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F Ci P L N I F N C F C C M M I C NI F N I 3 1 14 1 Ci Ci I H
November 3, 2016
The Bank of New York Mellon Trust Company, N.A.
San Francisco, California
Endorsement No. 2 to Debt Service Reserve
Surety Bond Policy No. NP 140 1690
dated November 3, 2016 relating to
Alaska Municipal Bond Bank
General Obligation and Refunding Bonds issued and secured
pursuant to the 2005 General Obligation Bond Resolution
and any other debt issued on a parity
Ladies and Gentlemen:
In connection with the above-described obligations (the "Obligations") for which you are acting
as Paying Agent, please be advised that the payment to you of certain amounts which are to be
applied to payment of principal of and interest on the Obligations has been guaranteed by the
accompanying Surety Bond No. NP1401690 as endorsed from time to time (the "Surety Bond")
issued by National Public Finance Guarantee Corporation (the "Insurer"). U.S. Bank Trust
National Association, New York, New York, (the "Fiscal Agent") is acting as the fiscal agent for
the Insurer.
The maximum amount available under the Surety Bond for payment pursuant to any one
demand for payment by you as described below (a "Demand for Payment") shall not exceed the
Surety Bond Limit as defined on the first page of the Surety Bond The amount available- at-any
particular time to be paid to you under the Surety Bond (the "Surety Bond Coverage") shall be
reduced and may be reinstated from time to time as set forth in the Surety Bond and as described
below.
If the Issuer under the Document (as those terms are defined on the first page of the Surety
Bond) does not make full and complete payment thereunder when due, please immediately
notify the Insurer by telephone at (914) 765-3333 and by email at
ClaimsManagement@nationalpfg.com, and provide a complete executed Demand for Payment
(substantially in the form of Attachment 1 to the Surety Bond). Please confirm delivery and
receipt of such Demand for Payment by telephone.
Upon the later of: (i) three (3) days after receipt by the Insurer of a completed Demand for
Payment, duly executed by you certifying that payment due under the Document has not been
made to you; or (ii) the payment date of the Obligations as specified in the Demand for
Payment presented by you to the Insurer, the Insurer will make a deposit of funds in an account
with U.S. Bank Trust National Association, in New York, New York, or its successor, sufficient
for the payment to you, of amounts which are then due to you (as specified in the Demand for
Payment) subject to the Surety Bond Coverage.
X P H H I E N C E C CM PA I 1 M H N T S I H EN Ii I NI
Page Two
November 3, 2016
The amount payable by the Insurer under the Surety Bond pursuant to a particular Demand for
Payment shall be limited to the Surety Bond Coverage. The Surety Bond Coverage shall be
reduced automatically to the extent of each payment made by the Insurer under the Surety Bond
and will be reinstated to the extent of each reimbursement of the Insurer by the Issuer pursuant
to Article II of the accompanying Financial Guaranty Agreement between the Insurer and the
Issuer (the "Financial Guaranty Agreement"). In no event shall such reinstatement exceed the
Surety Bond Limit. The Insurer will notify you, in writing within five (5) days of such
reimbursement, that the Surety Bond Coverage has been reinstated to the extent of such
reimbursement pursuant to the Financial Guaranty Agreement and such reinstatement shall be
effective as of the date the Insurer gives such notice. The notice to you will be substantially in
the form attached to the Surety Bond as Attachment 2.
This letter does not alter the terms of the Surety Bond or the Financial Guaranty Agreement.
In the event that you shall have prior knowledge of an impending failure by the Issuer to make
payment as required by the Document when due, please immediately notify the Insurer so that it
will be possible for the Insurer to have funds available for you on the due date to make
payments as described above.
Your cooperation in this matter will be most appreciated and will make it possible for the
holders of Obligations to be assured of all payments when due to the extent of the Surety Bond
Coverage.
