; 2011-3Q-Financial-pages-and-footnotes_11.9.11
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

2011-3Q-Financial-pages-and-footnotes_11.9.11

VIEWS: 4 PAGES: 55

  • pg 1
									         QUARTERLY STATEMENT
                             OF THE

       NATIONAL PUBLIC FINANCE
       GUARANTEE CORPORATION
                                OF

                           ARMONK
                              IN THE

                   STATE OF NEW YORK


                             TO THE

         INSURANCE DEPARTMENT
                             OF THE
                          STATE OF
                        ___________________



                 FOR THE PERIOD ENDED
                   SEPTEMBER 30, 2011




PROPERTY AND CASUALTY

                             2011
             STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                   ASSETS
                                                                                                             Current Statement Date                               4
                                                                                              1                         2                     3
                                                                                                                                                             December 31
                                                                                                                                      Net Admitted Assets    Prior Year Net
                                                                                           Assets             Nonadmitted Assets          (Cols. 1 - 2)     Admitted Assets
   1. Bonds                                                                                4,999,512,287                                   4,999,512,287       5,275,074,714
   2. Stocks:
        2.1 Preferred stocks                                                                  7,134,470                                        7,134,470           2,673,650
        2.2 Common stocks                                                                   150,169,182                                      150,169,182                   0
   3. Mortgage loans on real estate:
        3.1 First liens                                                                                                                                0                      0
        3.2 Other than first liens                                                                                                                     0                      0
   4. Real estate:
        4.1 Properties occupied by the company (less
        $                            encumbrances)                                                                                                     0                      0
        4.2 Properties held for the production of income
        (less $                              encumbrances)                                                                                             0                      0
        4.3 Properties held for sale (less
        $                            encumbrances)                                                                                                     0                      0
   5. Cash ($                 65,382,310 ),
        cash equivalents ($                        0 )
        and short-term investments ($            1,374,743,000 )                           1,440,125,310                                   1,440,125,310       1,881,806,351
   6. Contract loans (including $                               premium notes)                                                                         0                   0
   7. Derivatives                                                                                                                                      0                   0
   8. Other invested assets                                                                  60,273,567                                       60,273,567          61,510,341
   9. Receivables for securities                                                              2,631,292                   462,165              2,169,127             289,679
  10. Securities lending reinvested collateral assets                                                                                                  0                   0
  11. Aggregate write-ins for invested assets                                                          0                        0                      0                   0
  12. Subtotals, cash and invested assets (Lines 1 to 11)                                  6,659,846,108                  462,165          6,659,383,943       7,221,354,735
  13. Title plants less $                            charged off (for Title insurers
        only)                                                                                                                                          0                   0
  14. Investment income due and accrued                                                      56,062,147                                       56,062,147          60,070,758
  15. Premiums and considerations:
        15.1 Uncollected premiums and agents’ balances in the course of
        collection                                                                                   1,338                                         1,338                      0
        15.2 Deferred premiums, agents’ balances and installments booked but
        deferred and not yet due (including $                             earned
        but unbilled premiums)                                                                                                                         0                      0
        15.3 Accrued retrospective premiums                                                                                                            0                      0
  16. Reinsurance:
        16.1 Amounts recoverable from reinsurers                                                                                                       0                   0
        16.2 Funds held by or deposited with reinsured companies                                                                                       0                   0
        16.3 Other amounts receivable under reinsurance contracts                                                                                      0                   0
  17. Amounts receivable relating to uninsured plans                                                                                                   0                   0
  18.1 Current federal and foreign income tax recoverable and interest thereon                                                                         0                   0
  18.2 Net deferred tax asset                                                               581,287,073               573,974,828              7,312,245           8,158,147
  19. Guaranty funds receivable or on deposit                                                                                                          0                   0
  20. Electronic data processing equipment and software                                           332,721                 332,721                      0                   0
  21. Furniture and equipment, including health care delivery assets
        ($                           )                                                              37,805                 37,805                      0                    0
  22. Net adjustment in assets and liabilities due to foreign exchange rates                                                                           0                    0
  23. Receivables from parent, subsidiaries and affiliates                                   11,840,798                 1,050,368             10,790,430              276,582
  24. Health care ($                              ) and other amounts receivable                                                                       0                    0
  25. Aggregate write-ins for other than invested assets                                      1,004,050                 1,003,318                    732               95,306
  26. Total assets excluding Separate Accounts, Segregated Accounts and
        Protected Cell Accounts (Lines 12 to 25)                                           7,310,412,040              576,861,205          6,733,550,835       7,289,955,528
  27. From Separate Accounts, Segregated Accounts and Protected
        Cell Accounts                                                                                                                                  0                   0
  28. Total (Lines 26 and 27)                                                              7,310,412,040              576,861,205          6,733,550,835       7,289,955,528
        DETAILS OF WRITE-INS
1101.                                                                                                                                                  0                      0
1102.                                                                                                                                                  0                      0
1103.                                                                                                                                                  0                      0
1198. Summary of remaining write-ins for Line 11 from overflow page                                     0                       0                      0                      0
1199. Totals (Lines 1101 through 1103 plus 1198) (Line 11 above)                                        0                       0                      0                      0
2501. Prepaid expenses                                                                        1,003,318                 1,003,318                      0                    0
2502. Premium tax receivable                                                                        732                                              732               95,306
2503.                                                                                                                                                  0                    0
2598. Summary of remaining write-ins for Line 25 from overflow page                                   0                         0                      0                    0
2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)                              1,004,050                 1,003,318                    732               95,306




