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TEXAS BOND REVIEW BOARD

DERIVATIVES PROGRAM SUMMARY



Notes To This Document:

1) This is only an example. Please change the information, data labels, and data to fit the particular

transaction.

2) Please submit any updates or changes to the Derivatives Program Summary that occur

subsequent to this Notice of Intent or Application submission.





Veterans' Land Board of the State of Texas

Veterans' Housing Assistance Program, Fund I Series 2004C Taxable Refunding Bonds,

Veterans' Housing Assistance Program, Fund II Series 2004D Taxable Refunding Bonds,

Veterans' Housing Assistance Program, Fund II Series 2004E Taxable Refunding Bonds



Derivatives Program Summary



Bond Par Amounts/Maturities/Yields



-- Term Bond Due 12/1/2018 (VRDBs)(1) $ 7,220,000.00

(1)

-- Term Bond Due 6/1/2020 (VRDBs) $ 31,705,000.00

-- Term Bond Due 12/1/2006 (VRDBs)(1) $ 4,945,000.00

-- Total $ 43,870,000.00



Interest Rate Swap Terms

-- Swap Counterparty JPMorgan Chase Bank

-- Counterparty Credit Ratings AA-/Aa3

-- Notional Amount $ 43,870,000.00

-- Notional Amortization Identical to Sinking Funds

-- VLB Receives Floating 100% of 1M LIBOR

-- VLB Pays Fixed Payer Rate of 5.348%

-- Average Life (Years) 10.783

-- Par Termination Rights Market Termination Only

-- Variable Rate Bond Related

Add Liquidity Fee 0.100%

Add Remarketing Fee 0.070%

0.170%

5.518%





(1)

Sinking fund schedules of the term bonds is also used to structure notional

amortization of the swap.









D:\Docstoc\Working\pdf\2f257ecd-6525-4d64-b809-819ec8e15458.xls 1/15/2012



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