Very truly yours,
William C. Fallon
President
T• uaona p:bflc iiiance jarantea
I El III L'I L,l
Attached to Debt Service Reserve Surety Bond Policy No. NP 1401690 (the "Policy") issued by
National Public Finance Guarantee Corporation (the "Insurer"), to the Issuer, as defined in the
Policy issued with respect to the Obligations.
Notwithstanding the terms and conditions contained in the Policy, it is further understood that
the term "Surety Bond Limit" has been amended and shall not exceed the annual amount set
forth for the applicable bond year on the Exhibit A dated November 3, 2016 attached hereto.
This endorsement forms a part of the Policy to which it is attached, effective as of the date of this
Endorsement.
IN WITNESS WHEREOF, the Insurer has caused this Endorsement to be executed and attested
on its behalf by its President and its Secretary this 3' day of November, 2016.
National Public Finance
G7 =tC rporat
Presien I
Attest: Secretary -
Exhibit A
Dated November 3,2016
Surety Bond No. NP1401690
Bond Year Surety Bond Limit
March 1, 2016 to December 1, 2035 $18,030,206.58
December 1, 2035 to December 1, 2037 $14,646,878.14
December 1, 2037 to August 1, 2040 $7,146,878.14
August 1, 2040 to October 1, 2044 $6,428,465.78
October 1, 2044 to March 1, 2046 $1,230,000.00
L]
E N P N N I P N C P C C, M NI I 1 N P N P S 1 IR P N G. I CI
EXHIBIT E
Certificate of National Public Finance Guarantee Corporation
Endorsement No. 2 to Debt Service Reserve
Surety Bond Policy No. NP1401690
dated November 3, 2016 relating to Alaska Municipal Bond Bank
General Obligation and Refunding Bonds issued and secured
pursuant to the 2005 General Obligation Bond Resolution
and any other debt issued on a parity
RE: Endorsement No. 2 to Debt Service Reserve Surety Bond Policy No. NP1401690 dated
November 3, 2016 (the "Endorsement") relating to Alaska Municipal Bond Bank,
General Obligation and Refunding Bonds issued and secured pursuant to the 2005
General Obligation Bond Resolution and any other debt issued on a parity (the
"Obligations")
In connection with the issuance of the above-referenced obligations (the "Obligations"),
National Public Finance Guarantee Corporation (the "Insurer") is issuing an endorsement to Debt
Service Reserve Fund Surety Bond No. NP1401690 (the "Surety Bond") securing the payment of
principal and interest on the Obligations.
This is to advise you that:
1. The Surety Bond is an unconditional obligation of the Insurer to pay scheduled
payments of principal and interest on the Obligations and other obligations issued on a parity
with the Obligations in the event of a failure to do so by the Alaska Municipal Bond Bank (the
"Issuer");
2. The insurance premium in the amount of $150,000 relating to Endorsement No 2
represents the charge for a transfer of credit risk and was determined in arm's length negotiations
and is required to be paid as a condition to the issuance of the Endorsement;
3. No portion of such premium represents an indirect payment of costs related to the
issuance of the Obligations other than for the transfer of credit risk;
4. The Insurer does not reasonably expect that it will be called upon to make any
payment under the Surety Bond;
5. To the extent the Insurer is called upon to make any payment under the Surety
Bond, the Insurer reasonably expects to pursue all available legal remedies to secure
reimbursement for such payment; and
E x P P P I P N C P C H M M I I H E N C I C P 1 N H C H
6. The Insurer would not have issued the Surety Bond and its endorsements in the
absence of a Debt Service Reserve Fund of the size and type established by the General
Obligation Bond Resolution, adopted by the Board of Directors of the Issuer on July 13, 2005 as
amended from time to time (the "2005 General Obligation Bond Resolution") and Resolution
No. 2015-05, adopted on December 15, 2015, pursuant to which the Obligations are being
issued.
Dated: November 3, 2016
National Public Finance
Guarantee Corporation
By:
Secretary