                                                                                       2
           STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                    LIABILITIES, SURPLUS AND OTHER FUNDS
                                                                                                                                            1                     2
                                                                                                                                          Current           December 31,
                                                                                                                                      Statement Date         Prior Year
   1. Losses (current accident year $                  7,842,986 )                                                                          37,843,672          127,226,439
   2. Reinsurance payable on paid losses and loss adjustment expenses                                                                                                       0
   3. Loss adjustment expenses                                                                                                              (8,766,567)         (31,277,913)
   4. Commissions payable, contingent commissions and other similar charges                                                                                                 0
   5. Other expenses (excluding taxes, licenses and fees)                                                                                   11,854,892            8,119,627
   6. Taxes, licenses and fees (excluding federal and foreign income taxes)                                                                                                 0
   7.1Current federal and foreign income taxes (including $                           6,833,927 on realized capital gains (losses))          4,649,549          114,076,619
   7.2 Net deferred tax liability                                                                                                                                           0
   8. Borrowed money $                                  and interest thereon $                                                                                              0
   9. Unearned premiums (after deducting unearned premiums for ceded reinsurance of $                          26,528 and
        including warranty reserves of $                               )                                                                 2,584,663,650        2,872,590,379
  10. Advance premium                                                                                                                                                       0
  11. Dividends declared and unpaid:
        11.1 Stockholders                                                                                                                                                   0
        11.2 Policyholders                                                                                                                                                  0
  12. Ceded reinsurance premiums payable (net of ceding commissions)                                                                                   29                  17
  13. Funds held by company under reinsurance treaties                                                                                                                      0
  14. Amounts withheld or retained by company for account of others                                                                            975,853              859,331
  15. Remittances and items not allocated                                                                                                                                   0
  16. Provision for reinsurance                                                                                                                                             0
  17. Net adjustments in assets and liabilities due to foreign exchange rates                                                                                               0
  18. Drafts outstanding                                                                                                                                                    0
  19. Payable to parent, subsidiaries and affiliates                                                                                         2,118,841           36,529,157
  20. Derivatives                                                                                                                                                           0
  21. Payable for securities                                                                                                                27,363,475            4,261,438
  22. Payable for securities lending                                                                                                                                        0
  23. Liability for amounts held under uninsured plans                                                                                                                      0
  24. Capital notes $                             and interest thereon $                                                                                                    0
  25. Aggregate write-ins for liabilities                                                                                                2,863,587,638        3,249,850,890
  26. Total liabilities excluding protected cell liabilities (Lines 1 through 25)                                                        5,524,291,032        6,382,235,984
  27. Protected cell liabilities                                                                                                                                            0
  28. Total liabilities (Lines 26 and 27)                                                                                                5,524,291,032        6,382,235,984
  29. Aggregate write-ins for special surplus funds                                                                                                     0                   0
  30. Common capital stock                                                                                                                  15,000,000           15,000,000
  31. Preferred capital stock                                                                                                                                               0
  32. Aggregate write-ins for other than special surplus funds                                                                                          0                   0
  33. Surplus notes                                                                                                                                                         0
  34. Gross paid in and contributed surplus                                                                                                574,441,220          574,441,220
  35. Unassigned funds (surplus)                                                                                                           619,818,583          318,278,324
  36. Less treasury stock, at cost:
        36.1                          shares common (value included in Line 30 $                                )                                                           0
        36.2                          shares preferred (value included in Line 31 $                             )                                                           0
  37. Surplus as regards policyholders (Lines 29 to 35, less 36)                                                                         1,209,259,803          907,719,544
  38. Totals (Page 2, Line 28, Col. 3)                                                                                                   6,733,550,835        7,289,955,528
        DETAILS OF WRITE-INS
2501. Contingency reserves                                                                                                               1,399,972,994        1,473,494,321
2502. Securities sold under agreement to repurchase                                                                                      1,350,872,419        1,776,356,569
2503. Affiliated party payable                                                                                                             112,742,225                      0
2598. Summary of remaining write-ins for Line 25 from overflow page                                                                                     0                   0
2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)                                                                         2,863,587,638        3,249,850,890
2901.                                                                                                                                                                       0
2902.                                                                                                                                                                       0
2903.                                                                                                                                                                       0
2998. Summary of remaining write-ins for Line 29 from overflow page                                                                                     0                   0
2999. Totals (Lines 2901 through 2903 plus 2998) (Line 29 above)                                                                                        0                   0
3201.                                                                                                                                                                       0
3202.                                                                                                                                                                       0
3203.                                                                                                                                                                       0
3298. Summary of remaining write-ins for Line 32 from overflow page                                                                                     0                   0
3299. Totals (Lines 3201 through 3203 plus 3298) (Line 32 above)                                                                                        0                   0




                                                                                       3
             STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                           STATEMENT OF INCOME
                                                                                                                  1                  2                    3
                                                                                                             Current Year       Prior Year        Prior Year Ended
                                                                                                               to Date           to Date           December 31
                                           UNDERWRITING INCOME
   1. Premiums earned:
      1.1 Direct (written $                   1,130 )                                                                 64,643            92,557              291,819
      1.2 Assumed (written $               (129,228,488) )                                                       158,648,562       269,702,296          362,238,004
      1.3 Ceded (written $                       17 )                                                                 13,964            14,279               15,697
      1.4 Net (written $            (129,227,375) )                                                              158,699,241       269,780,574          362,514,126
               DEDUCTIONS:
   2. Losses incurred (current accident year $                             ):
      2.1 Direct                                                                                                           0                 0                    0
      2.2 Assumed                                                                                                  2,117,733         8,056,285           36,802,627
      2.3 Ceded                                                                                                                              0                    0
      2.4 Net                                                                                                      2,117,733         8,056,285           36,802,627
   3. Loss adjustment expenses incurred                                                                              112,082         8,105,117           15,617,097
   4. Other underwriting expenses incurred                                                                        19,561,136        59,715,093           75,207,001
   5. Aggregate write-ins for underwriting deductions                                                                      0       (13,363,298)         (13,363,298)
   6. Total underwriting deductions (Lines 2 through 5)                                                           21,790,951        62,513,197          114,263,427
   7. Net income of protected cells                                                                                                          0                    0
   8. Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)                                                136,908,290       207,267,377          248,250,699

                                             INVESTMENT INCOME
   9. Net investment income earned                                                                               163,136,368       167,822,520          221,692,947
  10. Net realized capital gains (losses) less capital gains tax of $               6,833,927                      8,328,908        30,419,917           35,295,945
  11. Net investment gain (loss) (Lines 9 + 10)                                                                  171,465,276       198,242,437          256,988,892

                                               OTHER INCOME
  12. Net gain or (loss) from agents' or premium balances charged off
      (amount recovered $                            amount charged off $                             )                                      0                    0
  13. Finance and service charges not included in premiums                                                                                   0                    0
  14. Aggregate write-ins for miscellaneous income                                                                    (6,113)          (25,137)             (25,137)
  15. Total other income (Lines 12 through 14)                                                                        (6,113)          (25,137)             (25,137)
  16. Net income before dividends to policyholders, after capital gains tax and before all other federal
      and foreign income taxes (Lines 8 + 11 + 15)                                                               308,367,453       405,484,677          505,214,454
  17. Dividends to policyholders                                                                                                             0                    0
  18. Net income, after dividends to policyholders, after capital gains tax and before all other federal
      and foreign income taxes (Line 16 minus Line 17)                                                           308,367,453       405,484,677          505,214,454
  19. Federal and foreign income taxes incurred                                                                   77,551,457        98,584,684           96,411,549
  20. Net income (Line 18 minus Line 19)(to Line 22)                                                             230,815,996       306,899,993          408,802,905

                                       CAPITAL AND SURPLUS ACCOUNT
  21.   Surplus as regards policyholders, December 31 prior year                                                 907,719,544       653,429,550          653,429,552
  22.   Net income (from Line 20)                                                                                230,815,996       306,899,993          408,802,905
  23.   Net transfers (to) from Protected Cell accounts                                                                                      0                    0
  24.   Change in net unrealized capital gains or (losses) less capital gains tax of $           (805,627)          (937,448)       (3,587,688)          (4,331,703)
  25.   Change in net unrealized foreign exchange capital gain (loss)                                                                        0                    0
  26.   Change in net deferred income tax                                                                        (30,224,327)       14,619,729           11,476,654
  27.   Change in nonadmitted assets                                                                              28,364,709       (13,831,662)         (29,364,225)
  28.   Change in provision for reinsurance                                                                                                  0                    0
  29.   Change in surplus notes                                                                                                              0                    0
  30.   Surplus (contributed to) withdrawn from protected cells                                                                              0                    0
  31.   Cumulative effect of changes in accounting principles                                                                                0                    0
  32.   Capital changes:
        32.1 Paid in                                                                                                                         0                       0
        32.2 Transferred from surplus (Stock Dividend)                                                                                       0                       0
        32.3 Transferred to surplus                                                                                                          0                       0
  33.   Surplus adjustments:
        33.1 Paid in                                                                                                            (1,624,119,946)     (1,624,904,009)
        33.2 Transferred to capital (Stock Dividend)                                                                                         0                   0
        33.3 Transferred from capital                                                                                                        0                   0
  34.   Net remittances from or (to) Home Office                                                                                             0                   0
  35.   Dividends to stockholders                                                                                                            0                   0
  36.   Change in treasury stock                                                                                                             0                   0
  37.   Aggregate write-ins for gains and losses in surplus                                                       73,521,327     1,503,551,208       1,492,610,370
  38.   Change in surplus as regards policyholders (Lines 22 through 37)                                         301,540,257       183,531,634         254,289,992
  39.   Surplus as regards policyholders, as of statement date (Lines 21 plus 38)                              1,209,259,801       836,961,184         907,719,544
        DETAILS OF WRITE-INS
0501.   Reinsurance commutations received                                                                                          (13,363,298)         (13,363,298)
0502.                                                                                                                                        0                    0
0503.                                                                                                                                        0                    0
0598.   Summary of remaining write-ins for Line 5 from overflow page                                                       0                 0                    0
0599.   TOTALS (Lines 0501 through 0503 plus 0598) (Line 5 above)                                                          0       (13,363,298)         (13,363,298)
1401.   Miscellaneous expense                                                                                         (6,113)          (25,137)             (25,137)
1402.
1403.
1498.   Summary of remaining write-ins for Line 14 from overflow page                                                      0                 0                    0
1499.   TOTALS (Lines 1401 through 1403 plus 1498) (Line 14 above)                                                    (6,113)          (25,137)             (25,137)
3701.   Reset unassigned surplus (see Note 1A)                                                                                   1,623,145,983        1,623,145,983
3702.   Admissibility of deferred tax asset                                                                                        (13,000,931)         (13,000,931)
3703.   Allocation of surplus to contingency reserves                                                             73,521,327      (106,593,844)        (117,534,682)
3798.   Summary of remaining write-ins for Line 37 from overflow page                                                      0                 0                    0
3799.   TOTALS (Lines 3701 through 3703 plus 3798) (Line 37 above)                                                73,521,327     1,503,551,208        1,492,610,370




