Tab_271b1LIT1 I
Certificate of Western Financial Group, LLC
$80,435,000
General Obligation and Refunding Bonds
2016 Series Three
$29,400,000
General Obligation and Refunding Bonds
2016 Series Four (AMT)
Western Financial Group, LLC has served as financial advisor to the Alaska Municipal
Bond Bank (the "Issuer") in connection with the issuance by the Bond Bank of its General
Obligation and Refunding Bonds, 2016 Series Three and its General Obligation and Refunding
Bonds, 2016 Series Four (AMT) (the "Bonds").
Pursuant to General Obligation Bond Resolution, adopted by the Board of Directors of
the Issuer on July 13, 2005 (the "Master Resolution") and Resolution No. 20 16-05, adopted on
September 6, 2016 (the "Series Resolution") with respect to the Bonds, each governmental entity
borrowing funds through the Bond Bank (a "Borrower"), with the exception of entities
borrowing on a general obligation basis, is required to maintain a debt service reserve fund to
secure payment of debt service under the loans made by the Issuer to the Borrowers pursuant to a
Loan Agreement by and between the Bond Bank and the Borrower (each, a "Borrower Reserve
Fund").
Capitalized terms used but not defined herein shall have the meanings ascribed to them in
the Tax Certificate relating to the Bonds dated the date hereof, to which this certificate is
attached as an exhibit. On behalf of the Financial Advisor, the undersigned hereby certifies and
represents as follows:
The amounts required to be retained in the Issuer Reserve Fund, which functions as a
debt service reserve fund for the Bonds and other obligations of the Issuer issued on a parity with
the Bonds, are reasonably required, in that any significant reduction in the size of such amounts
would have had a material adverse impact on the underwriters' ability to sell the Bonds at the
prices corresponding to the yields indicated in the Official Statement for the Bonds, dated
October 18, 2016.
The funding requirement for the Borrower Reserve Funds, which secure payment of debt
service on the Loans but not the Bonds, is an amount reasonably required to induce the issuer to
make the Loans to those Borrowers who are not general obligation Borrowers.
The present value of the premiums paid or to be paid to National Public Finance
Guarantee Corporation (the "Insurer") to obtain a debt service reserve surety policy with respect
to the Reserve Fund for the Bonds (the "Surety Policy") is less than the present value of the
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OHSUSA:765956927,5
Fund in 2017 and 2018, and neither the premium paid for the Insurance nor the Surety Policy is
unreasonable.
To the best knowledge of the undersigned, the amount paid by the Issuer to the Insurer
for the Surety Bond is within a reasonable range of premiums charged for comparable credit
enhancement for obligations comparable to the obligation evidenced and represented by the
Bonds.
To the best of knowledge of the undersigned, the fees paid and to be paid for the Insurer
represent a commercially reasonable charge for the transfer of credit risk. Such fees do not
include any direct or indirect payment for a cost, risk or other element that is not customarily
borne by guarantors of tax-exempt bonds in transactions in which the guarantor has no
involvement other than as guarantor. No non-guarantee services are being provided by the
Insurer.
The undersigned understands and acknowledges that the Issuer may rely on this
certificate in making certain of the representations contained in a certificate the Issuer executes
in connection with the, issuance of the Bonds, and further understands that Orrick, Herrington &
Sutcliffe LLP as Bond Counsel may rely upon this certificate, among other things, in rendering
certain opinions relating the Bonds. The undersigned makes no representations as to the legal
sufficiency of the information set forth in this certificate for purposes of complying with the
Code or for any other purpose.
Dated: November 3, 2016
WESTERN FINANCIAL GROUP, LLC
By: Lawrence W. Pierce
OHSUSA:765956927.5
M.