. - Creation of Additional. Funds, Accounts and Subaccounts; Separate Credit Enhancement Funds Pledge with Respect to Credit Enhancements and Interest Rate Exchange Aqreements. (A) The Trustee shall establish within any Fund such Accounts In addition to the Accounts herein established as the Bank shall by Series Resolution or Supplemental Resolution determine and shall in like manner establish within any Account such additional subaccounts for the purposes of such Account as the Bank shalt so determine. (B) The Bank may at any time by execution of a Series Resolution or Supplemental Resolution establish a Fund or Account in which to hold any Credit Enhancement and the proceeds thereof or drawings thereunder (a "Credit Enhancement Fund') for the benefit of any Series of Bonds to which such Credit Enhancement has been pledged, which pledge may be (but Is not required to be) exclusively for the benefit of such Series of Bonds or certain designated Series of Bonds and not equally and ratably among all the Series of Bonds. Amounts held In a Credit Enhancement Fund shall not be considered a part of the Municipal Bonds Payment but, rather, shall be subject to such lien and pledge as may be created In the Series Resolution creating such Credit Enhancement Fund, (C) If the Bank creates a Credit Enhancement Fund, the Bank may direct, in the Series Resolution creating such Credit Enhancement Fund, that the Trustee pay, and if so directed in writing by the Bank the Trustee shall pay, principal (including premium, if any) of and interest on the Bonds secured by such Credit Enhancement Fund directly from amounts in such Credit Enhancement Fund and that the Trustee reimburse, and if so directed In writing by the Bank the Trustee shall so reimburse, such Credit Enhancement Fund for such payment from the Credit Enhancement Fund; provided, however, that the Bank may, In the Series Resolution authorizing the Series of Bends to be secured by Credit Enhancement, treat any, or any part of any, obligation owed or which may in the future be owed to the Credit Enhancement Agency pursuant to the Credit Enhancement Instrument asthe Series of Bonds secured by such Credit Enhancement if the Corporation, at the time of issuance of said Poo* 22 Series of Bonds and at the time of the creation of any such obligation satisfies the requirements of Section 203, in which case the Trustee shall pay the principal of and interest on any such obligations in accordance with the terms of this Resolution treating such obligations as a Series of Bonds. In a Series Resolution authorizing a Series of Bonds secured by a Credit Enhancement Fund the Bank may fix provisions relating to such Fund pursuant to the terms of a Series Resolution. In addition to the foregoing, the Bank may agree to permit a Credit Enhancement Agency to be subrogated to the rights of any Bondholders whose Bonds are secured by the Credit Enhancement provided that such Credit Enhancement Agency Is not in default under such Credit Enhancement. ARTICLE Vii SECURITY FOR DEPOSITS AND INVESTMENT OF FUNDS Section 701 - Security for Deposits. All monies held hereunder by the Trustee shall be continuously and fully secured, for the benefit of the Bank and the Holders of the Bonds in such manner as may then be required or permitted by applicable State or federal laws and regulations regarding the security for, or granting a preference in the case of, the deposit of trust funds. The Trustee or any Paying Agent shall not be required to give security for the deposit of any monies with them held in trust for the payment of the principal or Redemption Price of or interest on any Bonds, or for the Trustee to give security for any monies which shall be represented by obligations purchased under the provisions of this Resolution as an investment of such monies. Section 702- Investment of Funds and Accounts Held by the Trustee, (A) Upon the deposit of any amounts in any fund or account held by the Trustee under the provisions of this Resolution, in the manner hereinabove pre- scribed, the Bank may furnish the Trustee with a schedule of dates on which it is estimated by the Bank that such monies in said fund or account will be required to be expended. The Bank may from time to time amend the schedule so furnished. Upon receipt of such schedule or amended schedule, the Bank may direct the Trustee to, or in the absence of receipt of such schedule or such direction the Trustee shall, ALASKA MUNICIPAL BOND BANK General Obligation Bond ResojuuonICreated 7/13105 invest and reinvest in Investment Securities the monies in said fund or account so that the maturity date or date of redemption at the option of the holder of such obligations shall coincide as nearly as practicable with the times at which monies are needed by the Bank to be so expended. The Bank also may direct the Trustee that all or part of the amounts in the Interest Account and the Principal Account in the Debt Service Fund not be invested for specified periods of time. (B) Obligations purchased as an investment of monies in any fund or account hold by the Trustee under the provisions of this Resolution shall be deemed at all times to be a part of such fund or account and the income or Interest earned, profits realized or losses suffered by a fund or account due to the Investment thereof shalt be retained in, credited or charged, as the case may be, to such fund or account, except that the income or interest earned and profits realized by the Reserve Fund due to the investment thereof shall be transferred by the Trustee in accordance with and to the extent provided by paragraphs (1), (3) and (5) of Section 603. (C) In determining whether or not the amount in the Reserve Fund Is at least equal to the Reserve Fund Requirement, the Trustee shall include the amount of interest earned or accrued thereon as of the date of evaluation and shall also include, but only if any other requirement therefor specified in a Series Resolution has been satisfied, the principal component of any Credit Enhancement then on deposit in the Reserve Fund. (D) Except as otherwise provided in the Resolution, the Trustee shalt sell at the best price obtainable, or present for redemption or exchange, any obligation purchased by it as an investment pursuant to this Resolution whenever it shall be requested in writing by an Authorized Officer of the Bank to do so or whenever it shall be necessary in order to provide monies to meet any payment or transfer from the fund or account for which such investment was made. The Trustee shall advise the Bank in writing, on or before the twentieth day of each calendar month, of the details of all investments held for the credit of each fund and account in its P'go23 custody under the provisions of this Resolution as of the end of the preceding month. Section 703 - Liability of Trustee for Investments. The Trustee shall not be liable or responsible for the making of any investment authorized by the provisions of this Article, in the manner provided in this Article, or for any loss resulting from any such investment so made except for its own negligence or default. ARTICLE VIII THE TRUSTEE AND THE PAYING AGENTS Section 801 - Appointment and Acceptance of Duties. of Trustee. J. P. Morgan Trust Company, National Association, a trust company or bank having the powers of a trust company doing business and having a corporate trust office in Seattle, Washington, is hereby appointed as Trustee for the Holders from time to time of the Bonds, The Trustee shall signify Its acceptance of the duties and obligations imposed upon it by this Resolution by executing the certificate of authentication endorsed upon the Bonds, and, by executing such certificate upon any Bond, the Trustee shall be deemed to have accepted such duties and obligations not only with respect to the Bond so authenticated, but with respect to all the Bonds thereafter to be issued, but nly, however, upon the terms and conditions set forth in the Resolution. Section 802 - Appointment and Acceptance of Duties of Paying Agents. The Bank shall appoint one or more Paying Agents for the Bonds of any Series In the Series Resolution authorizing such Bonds or shall appoint such Paying Agent or Paying Agents by or pursuant to a resolution of the Bank adopted prior to the authentication and delivery of such Bonds and may at any time or from time to time appoint one or more other Paying Agents in the manner and subject to the conditions set forth In Section 812 for the appointment of a successor Paying Agent. The Trustee may be appointed to act as Paying Agent notwithstanding that it may then be acting in the capacity of Trustee. Each Paying Agent shall signify its acceptance of the duties and obligations imposed upon it by this Resolution by written instrument of acceptance executed and delivered to the Bank and the Trustee. The principal or corporate trust offices of the Paying Agents are hereby designated as ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 71f3/05 the respective agencies of the Bank for the payment of the interest on and principal or Redemption Price of the Bonds. Section 803 - Responsibilities of Fiduciaries. (A) The recitals of fact herein and In the Bonds contained shall be taken as the statements of the Bank and the Fiduciaries assume any responsibility for the correctness of the same. No Fiduciary shall be deemed to make any representations as to the validity or sufficiency of this Resolution or of any Bonds issued hereunder or in respect of the security afforded by this Resolution, and no Fiduciary shall incur any responsibility in respect thereof. The Trustee shall, however, be responsible for its representations contained in its certificate on the Bonds, No Fiduciary shall be under any responsibility or duty with respect to any other Fiduciary. No Fiduciary shall be under any obligation or duty to perform any act which would Involve it in expense or liability or to institute or defend any suit in respect hereof, or to advance any of its own moneys, unless indemnified to its satisfaction No Fiduciary shall be liable in connection with the performance of its duties hereunder except for its own negligence or willful misconduct. Neither the Trustee nor any Paying Agent shall be under any responsibility or duty with respect to the application of any moneys paid to any one of the others or the use or application by the Bank of the Bonds or the proceeds thereof. (B) Except during the continuance of an Event of Default, the Trustee undertakes to perform such duties and only such duties as are specifically set forth In this Resolution, and no Implied covenants or obligations shall be read into this Resolution against the Trustee, and, in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinion expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Resolution. (C) In case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested In It by this Resolution and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances In the conduct of his own affairs. Nip 24 (D) No provision of this Resolution shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that (1) the Trustee shall not be liable for any error of judgment made In good faith by a responsible officer, unless It shall be proved that the Trustee was negligent in ascertaining the pertinent facts, (2) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it In good faith in accordance with the direction of the Holders of a majority in principal amount of the Outstanding Bonds relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Resolution, and (3) no provision of this Resolution shall require the Trustee to expend or risk its own funds or otherwise Incur any financial liability in the performance of any of its duties hereunder, or In the exercise of any of Its rights or powers, If it shall have reasonable grounds for believing that repayment of such funds or adequate indemnityagainst such risk or liability Is not reasonably assured to it. Except as otherwise expressly provided herein, the Trustee shall determine whether any conditions or requirements set forth herein for any purpose have been met, and such determination by the Trustee shall be conclusive. (E) Regardless of whether it is therein expressly so provided, every provision of this Resolution, any Series Resolution, or any related document relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Article. (F) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Resolution at the request or direction of any of the Bondholders pursuant to this Resolution, unless such Bondholders shall have offered to the Trustee security or Indemnity to its satisfaction against the costs, expenses and liabilities which might be Incurred by it in compliance with such request or direction. (G) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, ALASKA MUNICIPAL BOND BANK General Oblig ation Bond Resolutlon/Creeled 7/13/05 direction, consent, order, bond, debenture, or other paper or document. (H) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys, and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. (I) The permissive right of the Trustee to do things enumerated In this Resolution shall not be construed as a duty. (J) In accepting the trusts hereby created, the Trustee acts solely as Trustee for the Bondholders and notin its individual capacity and all persons, including, without limitation, the Bondholders and the Bank having any claim against the Trustee arising from this Resolution shall look only to the funds and accounts held by the Trustee or its agent hereunder for payment except as otherwise provided herein. Under no circumstances shall the Trustee be liable in its individual capacity for the obligations evidenced by the Bonds. Section 804 - Evidence on Which Fiduciaries May Act. Each Fiduciary may rely and shall be protected In acting upon any