                                                                                         4
          STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                                                                       CASH FLOW
                                                                                                               1                  2                    3
                                                                                                          Current Year       Prior Year        Prior Year Ended
                                                                                                            To Date           To Date           December 31
                                               Cash from Operations
 1.   Premiums collected net of reinsurance                                                                  (129,228,814)      103,402,880          109,600,025
 2.   Net investment income                                                                                   182,099,945       191,625,259          253,642,090
 3.   Miscellaneous income                                                                                         (6,113)          (25,137)             (25,137)
 4.   Total (Lines 1 to 3)                                                                                     52,865,018       295,003,002          363,216,978
 5.   Benefit and loss related payments                                                                        91,500,500        47,926,625           73,180,328
 6.   Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts                               0                 0                    0
 7.   Commissions, expenses paid and aggregate write-ins for deductions                                        (6,573,394)       65,924,640           81,274,972
 8.   Dividends paid to policyholders                                                                                   0                 0                    0
 9.   Federal and foreign income taxes paid (recovered) net of $              15,162,835 tax on capital
      gains (losses)                                                                                          193,812,454       (17,375,761)         (16,298,099)
10.   Total (Lines 5 through 9)                                                                               278,739,560        96,475,504          138,157,201
11.   Net cash from operations (Line 4 minus Line 10)                                                        (225,874,542)      198,527,498          225,059,777
                                              Cash from Investments
12.   Proceeds from investments sold, matured or repaid:
      12.1 Bonds                                                                                            1,046,382,032    1,939,487,766         2,233,029,278
      12.2 Stocks                                                                                                 531,875                0                     0
      12.3 Mortgage loans                                                                                               0                0                     0
      12.4 Real estate                                                                                                  0                0                     0
      12.5 Other invested assets                                                                                        0                0                     0
      12.6 Net gains or (losses) on cash, cash equivalents and short-term investments                                   0            3,128                 3,281
      12.7 Miscellaneous proceeds                                                                              20,813,236       29,811,712                     0
      12.8 Total investment proceeds (Lines 12.1 to 12.7)                                                   1,067,727,143    1,969,302,606         2,233,032,559
13.   Cost of investments acquired (long-term only):
      13.1 Bonds                                                                                              771,234,078    1,952,544,562         2,428,045,913
      13.2 Stocks                                                                                             152,214,705                0             2,668,475
      13.3 Mortgage loans                                                                                               0                0                     0
      13.4 Real estate                                                                                                  0                0                     0
      13.5 Other invested assets                                                                                1,205,216       65,000,000            65,000,000
      13.6 Miscellaneous applications                                                                                   0           65,582            21,005,048
      13.7 Total investments acquired (Lines 13.1 to 13.6)                                                    924,653,999    2,017,610,144         2,516,719,436
14.   Net increase (or decrease) in contract loans and premium notes                                                    0                0                     0
15.   Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)                                       143,073,144      (48,307,538)         (283,686,877)
                               Cash from Financing and Miscellaneous Sources
16.   Cash provided (applied):
      16.1 Surplus notes, capital notes                                                                                  0                0                    0
      16.2 Capital and paid in surplus, less treasury stock                                                              0   (1,624,119,948)          (1,758,025)
      16.3 Borrowed funds                                                                                                0                0                    0
      16.4 Net deposits on deposit-type contracts and other insurance liabilities                                                         0                    0
      16.5 Dividends to stockholders                                                                                    0                 0                    0
      16.6 Other cash provided (applied)                                                                     (358,879,644)    1,710,609,871          117,935,483
17.   Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
      plus Line 16.6)                                                                                        (358,879,644)       86,489,923          116,177,458
           RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.   Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)        (441,681,042)      236,709,883           57,550,358
19.   Cash, cash equivalents and short-term investments:
      19.1 Beginning of year                                                                                1,881,806,353    1,824,255,995         1,824,255,995
      19.2 End of period (Line 18 plus Line 19.1)                                                           1,440,125,311    2,060,965,878         1,881,806,353




                                                                                   5
      STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                     NOTES TO FINANCIAL STATEMENTS


1.   Summary of Significant Accounting Policies

     A. Accounting Practices

         The statutory financial statements of National Public Finance Guarantee Corporation (“National”) are presented
         on the basis of accounting practices prescribed or permitted by the New York Department of Financial Services
         (“NYDFS”). The NYDFS recognizes only statutory accounting practices prescribed or permitted by the State of
         New York for determining and reporting the financial condition and results of operations of an insurance
         company, for determining its solvency under the New York Insurance Law. The National Association of
         Insurance Commissioners (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been
         adopted as a component of prescribed or permitted practices by the State of New York. The Commissioner of
         Insurance has the right to permit other specific practices that deviate from prescribed practices.

         Effective January 1, 2010, National was granted a permitted practice by the NYDFS to restate its unassigned
         funds (surplus) to zero by netting its negative unassigned surplus of $1.6 billion against $2.2 billion gross paid-in
         and contributed surplus as summarized in the table below. Total policyholders’ surplus and net income were not
         impacted by this permitted practice. Please refer to “Note 14: Contingencies” for information regarding the
         lawsuit challenging the above mentioned surplus reset.

                                                                                                                 Adjusted for
                                                                                                                New York State
         In dollars                                                                    NAIC SAP                Permitted Practice
         Common capital stock                                                    $           15,000,000    $            15,000,000
         Gross paid in and contributed surplus                                            2,197,587,203                574,441,220
         Unassigned funds (surplus)                                                      (1,003,327,400)               619,818,583

         Total policyholders' surplus (as of September 30, 2011)                 $       1,209,259,803     $          1,209,259,803

         Common capital stock                                                    $           15,000,000    $            15,000,000
         Gross paid in and contributed surplus                                            2,197,587,203                574,441,220
         Unassigned funds (surplus)                                                      (1,304,867,659)               318,278,324

         Total policyholders' surplus (as of December 31, 2010)                  $         907,719,544     $           907,719,544



2.   Accounting Changes and Correction of Errors

     During the three months ended September 30, 2011, National discovered errors in the recognition of net premiums
     earned related to refunding activities prior to July 1, 2011 on reinsurance between National and MBIA Insurance
     Corporation (“MBIA Corp.”). Certain financial guarantee policies ceded by MBIA Corp. and assumed by National
     were subsequently found to have been refunded by the issuers of the insured obligations prior to the date of the
     reinsurance agreement, which was January 1, 2009, and related premiums should have been returned to and earned
     by MBIA Corp. but were instead earned by National. As a result of the error, National’s Policyholders’ Surplus as of
     December 31, 2010 was overstated by approximately $54 million. The error was corrected in the Quarterly Statement
     for the period ended September 30, 2011, and was reported as a reduction to surplus of approximately $54 million.
     The settlement of premium of $113 million back to MBIA Corp. from National, which is disclosed within
     “Aggregate write-ins for liabilities,” occurred on November 7, 2011.

