SUMMARY OF VARIABLE RATE OBLIGATIONS AS OF JUNE 30, 2012

variable rate demand bonds outstanding, with interest rates that reset daily or weekly. Such variable rate demand bonds are secured by respective agreements with the State Treasurer, and are further supported by bank-issued letters of credit.

Additionally, as of June 30, 2012, the NJEDA had outstanding $1,278,115,000 of floating rate notes, which bear interest at a rate that resets quarterly, monthly, or weekly based on either the London InterBank Offering Rate (“LIBOR”) plus a fixed spread or the Securities Industry and Financial Markets Association (“SIFMA”) rate plus a fixed spread. There are no letters of credit in support of these notes.

The following table provides a summary of the State-supported variable rate bonds outstanding as of June 30, 2012.

2011 Series C FRN-Weekly 65,620,000 SIFMA + 1.80% 1.980% None

2011 Series D FRN-Monthly 150,000,000 70% 1-Month LIBOR + 1.80% 1.967% None

2011 Series E FRN-Weekly 242,495,000 SIFMA + 1.70% 1.880% None

2011 Series E FRN-Weekly 25,000,000 SIFMA + 1.90% 2.080% None

2011 Series F FRN-Monthly 45,000,000 70% 1-Month LIBOR + 1.90% 2.067% None TTFA . . . 2009 Series C VRDB-Weekly 150,000,000 N/A 0.14% Wells Fargo

2009 Series D VRDB-Weekly 147,500,000 N/A 0.16% Wells Fargo

Total $1,735,015,000

* The 2010 Series B Notes were refunded with fixed rate bonds on January 31, 2013. The table above and the table on page I-44 have not been adjusted to reflect this refunding.

The following table provides a summary, by type, of the State’s subject to appropriation bonds and notes as of June 30, 2012.

Variable Rate Demand Bonds

$456.9 1.5%

Fixed Rate Bonds

$29,695.4 94.5%

Floating Rate Notes

$1,278.1 4.0%

Total - $31,430.4

Obligations Subject to Annual Appropriation as of June 30, 2012 ($ in Millions)

Swap Agreements

The obligation of various independent State authorities to make payments with respect to certain financings includes payments related to interest rate exchange agreements listed below (“swap agreements”). Under such a swap agreement, the issuer will make periodic payments to the swap counterparty at either a fixed or variable rate of interest, and will receive periodic payments from the swap counterparty at either a variable or fixed rate of interest, such interest calculations based on the principal or “notional” amount of the swap agreement. If the swap agreement is terminated prior to its stated termination date, either the issuer or the swap counterparty may be required to make a termination payment to the other party. The independent State authorities’ obligations to make payments under the swap agreements are subject to appropriation by the State Legislature.

Various independent State authorities have outstanding swap agreements with nine different counterparties.

The following table sets forth for each swap agreement: the issuer, counterparty, outstanding notional amount, effective date, termination date, fixed rate and floating index as of June 30, 2012.

State of New Jersey

Citibank, N.A., New York $ 66,950,000 8/20/2003 6/15/2023 3.64000% 62% 1-Month LIBOR+20 bps Citibank, N.A., New York 28,690,000 8/20/2003 6/15/2023 3.64000% 62% 1-Month LIBOR+20 bps Goldman Sachs Mitsui Marine Derivative Products, L.P. 22,310,000 8/20/2003 6/15/2023 3.64000% 62% 1-Month LIBOR+20 bps Goldman Sachs Mitsui Marine Derivative Products, L.P. 9,570,000 8/20/2003 6/15/2023 3.64000% 62% 1-Month LIBOR+20 bps Morgan Stanley Capital Services, Inc. 22,310,000 8/20/2003 6/15/2023 3.64000% 62% 1-Month LIBOR+20 bps Morgan Stanley Capital Services, Inc. 9,570,000 8/20/2003 6/15/2023 3.64000% 62% 1-Month LIBOR+20 bps