notice, resolution, request, consent, order, certificate, report, opinion, bond orother paper ordocument believed by it to be genuine, and to have been signed or presented by the proper party or parties. Each Fiduciary may consult with counsel, who may or may not be of counsel to the Bank, and the opinion of such shall be full and complete authorization and protection In respect of any action taken or suffered or omitted by it hereunder in good faith and in reliance thereon. Whenever any Fiduciary shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting any action hereunder, including payment of moneys out of any Fund or Account, such mailer (unless other evidence in respect thereof be herein specifically prescribed) maybe deemed to be conclusively proved and established by a certificate signed by an Authorized Officer, and such certificate shall be full warrant for any action taken or suffered In good faith underthe provisions of this Resolution upon the faith thereof, but in its discretion the Page 26 Fiduciary may in lieu thereof accept other evidence of such fact or matter or may require such further or additional evidence as to it may seem reasonable. Except as otherwise expressly provided herein, any request, order, notice or other direction required or permitted to be furnished pursuant to any provision hereof by the Bank to any Fiduciary shall be sufficiently executed if executed in the name of the Bank by an Authorized Officer. Section 805- Compensation. The Bank shall pay to the Trustee and to each Paying Agent from time to time reasonable compensation for all services rendered under this Resolution and also all reasonable expenses, charges, counsel fees and other disbursements, Including those of its attorneys, agents and employees, incurred In and about the performance of their powers and duties underthis Resolution, and the Trustee and each Paying Agent shall have a lien therefor on any and all funds at any time held by it under this Resolution. The Bank further agrees to Indemnify and save the Trustee and each Paying Agent harmless against any liabilities which it may Incur In the exercise and perfor- mance of Its powers and duties hereunder, and which are not due to Its negligence or default. Section 805 - Permitted Acts and Function. The Trustee and any Paying Agent may become the owner of any Bonds, with the same rights it would have if it were not such Trustee or Paying Agent The Trustee and any Paying Agent may act as depository for, and permit any of its officers or directors to act as a member of, or In any other capacity with respect to, any committee formed to protect the rights of Bondholders or to effect or aid in any reorganization growing out of the enforcement of the Bonds orthis Resolution, whether or not any such committee shall represent the Holders of a majority in principal amount of the Bonds then Outstanding. Section 807 - Resignation of Trustee; The Trustee may at any time resign and be discharged of the duties and obligations created by this Resolution by giving not less than ninety (90) days' written notice to the Bank and to the registered owners of Bonds, specifying the date when such resignation shall take effect and such resignation shall take effect immediately upon ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7fl3/05 the appointment of a successor Trustee pursuant to Section 809 hereof. Section 808- Removal of Trustee. The Trustee shall be removed by, the Bank If at any time so requested by an instrument or concurrent instruments in writing, filed with' the Trustee and the Bank, and signed by the Holders of a majority in principal amount of the Bonds then Outstanding or their attorneys-in-fact duly authorized, excluding any Bonds held by or for the account of the Bank. The Bank may remove the Trustee at any time, except during the existence of an Event, of Default, for such cause as shall be determined in the sole discretion of the Bank by filing with the Trustee an instrument signed by an Authorized Officer of the Bank. Section 809 -Appointment of Successor Trustee. In case at any time the Trustee shall resign .or shall be. removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the Trustee, or of its property, shall be appointed, or if any public officer shall take charge or control of the Trustee, or of its property or affairs, the Bank covenants and agrees that it will thereupon appoint a successor Trustee. The Bank shall provide written notice of such appointment to the registered owners of the Bonds. If in a proper case no appointment of a successor Trustee shall be made pursuant to the foregoing provisions of this Section within forty- five (45) days after the Trustee shall have given to the Bank written notice, as provided in Section 807, or after a vacancy in the office of the Trustee shall have occurred by reason of its Inability to act, the Trustee or the Holder of any Bond may apply to any court of competent jurisdiction to appoint a successor Trustee. Said court may thereupon, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee. Any Trustee appointed under the provisions of this Section 809 .1n succession to the Trustee shall be a trust company or bank in good standing having the powers of a trust company within or outside the State, and having a capital and surplus aggregating at least Fifty Million Dollars ($$0,000,000) if there be such a Nip 20 trust company or bank wilng and able to accept the office on reasonable and customary terms and authorized by law to perform all the duties Imposed upon it by this Resolution, Section 810 - Transfer of Rights and Property to Successor Trustee. Any successor Trustee appointed under this Resolution shall execute, acknowledge and deliver to its predecessor Trustee, and also to the Bank, an instrument accepting such appointment and thereupon such successor Trustee, without any further act, deed or conveyance, shall become fully vested with all monies estates, properties, rights, powers, duties and obligations of such predecessor Trustee, with like effect as If originally named as Trustee; but the Trustee ceasing to act shall nevertheless, on the written request of the Bank, or of the successor Trustee, execute, acknowledge and deliver such instruments of conveyance and further assurance and do such other things as may reasonably be required for more fully and certainly vesting and confirming in such successor Trustee all the right, title and interest of the predecessor Trustee in and to any property held by, it under this Resolution, and shall, pay over, assign and deliver to the successor Trustee any money or other property subject to the trusts and conditions herein set forth Should any deed, conveyance or instrument in writing from the Bank be required by such successor Trustee for more fully and certainly vesting in and confirming to such successor Trustee any such estates, rights, powers and duties, any and all such deeds conveyances and instruments in writing shall, on request, and so far as may be authorized by law, be executed, acknowledged and delivered by the Bank. Any such successor Trustee shall promptly notify the Paying Agents of its appoint- ment as Trustee. The Bank shall pay the expenses of effecting a transfer under this Section. Section 811 Merger or Consolidation. Any company Into which the Fiduciary may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which Fiduciary may sell or transfer all of its corporate trust business, shall be the successor to such Fiduciary without the execution or filing of any ALASKA MUNICIPAL BOND BANK Genera) Obligation Bond Resolution/Created 7113/05 paper or the performance of any further act, provided that such company shall be a trust company or bank which is qualified to be a successor to the Trustee under Section 809 or which is qualified to be a successor to the Paying Agent under Section 812, Section 812-Resignation or Removal of the Paving Agents and Appointment of Successors. Any Paying Agent may at any time resign and be discharged of the duties and obligations created by this Resolution by giving at least sixty (60) days written notice to the Bank and the Trustee. Any Paying Agent may be removed at any time by an instrument filed with such Paying Agent and the Trustee and signed by an Authorized Officer of the Bank. Any successor Paying Agent shall be appointed by the Bank and shall be a trust company or bank having the powers of a trust company having a capital and surplus aggregating at least Fifty Million Dollars ($50,000,000), and willing and able to accept the office of Paying Agent on reasonable and customary terms and authorized by law to perform all the duties Imposed upon it by this Resolution. In the event ' of the resignation or removal of any Paying Agent, such Paying Agent shall pay over, assign and deliver any monies held by it to its successor, or if there be no successorthen appointed, to the Trustee until such successor be appointed. In the event that for any reason there shall be a vacancy in the office of Paying Agent, the Trustee shall act as such Paying Agent. Section 813-Evidence of Signatures of Bondholders and Ownership of Bonds. ( A Any request, consent or other instrument which this Resolution may require or permit to be signed and executed by the Bondholders may be in one or more instruments of similar tenor, and shall be signed or executed by such Bondholders in person or by their attorneys appointed In writing. Proof of (I) the execution of any such instrument, or of an Instrument appointing any such attorney, or (ii) the holding by any person of the Bonds shall be sufficlentfor any purpose of this Resolution (except as otherwise herein expressly provided) If made In the following manner, but the Trustee may nevertheless in its discretion require further or other proof in cases where it deems the same desirable: (1) The fact and date of the execution by any Bondholder or his attorney of such instrument may be proved by the certificate, which need not be acknowledged or verified, of an officer of a bank or trust company satisfactory to the Trustee or of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state In which she purports to act, that the person signing such request or other Instrument acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. The authority of the person or persons executing any such instrument on behalf of a corporate Bondholder may be established without further proof if such instrument is signed by a person purporting to be the president or a vice president of such corporation with a corporate seal affixed and attested by a person purporting to be its secretary or an assistant secretary; (2) The amount of Bonds transferable by delivery held by any person executing such request or other Instrument as a Bondholder, and the numbers and other identification thereof, and the date of his holding such Bonds, may be proved by a certificate, which need not be acknowledged or verified, satisfactory to the Trustee, executed by an officer of a trust company, bank, financial Institution or other depository or member of the National Association of Securities Dealers, Inc. wherever situated, showing that at the date therein mentioned such person exhibited to such officer or had on deposit with such depository the Bonds described in such certificate, Continued ownership after the date stated in such certificate may be proved by the presentation of such certificate if the certificate contains a statement by such officer that the depository held that Bonds therein ALASKA MUNICIPAL ROND RANK General Obligation Bond ResolutionlCreatocl 7/13/05 referred to on the date of the certificate and that they will not be surrendered withoutthe surrender of the certificate to the depository, except with the consent of the Trustee, and a certificate of the Trustee, which need not be acknowledged or verified, that such consent has not been given. (B) Except in the case of Bonds transferable by delivery only, the ownership of Bonds and the amount, numbers and other identification, and date of holding the same shall be proved by the registry books. Any request, consent or vote of the owner of any Bond shalt bind all future owners of such Bond in respect of anything done or suffered to be done by the Bank or any Fiduciary in accordance therewith. ARTICLE IX COVENANTS OF THE BANK The Bank covenants and agrees with the Holders of the Bonds as follows: Section 901 - Payment of Bonds. The Bank shall duty and punctually pay or cause to be paid the principal or Redemption Price, If any, of every Bond and the interest thereon, at the dates and places and in the manner stated In the Bonds according to the true intent and meaning thereof, and shall duly and punctually pay, or cause to be paid, all Sinking Fundinstaliments, if any, becoming payable with respect to any Series of Bonds. Section 902- Extension of Payment of Bonth. The Bank shall not directly or indirectly extend or assent to the extension of the maturity of any of the Bonds or the time of payment of any claims for interest by the purchase or funding of such Bonds or claims for interest or by any other arrangement and in case the maturity of any of the Bonds or the time for payment of any claims for interest shall be extended, such Bonds or claims for interest shall not be entitled In case of any default under this Resolution to the benefit of this Resolution or to any payment out of any assets of the Bank or the funds (except funds held in trust for the payment of particular Bonds or claims for interest pursuant to this Resolution) prior to benefits accorded to or the payment of the principal of all Bonds issued and Outstanding PRO* 28 the maturity of which has not been extended and of such portion of the accrued interest on the Bonds as shall not be represented by such extended claims for interest. Nothing herein shall be deemed to limit the right of