3.   Business Combinations and Goodwill

     No significant change.

4.   Discontinued Operations

     No significant change.

5.   Investments

     D. Loan-Backed Securities

         (1) Prepayment assumptions for single class and multi-class mortgage-backed/asset-backed securities were
             obtained from an independent third-party data service or internal estimates.

         (2) National did not have any loan-backed or structured securities with a recognized other-than-temporary
             impairment as of September 30, 2011 and December 31, 2010.

         (3) Based on its evaluation, during 2011, National did not recognize an other-than-temporary impairment on
             any securities. National determined that the unrealized losses on securities in its portfolio were temporary in
             nature because its impairment analysis, including projected future cash flows, indicated that it would be able
             to recover the amortized cost of impaired assets. National also concluded that it has both the ability and




                                                               6
      STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                       NOTES TO FINANCIAL STATEMENTS

              intent to hold these securities until their fair values recover to an amount at least equal to amortized cost or
              to maturity.

         (4) The following tables set forth the gross unrealized losses of National’s loan-backed and structured securities
             as of September 30, 2011 and December 31, 2010 that have been in a continuous unrealized loss position for
             less than twelve months from those that have been in a continuous unrealized loss position for twelve
             months or longer by the following categories: Residential mortgage-backed (“RMBS”), Commercial
             mortgage-backed (“CMBS”) and Other loan-backed and structured securities. Certain reclassifications have
             been made to prior year balances in order to conform to the current year presentation.

                                                                                            As of September 30, 2011
                                                                Less than 12 Months           12 Months or Longer                        Total
                                                                Fair        Unrealized          Fair        Unrealized           Fair            Unrealized
              In thousands                                      Value           Losses          Value           Losses           Value               Losses
              RMBS                                          $     58,830    $     (1,819)   $   834         $         (7)    $     59,664        $     (1,826)
              CMBS                                                 8,585            (699)         -                    -            8,585                (699)
              Other loan-backed and structured securities         56,612          (1,935)     4,793                  (58)          61,405              (1,993)
                    Total loan-backed securities            $    124,027    $     (4,453)   $ 5,627         $        (65)    $    129,654        $     (4,518)



                                                                                            As of December 31, 2010
                                                                Less than 12 Months           12 Months or Longer                        Total
                                                                Fair        Unrealized          Fair        Unrealized           Fair            Unrealized
              In thousands                                      Value           Losses          Value           Losses           Value               Losses
              RMBS                                          $    719,591    $ (10,825)      $           -   $            -   $    719,591        $ (10,825)
              CMBS                                                32,796         (146)                  -                -         32,796             (146)
              Other loan-backed and structured securities         39,782       (1,076)                  -                -         39,782           (1,076)
                    Total loan-backed securities            $    792,169    $ (12,047)      $           -   $            -   $    792,169        $ (12,047)




         (5) Refer to “Note 1: Summary of Significant Accounting Policies” Section C (2) in the 2010 Annual Statement
             for a description of the general categories of information National considers in determining whether a
             security is other-than-temporarily impaired.

6.   Joint Ventures, Partnerships and Limited Liability Companies

     No significant change.

7.   Investment Income

     No significant change.

8.   Derivative Instruments

     No significant change.

9.   Income Taxes

     As of September 30, 2011, National recorded a tax expense of $84 million primarily due to installment premiums and
     net investment income.

     As of September 30, 2011, National recorded a net deferred tax asset of $581 million. Statement of Statutory
     Accounting Principles (“SSAP”) 10R “Income Taxes-Revised,” however, requires that recognition of the deferred
     tax asset to be dependent on the recoverability of the asset within a 12-month period subsequent to 2010.
     Recoverability depends, in part, on the amount of the deferred tax asset that is expected to reverse and the amount of
     projected taxable income within that period. As of September 30, 2011, National had a net admitted deferred tax
     asset of $7 million, as $574 million of the deferred tax asset of $581 million was not admitted under SSAP 10R. As
     of December 31, 2010, National had a net admitted deferred tax asset of $8 million, as $604 million of the deferred
     tax asset of $612 million was not admitted under SSAP 10R.

10. Information Concerning Parent, Subsidiaries, Affiliates and Other Related Parties

     During the second quarter of 2011, National purchased investments in three series of shares (the “Trust Shares”) and
     a portfolio of individual bonds (the “Bonds”) from an affiliate, MBIA Corp. for $180 million. The purchase of both
     the Trust Shares and the Bonds were non-disapproved by the NYDFS pursuant to Section 1505 of the New York
     Insurance Law.

     On November 7, 2011, the settlement of premium of $113 million back to MBIA Corp. from National occurred.
     Refer to “Note 2: Accounting Changes and Correction of Errors” for further information.




                                                                6.1
    STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                 NOTES TO FINANCIAL STATEMENTS

11. Debt

    No significant change.

12. Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other
    Postretirement Benefits Plans

    No significant change.

13. Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations

    No significant change.

14. Contingencies

     A. In the normal course of operating its business, National may be involved in various legal proceedings.
        Additionally, MBIA Inc. together with its subsidiaries (“MBIA”) may be involved in various legal proceedings
        that directly or indirectly impact National.

        The following legal proceeding disclosures provide an update to those discussed in “Note 14: Contingencies” in
        the Notes to Financial Statements included in National’s Annual Statement for the period ended December 31,
        2010 as filed with the NAIC on March 1, 2011. The following disclosures should be read in conjunction with the
        complete descriptions provided in the aforementioned note included in the Notes to Financial Statements of
        National’s Annual Statement:

        Corporate Litigation

        In re MBIA Inc. Securities Litigation, No. 08-CV-264 (S.D.N.Y.)
        In July 2011, the parties reached a settlement agreement in principle pursuant to which the plaintiffs will receive
        $68 million in exchange for the dismissal with prejudice of the litigation. MBIA’s Director and Officer insurance
        carriers have agreed to cover in full the settlement payment. On September 20, 2011, the court entered a
        preliminary order approving the settlement agreement reached by the parties.

        Trustees of the Police and Fire Retirement System of the City of Detroit v. Clapp et al., No. 08-CV-1515
        (S.D.N.Y.)
        On June 3, 2011, Plaintiff filed an amended derivative complaint against certain of MBIA’s present and former
        officers and directors, and against MBIA Inc., as nominal defendant. MBIA’s response is due December 1, 2011.

        Ambac Bond Insurance Coverage Cases, Coordinated Proceeding Case No. JCCP 4555 (Super. Ct. of Cal.,
        County of San Francisco)
        On August 8, 2011, plaintiffs filed amended versions of their respective complaints. These amended complaints
        name as defendants, among others, MBIA Inc., MBIA Corp., National, and renew claims alleging breach of
        contract, fraud, unfair business practices and violation of California’s Cartwright Act. On October 20, 2011, the
        court overruled MBIA’s demurrers to plaintiffs’ fraud and Cartwright Act claims.

        In re Municipal Derivatives Antitrust Litigation, M.D.L. No. 1950 (S.D.N.Y.)
        As of May 31, 2011, MBIA has answered all of the existing complaints.

