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Fitch Rates Delaware Valley Reg Fin Auth Adj Rate Local Gov Rev Bds, Ser 1985A-D 'A+/F1+'

The bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The ratings will expire upon the earliest of: (a) Feb. 1, 2017, the initial stated expiration date of the LOC, unless such date is extended; (b) conversion to an interest rate mode other than the weekly rate; (c) any prior termination of the LOC; and (d) defeasance of the bonds. The LOC provides full and sufficient coverage of principal plus an amount equal to 45 days of interest at a maximum rate of 15% based on a year of 365 days and purchase price for tendered bonds, while in the weekly rate mode. The Remarketing Agent for the bonds is Citigroup Global Markets Inc.

The bonds bear interest at a weekly rate, but may be converted to an annual or multi-annual interest rate. While bonds bear interest in the weekly rate mode, interest payments are on the first business day of each month. The trustee is obligated to make timely draws on the LOC to pay principal, interest, and purchase price. Funds drawn under the LOC may be invested in accordance with rating guidelines and mature as needed, and are free from any lien prior to that of the bondholders. Holders may tender their bonds on any business day, provided the tender agent is given the requisite prior notice of the purchase. The bonds are subject to mandatory tender upon: (1) the expiration of the LOC supporting the bonds; (2) the conversion of the interest rate on the bonds; and (3) the substitution of the LOC supporting the bonds. The bonds shall be accelerated following the trustee's receipt of notice of the occurrence of an event of default under the reimbursement agreement or of the non-reinstatement of the interest component of the LOC. Optional and mandatory redemption provisions also apply to the bonds. There are no provisions for the issuance of additional bonds under the amended and restated Indenture.

The bonds were issued in December 1985 and the proceeds were used to provide funds to (i) originate and acquire loans to local government units, (ii) fund a debt service reserve and capitalized interest account and, (iii) pay costs of issuance.

Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Rating Criteria', April 25, 2011;

--'Rating Guidelines for Letter of Credit-Supported Bonds', July 26, 2011.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=624129

Rating Guidelines for Letter of Credit-Supported Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647311

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