the Bank to issue Refunding Bonds as provided in Section 203 and such issuance shall not be deemed to constitute an extension of maturity of Bonds. Section 903 - Offices for Servicing Bonds. The Bank shall at all times maintain an office or agency Where Bonds may be presented for transfer or exchange, and where notices, presentations and demands upon the Bank in respect of the Bonds or of this Resolution may be served. The Bank hereby appoints the Trustee as its he to maintain such office or agency for the transfer or exchange of Bonds and for the service of such notices, presentations and demands upon the Bank and may appoint one or more co-registrars for such purposes. The Bank hereby appoints the Trustee as Paying Agent and hereby appoints the Paying Agent as its agent to maintain such offices or agencies for the payment of Bonds. Section 904 - Further Assurances. At any and all times the Bank shall, so far as it may be authorized by law, pass, make, do, executes acknowledge and deliver, all and every such further resolutions, acts, deeds, conveyances, assignments, transfers and assurances as may be necessary for the better assuring, conveying, granting, assigning, confirming all and singular the rights, Municipal Bonds Payments, the Municipal Bonds and other monies, securities, funds and property hereby pledged or assigned, or intended so to be, or which the Bank may hereafter become bound to pledge or assign. Section 905- Power to Issue Bonds and Make Pledges, The Bank is duly authorized pursuant to Iawto authorize and Issue the Bonds for thepurposes herein authorized and to adopt this Resolution and to pledge the Municipal Bonds Payments, the Municipal Bonds and other monies, securities, funds and property purported to be pledged by this Resolution in the manner and to the extent provided in this Resolution. The Municipal Bonds Payments, the Municipal Bonds, and other monies, securities, funds and property so pledged are and will be free and clear of any pledge, lien, charge or encumbrance thereon or with respect thereto ALASKA MUNICIPAL BOND BANK General Obligation Bond ResoluUonlCreated 7/13105 prior to, orof equal rank with, the pledge created by this Resolution, except for the liens in favor of the Trustee and Paying Agents provided in Section 805 hereof, and all corporate or other action on the part of the Bank to that and has been duly and will be duly and validly taken. The Bonds and the provisions of this Resolution are and will be the valid and legally enforceable obligations of the Bank in accordance with their terms. The Bank shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Municipal Bonds Payments, the Municipal Bonds and other monies, securi ties, funds and property pledged under this Resolution and all the rights of the Bondholders under this Resolution against all claims and demands of all persons whomsoever. Section 506 - General Covenants of th (A) The Bank shall do and perform or cause to be done and performed all acts and things required to be done or performed by oron behalf of the Bank under law and this Resolution in accordance with the terms hereof, (B) Upon the date of issuance of any of the Bonds all conditions, acts and things required by law and this Resolution to exist, to have happened and to have been performed precedent to and in the issuance of such Bonds shall exist, have happened and have been performed and the issue of such Bonds, together with all other indebtedness of the Bank, shall be within every debt and other limit prescribed by the laws of the State. (C) The Bank does hereby pledge-to and agree with the Holders of the Bonds that it will not cause the State to limit or alter the rights vested by the Act in the Bank to fulfill the terms of any agreements made with Bondholders, or in any way impair the rights and remedies of such Holders until the Bonds, together with the Interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such Holders, are fully met and discharged. (D) Upon failure of a Governmental Unit to make any principal or interest payment on the date specified In, and as required by, the applicable Loan Agreement securing payment of the Municipal Bonds the Trustee shalt Page 29 immediately notify the Executive Director of the Bank who shall then take the following actions: (I) the Executive Director shall within two days of the Governmental Units failure to make the Municipal Bonds Payment pursuant to the terms of the applicable Loan Agreement, contact such Governmental Unit and request payment; (ii) in the event payment is not made by the Governmental Unit pursuant to (I) above, the Trustee shall make up such deficiencies from the Reserve Fund as provided for in Section 603(E) of this Resolution; (iii) in the event payment is not made by the Governmental Unit pursuant to (I) above, and the Reserve Fund Is drawn upon to make up such deficiency pursuant to (it) above, the Executive Director shell initiate intercept proceedings with the applicable State agencies pursuant to Section 917 of this Resolution; (iv) in the event amounts collected pursuant to (Ili) above are insufficient to replenish amounts held in the Reserve Fund to the Reserve Fund Requirement, the Executive Director shall contact the Governor of the State and the State legislature as set forth in Section 911 (B) of this Resolution; and (v) if there remains a deficiency in the Reserve Fund after the Executive Director has exhausted the requirements found in (I) through (iv) above the Executive Director shall request a loan from the Department of Revenue pursuantto AS 44.85.270(i) and provide forsuch loan to be used to cause the amount In the Reserve Fund to satisfy the Reserve Fund Requirement. Section 907 Accounts and Reports. (A) The Bank shall keep, or cause to be kept, proper books of record and account in which complete and correct entries shall be made of its transactions relating to all Municipal Bonds Payments, Municipal Bonds, the Fees and Charges and all funds and accounts established by this Resolution which shall at all reasonable times be subject to the inspection of the Trustee or the Holders of an aggregate of not less than twenty-five per centum (25%) in principal ALASKA MUNICIPAL BOND SANK General Obligation Bond Resolution/Created 7/13/05 amount of Bonds then Outstanding or their representatives duly authorized in writing. (B) The Bank shall annually, on or before the last day of January in each year, file With the Trustee a copy of an audit for the preceding Fiscal Year, accompanied by an Accountant's Certificate, and an annual report setting forth In complete and reasonable detail: (a) its operations and accomplishments; (b) Its receipts and expenditures during such Fiscal Year in accordance with the categories or classifications established by the Bank for Its operating and capital outlay purposes: (c) its assets and liabilities at the end of such Fiscal Year, including a schedule of its Municipal Bonds Payments, Municipal Bonds, Fees and Charges and the status of reserve, funds and the funds and accounts established by this Resolution; and (d) a schedule of its Bonds Outstanding and other obligations outstanding at the end of such Fiscal Year, together with a statement of the amounts paid, redeemed and issued during such Fiscal Year. A copy of each such annual report and Accountant's Certificate shall be mailed promptly thereafter by the Trustee to each Bondholder who shall have filed his name and address with the Bank for such purpose. Section 908 - Personnel and Servicing of Proprg. (A) The Bank shall at all times appoint, retain and employ competent personnel for the purpose of carrying out its respective programs and shall establish and enforce reasonable rules, regulations, tests and standards governing the employment of such personnel at reasonable compensation, salaries, fees and charges and all persons employed by the Bank shall be qualified for their respective positions. (B) The Bank may pay to the repective State agency, governmental unit or political subdivision of the State from the Operating Fund such amounts as are necessary to reimburse the respective State agency, governmental unit or political subdivision of the state for the reason- able costs of any services performed for the Bank. Section 909 - Waiver of Laws. The Bank shall not at any time insist upon or plead in any manner whatsoever, or claim or take the Pago benefit or advantage of any stay or extension law now or at any time hereafter in force which may affect the covenants and agreements contained in this Resolution or in any Series Resolution or in the Bonds, and all benefit or advantage of any such law or laws is hereby expressly waived by the Bank. Section 910 - Fees and Charges. The Bank shall establish, make maintain and charge such Fees and Charges to each Governmental Unit to which a Loan is made, and shall from time to time revise such Fees and Charges whenever necessary, so that such Fees and Charges actually collected from each such Governmental Unit will at all times produce monies which, together with such Governmental Unit's Allocable Proportion of other monies available underthe provisions of this Resolution, and other monies available therefor, including any grants made by the United States of America or any agency or instrumentality thereof or by the State or any agency or instrumentality thereof and amounts applied therefor from amounts transferred to the Operating Fund pursuantto paragraph (3) of Section 603, will be at least sufficient: (a) To pay, as the same become due, the Governmental Unit's Allocable Proportion of the Administrative Expenses of the Bank; and (b) To pay, as the same become due, the Governmental Units Allocable Proportion of the fees and expenses of the Trustee and Paying Agents, The Bank shall provide the Trustee with a schedule of the Fees and Charges to be paid by each Governmental Unit, and of each revision thereof, and shall require each Governmental Unit to make payment of the Fees and Charges required to be paid by it directly, to. the Trustee. The Trustee shall promptly advise the Bank of each and every failure of a Governmental Unit to make payment of Fees and Charges when due in accordance with the applicable schedule. Section 911 -Administration of Reserve Fund. (A) The Bank shall establish and maintain the Reserve Fund In accordance with the provisions of this Resolution. All monies and securities held in the Reserve Fund shall be used, disbursed and applied only in accordance ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 with the provisions of this Resolution and for no other purpose. Monies and securities held in the Reserve Fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount in such Fund to an amount less than the Required Debt Service Reserve except as otherwise provided in this Resolution. (5) The Bank shall cause the Chairman of the Board of Directors of the Bank annually, before each January 30, to make and deliver to the Governor of the State and to the legislature his certificate stating the amount, If any, required to restore the Alaska Municipal Bond Bank Reserve Fund to the amount of the Required Debt Service Reserve and a copy of such certificate shall be promptly delivered by the Bank to the Trustee. Monies received by the Bank from the State pursuant to such a certification, in accordance with the provisions of Section 44.85.270(g) of the Act shall, to the extent such certification was occasioned by the fact that the amount in the Reserve Fund was less than the Required Debt Service Reserve, be deposited In the Reserve Fund, as required by paragraph (D) of Section 603. Section 912 - Issuance of Additional Obligations. (A) The Bank shall not subsequent' to the issuance of the initial Series of Bonds under this Resolution create or permit the creation of or issue any obligations or create any additional indebtedness which will be secured by a charge and lien on the Municipal Bonds and the Municipal Bands Payments or which will be payable from the Debt Service Fund or the Reserve Fund, except that additional Series of Bonds may be issued from time to time pursuant to a Series Resolution subsequent to the issuance of the initial Series of Bonds under this Resolution on a parity with the Bonds of such Initial Series of Bonds and secured by an equal charge and lien on the Municipal Bonds and the Municipal Bonds Payments and payable equally and ratably from the Debt Service Fund and Reserve Fund for the purposes of (i) making Loans to Governmental Units, (II) making payments into the Interest Account, (iii) making payments into the Reserve Fund, (iv) funding of Notes theretofore issued by the Bank for any purposes for which Bonds may have been issued, and (v) subject to the provisions and limitations of Section 203, the refunding of any Bonds then Outstanding, under the conditions Page 31 and subject to the limitations in this Section 912 provided. (B) No additional Series of Bonds shall be issued subsequent to the issuance of the initial Series of Bonds under this Resolution unless: (1) the, aggregate principal amount of Bonds and Notes of the Bank outstanding at the time of issuance and delivery of such additional Bonds including the principal amount of such additional Bonds will not exceed any limit thereon imposed by law; (2) there is at the time of the issuance of such additional Bonds no deficiency in the amounts required by this Resolution or any Series Resolution to be paid.into the Debt Service Fund and into the Reserve Fund; (3) the amount of the Reserve Fund, upon the issuance and delivery of such additional Bonds and the deposit in the Reserve Fund of any amount provided therefor in the Series Resolution authorizing the issuance of such add hional Bonds, shall not be less than the Required Debt Service Reserve; and (4) the maturities of, or Sinking Fund Installments for, the additional