$ 159,400,000

NJEDA (School Facilities Construction Bonds)*

Variable-to-Fixed Swaps

Bank of America, N.A. $ 96,828,546 9/1/2006 9/1/2031 4.40740% 71.98% 1-Month LIBOR Bank of America, N.A. 312,750,672 5/1/2010 3/1/2035 4.25100% 62% 1-Month LIBOR+40 bps

Bank of Montreal** 244,200,000 11/1/2009 11/1/2012 3.15250% No Floating Payment 11/1/2012 9/1/2034 4.54850% 62% 1-Month LIBOR+40 bps Goldman Sachs Mitsui Marine Derivative Products, L.P. 78,167,500 3/1/2006 3/1/2031 4.29590% 70.8% 1-Month LIBOR Goldman Sachs Mitsui Marine Derivative Products, L.P. 91,660,000 9/1/2006 9/1/2031 4.40740% 71.98% 1-Month LIBOR Goldman Sachs Mitsui Marine Derivative Products, L.P. 112,069,166 9/1/2007 9/1/2032 4.39900% 71.57% 1-Month LIBOR IXIS Financial Products, Inc. 214,948,333 11/1/2008 9/1/2033 4.48900% 62% 1-Month LIBOR+40 bps

Royal Bank of Canada 138,193,333 5/1/2009 3/1/2034 4.51240% 62% 1-Month LIBOR+40 bps UBS AG, Stamford Branch 64,322,500 9/1/2004 9/1/2029 4.06250% 71.13% 1-Month LIBOR UBS AG, Stamford Branch 67,110,000 3/1/2005 3/1/2030 4.17625% 74.24% 1-Month LIBOR UBS AG, Stamford Branch 116,097,500 9/1/2007 9/1/2032 4.39900% 71.57% 1-Month LIBOR Wells Fargo Bank, N.A. 140,596,116 9/1/2004 9/1/2029 4.06250% 71.13% 1-Month LIBOR Wells Fargo Bank, N.A. 72,582,866 3/1/2005 3/1/2030 4.17625% 74.24% 1-Month LIBOR Wells Fargo Bank, N.A. 163,445,431 3/1/2006 3/1/2031 4.29590% 70.8% 1-Month LIBOR Fixed-to-Variable Swap

UBS AG, Stamford Branch*** 380,515,000 5/1/2008 9/1/2015 3.03590% 75% 1-Month LIBOR

$2,293,486,963 Totals $2,452,886,963

* The NJEDA on January 31, 2013 entered agreements with several of the counterparties listed in the table to terminate, as of June 15, 2013, all or a portion of the existing swap agreements. The table has not been adjusted to reflect these agreements.

** This swap pays at a fixed rate with no floating rate receipt through November 1, 2012. Beginning November 1, 2012 the swap has both fixed and floating payments as indicated.

*** The NJEDA terminated this swap agreement on January 31, 2013.

As of June 30, 2012, the mark-to-market value of the swap agreements are negative, indicating that the independent State authorities have no credit exposure to the swap counterparties. If the ratings of a counterparty were to be reduced below levels specified in the documentation relating to the swap agreements with the independent State authority and at such time the independent State authority did have in excess of a specified amount of credit exposure to such counterparty, the counterparty would be required to provide collateral to support all or a portion of the independent State authority’s credit exposure. No assurance can be given that the ratings of the counterparties will be maintained at current levels or that the mark-to-market value of the swaps will not change to create credit exposure by the independent State authority to one or more counterparties.

The various independent State authorities are not required to post collateral under any of the swap agreements listed in the above table. If ratings on the bonds relating to the swaps generally fall below BBB or Baa2 by one or more rating agencies, then the counterparty may have the option to terminate the swaps. In some cases, the independent State authority may have the option to post collateral to prevent a termination. If a termination were to occur at a time where the swaps had a negative mark-to-market value, then the independent

State authority would be required to make a termination payment in the amount of the negative mark to market.

At June 30, 2012, the aggregate negative mark-to-market on the swaps listed in the above table was

$672.614 million.