        Tri-City Healthcare District v. Citibank. et al.; Case No. 30-2010-00359692 (Super. Ct. of Cal., County of
        Orange)
        On June 13, 2011, Tri-City Healthcare District filed its Fourth Amended Complaint against MBIA Inc., MBIA
        Corp. and National (collectively for this paragraph, “MBIA”), which purports to state seven causes of action
        against MBIA for fraud in the inducement, concealment, negligent misrepresentation, negligence, breach of
        contract, duress, and breach of the covenant of good faith arising from Tri-City Healthcare District’s investment
        in auction rate securities. On September 8, 2011, the court granted in part and denied in part MBIA's demurrer to
        Tri-City’s Fourth Amended Complaint. On October 4, 2011, MBIA filed its answer to the remaining causes of
        action.

        Transformation Litigation

        Aurelius Capital Master, Ltd. et al. v. MBIA Inc. et al., 09-cv-2242 (S.D.N.Y.)
        In light of the June 28, 2011 Court of Appeals decision referenced below, on July 27, 2011, the court entered an
        amended case management plan and scheduling order setting a discovery cut-off of November 9, 2012. On
        August 8, 2011, Fir Tree Value Master Fund, L.P., Fir Tree Capital Opportunity Master Fund, L.P., and Fir Tree
        Mortgage Opportunity Master Fund, L.P. voluntarily dismissed all claims against defendants without prejudice.

        Third Ave Trust et al. v. MBIA Inc. et al.; Index No. 650756/2009 (N.Y. Sup. Ct., N.Y. County)
        On October 20, 2011, the parties filed a stipulation of discontinuance dismissing the litigation without prejudice.




                                                      6.2
     STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                  NOTES TO FINANCIAL STATEMENTS

        ABN AMRO Bank N.V. et al. v. MBIA Inc. et al.; Index No. 601475/09 (N.Y. Sup. Ct., N.Y. County)
        On June 28, 2011, the New York State Court of Appeals reversed the Appellate Division’s decision and allowed
        all of the plaintiffs’ claims to proceed, with the exception of plaintiffs’ claim for unjust enrichment. Ten of the
        original twenty plaintiffs have dismissed their claims, several of which dismissals were related to the
        commutation of certain of their MBIA-insured exposures. On August 15, 2011, the court entered a scheduling
        order coordinating discovery in the plenary action with the Aurelius case in federal court and setting a discovery
        cut-off of November 9, 2012. On September 6 and 12, 2011 and on October 31, 2011 respectively, KBC
        Investments Cayman Islands V Ltd., Credit Agricole Corporate and Investment Bank and Wells Fargo Bank,
        N.A. (f/k/a Wachovia Bank, N.A.) withdrew from the litigation.

        ABN AMRO Bank N.V. et al. v. Eric Dinallo et al.; Index no. 601846/09 (N.Y. Sup. Ct., N.Y. County)
        On September 6 and 12, 2011 and on October 31, 2011 respectively, KBC Investments Cayman Islands V Ltd.,
        Credit Agricole Corporate Investment Bank and Wells Fargo Bank, N.A. (f/k/a Wachovia Bank, N.A.) withdrew
        from the litigation. Submission of all papers relating to the original petition is scheduled to be completed by
        February, 2012. A trial is scheduled for February 27 - March 23, 2012.

        Barclays Bank PLC., et al. v. Wrynn et al.; Index No. 651811/2010 (N.Y. Sup. Ct., N.Y. County)
        The proceeding is currently stayed.

        MBIA Inc. and National are defending against the aforementioned actions and expect ultimately to prevail on the
        merits. There is no assurance, however, that they will prevail in these actions. Adverse rulings in these actions
        could have a material adverse effect on National’s ability to implement its strategy and on its business, results of
        operations and financial condition.

        There are no other material lawsuits pending or, to the knowledge of National, threatened, to which National is a
        party.

15. Leases

    No significant change.

16. Information about Financial Instruments with Off-Balance Sheet Risk and Financial Instruments with
    Concentration of Credit Risk

    No significant change.

17. Sale, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

    C. National did not engage in any wash sales transactions during the nine months ended September 30, 2011.

18. Gain or Loss to the Reporting Entity from Uninsured Plans and the Uninsured Portion of Partially Insured
    Plans

    No significant change.

19. Direct Premium Written/Produced by Managing General Agents/Third Party Administrators

    No significant change.

20. Fair Value Measurements

    A. Inputs for Assets and Liabilities Measured at Fair Value

        A. Fair Value Measurements by Levels 1, 2 and 3

             For assets and liabilities recorded on the balance sheet at fair value, SSAP 100, “Fair Value Measurements,”
             establishes a disclosure hierarchy for inputs used in measuring fair value. Observable inputs are those
             National believes that market participants would use in pricing the asset or liability developed based on
             market data. Unobservable inputs are those that reflect National’s beliefs about the assumptions market
             participants would use in pricing the asset or liability developed based on the best information available.
             The fair value hierarchy is broken down into three levels based on the observability and reliability of inputs
             as follows:

                 • Level 1 - Valuations based on quoted prices (unadjusted) in active markets for identical assets or
                   liabilities that National has the ability to access at the measurement date.

                 • Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant
                   inputs are observable, either directly or indirectly. If the asset or liability has a specified (contractual)
                   term, a Level 2 input must be observable for substantially the full term of the asset or liability.

                 • Level 3 - Valuations based on inputs that are unobservable and supported by little or no market
                   activity and that are significant to the overall fair value measurement.




                                                       6.3
STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                   NOTES TO FINANCIAL STATEMENTS

      The following fair value hierarchy tables present information about National’s assets measured at fair value
      as of September 30, 2011 and December 31, 2010. There were no liabilities measured at fair value as of
      September 30, 2011 and December 31, 2010.

                                                                                        Fair Value Measurements at Reporting Date Using
                                                                                   Q uoted Prices
                                                                                      in Active
                                                                                    Markets for     Significant O ther      Significant  Balance as of
                                                                                  Identical Assets Observable Inputs Unobservable Inputs September 30,
      In thousands                                                                    (Level 1)         (Level 2)            (Level 3)       2011
      Assets:
      Investments:
      Fixed-maturity investments:
         Industrial and miscellaneous                                             $                 - $               6,009 $             25,719 $       31,728
         Hybrid securities                                                                                            3,149                    -          3,149
      Preferred stock                                                                               -                 4,614                1,380          5,994
      Common stock                                                                                  -               150,169                    -        150,169
      Total assets                                                                $                 - $             163,941 $             27,099 $      191,040



                                                                                        Fair Value Measurements at Reporting Date Using
                                                                                   Q uoted Prices
                                                                                      in Active
                                                                                    Markets for     Significant O ther      Significant            Balance as of
                                                                                  Identical Assets Observable Inputs Unobservable Inputs           December 31,
      In thousands                                                                    (Level 1)         (Level 2)            (Level 3)                 2010
      Assets:
      Investments:
      Fixed-maturity investments:
         Political subdivisions of states, territories and subdivisions           $                 - $                  - $              21,598 $        21,598
         Special revenue and special assessment obligations                                         -                  856                 9,929          10,785
         Industrial and miscellaneous                                                               -                4,961                     -           4,961
      Preferred stock                                                                               -                2,674                     -           2,674
      Total assets                                                                $                 - $              8,491 $              31,527 $        40,018



  B. Roll Forward of Level 3 Items

      Level 3 assets were $27 million and $32 million as of September 30, 2011 and December 31, 2010,
      respectively, and represented 14% and 79% of total assets measured at fair value, respectively.

      The following table presents information about changes in Level 3 assets measured at fair value for the nine
      months ended September 30, 2011. Gains and losses reported in this table may include changes in fair value
      that are attributable to both observable and unobservable inputs.