Bondathen being issued representing Loan Obligations, unless such additional Bonds are being issued to refund Outstanding Bonds in accordance with' the provisions of Section 203, shall be equal to the scheduled Municipal Bonds Principal Payments to be made in respect of the Loans with respect to which such additional Bonds are to be issued. (C) The Bank expressly reserves the right to adopt one or more other general obligation bond resolutions and reserves the right to issue Notes and any other obligations so long as the some are not a charge or lien on the Municipal Bonds, the Municipal Bonds Payments and the Fees and Charges or payable from the Debt Service Fund or the Reserve Fund created pursuant to this Resolution. Section, 913 Loan Agreement Provisions. No Loan shall be made by the Bank from the proceeds of the sale of Bonds, and no Bonds shall be issued by the Bank for the purpose of providing funds with which to make a ALASKA MUNICIPAL BOND SANK General Obligailon Bond Resoluilon/Created 7/13/05 Loan, unless the Loan Agreement under which such Loan is to be made shall comply with, and no Bonds shall be issued by the Bank to fund Notes or to refund Bonds unless the Loan Agreement under which the Loan was made from the proceeds of such Notes or Bonds, shall also comply with, the following terms, conditions, provisions and limitations: (a) The Governmental Unit which is a party to such Loan agreement must be a Governmental Unitas defined by the Resolution and the Loan Agreement must be executed in accordance with existing laws; (b) The Governmental Unit, prior to or simultaneously with the issuance of Bonds of the Bank issued to make a Loan to the Governmen- tal Unit, shall issue Municipal Bonds which are valid obligations of the Governmental Unit as required by the Act; (c) The Municipal Bonds Interest Payments to be made by the Governmental Unit under such Loan Agreement shall be not less than the interest payments the Bank is required to make on the Loan Obligation and shall be scheduled by the Bank in such manner and at such times (notwithstanding the dates of payment as stated in the Municipal Bonds) as to provide funds sufficient to pay interest on the Loan Obligation as the same becomes due; (d) The Municipal Bonds Principal Payments to be made by the Governmental Unit' under such Loan Agreement shall be scheduled by the Bank in such manner and at such times (notwithstanding the dates of payment as stated In the Municipal Bonds) as to provide funds sufficient to pay the principal of the Loan Obligation as the same matures; (e) The Governmental Unit shall be obligated to pay Fees and Charges to the Bank at the times and in the amounts which will enable the Bank to comply with the provisions of Section 910; (f) The Governmental Unit shall agree that In the event the amounts referred to in paragraphs (c) and (d) are not paid by it to the Bank on or before the times specified in the Loan Agreement, any money payable to the Governmental Unit by any department or agency Page 32 of the State shall be withheld from such Governmental Unit and paid over directly to the Trustee acting under the General Obligation Band Resolution and that the said agreement shall be full warrant, authority and direction to make such payment to any official of the State responsible for such payment upon notice to such official by the Bank as provided in the Act: (g) The Bank shall not sell and the Governmental Unit shall not redeem prior to maturity any of the Municipal Bonds with respect to which the Loan is made in an amount greater than the Outstanding Bonds Issued with respect to such Loan which are then redeemable, and in the event of any such sale orredemption of such Municipal Bonds, the same shall be in an amount not less than the aggregate of (i) the principal amount of the Loan Obligation so to be redeemed, (ii) the interest to accrue on the Loan Obligation so to be redeemed to the next redemption date thereof not previously paid, (iii) the applicable premium, If any, payable on the Loan Obligation so to be redeemed, and (iv) the costs and expenses of the Bank in effecting the redemption of the Loan Obligation so to be redeemed; provided, however, that in the event the Loan Obligation has been refunded and the Refunding Bonds therefor were issued in a principal amount in excess of or less than the Loan Obligation remaining unpaid at the date of issuance of such Refunding Bonds, the amount which the Governmental Unit shall be obligated to pay or the Bank shall receive under Item (I) above shall be the principal amount of such Refunding Bonds Outstanding. In the event the Loan Obligation has been refunded and the interest the Bank is required to pay on the Refunding Bands therefor is less than the interest that the Bank was required to pay on the Loan Obligation, the amount which the Governmental Unit shall be obligated to pay or the Bank shall receive under item (ii) above shall be the amount of interest to accrue on such Refunding Bonds Outstanding. (h) The Governmental Unit shall give the Bank at least fifty (50) days' notice of Intention to redeem its Municipal Bonds. Section 914 - Modification of Loan Agreement Terms. The Bank shall not consent to the modification of, or modify, the rate or rates of Interest of, or the amount or time of payment ALASKA MUNICIPAL BOND BANK Genera! Obligation Bond ResoiufloWCrealed 7113/05 of any installment of principal of or interest on any Municipal Bonds evidencing a Loan, or the amount or time of payment of any Fees and Charges payable with respect to such Loan, or the security for or any terms or provisions of such Loan or the Municipal Bands evidencing the same, In a manner which adversely affects or diminishes the rights of the Bondholders; provided, however, that, in the event the Loan Obligation is being or has been refunded and the Refunding Bonds therefor are in a principal amount in excess of or less than the principal amount of the Bands refunded, the Bank may consent to the modification of and modify the Loan agreement relating to such Loan and the Municipal Bonds evidencing the same, and the Municipal Bonds Payments to be made thereunder so long as such Municipal Bonds Payments are sufficient in amount and payable at the times required for the payment of the principal of and interest on such Refunding Bonds, and further provided, however, that, In the event the Loan Obligation has been refunded and the interest the Bank Is required to pay on the Refunding Bonds Issued for the purpose of refunding such original Bonds is less than the interest the Bank was required to pay on such original Bonds refunded by the Bank, the Municipal Bonds interest Payments to be made by the Governmental Unit in respect of such Loan may be reduced so that the amounts required to be paid shall be sufficient to pay interest on such Refunding Bonds Outstanding, Section 915 - Sale of Municial Bonds by Bank. The Bank shall not sell any Municipal Bonds except as provided in subsection (g) of Section 913. Section 916 - Disposition of the Proceeds of Sale or Redemption of Municipal Bonds, In the event Municipal Bonds or other obligations securing a Loan shall be sold by the Bank or redeemed by the Governmental Unit In accordance with terms of the applicable Loan Agreement, the Bank shall, upon such sale by the Bank or redemption by the Governmental Unit, deposit the proceeds of such sale or redemption, except an amount thereof equal to the costs and expenses of the Bank in effecting the redemption of the Bonds to be redeemed, Into the applicable sub-account or sub-accounts in the Redemption Account and shall apply the same to the purchase, retirement or redemption Page 33 of the appropriate Bonds in accordance with the provisions of this Resolution. The balance in such applicable sub-account or sub-accounts of such proceeds of sale or redemption of Municipal Bonds after the redemption of the Bonds to be redeemed shall be deposited In the Operating Fund, Section 917- Enforcement of Municipal Bonds, The Bank shall diligently enforce, and take all reasonable steps, actions and proceedings necessary for the enforcement of, all terms, covenants and conditions of all Loan Agreements and the Municipal Bonds evidencing Loans made by the Bank, including the prompt collection, and the giving of notice to the Commissioner of Revenue, Commissioner of Commerce Community and Economic Development and the Commissioner of Administration and any other department or agency of the State which Is custodian of any money payable to the Governmental Unit of any failure or default of the Governmental Unit in the payment of Its Municipal Bonds Payment and shall promptly transfer any such monies, upon receipt thereof, to the Trustee and, in such event, or if such monies are paid directly to the Trustee, the Trustee shall deposit any such Monies in . the Principal Account and Interest Account in place of said unpaid Municipal Bonds Payment or in the event deficiencies in said Accounts created by such default shall have been made up by the Reserve Fund pursuant to paragraph (5) of Section 603, in the Reserve Fund to the extent of such deficiencies. Section 918 --Continuing Disclosure; Bankruptcy. (A) The Bank hereby covenants and agrees that it will comply with and carry out all the provisions of each Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the Bank to comply with any Continuing Disclosure Certificate shall not be considered an Event of Default, and any Bondholder may take such actions only as may be provided In such Continuing Disclosure Certificate (B) The Bank hereby covenants and agrees that it will notify the Rating Agencies then rating the Bonds of any change In the Act which would permit itor require it to declare bankruptcy under the Bankruptcy Code, ALASKA MUNiCIPAL. BOND BANK General Obligation Bond Resolution/Created 711$/05 Section 919- Tax Covenants. Th Bank shall not knowingly take or cause any action to be taken which would cause Interest on any Bonds to become taxable for federal income tax purposes. The Bank shall at all times do and perform all acts and things necessary or desirable, Including, but not limited to, complying with the rebate provisions of Section 148 of the Code, as applicable, and complying with the provisions of any letter of instructions from bond counsel, in order to assure that interest paid on Bonds shall, for purposes of federal income taxation, be excludable from the gross Income of the recipients thereof and exempt from taxation. The Bank shall not permit at any time or times any proceeds of any Bonds or any amounts held hereunder to be used, directly or indirectly, in a manner which would result in the exclusion of any Bond from the treatment afforded by subsection (a) of Section 103 of the Code. ARTICLE X SERIES RESOLUTION AND SUPPLEMENTAL RESOLUTIONS Section 1001 - Modification and Amendment without Consent. Notwithstanding any other provisions of this Article X, or Article XI, the Bank may adopt at any time or from time to time Series Resolutions or Supplemental Resolutions for any one or more of the following purposes, and any such Series Resolution or Supplemental Resolution shall become effective In accordance with Its terms upon the filing with the Trustee of a copy thereof certified by an Authorized Officer: (A) To provide for the Issuance of a Series of Bonds pursuant to the provisions of this Resolution and to specify and determine such matters and things referred to in Article II of this Resolution and to prescribe the terms and conditions pursuant to which such Bonds may be Issued, paid or redeemed; (B) To add to the covenants and agreements of the Bank for the purpose of' further securing the payment of the Bonds, provided such additional covenants 'and agreements are not contrary to or inconsistent with the covenants and agreements of the Bank contained in this Resolution; page 34 (C) To prescribe further limitations and restrictions upon the issuance of Bonds and the incurring of indebtedness by the Bank which are not contrary to or inconsistent with the limitations and restrictions thereon theretofore in effect; (ID) To surrender any right, power or privilege reserved to or conferred upon the Bank by the terms of this Resolution provided that the surrender of such right, power or privilege is not contrary to or inconsistent with the covenants and agreements of the Bank contained in this Resolution; (E) To confirm as further assurance any pledge under and the subjection to any lien, claim or pledge created or to be created by the provisions of this Resolution of the Municipal Bonds and Municipal Bonds Payments or of any other monies, securities or funds; (F) To modify any of the provisions of this Resolution or any previously adopted Series Resolution in any other respect; provided that such modifications shall not be effective until after all Bonds of any Series of Bonds Outstanding as of the date of adoption of such Series Resolution or Supplemental Resolution shall cease to be Outstanding, and all Bonds issued under such modified resolutions shall contain a specific reference to the modifications; (0) To cure any ambiguity or defect or Inconsistent provision in this Resolution or to insert such provisions clarifying matters or questions arising under this Resolution as are necessary or desirable In the event any such modifications are not contrary to or inconsistent with this Resolution as theretofore in effect. Section 1002 - Supplemental Resolutions Effective with Consent of Bond hold. ers. The provisions of this Resolution may also be modified or amended at any time or from time to time by a Supplemental Resolution, with the consent of Bondholders in accordance with and subject to the provisions of Article XI which Supplemental Resolution, upon the filing wlththe Trustee of a copy thereof, certified by an Authorized Officer and upon compliance with the Article XI, shall become fully effective in accordance with its terms as provided in said Article. ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 Section 1003 - Generaj Provisions Relating to Series Resolutions and Supplemen- tal Resolutions, This Resolution shall not be modified or amended in any respect except as provided In and in accordance with and subject to the provisions of this Article X and Article Xi. Nothing contained in this Article X or Article Xl shall affect or limit the rights or obligations of the Bank to adopt, make, do, execute or deliver any resolution, act or other instrument pursuant to the provisions of Section 904 or the right or obligation of the Bank to execute and deliver to the Trustee or any Paying Agent any instrument which elsewhere in this Resolution it is provided or permitted to be delivered to the Trustee or any Paying Agent. A copy of every Series Resolution and Supplemental Resolution adopted by the Bank when filed with the Trustee shall be accompanied by a Counsels Opinion stating that such Series Resolution or Supplemental Resolution has been duly and lawfully adopted In accordance with the provisions of this Resolution, Is authorized or permitted by this Resolution and is valid and binding upon the Bank and enforceable in accordance with its terms (subject, as to enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium, or other laws affecting creditor's rights generally from time to time in effect). The Trustee is hereby authorized to accept delivery of a certified copy of any Series Resolution or Supplemental Resolution permitted or authorized pursuant to the provisions of this Resolution and to make all further agreements and stipulations which may be contained therein, and, in taking such action, the Trustee shall be fully protected In relying on Counsel's Opinion that such Series Resolution or Supplemental Resolution is authorized or permitted by the provisions of this Resolution. No Series Resolution or Supplemental Resolution changing, amending or modifying any of the rights or obligations of the Trustee or of any Paying Agent may be adopted by the Bank without the written consent of the Trustee or Paying Agent affected thereby. Pap 36 ARTICLE XI AMENDMENTS Section 1101 - Powers of Amendment. Any modification or amendment of this Resolution and of the rights and obligations of the Bank and of the Holders of the Bonds, in any particular, may be made by a Supplemental Resolution, with the written consent given- as hereinafter provided ln.Section 1102, (a) of the Holders of at least two-thIrds In principal amount of the Bonds Outstanding at the time such consent is given, or (b) in case less than all of the several Series of Bonds then Outstanding are affected by the modification or amendment, of the Holders of at least two-thirds in principal amount of the Bonds of each Series so affected and Outstanding at the time such consent is given; provided, however, that such modification or amendment shall not (I) permit a change in the terms of redemption or maturity of the principal of any Outstanding Bond or of any installment of interest thereon or Sinking Fund Installment therefor, (ii) or a reduction in the principal amount or the Redemption Price thereof or in the rate of interest thereon, or (iii) a reduction of the percentage of the Holders of which is required to effect any such modification or amendment, or (iv) permit the creation of any lien prior to or on a parity with the lien created by this Resolution (except in the manner provided by this Resolution) or deprive the Holders of the Bonds of the lien created by this Resolution, without the consent of the Holders of all the Bonds Outstanding or of the Series of Bonds affected by such modification or amendment. • For the purposes of this Section, a Series shall be deemed to be affected by.a modification or amendment of this Resolution if the same adversely affects or diminishes the rights of the Holders of Bonds of such Series. Section 1102-Consent of Bondholders. (A) The Bank may at any time adopt a Supplemental Resolution making a modification or amendment permitted by the provisions of Section 1101, to take effect when and as provided in this Section. A copy of. such Supplemental Resolution (or brief summary thereof or reference thereto), together with a request to Bondholders for their consent thereto, shall be to by, or on behalf of, the Bank's to Bondholders Such Supplemental Resolution shall not be effective unless and until there shall ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 have been filed with the Trustee (a) the written consents of Holders of the percentages of Outstanding Bonds specified in Section 1101 and (b) a Counsel's Opinion stating that such Supplemental Resolution has been duly and lawfully adopted and filed by the Bank in accordance with the provisions of this Resolution, Is authorized or permitted hereby and Is valid and binding upon the Bank and enforceable in accordance with its terms, and (Ii) a notice shall have been mailed as hereinafter provided In this Section. (B) The consent of a Bondholder to any modification or amendment shall be effective only if accompanied by proof of the holding, at the date of such consent, of the Bonds with respect to which such consent is given, which proof shall be such as is permitted by Section 813. A certificate or certificates by the Trustee filed with the Trustee that it has examined such proof and that such proof is sufficient in accordance with Section 813 shall be conclusive that the consents have been given by the Holders of the Bonds described in such certificate or certificates of the Trustee. Any such consent shall be binding upon the Holder of the Bonds giving such consent and upon any subsequent Holder of such Bonds and of any Bonds Issued in exchange therefor (regardless of whether such subsequent Holder thereof has notice thereof) unless such consent is revoked in wilting by the holder of such Bonds giving such consent or a subsequent holder thereof by tiling with the Trustee, prior to the time when the written statement of the Trustee hereinafter provided for in this Section is flied, such revocation and, If such Bonds are transferable by delivery, proof that such Bonds are held by the signer of such revocation in the manner permitted by Section 813. The fact that of consent has not been revoked may likewise be proved by a certificate of the Trustee filed with the Trustee to the effect that no revocation thereof is on tile with the Trustee. (C) At any time after the Holders of the required percentages of Bonds shall have filed their consents to the Supplemental Resolution, the Trustee shall make and file with the Bank and the Trustee a written statement that the Holders of such required percentages of Bonds have filed such consents. Such written statement shall be conclusive that such Page 36 consents have been so filed. At any time thereafter notice, stating in substance that the Supplemental Resolution adopted by the Bank on a stated date, a copy of which is on file with the Trustee, has been consented to by the Holders of the required percentages of Bonds and will be effective as provided In this Section, may be given to Bondholders by the Bank by mailing such notice to Bondholders at least once not more than ninety days (90) after the Holders of the required percentages of Bonds shall have filed their consents to the Supplemental Resolution and the written statement of the Trustee hereinabove provided for is filed. The Bank shall file with the Trustee proof of the publication of such notice and, if the same shall have been mailed to Bondholders, of the mailing thereof. A record, consisting of the papers required or permitted by this Section to be filed With the Trustee, shall be proof of the matters therein stated. Such Supplemental Resolution making such amendment or modification shall be deemed conclusively binding upon the Bank, the Fiduciaries and the Holders of all. Bonds at the expiration of forty (40) days after the filing with the Trustee of the proof of the first publication of such last mentioned notice, except in the event of a final decree of a court of competent jurisdiction setting aside such Supplemental Resolution in a legal action or equitable proceeding for purpose commenced within such forty day period; except that any Fiduciary and the Bank during such forty day period and any such further period during which any such action or proceeding may be pending shall be entitled in their absolute discretion to take such action, or to refrain from taking such action, with respect to such Supplemental Resolution as they may deem expedient. Section 4103 - Modifications by Unanimous Consent. The terms and provisions of this Resolution and the rights and obligations of the Bank and of the Holders of the Bonds may be modified or amended in any respect upon the adoption and filing with the Trustee by the Bank of a copy of a Supplemental Resolution certified by an Authorized Officer and the consent of the Holders of all of the Bonds then Outstanding, such consent to be given as provided in Section 1102, except that no notice to Bondholders either by mailing or publication shall be required provided, however, that no such modification or amendment shall change or modify any of the ALASKA MUNICIPAL BOND BANK General Obligation Bond Resoiu(ionlCreafed 7113105 rights or obligations of the Trustee or Paying Agents without the filing with the Trustee of its written assent thereto in addition to the consent of Bondholders. Section 1104 - Mailing and Publication. Any provision in this Article for the mailing of a notice or other document to Bondholders shall be fully complied with if it is mailed postage prepaid only (I) to each registered owner of Bonds then Outstanding at his address, if any, appearing upon the registry books of the Bank, (ii) to each Holder of any Bond payable to bearer who shall have filed with the Trustee an address for notices, and (iii) to the Trustee. Section 1105 - Exclusion of Bonds. Bonds owned or held by or for the account of the Bank shall not be deemed Outstanding for the purpose of consent or other action or any calculation of Outstanding Bonds provided for in this Resolution, and the Bank shall not be entitled with respect to such Bonds to give any consent or take any other action provided for in this Resolution. At the time of any consent or other action taken under this Resolution, the Bank shall furnish the Trustee a certificate of an authorized Officer, upon which the Trustee may rely, describing all Bonds so to be excluded. Section 1106 - Notation on Bonds. Bonds delivered after the effective date of any action taken as in Article X or XI provided may, and if the Trustee so determines, shall, bear notation by endorsement or otherwise in form approved by the Bank and the Trustee as to such action, and in that case upon demand of the Holder of any Bond Outstanding at such effective date and upon presentation of his Bond for such purpose at the corporate trust office of the Trustee suitable notation shall be made on such Bond by the Trustee as to any such action. If the Bank or the Trustee shall so determine, new Bonds so modified as in the opinion of the Trustee and the Bank to conform to such action shall be prepared and delivered, and upon demand of the Holder of any Bond then Outstanding shall be exchanged, without cost to such Bondholder, for Bonds of the same Series and maturity then Outstanding, upon surrender of such Bonds. Pag37 ARTICLE XII DEFAULTS AND REMEDIES Section 1201 - Trustee to Exercise Powers of Statutory Trustee. The Trustee shall be and hereby Is vested with all of the rights, powers and duties of a trustee appointed by Bondholders pursuant to Section 44.85.310 and 320 of the Act and the right of Bondholders to appoint a trustee pursuant to Section 44,85.310 and 320 of the Act is hereby abrogated pursuant to Section 44.85,220(18) of the Act. Section 1202- Events of Default. Each of the following events is hereby declared an "Event of Default," that is to say; if (a) the Bank shall default In the payment of the principal or Redemption Price of, Sinking Fund Installment for, or Interest on, any Bond when and as the same shall become due whether at maturity or upon call for redemption, or otherwise; or (b) the Bank shall fail or refuse to comply with the provisions of Section 44.85.270(g) of the Act, or such amounts as shall be certified by the Chair of the Bank to the Governor and to the Legislature pursuant to such provisions of the Act shall not be appropriated and paid to the Bank prior to the termination of the then current State fiscal year; or (c) the Bank shall fail or refuse to comply with the provisions of the Act, otherthan as provided in (b) above, or shall default in the performance or observance of any other of the covenants agreements or conditions on its part in this Resolution, any Series Resolution, any Supplemental Resolution, or in the Bonds contained, and such failure, refusal or default shall continue for a period of forty-five (45) days after written notice thereof by the Trustee or the Holders of not less than twenty-five per centum (25%) in principal amount of the Outstanding Bonds. Provided, however, that an Event of Default shall not be deemed to exist under the provisions of this paragraph (c) upon the failure of the Bank to make and collect Fees and Charges required to be made and collected by the provisions of this Resolution or upon the ALASKA MUNICIPPJ. BOND BANK General Obligation Sand ResolationiCreated 7113105 failure of the Bank to enforce any obligation undertaken by a Governmental Unit pursuant to a Loan Agreement including the making of the stipulated Municipal Bonds Payment so long as the Bank may otherwise be directed by law and so long as the Bank shall be provided with monies from