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<br />I <br /> <br />DESCRIPTION OF BONDS <br /> <br />Details of Certain Terms <br /> <br />The Bonds will be dated, as originally issued, as of June I, 2004, and will be issued as fully registered Bonds in <br />the denominations of $5,000 or any integral multiple thereof. Interest on the Bonds will be payable semiannually <br />on each FebIll81y 1 and August 1, commencing February I, 2005. The Bonds when issued, will be registered in <br />the name of Cede & Co. (the "Registered Holdet''), as nominee of The Depository Trust Company, New Yorl<, <br />New York ("DTC''), the initial custodian for the Bonds, to which principal and interest payments on the Bonds <br />will be made so long as Cede & Co. is the Registered Holder of the Bonds. See "Book-Entry System" in <br />Description of Bonds herein for additional information. So long as the Book-Entry Only System is used, <br />individual purchases of the Bonds will be made in book-ilntry form only, in the principal amount of $5,000 or any <br />integral multiple thereof ("Authorized Denominations"). Individual purchasers ("Beneficial Owners") of the <br />Bonds will not receive physical delivery of bond certificates, and registration, exchange, transfer, tender and <br />redemption of the Prior Bonds with respect to Beneficial Owners shall be governed by the Book-Entry Only <br />System. <br /> <br />So long as the Book-Entry Only System is used, payments from Cede & Co., as the Record Holder, to the <br />Beneficial Owners shall be governed by the Book-Entry Only System. If the Book-Entry Only System is <br />discontinued, the principal of and premium, if any, on the Bonds will be payable upon presentation and surrender <br />at the raying Agent and Bond Registrar or a dnly appointed successor. Interest on the Bonds will be paid by <br />check or draft mailed by the Bond Registrar to the registered holders thereof as such appear on the registration <br />books maintained by the Bond Registrar as of the close of business on the fifteenth day (whether or not a business <br />day) of the calendar month preceding each interest payment date (the "Record Date''). <br /> <br />Registration, Transfer and EICbange <br /> <br />So long as the Book-Entry Only System is used, payments from Cede & Co., as the Record Holder, to the <br />Beneficial Owners shall be governed by the Book-Entry Only System. If the Book-Entry Only System is <br />discontinued, the Bonds may be transferred upon surrender of the Bonds at the principal office of the Bond <br />Registrar, duly endorsed for transfer or accompanied by sri assignment duly executed by the registered owner or <br />his or her attorney duly authorized in writing. The Bonds, upon surrender thereof at the principal office of the <br />Bond Registrar may also be exchanged for other Bonds of the same series, of any authorized denominations <br />having the same form, terms, interest rates and maturities as the Bonds being exchanged. The Bond Registrar will <br />require the payment by the Bondholder requesting such exchange or transfer of any tax or governmental charge <br />required to be paid with respect to such exchange or transfer. The Bond Registrar is not required to (i) issue, <br />transfer or exchange any Bond during a period beginning at the opening of business fifteen days before any <br />selection of Bonds of a particular stated maturity for redemption in accordance with the provisions of the General <br />Resolution and Series Resolution and ending on the day of the first mailing of the relevant notice of redemption <br />or (ii) to transfer any Bond or portion thereof selected for redemption. <br /> <br />Optional Redemption <br /> <br />Bonds having stated matorities on or after February 1,2012 are subject to optional redemption, in whole or in <br />part, on FebIll81y 1, 2011, and on any date thereafter, in inverse order of stated maturities and by lot within a <br />stated maturity, at a price of par, plus accrued interest <br /> <br />Book-Entry System <br /> <br />The Depository Trust Company ("DTC"), New Y orl<, New Y orl<, will act as securities depository for the Bonds. <br />Upon issuance of the Bonds, one fully registered Bond will be registered in the name of Cede & Co., as nominee <br />for DTC, fur each maturity of the Bonds as set forth on the cover page hereof; each in the aggregate principal <br />amount of such maturity. So long as Cede & Co. is the registered owner of the Bonds, references herein to the <br />Owners of the Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners of the Bonds. <br /> <br />DTC is a limited purpose trust company organized under the laws of the State of New Y orl<, a member of the <br />Federal Reserve System, a "clearing cOlporation" within the meaning of the New York Uniform Commercial <br /> <br />-9- <br />