                              Fair Value Measurements in (Level 3) of the Fair Value Hierachy for the Nine Months Ended September 30, 2011




                                                                                                       Realized         Unrealized     Purchases,
                                                                                                         Gains /           Gains /     Issuances
                                              Balance as of                                             (Losses)          (Losses)         and     Balance as of
                                              December 31,        Transfers in    Transfers out of    included in       included in   Settlements, September 30,
      In thousands                                2010              Level 3           Level 3         Net Income          Surplus          net         2011
      Assets:
      Fixed-maturity securities               $     31,527    $             538   $             -     $         -      $        933   $    (7,279) $      25,719
      Preferred stock                                    -                1,380                 -               -                 -             -          1,380
      Total assets                            $     31,527    $           1,918   $             -     $         -      $        933   $    (7,279) $      27,099



  C. Policy on Transfers Into and Out of Level 3

      For the nine months ended September 30, 2011 there were four securities transferred into Level 3 for $1.9
      million. The transfer into Level 3 was principally due to inputs, which were significant to the valuation of
      the security, became unobservable during the period. For the nine months ended September 30, 2011, there
      were no securities transferred out of Level 3. For the year ended December 31, 2010, there were no
      securities transferred into Level 3 or transferred out of Level 3.




                                                                  6.4
    STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                NOTES TO FINANCIAL STATEMENTS

           There were no realized gains and losses included in earnings pertaining to Level 3 assets for the nine months
           ended September 30, 2011 and the year ended December 31, 2010. Unrealized gains and losses included in
           surplus pertaining to Level 3 assets and liabilities for the nine months ended September 30, 2011 and the
           year ended December 31, 2010 were a gain of $1 million and a loss of $1 million, respectively.

       D. Inputs and Techniques Used for Level 2 and Level 3 Fair Value

           Valuation Techniques

           Valuation techniques for financial instruments measured at fair value are described below. National’s assets
           recorded at fair value have been categorized according to the fair value hierarchy based on the lowest level
           input that is significant to the fair value measurement in its entirety.

           Fixed-maturity securities and Short-term investments - Fixed-maturity securities and short-term investments
           with an NAIC designation of 1 and 2 are carried at amortized cost while fixed-maturity securities and short-
           term investments with an NAIC designation of 3 through 6 are carried at the lower of cost or fair value.

           Fair value of fixed-maturity securities and short-term investments with an NAIC designation of 1 and 2 are
           generally provided by the NAIC Securities Valuation Office (“SVO”) published market prices. If NAIC
           SVO published market prices are not available, the fair value is determined using an independent third-party
           pricing service which maximizes observable inputs, including price quotations of recent trades of same or
           similar securities. When observable price quotations are not available, fair value is determined based on
           cash flow models with yield curves, bond or single name credit default swap spreads and diversity scores as
           key inputs. These bonds are generally categorized in Level 2 of the fair value hierarchy; in instances where
           significant inputs are unobservable, they are categorized in Level 3 of the hierarchy.

           Common and preferred stock – The fair value of common stock is based upon quoted market prices, if
           available. If a quoted market price is not available, fair value is estimated using quoted market prices for
           similar securities. Common stocks of uncombined subsidiaries and affiliates in which National has an
           interest of 20% or more are carried on a statutory equity basis. Perpetual preferred stocks with an NAIC
           designation of P1 and P2 are carried at fair value while perpetual preferred stocks with an NAIC designation
           of P3 through P6 are carried at the lower of cost or fair value. Redeemable preferred stocks with an NAIC
           designation of RP1 and RP2 are carried at amortized cost while redeemable preferred stocks with an NAIC
           designation of RP3 through RP6 are carried at the lower of amortized cost or fair value.

           Description of Level 2 and Level 3 Securities

           As of September 30, 2011, Level 2 securities primarily consist of common stock investments. As of
           September 30, 2011, Level 3 securities carried at fair value primarily consist of a portfolio of municipal
           lease investments. The portfolio is comprised of investments in lease-related obligations, including lease
           agreements, financing agreements or debt obligations backed by leases or lease revenues and other similar
           obligations of U.S. state or local governmental or quasi-governmental authorities (the “Municipal Lease
           Obligations”). The Municipal Lease Obligations represent an investment grade portfolio with low history of
           default, short tenor and yield generally higher than that of comparable municipal bonds with similar
           characteristics.

       E. Derivative Fair Value

           National has not entered into any transactions classified as derivative instruments.

21. Other Items

   C. Other disclosures

       In August 2011, Standard & Poor’s Financial Services LLC (“S&P”) issued new guidelines that reflect
       significant changes to its rating methodology for financial guarantee insurers. These new guidelines are effective
       immediately. S&P expects to publish any changes to the ratings of National by November 30, 2011, after its
       review of National’s third quarter 2011 financial statements. The changes to S&P’s rating methodology
       substantially increase the amount of capital required to achieve its highest ratings, implement a new Largest
       Obligors Test, which is punitive in the rating assessment, and incorporate additional qualitative considerations
       into the ratings process. However, the effect on National’s ratings is uncertain. The absence of S&P’s highest
       ratings could adversely impact National’s ability to write new insurance business and the premiums it can
       charge, and could diminish the future acceptance of its financial guarantee insurance products.

22. Events Subsequent

   Subsequent events have been considered through November 9, 2011, the date upon which the statutory financial
   statements were available to be issued. Refer to “Note 14: Contingencies” for information about legal proceedings
   that commenced after September 30, 2011.

23. Reinsurance

   No significant change.




                                                     6.5
     STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                  NOTES TO FINANCIAL STATEMENTS

24. Retrospectively Rated Contracts & Contracts Subject to Redetermination

    No significant change.

25. Changes in Incurred Losses and Loss Adjustment Expenses

    Total net loss and loss adjustment expense (“LAE”) was $2 million during the nine months ended September 30,
    2011 compared with $16 million during the nine months ended September 30, 2010. Net loss and LAE during 2011
    principally related to a toll road, a tax-backed and three affordable housing transactions. Net loss and LAE activity
    during 2010 principally related to a student loan, a housing and two health care transactions. Total loss and LAE
    reserves were $29 million and $96 million as of September 30, 2011 and December 31, 2010, respectively.

26. Intercompany Pooling Arrangements

    No significant change.

27. Structured Settlements

    No significant change.

28. Health Care Receivables

    No significant change.

29. Participating Policies

    No significant change.

30. Premium Deficiency Reserves

    No significant change.

31. High Deductibles

    No significant change.

32. Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses

    Unpaid losses and salvage on claims are discounted on a non-tabular basis by applying a discount rate equal to the
    yield-to-maturity of National’s fixed-income investment portfolio, excluding investments in money market funds and
    including an intercompany repurchase agreement. National does not discount unpaid loss adjustment expenses. The
    discount rate used at September 30, 2011 and December 31, 2010 was 4.19%. The amount of non-tabular discount as
    of September 30, 2011 and December 31, 2010 was $8 million and $1 million, respectively.

33. Asbestos/Environmental Reserves

    No significant change.

34. Subscriber Savings Accounts

    No significant change.

35. Multiple Peril Crop Insurance

    No significant change.

36. Financial Guaranty Insurance

    There were no significant changes to premiums receivable, premiums expected to be collected and expected
    premiums earned as of September 30, 2011.

    National’s Portfolio Surveillance Division (“PSD”) monitors National’s outstanding insured obligations with the
    objective of minimizing losses. PSD meets this objective by identifying issuers that, because of deterioration in credit
    quality or changes in the economic, regulatory or political environment, are at a heightened risk of defaulting on debt
    service of obligations insured by National. In such cases, PSD works with the issuer, trustee, bond counsel, servicer,
    underwriter and other interested parties in an attempt to alleviate or remedy the problem and avoid defaults on debt
    service payments. PSD works closely with National’s Risk Management function and the applicable business unit to
    analyze insured obligation performance and credit risk parameters, both before and after an obligation is insured.

