When used with reference to Indebtedness other than Parity Obligations,

"Outstanding" means, as of a particular date, all Indebtedness deemed to be outstanding under the documents pursuant to which it was incurred.

"Owner" means a Person in whose name a Bond is registered in the registration books provided for in Section 205 of the Master Indenture.

"Parity Common Reserve Account" means the account in the Bond Fund created and so designated by Section 501 of the Master Indenture.

"Parity Common Reserve Account Requirement" means, with respect to all Parity Obligations secured by the Parity Common Reserve Account, the least of the following:

(i) the sum of ten percent (10%) of the stated principal amount of each Series of Bonds

secured by the Parity Common Reserve Account (adjusted as provided in the Code), (ii)

Obligations, and (iii) one hundred twenty-five percent (125%) of the average annual Debt Service Requirements on all such Parity Obligations. The Parity Common Reserve Account Requirement may be satisfied with cash, Investment Obligations or Reserve Alternative Instruments, or any combination of the foregoing, as the Corporation may determine from time to time.

"Parity Debt" means all Parity Obligations incurred or assumed by the Corporation and not evidenced by Bonds which (a) is designated as Parity Debt in the documents pursuant to which it was incurred, (b) is incurred in compliance with the provisions of Section 704 of the Master Indenture. or is a reimbursement obligation for a Credit Facility supporting Parity Obligations incurred in compliance with the provisions of Section 704 of the Master Indenture, and (c) may be accelerated only in compliance with the procedures set forth in Section 803 of the Master Indenture.

"Parity Debt Resolution" means the resolution and any other documents, instruments or agreements adopted or executed by the Corporation providing for the incurrence of Parity Debt.

"Parity Obligations" means Bonds and Parity Debt.

"Parity Resolution" means a Supplemental Indenture or a Parity Debt Resolution, or both, as the case may be, authorizing the issuance of a Series of Bonds or the incurrence of Parity Debt.

"Parity Tax-Exempt Obligations" means Tax-Exempt Bonds and Tax-Exempt Parity Debt.

"Participating Insurer" means an insurer writing Covered Policies in the State which is required to enter into reimbursement contracts with the FHCF.

"Person" includes an individual, association, unincorporated organization, corporation, limited liability company, partnership, joint venture, trust, state trust fund, unincorporated organization, and a government or an agency or a political subdivision thereof, as well as natural persons.

"Pledge Agreement" means the Pledge and Security Agreement, dated as of June 1, 2006, by and among the Corporation, the State Board of Administration and the Master Trustee, including any amendments or supplements thereto.

"Pledged Collateral" for any particular period means the excess of Reimbursement

Premiums and Reimbursement Premium Earnings over the payment of Current Expenses

of the FHCF, Emergency Assessments, Emergency Assessment Earnings, the net

proceeds of, and investment income on such proceeds of, Parity Obligations, net

and Other Pledged Money. There shall be included within the ambit of "Pledged Collateral": (i) all certificates and instruments, if any, from time to time representing or evidencing any of the Pledged Collateral, (ii) all interest, dividends, cash, instruments or other Property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Collateral and (iii) all proceeds of any or all of the Pledged Collateral. There shall be excluded from the ambit of "Pledged Collateral" the Corpus of the FHCF and Corpus Earnings, the net proceeds of Parity Obligations disbursed by the FHCF for losses, or advances for losses, from Covered Events, and Reimbursement Premiums and Reimbursement Premium Earnings released pursuant to Section 3(f) of the Pledge Agreement and Section 503(e)(ii)(Y) of the Master Indenture and Emergency Assessments and Emergency Assessment Earnings released pursuant to Section 503(e)(ii)(Z) of the Master Indenture from the pledge and security interest granted by the Pledge Agreement. In the case of the net proceeds of Parity Obligations, the pledge and security interest granted by the Pledge Agreement shall be effective only pending their disbursement by the FHCF for losses, or advances for losses, from Covered Events and shall be in favor of the Owners or Holders only of the Series of Parity Obligations (or Parity Obligations that refunded the Parity Obligations) from which such proceeds were derived.

"Post-Event" when used in connection with Bonds, other Parity Obligations or the proceeds thereof refers to the issuance of Parity Obligations upon the occurrence of a Covered Event to pay reimbursement at levels promised in reimbursement contracts for which moneys credited to the Corpus of the FHCF are insufficient, as authorized by the provisions, other than the last sentence, of Section 215.555(6)(a)1 of the Act.

"Pre-Event" when used in connection with Bonds, other Parity Obligations or the proceeds thereof refers to the issuance of Parity Obligations "in the absence of" a Covered Event, as authorized by the last sentence of Section 215.555(6)(a)1 of the Act.

"Premium and Assessment Revenue Available For Debt Service" means the pro

forma amount, indicated in an Officer's Certificate of the State Board of Administration

delivered to the Master Trustee, that is certified by such Officer to be the excess, over the

Current Expenses of the FHCF and the Current Expenses of the Corporation, of the sum

of (a) the amount of Revenues from Reimbursement Premiums and Reimbursement

Premium Earnings received by the FHCF in any 12 consecutive months of the last 18

calendar months preceding the date of such Certificate, taking into consideration and

adjusted for (1) any changes in the Act or other applicable law or regulation (described in

such Officer's Certificate) that would prospectively affect the amount of such

Reimbursement Premiums to be received in the current or future Fiscal Years, and (2)

any actuarially indicated adjustments to the Reimbursement Premiums that have been

determined for, or are reasonably expected to take effect subsequent to the applicable

12-month period and in, the current or following Fiscal Year, as shall be set forth in such

amount being the product obtained by multiplying (1) the maximum assessment