the State or otherwise, other than withdrawals from or reimbursements of the Reserve Fund, sufficient in amount to pay the principal of and interest on all Bonds as the same shall become due during the period for which the Bank shall be directed by law, to abstain from making and collecting such Fees and Charges and from enforcing the obligations of a Governmental Unit under the applicable Loan Agreement. Section 1203-Remedies, (A) Upon the happening and continuance of any Event of Default specified in paragraph (a) of Section 1202, the Trustee shall proceed, or upon the happening and continuance of any Event of Default specified in paragraphs (b) and (c) of Section 1202, the Trustee may proceed, and upon the written request of the Holders of not less than twenty-five per centum (25%) in principal amount of the Outstanding Bonds shall proceed, in its own name, to protect and enforce its rights and the rights of the Bondholders by such of the following remedies, as the Trustee, being advised by counsel, shall deem most effectual to protect and enforce such rights: (1) by mandamus or other suit, action or proceeding at law or In equity; enforce all rights of the Bondholders, including the right to require the Bank to make and collect Fees and Charges and Municipal Bonds Payments adequate to' carry out the covenants and agreements as to, and pledge of such Fees and Charges and Municipal Bonds Payments, and other properties and to require the Bank to carry out any other covenant or agreement with Bondholders and to perform its duties under the Act; (2) by bringing suit upon the Bonds; (3) by action or suit in equity, require the Bank to account as if it were the trustee of an express trust for the Holders of the Bonds; (4) by action or suit in equity, enjoin any acts or things which may be unlawful or in Page 30 violation of the rights of the Holders of the Bonds; (0) Upon the occurrence of an Event of Default under Section 1202(a), unless the principal of all the Bonds shall have already become due and payable, the Trustee, by notice in writing to the Bank, may, and upon the written request of the Holders of not less than a majority in aggregate principal amount of the Bonds at the time outstanding, shall, in accordance with the provisions of the Act declare the principal of all the Bonds then outstanding, and the interest accrued thereon, to be due and payable Immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything In this Resolution or in the. Bonds contained to the contrary notwithstanding. This provision, however, Is subject to the condition that if, at any time after the principal of the Bonds shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due shall have been obtained or entered, the Bank shall deposit with the Trustee a sum sufficient to pay all principal on the Bands matured prior to such declaration and all matured installments of interest (if any) upon all the Bonds, with interest on such overdue Installments of principal at the rate borne by the respective Bonds, and the reasonable expenses of the Trustee, and any and all other defaults known to the Trustee (other than In the payment of principal of and interest on the Bonds due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Trustee or provision deemed by the Trustee to be adequate shall have been made therefor, then, and in every such case, the Holders of at least a majority in aggregate principal amount of the Bonds then outstanding, by written notice to the Bank and to the Trustee, may, on behalf of the Holders of all of the bonds, rescind and annul such declaration and its consequences and waive such default; but no such rescission and annulment shall extend to or shall affect any subsequent default, or shall Impair or exhaust any right or power consequent thereon. (C) In the enforcement of any remedy under this Resolution, the .Trustee shall be entitled to sue for, enforce payment on and ALASKA MUNICIPAL BOND BANK General obligation Bond ResoIuJon/Created 7/13/06 receive any and all amounts then or during any default becoming, and at any time remaining, due from the Bank for principal, Redemption Price, interest or otherwise, under any provision of this Resolution or a Series Resolution or of the Bonds, and unpaid with interest on overdue payments at the rate or rates of interest specified in such Bonds, together with any and all costs and expenses of collection and of all proceedings hereunder and under such Bonds, without prejudice to any other right or remedy of the Trustee or of the Bondholders, and to recover and enforce a judgment or decree against the Bank for any portion of such amounts remaining unpaid, with interest, costs and expenses, and to collect from any monies available for such purpose, In any manner provided by law, the monies adjudged or decreed to be payable. Section 1204 Priority of Payments After Default. During the continuance of an Event of Default, In the event that the funds held by the Trustee and Paying Agents shall be insufficient for the payment of interest and principal or Redemption Price then due on the Bonds, such funds (other than funds held for the payment or redemption of particular Bonds which have theretofore become due at maturity or by call for redemption) and any other monies received or collected by the Trustee acting pursuant to the Act and this Article Xli, after making provision for the payment of any expenses necessary in the opinion of the Trustee to protect the interests of the Holders of the Bonds, and for the payment of the charges and expenses and liabilities incurred and advances made by the Trustee or any Paying Agents In the performance of their respective duties under this Resolution, shall be applied as follows: (a) Unless the principal of all of the Bonds shalt have become or have been declared due and payable, FIRST: To the payment to the persons entitled thereto of all installments of Interest then due In the order of the maturity of such Installments, together with interest on overdue installments of Interest and, if the amount available shall not be sufficient to pay in full any Installment, then to the payment thereof ratably, according to the amounts due on such Pnge39 installment, to the persons entitled thereto, without any discrimination or preference; and SECOND: To the payment to the persons entitled thereto of the unpaid principal or Redemption Price of any Bonds which shall have become due, whether at maturity or by call for redemption, in the order of their due dates and, if the amounts available shall not be suffi- cient to pay in full all the Bonds due on any date, then to the payment thereof ratably, according to the amounts of principal or Redemption Price due on such date, to the persons entitled thereto, without any discrimination or preference. (b) If the principal of all of the Bonds shall have become or have been declared due and payable, to the payment of the principal and interest then due and unpaid upon the Bonds tog ether with Interest on overdue Installments of interest without preference or priority of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the persons entitled thereto without any, discrimination or preference except as to any difference in the respective rates of interest specified in the Bends. Whenever monies are to be applied by the Trustee pursuant to the provisions of this Section 1204, such monies shall be applied by the Trustee at such times, and from time to time, as the Trustee in its sole discretion shall determine, having due regard to the amount of such monies available for application and the likelihood of additional money becoming available for such application in the future; the deposit of such monies with the Paying Agents, or otherwise setting aside such monies in trust for the proper purpose, shall constitute proper application by the Trustee; and the Trustee shall incur no liability whatsoever to the Bank, to any Bondholder or to any other person for any delay in applying any such monies, so long as the Trustee acts with reasonable diligence, having due regard for the circumstances, and ultimately applies the same in accordance with such provisions of this Resolution as may be applicable at the time of application by the Trustee. Whenever the Trustee shall exercise such discretion In applying such monies, it shall ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7113/05 fix the date (which shall be an interest payment date unless the Trustee shall deem anotherdate more suitable) upon which such application Is to be made and upon such date interest on the amounts of principal to be paid on such date shall cease to accrue. The Trustee shall give such notice as it may deem appropriate for the fixing of any such date. The Trustee shall not be required to make payment to the Holder of any unpaid Bond unless such Bond shall be presented to the Trustee for appropriate endorsement or for cancellation if fully paid. Interest on overdue installments of interest shall be equal to the rate on the Bond as to which the interest installment is overdue. The provisions of this Section 1204 are in all respects subject to the provisions of Section 902. Section 1205 - Termination of Proceedings, In case any proceeding taken by the Trustee on account of any Event of Default shall have been discontinued or abandoned for any reason, then in every such case the Bank, the Trustee and the Bondholders shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of the Trustee shall continue as though no such proceeding had been taken. Section 1206- Bondholders' Direction of Proceedings. Anything in this Resolution to the contrary notwithstanding, the Holders of the majority in principal amount of the Bonds then Outstanding shall have the right by an instrument or con- current instruments in writing executed and delivered to the Trustee, to direct the method of conducting all remedial proceedings to be taken by the Trustee hereunder, provided that such direction shall not be otherwise then In accordance with law or the provisions of this Resolution, and that the Trustee shall have the right to decline to following any such direction which in the opinion of the Trustee would be unjustly prejudicial to Bondholders not parties to such direction. Section 1207 - Limitation on Rights of Bondholders. No Holder of any Bond shall have any right to institute any suit, action, mandamus or other proceeding in equity or at law hereunder, or for the protection or enforcement of any right under this Resolution or any right Page 40 under law unless such Holder shall have given to the Trustee written notice of the event of default or breach of duty on account of which such suit, action or proceeding is to be taken, and unless the Holders of not less than twenty- five per centum (25%) In principal amount of the Bonds then Outstanding shall have made written request of the Trustee alter the right to exercise such powers or right of action, as the case may be, shall have occurred, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers herein granted or granted under the law or to institute such action, suit or proceeding In Its name and unless, also, there shall have been offered to the Trustee reasonable security and indemnity 'against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time; and such notification request and offer of indemnity are hereby declared In every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers under this Resolution or for any other remedy hereunder or under law. It is understood and intended that no one or more Holders of the Bonds hereby secured shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Resolution, or to enforce any right hereunder or under law with respect to the Bonds or this Resolution, except in the manner herein provided, and that all proceedings at. law or in equity shall be instituted, had and maintained in the manner herein provided and for the benefit of all Holders of the Outstanding Bonds. Notwithstanding the foregoing provisions of this Section or any other provisions of this Article XII, the obligation of the Bank shall be absolute and unconditional to pay the principal or Redemption Price or and interest on the Bonds to the respective Holders thereof at the respective due dates thereof, and nothing herein shall affect or impair the right of action, which is absolute and unconditional, of such Holders to enforce such payment. Section 1208- Possession of Bonds by Trustee Not Required, All rights of action under this Resolution or under any of the Bonds, enforceable by the Trustee, may beenforced by it without the possession of any of the Bonds or the production thereof on the trial or other proceeding relative thereto, and any such suit, ALASKA MUNICIPAL BONt SANK General Obligation Sand Resolutten/Created 7fl3/05 action or proceeding instituted by the Trustee shall be brought in its name for the benefit of all the Holders of such Bonds, subject to the provisions of this Resolution. Section 1209 -Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Trustee or to the Holders of the Bonds is Intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative and shall be In addition to any other remedy given hereunder or now or hereafter existing at law or in equity, or by statute. Section 1210 - No Waiver of. Default. No delay or omission of the Trustee or of any Holder of the Bonds to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy given by this Resolution to the Trustee and the Holders of the Bonds respectively, may be exercised from time to time and as often as may be-deemed expedient. Section 1211 - Notice of Event of Default. The Trustee shalt give to the Bondholders notice of each Event of Default hereunder known to the Trustee within ninety (90) days after knowledge of the occurrence thereof, unless such Event of Default shall have been remedied or cured before the giving