    Refer to “Note 9: Loss and Loss Adjustment Expense Reserves” in the Notes to Statutory-Basis Financial Statements
    included in National’s Audited Statutory Statements for the years ended December 31, 2010 and 2009, posted on
    National’s website for additional information about National’s monitoring of outstanding insured obligations and for
    a summary of its reserving process.




                                                      6.6
 STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                             NOTES TO FINANCIAL STATEMENTS


The following tables provide information about the financial guarantees and related claim liability (defined as unpaid
losses and LAE) included in each of National’s surveillance categories as of September 30, 2011 and December 31,
2010:

                                                                                                                    Surveillance Categorie s
                                                                                Caution List           Caution List           Caution List           Classified
$ in millions                                                                      Low                   Medium                  High                  List                   Total
Number of policies                                                                            15                    13                      8                  42                     78
                        (1)
Number of issues                                                                               9                      7                     6                  15                  37
Remaining weighted average contract period (in years)                                       14.1                    9.1                  10.5                 12.7                12.4
Gross insured contractual payments outstanding:
   Principal                                                                     $          630        $           354        $          125         $        844     $         1,953
   Interest                                                                               1,153                    173                    68                  995               2,389
        Total                                                                    $        1,783        $           527        $          193         $       1,839    $         4,342


Gross claim liability                                                            $              -      $              -       $              -       $        513     $           513
Less:
   Gross potential recoveries                                                                   -                     -                      -                476                 476
   Discount, net                                                                                -                     -                      -                  8                   8
   Reinsurance                                                                                  -                     -                      -                  -                   -
        Net claim liability                                                      $              -      $              -       $              -       $         29     $               29
Net unearned premium revenue                                                     $            20       $              8       $              -       $         29     $               57
_______________
(1) - An "issue" represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments.




                                                                                                                     Surveillance Categories
                                                                                 Caution List           Caution List          Caution List               Classified
$ in millions                                                                       Low                   Medium                 High                      List                Total
Number of policies                                                                           159                      19                      5                  39                   222
                        (1)
Number of issues                                                                              11                       8                     5                   15                    39
Remaining weighted average contract period (in years)                                        14.7                    9.5                  14.7                 13.0                   13.3
Gross insured contractual payments outstanding:
   Principal                                                                     $         1,188        $           371        $            46        $       1,106       $       2,711
   Interest                                                                                1,808                    195                     38                1,128               3,169
        Total                                                                    $         2,996        $           566        $            84        $       2,234       $       5,880


Gross claim liability                                                            $               -      $                 -    $                 -    $        954        $           954
Less:
   Gross potential recoveries                                                                    -                        -                      -             857                    857
   Discount, net                                                                                 -                        -                      -               1                      1
   Reinsurance                                                                                   -                        -                      -               -                      -
        Net claim liability                                                      $               -      $                 -    $                 -    $          96       $            96

Net unearned premium revenue                                                     $             27       $              8       $                 -    $          33       $            68
_______________
(1) - An "issue" represents the aggregate of financial guarantee policies that share the same revenue source for purposes of making debt service payments.




                                                                             6.7
STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                     NOTES TO FINANCIAL STATEMENTS

The following table presents changes in National’s loss and LAE reserve as of September 30, 2011. Changes in the
loss and LAE reserve attributable to the accretion of the discount on the loss reserves, changes in discount rates,
changes in the timing and amounts of estimated net payments, changes in assumptions and changes in LAE reserves
are recorded in “Losses and LAE” in National’s statement of income. LAE reserves are expected to be settled within
a one year period and are not discounted. As of September 30, 2011 and December 31, 2010, the rate used to
discount the claim liability was 4.19%.

In millions

       Loss and                                                                                                                     Loss and
         LAE                                                                                                                       LAE
       Reserve                                Changes    Changes            Changes                     Changes                   Reserve
        as of                     Accretion      in         in                in           Changes         in                      as of
     December 31,        Loss     of Claim    Discount   Timing of         Amount of          in          LAE                  September 30,
        2010           Payments   Liability     Rate     Payments      Net Payments       Assumptions   Reserves   Reinsurance     2011

 $                96   $    (91) $        3   $      -   $         -   $               (2) $       1    $     22   $        -   $          29




                                                             6.8
           STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                   GENERAL INTERROGATORIES
                                                     PART 1 - COMMON INTERROGATORIES
                                                                 GENERAL
1.1   Did the reporting entity experience any material transactions requiring the filing of Disclosure of Material Transactions with the State of                Yes [ ] No [X]
      Domicile, as required by the Model Act?

1.2   If yes, has the report been filed with the domiciliary state?                                                                                              Yes [ ] No [ ]


2.1   Has any change been made during the year of this statement in the charter, by-laws, articles of incorporation, or deed of settlement of the                Yes [ ] No [X]
      reporting entity?

2.2   If yes, date of change:



3.    Have there been any substantial changes in the organizational chart since the prior quarter end?                                                           Yes [X] No [ ]
      If yes, complete the Schedule Y - Part 1 - organizational chart.


4.1   Has the reporting entity been a party to a merger or consolidation during the period covered by this statement?                                            Yes [ ] No [X]

4.2   If yes, provide the name of entity, NAIC Company Code, and state of domicile (use two letter state abbreviation) for any entity that has
      ceased to exist as a result of the merger or consolidation.

                                                                1                                               2                           3
                                                           Name of Entity                               NAIC Company Code           State of Domicile




5.    If the reporting entity is subject to a management agreement, including third-party administrator(s), managing general agent(s), attorney-in-
      fact, or similar agreement, have there been any significant changes regarding the terms of the agreement or principals involved?                  Yes [ ] No [ ] NA [X]
      If yes, attach an explanation.

6.1   State as of what date the latest financial examination of the reporting entity was made or is being made.                                                      12/31/2007
6.2   State the as of date that the latest financial examination report became available from either the state of domicile or the reporting entity.
      This date should be the date of the examined balance sheet and not the date the report was completed or released.                                              12/31/2007
6.3   State as of what date the latest financial examination report became available to other states or the public from either the state of domicile
      or the reporting entity. This is the release date or completion date of the examination report and not the date of the examination (balance
      sheet date).                                                                                                                                                   05/21/2009
6.4   By what department or departments?
      Illinois Department of Insurance

6.5   Have all financial statement adjustments within the latest financial examination report been accounted for in a subsequent financial
      statement filed with Departments?                                                                                                                 Yes [X] No [ ] NA [ ]

6.6   Have all of the recommendations within the latest financial examination report been complied with?                                                Yes [X] No [ ] NA [ ]

7.1   Has this reporting entity had any Certificates of Authority, licenses or registrations (including corporate registration, if applicable)
      suspended or revoked by any governmental entity during the reporting period?                                                                               Yes [ ] No [X]

7.2   If yes, give full information:



8.1   Is the company a subsidiary of a bank holding company regulated by the Federal Reserve Board?                                                              Yes [ ] No [X]

8.2   If response to 8.1 is yes, please identify the name of the bank holding company.



8.3   Is the company affiliated with one or more banks, thrifts or securities firms?                                                                             Yes [ ] No [X]

8.4   If response to 8.3 is yes, please provide below the names and location (city and state of the main office) of any affiliates regulated by a
      federal regulatory services agency [i.e. the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Office
      of Thrift Supervision (OTS), the Federal Deposit Insurance Corporation (FDIC) and the Securities Exchange Commission (SEC)] and
      identify the affiliate’s primary federal regulator.]

                                 1                                                   2                                 3              4             5      6             7
                                                                                 Location
                          Affiliate Name                                       (City, State)                         FRB            OCC           OTS     FDIC         SEC




                                                                                         7
            STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                    GENERAL INTERROGATORIES
9.1    Are the senior officers (principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing
       similar functions) of the reporting entity subject to a code of ethics, which includes the following standards?                                               Yes [X] No [ ]
       (a) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
       (b) Full, fair, accurate, timely and understandable disclosure in the periodic reports required to be filed by the reporting entity;
       (c) Compliance with applicable governmental laws, rules and regulations;
       (d) The prompt internal reporting of violations to an appropriate person or persons identified in the code; and
       (e) Accountability for adherence to the code.