of such notice; provided that, except in the case of default in the payment of the principal or Redemption Price of or interest on any of the Bonds, or in the making of any payment required to be made into the Debt Service Fund or the Reserve Fund, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee, or a trust committee of directors or responsible officers of the Trustee in good faith determines that the withholding of such notice is In the Interests of the Bondholders, Each such notice of Event of Default shall be given by the Trustee by mailing written notice thereof: (1) to all registered Holders of Bonds, as the names and addresses of such Holders appear upon the books for registration and transfer of Bonds as kept by the Trustee; (2) to such Bondholders as have filed their names and addresses with the Pogo 41 Trustee for that purpose; and (3) to such other persons as is required by law. ARTICLE XIII DEFEASANCE Section 1301 - Defeasance. (A) if the Bank shall pay or cause to be paid to the Holders of the Bonds, the principal and interest and Redemption Price, if any, to become due thereon, at the times and in the manner stipulated therein and in this Resolution, and also shall pay or cause to be paid all other sums payable hereunder by the Bank, Including any amounts payable to the United States, then the pledge of any revenues and assets hereby pledged and all other rights granted hereby shall, at the election of the Bank (evidenced by a certificate of an Authorized Officer filed with the Trustee, signifying the intention of the Bank to discharge all such indebtedness and this Resolution and any Supplemental Resolution), and notwithstanding that any Bonds shalt not have been surrendered for payment, be discharged and satisfied. In such event, the Trustee shall, upon the written request of the Bank, execute and deliver to the Bank all such instruments as may be desirable to evidence such discharge and satisfaction and the Fiduciaries shalt pay over or deliver to the Bank all moneys or securities held by them pursuant to this Resolution which are not required for the payment or redemption of Bonds not theretofore surrendered for such payment or redemption. (8) If funds shall have been set aside and shall be held in trust by Fiduciaries for the payment of principal, Interest and Redemption Price (through deposit by the Bank of funds for such payment or redemption or otherwise) at the maturity or upon the date upon which such Bonds have been duly called for redemption thereof, such Bonds shall be deemed to have been paid within the meaning and with the effect expressed in subsection (A) of this Section. All Outstanding Bonds shall, prior to the maturity or redemption date thereof, be deemed to have been paid within the meaning and with the effect expressed in subsection (A) of this Section if (I) in case any of said Bonds are to be redeemed on any date prior to their maturity, the Bank shall have given to the Trustee inform satisfactory to it irrevocable instructions to publish as provided In Article IV notice of redemption on said date of ALASKA MUNICIPAL BOND BANK General Obligation Bond Resolution/Created 7/13/05 such Bonds, li) there shall have been deposited with the Trustee either funds in an amountwhich shall be sufficient, or Investment Securities which are not subject to redemption prior to the dates on which amounts will be needed to make payments on the Bonds defeased and the principal of and the interest on which when due Will provide moneys which, together With the moneys, if any, deposited with the Trustee at the same time, shall be sufficient in the opinion of an Accountant delivered to the Trustee, to pay when due the principal or Redemption Price, if any, and interest due and to become due on said Bonds on any date prior to the redemption date or maturity date thereof, as the case may be, (iii) in the event said Bonds are not by their terms subject to redemption within the next succeeding sixty (60) days, the Bank shalt have given the Trustee in form satisfactory to it irrevocable instructions to mail a notice to the Holders of such Bonds that the deposit required by (ii) above has been made with the Trustee and that said Bonds are deemed to have been paid in accordance with this Section and stating such maturity or redemption date upon which moneys are to be available for the payment of the principal or Redemption Price, if any, of said Bonds and (Iv) a Counsel's Opinion stating tht all conditions precedent to the satisfaction and discharge of this Resolution have been complied With, the defeasance complies with the terms of this Resolution, and the defeasance will not adversely affect the tax status of the Bonds. Neither Investment Securities or moneys deposited with the Trustee pursuant to this Section nor principal or interest payments on any such Investment Securities shall be withdrawn or used for any purpose other than, and shall be held in trust for, the payment of the principal or Redemption Price, if any, of and interest on said Bonds; provided that any cash received from such principal or Interest payments on such Investment Securities deposited with the Trustee, If not then needed for such purpose, shall, to the extent practicable, be reinvested in Investment Securities maturing at times and in amounts sufficient to pay when due the principal or Redemption Price, if any, and interest to become due on said Bonds on and prior to such redemption date or maturity date thereof, as the case may be, and interest earned from such reinvestments shall be paid over to the Bank, as received by the Trustee, free and clear of any trust, lien or pledge. Page 42 (C) If, through the deposit of moneys by the Bank or otherwise, the Fiduciaries shall hold, pursuant to this Resolution, moneys sufficient to pay the principal and interest to maturity on all Outstanding Bonds or to pay, in the case of Bonds in respect of which the Bank shall have taken all action necessary to redeem prior to maturity, the Redemption Price and interest to such redemption date, then at the written request of the Bank all moneys held by any Paying Agent shall be paid over to the Trustee and, together with other moneys held by It hereunder, shall be held by the Trustee for the paymentor redemption of Outstanding Bonds, (D) Anything in this Resolution to the contrary notwithstanding, any moneys held by a Fiduciary in trust for the payment and discharge of any of the Bonds,which remain unclaimed for one year after the date when all of the Bonds have become due and payable, either at their stated maturity dates or by call for earlier redemption, if such moneys were held by the Fiduciary at such date, or for one year after the date of deposit of such moneys if deposited with the Fiduciary after the said date when all of the Bonds became due and payable, shall be repaid by the Fiduciary .to the Bank, as its absolute property and free from trust, and the Fiduciary shall thereupon be released and discharged. (E) The references in this section to "Investment Securities described in clause (1) of the definition thereof' shall include only direct and general obligations of the United States which are not-callable prior to the scheduled maturity in the related escrow deposit agreement where the Outstanding Bonds to be deemed to be paid upon the deposit thereof are insured by a municipal bond insurance company licensed and authorized to issue the policy in the State, ARTICLE XIV MISCELLANEOUS Section 1401 - Preservation, and Inspection of Documents. All documents received by the Trustee or any Paying Agent under the provisions of this Resolution or any Series Resolution shall be retained in its possession and shall be subject at all reasonable times to the inspection of the Bank, the Trustee or any Paying Agent and, after written request received by the Trustee at least ALASKA MUNICIPAL BOND BANK General Obligation Bond ReaolutionJcreated 7/15/05 live business days priorto the date of inspection, by any Holder of live percent in principal amount of any Series of Outstanding Bonds, and their agents and representatives, any of whom may make copies thereof. Section 1402 - Parties of Interest, Nothing In this Resolution or in any Series Resolution adopted pursuant to the provisions hereof, expressed or Implied, is intended to or shall be construed to confer upon or to give to any person or party other than the Bank, Trustee, Paying Agents and the Holders of the Bonds, remedies or claims under orby reason of this Resolution or any Series Resolution or any covenants, conditions or stipulations thereof; and all covenants, stipulations, promises and agreements in this Resolution and any Series Resolution contained by oron behalf of the Bank shall be for the sole and exclusive benefit of the Bank, Trustee and Paying Agents and the Holders from time to time of the Bonds, Section 1403 - No Recourse Under Resolution or on Bonds. All covenants, stipulations, promises, agreements and obligations of the Bank contained In this Resolution shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Bank and not of any member, officer or employee of the Bank in his Individual capacity, and no recourse shall be had for the payment of the principal or Redemption price of or interest on the Bonds or for any claim based thereon or on this ResOlution against any member, officer or employee of the Bank or any natural person executing the Bond, Section 1404 - Severability, If any one or more of the covenants, stipulations, promises, agreements or obligations, provided in this Resolution on the part of the Bank, Trustee or any Paying Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, then such covenant or covenants, stipulation or stipulations, promise or promises, agreement or agreements, obligation or obligations shall be deemed and construed to be severable from the remaining covenants, stipulations, promises, agreements and obligations herein contained and shall In noway affect the validity of the other provisions of this Resolution. Pago4 Section 1405- Headings. Any headings preceding the texts of the several Articles and Sections hereof, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Resolution, nor shall they affect its meaning, construction or effect. Section 1406 - Conflict. All resolutions or parts of resolutions or other proceedings of the sank in conflict herewith be and the same are repealed Insofar as such conflict exists. Section 1407 - GoverninJaw. This Resolution and the Bonds Shall be construed in accordance with, and governed by the laws of the State of Alaska. Section. 1408 - Effective Date. This Resolution shall take effect immediately upon its• adoption. ALASKA MUNICIPAL BOND BANK General Obligation Bond ResclutlonlCreated 7113/05 Pao44 333 Willoughby Avenue, 11th floor Tel (907) 465-2388 P.O. Box 110405 FAX (907) 465-2902 Juneau, Alaska 99811-0405 E-mail:ambba@revenue.state.ak.us August 19, 2009 Bank of New York Mellon Trust Corporate Trust Washington Attn: Kathy Graves 601 Union Street, Suite 520 Seattle, WA 98101-2321 Dear Kathy: Please see the enclosed Alaska Municipal Bond Bank Authority Resolution No, 200903 approved at the May 28, 2009 Board meeting. As indicated in Section 3 the resolution will take effect upon filing with the Bond Bank's Trustee. Please consider this letter with the accompanying resolution the required filing. Sincerely, Dk'en Mitchell E*cutive Director ALASKA MUNICIPAL BOND BANK AUTHORITY RESOLUTION NO. 2009-03 A SUPPLEMENTAL RESOLUTION AMENDING THE GENERAL OBLIGATION BOND RESOLUTION OF THE ALASKA MUNICIPAL BOND BANK WHEREAS, the Alaska Municipal Bond Bank (the "Bank') on July 13, 2005, adopted its general obligation bond resolution entitled "A Resolution Creating And Establishing An Issue Of Bonds Of The Alaska Municipal Bond Bank; Providing For The Issuance From Time To Time Of Said Bonds; Providing For The Payment Of Principal Of And Interest On Said Bond, And, Providing For The Rights Of The Holders Thereof" (the "General Bond Resolution"); and WHEREAS, Section 1001(B) of the General Bond Resolution permits the Bank to adopt a supplemental resolution without the consent of the bondholders for the purpose of adding to the covenants and agreements of the Bank for the purpose of securing the payments of the bonds issued under the General Bond Resolution; and WHEREAS, the Bank is adopting this Resolution No. 2009-03 (the "Supplemental Resolution") as a supplemental resolution under the General Bond Resolution for the purpose of amending the General Bond Resolution; and WHEREAS, the amendment to the General Bond Resolution contained in this Supplemental Resolution will take effect immediately upon the filing with the Trustee a copy of the Supplemental Resolution, certified by an Authorized Officer. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ALASKA MUNICIPAL BOND BANK AS FOLLOWS: Section 1 -Amendment to General Bond Resolution. Section 911 -Administration of Reserve Fund is hereby amended to include new subsection (C) which is to read as follows: (C) The Bank shall use reasonable efforts to annually include in the State's operating budget an appropriation to cause, if necessary, amounts held in the Reserve Fund to equal the Reserve Fund Requirement. Section 2- Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meaning given such terms in the General Bond Resolution. Section 3 - Effective Date. This Supplemental Resolution shall take effect immediately upon filing with the Trustee a copy of this Supplemental Resolution, certified by an Authorized Officer. FIRST SUPPLEMENTAL RESOLUTION AUTHORIZING MODIFICATIONS TO THE 2005 GENERAL OBLIGATION BOND RESOLUTION OF THE ALASKA MUNICIPAL BOND BANK WHEREAS, the Board of Directors of the Alaska Municipal Bond Bank (the "Bank") by Resolution entitled "A Resolution Creating And Establishing An Issue Of Bonds Of The Alaska Municipal Bond Bank; Providing For The Issuance From Time To Time Of Said Bonds; Providing For The Payment Of Principal Of And Interest On Said Bonds; And Providing For The Rights Of The Holders Thereof," adopted July 13, 2005, as amended August 19, 2009 (the 'Resolution"), has created and established an issue of Bonds of the Bank; and WHEREAS, the Resolution authorizes the issuance of said Bonds in one or more series pursuant to a Series Resolution authorizing each such series; and WHEREAS, the Resolution authorizes modifications of any of the provisions of the Resolution provided that such modifications shall not be effective until all Bonds of any Series of Bonds Outstanding as of the date of such Supplemental Resolution shall cease to be Outstanding; and WHEREAS, it has been determined to be in the best interests of the Bank to make certain modifications to the Resolution; and WHEREAS, it is the purpose of this First Supplemental Resolution to modify the terms of the Resolution as follows: (I) to authorize the Trustee to release to the Bank, amounts held in the Reserve Fund which exceed the Required Debt Service Reserve whenever there is a reduction in the Required Debt Service Reserve, (ii) to require the Trustee to withdraw earnings and profits realized in the Reserve Fund, and to provide such amounts to the Bank, on or before June 30 of each year, so long as the balance therein equals the Required Debt Service Reserve, (iii) to allow for certain amendments and modifications to the Resolution to be effective upon securing the consent of Holders of at least two-thirds in principal amount of Bonds then Outstanding, and (iv) to establish that consent of Holders of Bonds, when required under the terms of the Resolution, includes the consent of an underwriter or purchaser of a Series of Bonds at the time such Bonds are issued; WHEREAS, in order to provide for the modifications to the Resolution, the Bank has authorized the delivery of this First Supplemental Resolution; BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ALASKA MUNICIPAL BOND BANK AS FOLLOWS: ARTICLE I AUTHORITY AND DEFINITIONS Section 101 - First Supplemental Resolution. This First Supplemental Resolution (the 'Supplemental Resolution") is adopted in accordance with the provisions of the Resolution and pursuant to the authority contained in the Act. Section 102 - Definitions. In this Supplemental Resolution, unless otherwise defined herein, all capitalized terms herein shall have the same meanings, respectively, as such terms are given in Article I of the Resolution. (1) "Effective Date" means the date this Supplemental Resolution is adopted by the Bank. ARTICLE II MODIFICATIONS TO THE RESOLUTION Section 201 - Authority to Modify the Resolution. The Resolution, at Section 1001(F), authorizes the modification of any of the provisions of the Resolution, effective only after all Bonds of any Series of Bonds Outstanding as of the date of adoption of such Supplemental Resolution shall cease to be Outstanding, and all Bonds issued thereafter shall contain a specific reference to the modifications. Section 202 - Modifications. (a) Reduction of Required Debt Service Reserve. This Supplemental Resolution authorizes the Trustee to release to the Bank amounts held in the Reserve Fund which exceed the Reserve Fund Requirement whenever there is a reduction in the Required Debt Service Reserve. The Bank agrees that any amounts released to it shall be used in a manner which will not adversely impact the tax exempt status of any Bonds issued pursuant to the terms of the Resolution. The Trustee shall have no duty or obligation to monitor or determine whether the Bank's use of funds released from the Reserve Fund adversely impacts the tax exempt states of any Bonds. Sections 604(C)(1) and 607 of the Resolution are hereby modified as set forth on Schedule A-I hereto, effective after all Bonds issued prior to the Effective Date shall AMBB/First Supplemental Resolution First Supplemental Resolution No. 2013-02 Page 2 I:\Oocs\37420001Resolutions\SupptementaI Resolution 2013-02 (Modifying 2005 GBR),DocX cease to be Outstanding and satisfaction of the requirements set forth in Section 203 hereof. (b) Withdrawal of Income and Interest Earned, and Profits Realized in the Reserve Fund. Section 603(C) of the Resolution authorizes the Trustee to withdraw from the Reserve Fund amounts derived from income or interest earned and profits realized and to pay to the Bank such amounts on or before December 31 of each year subject to certain condition set forth therein. This Supplemental Resolution modifies Section 603(C) to require that income or interest earned and profits realized from investments in the Reserve Fund be withdrawn by the Trustee and paid to the Bank on or before June 30 of each year. Section 603(C) of the Resolution is hereby modified as set forth in Schedule A-2 hereto, effective after all Bonds issued prior to the Effective Date shall cease to be Outstanding and satisfaction of the requirements set forth in Section 203 hereof. (c) Powers of Amendment. Section 1101 of the Resolution authorizes modifications to, and amendments of, the Resolution subject to, among other things, the written consent of the Bondholders of at least two-thirds in principal amount of the Bonds Outstanding at the time such consent is given. This Supplemental Resolution modifies Section 1101 of the Resolution to allow modifications to, and amendments of, the Resolution, subject to the remaining requirements set forth in Section 1101, effective upon the written consent of Bondholders of at least two-thirds in principal amount of Bonds then Outstanding. Section 1101 of the Resolution is hereby modified as set forth in Schedule A-3 hereto, effective after all Bonds issued prior to the Effective Date shall cease to be Outstanding and satisfaction of the requirements set forth in Section 203 hereof. (d) Consent of Underwriters or Purchasers of Bonds. This Supplemental Resolution modifies Article Xl of the Resolution by adding Section 1107, providing that for all purposes of Article Xl and Article X of the Resolution, an underwriter or purchaser of a Series of Bonds may consent to a modification of, or amendment to, the Resolution as Bondholder of such Bonds at the time such Series of Bonds is issued. Article XI of the Resolution is hereby modified as set forth on Schedule A-4 hereto, effective after all Bonds issued prior to the Effective Date shall cease to be Outstanding and satisfaction of the requirements set forth in Section 203 hereof. AMBB/First Supplemental Resolution First Supplemental Resolution No. 2013-02 Page 3 I:\Oocs\37420001\Resolutions\Supptemental Resolution 2013-02 (Modifying 2005 GBR)Docx Section 203 - Effective Date. The modifications of the Resolution as set forth in this Article U shall take effect upon (i) the filing with the Trustee of a copy of this Supplemental Resolution adopted by the Bank, certified by an Authorized Officer, (ii) the Bonds of each Series Outstanding as of the Effective Date of this Supplemental Resolution shall cease to be Outstanding, and (iii) the delivery to the Trustee of an Opinion of Counsel as required by Section 1003 of the Resolution. In addition, Bonds issued after the Effective Date shall include language specifically referring to this Supplemental Resolution and the modifications to the Resolution authorized herein. ARTICLE Ill MISCELLANEOUS Section 304 - Chairman and Executive Director. The Chairman and the Executive Director are each hereby authorized to execute all documents and to take any action necessary or desirable to carry out the provisions of this Supplemental Resolution. Section 305 - Effective Date. This Supplemental Resolution is hereby approved and adopted by the Bank this 19th day of February, 2013, which shall be the Effective Date as defined herein. AMBBJF1rst Supplemental Resolution First SuppementaI Resolution No. 2013-02 Page 4 l:\Docs\37420001\Resolutions\Supplemental Resolution 2013-02 (Modifying 2005 GBR),Docx Lu1I[•1II• I:l11*i]u1l[s] :i.i'iu' Release of Amounts Held in the Reserve Fund [Strike-out = deletions; double underscore = insertions.] Section 604(C)(1) of the Resolution is hereby modified to read as follows: (C) The Trustee shall establish in the Redemption Account a separate sub-account for the Bonds of each Series Outstanding. (1) Any monies deposited into the Redemption Account from any source other than pursuant to Section 607 or Section 916 shall be applied to the purchase or redemption of Bonds in a manner to be determined by the Bank in accordance with Article IV. Any monies deposited into the Redemption Account pursuant to section 607 shall be applied to the purchase or redemption of Reserve Fund Obligations in a manner to be determined by the Bank in accordance with Article IV. 2. Section 607 of the Resolution is hereby modified to read as follows: Section 607 - Reduction of Required —Debt Service Reserve. Whenever the Required Debt Service Reserve is reduced and th amount on deposit in the Reserve Fund exceeds of the Required Debt Service Reserve is reduoe4, the Trustee ahall, Gtily upon the written request of the Bank signed by an Authorized Officer, s4a4 withdraw such excess amounts from any amounts on deposit in the Reserve Fund and provide the Bank with such amounts free and clear of any lien or pledge created by the Resolution, deposit in the Redemption Account any amount not exceeding the amount of sueh- reducti on -of- the -Require4- Debt ServceResecve The amount to be withdrawn from the Reserve Fund in each instance pursuant to the provisions of this paragraph shall be determined by the Bank and the amount thereof certified to the Trustee in writing signed by an Authorized Officer. The Bank agrees that any amounts released to it pursuant to this Section 607 shall be used in a manner which will not adverslv impact the tax exempt status of any Bonds issued pursuant to the terms of the Resolution. AMBB/General Obligation and Refunding Bonds, 2013 Series One Series Resolution No. 201301 Page A-I 1:\Docs\37420001\Resolutions\Suppiemental Resolution 2013-02 (Modifying 2005 GBR).Docx SCHEDULE A-2 Modification to Section 603(C) -Withdrawals from the Reserve Fund [Strikeout = deletions; double underscore = insertions.] Section 603(C) of the Resolution is hereby modified to read as follows: (C) On or before December —al- June 30 of each year, after complying with the provisions of paragraphs (1) and (2) above to the extent required by such date, the Trustee shall withdraw from the Reserve Fund, any amount remaining therein derived from income or interest earned and profits realized by the Reserve Fund due to the investment thereof, and pay over said amount to the Bank for deposit in the Operating Fund but only to the extent that there remains after such withdrawal an amount in the Reserve Fund at least equal to the Required Debt Service Reserve. AMAB/Goneral Obligation and Refunding Bonds, 2013 Series One Series Resolution No. 2013-01 Page A-2 1;\Docs\37420001\Resolutlons\Suppleniental Resolution 2013-02 (Modifying 2005 GBR).Docx SCHEDULE A-3 Modification to Section 1101 - Powers of Amendment [Strike-out = deletions; double underscore = insertions.] Section 1101 of the Resolution is hereby modified to read as follows: Section 1101 - Powers of Amendment. Any modification or amendment of this Resolution and of the rights and obligations of the Bank and of the Holders of the Bonds, in any particular, may be made by a Supplemental Resolution, with the written consent given as hereinafter provided in Section 1102, (a) of the Holders of at least two-thirds in principal amount of the Bonds then Outstanding at the time such consent is given, or (b) in case less than all of the several Series of Bonds then Outstanding are affected by the modification or amendment, of the Holders of at least two-thirds in principal amount of the Bonds of each Series so affected and then Outstanding at the time such consent is given; provided, however, that such modification or amendment shall not (i) permit a change in the terms of redemption or maturity of the principal of any Outstanding Bond or of any installment of interest thereon or Sinking Fund Installment therefor, (ii) or a reduction in the principal amount or the Redemption Price thereof or in the rate of interest thereon, or (iii) a reduction of the percentage of the Holders of which is required to effect any such modification or amendment, or (iv) permit the creation of any lien prior to or on a parity with the lien created by this Resolution (except in the manner provided by this Resolution) or deprive the Holders of the Bonds of the lien created by this Resolution, without the consent of the Holders of all the Bonds Outstanding or of the Series of Bonds affected by such modification or amendment. For the purposes of this Section, a Series shall be deemed to be affected by a modification or amendment of this Resolution if the same adversely affects or diminishes the rights of the Holders of Bonds of such Series. AMBB/General Obligation and Refunding Bonds, 2013 Series One Series Resolution No. 2013-01 Page A-3 :\Docs\37420001\ResoIutions\SuppementaI Resolution 2013-02 (Modifying 2005 GBR),Docx SCHEDULE A-4 Consent of Underwriter or Purchaser Modification [Strike-out = deletions; double underscore = insertions] Article XI of the Resolution is modified by addition of Section 1107 to read as follows: Section 1107— Underwriter or Purchaser as Bondholder of Bonds For all purposes of this Article XI and of Article X, an underwriter or purchaser of a Series of Bonds may consent to an amendment of this Resolution as a Bondholder of such Bonds at the time such Series of Bonds is issued. AMBB/General Obligation and Refunding Bonds, 2013 Series One Series Resolution No. 2013-01 Page A-4 :\Docs\37420001\Resolutions\Supplemental Resolution 2013-02 (Modifying 2005 GBR)Docx