9.11 If the response to 9.1 is No, please explain:



9.2    Has the code of ethics for senior managers been amended?                                                                                                      Yes [ ] No [X]

9.21 If the response to 9.2 is Yes, provide information related to amendment(s).


9.3    Have any provisions of the code of ethics been waived for any of the specified officers?                                                                      Yes [ ] No [X]

9.31 If the response to 9.3 is Yes, provide the nature of any waiver(s).



                                                                                      FINANCIAL
10.1 Does the reporting entity report any amounts due from parent, subsidiaries or affiliates on Page 2 of this statement?                                           Yes [X] No [ ]

10.2 If yes, indicate any amounts receivable from parent included in the Page 2 amount:                                                                 $              (2,041,407)

                                                                                    INVESTMENT
11.1 Were any of the stocks, bonds, or other assets of the reporting entity loaned, placed under option agreement, or otherwise made available
     for use by another person? (Exclude securities under securities lending agreements.)                                                                            Yes [ ] No [X]

11.2 If yes, give full and complete information relating thereto:



12.    Amount of real estate and mortgages held in other invested assets in Schedule BA:                                                                $

13.    Amount of real estate and mortgages held in short-term investments:                                                                              $

14.1    Does the reporting entity have any investments in parent, subsidiaries and affiliates?                                                                       Yes [X] No [ ]

14.2    If yes, please complete the following:

                                                                                                                  1                                    2
                                                                                                           Prior Year-End                       Current Quarter
                                                                                                           Book/Adjusted                        Book/Adjusted
                                                                                                           Carrying Value                       Carrying Value
                  14.21 Bonds                                                                     $                                     $
                  14.22 Preferred Stock                                                           $                                     $
                  14.23 Common Stock                                                              $                                     $
                  14.24 Short-Term Investments                                                    $                                     $
                  14.25 Mortgage Loans on Real Estate                                             $                                     $
                  14.26 All Other                                                                 $              61,510,341             $              59,076,731
                  14.27 Total Investment in Parent, Subsidiaries and Affiliates
                        (Subtotal Lines 14.21 to 14.26)                                           $              61,510,341             $              59,076,731
                  14.28 Total Investment in Parent included in Lines 14.21 to 14.26
                        above                                                                     $                                     $

15.1 Has the reporting entity entered into any hedging transactions reported on Schedule DB?                                                                         Yes [ ] No [X]

15.2 If yes, has a comprehensive description of the hedging program been made available to the domiciliary state?                                                    Yes [ ] No [ ]

       If no, attach a description with this statement.




                                                                                        7.1
           STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                  GENERAL INTERROGATORIES
16.   Excluding items in Schedule E – Part 3 – Special Deposits, real estate, mortgage loans and investments held physically in the reporting
      entity’s offices, vaults or safety deposit boxes, were all stocks, bonds and other securities, owned throughout the current year held
      pursuant to a custodial agreement with a qualified bank or trust company in accordance with Section 3, III Conducting Examinations, F -
      Custodial or Safekeeping Agreements of the NAIC Financial Condition Examiners Handbook?                                                   Yes [X] No [ ]

16.1 For all agreements that comply with the requirements of the NAIC Financial Condition Examiners Handbook, complete the following:

                                                         1                                                           2
                                                Name of Custodian(s)                                         Custodian Address
                             JP Morgan Chase Bank                                         1 Chase Manhattan Plaza, New York, NY 10005



16.2 For all agreements that do not comply with the requirements of the NAIC Financial Condition Examiners Handbook, provide the name,
     location and a complete explanation:

                                              1                                 2                                        3
                                            Name(s)                         Location(s)                        Complete Explanation(s)



16.3 Have there been any changes, including name changes, in the custodian(s) identified in 16.1 during the current quarter?                    Yes [ ] No [X]

16.4 If yes, give full and complete information relating thereto:

                                      1                             2                            3                          4
                                Old Custodian                  New Custodian              Date of Change                  Reason




16.5 Identify all investment advisors, broker/dealers or individuals acting on behalf of broker/dealers that have access to the investment
     accounts, handle securities and have authority to make investments on behalf of the reporting entity:

                                                   1                                2                                          3
                                    Central Registration Depository               Name(s)                                   Address
                                                                       Cutwater Investors Service
                                   107200                              Corp.                               113 King Street, Armonk, NY 10504



17.1 Have all the filing requirements of the Purposes and Procedures Manual of the NAIC Securities Valuation Office been followed?               Yes [X] No [ ]
17.2 If no, list exceptions:




                                                                                   7.2
             STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                     GENERAL INTERROGATORIES
                                         PART 2 - PROPERTY & CASUALTY INTERROGATORIES

  1.    If the reporting entity is a member of a pooling arrangement, did the agreement or the reporting entity's participation change?                         Yes [ ] No [X] NA [ ]

        If yes, attach an explanation.



  2.    Has the reporting entity reinsured any risk with any other reporting entity and agreed to release such entity from liability, in whole or in part,
        from any loss that may occur on the risk, or portion thereof, reinsured?                                                                                       Yes [ ] No [X]

        If yes, attach an explanation.



  3.1   Have any of the reporting entity's primary reinsurance contracts been canceled?                                                                                Yes [ ] No [X]
  3.2   If yes, give full and complete information thereto.




  4.1   Are any of the liabilities for unpaid losses and loss adjustment expenses other than certain workers' compensation tabular reserves (see
        Annual Statement Instructions pertaining to disclosure of discounting for definition of “tabular reserves,”) discounted at a rate of interest
        greater than zero?                                                                                                                                             Yes [X] No [ ]

  4.2   If yes, complete the following schedule:


                                                                                TOTAL DISCOUNT                                       DISCOUNT TAKEN DURING PERIOD
            1                      2             3               4               5           6                    7              8           9          10         11
                              Maximum         Discount         Unpaid          Unpaid                                          Unpaid      Unpaid
    Line of Business           Interest         Rate           Losses           LAE        IBNR                TOTAL           Losses       LAE       IBNR       TOTAL

Financial Guaranty                                 4.190       8,167,824                                       8,167,824      7,131,799                                    7,131,799




                                                TOTAL          8,167,824                0               0      8,167,824      7,131,799                 0             0    7,131,799



    5. Operating Percentages:

                5.1 A&H loss percent                                                                                                                                               %
                5.2 A&H cost containment percent                                                                                                                                   %
                5.3 A&H expense percent excluding cost containment expenses                                                                                                        %
  6.1   Do you act as a custodian for health savings accounts?                                                                                                         Yes [ ] No [X]
  6.2   If yes, please provide the amount of custodial funds held as of the reporting date.                                                                 $

  6.3   Do you act as an administrator for health savings accounts?                                                                                                    Yes [ ] No [X]
  6.4   If yes, please provide the balance of the funds administered as of the reporting date.                                                              $




                                                                                            8
         STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                          SCHEDULE F - CEDED REINSURANCE
                                    Showing All New Reinsurers - Current Year to Date
     1                2                           3                                          4               5
                                                                                                        Is Insurer
   NAIC              Federal                                                            Domiciliary    Authorized?
Company Code       ID Number               Name of Reinsurer                            Jurisdiction   (Yes or No)




                                                          9
              STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                                 SCHEDULE T - EXHIBIT OF PREMIUMS WRITTEN
                                                          Current Year to Date - Allocated by States and Territories
                                               1            Direct Premiums Written          Direct Losses Paid (Deducting Salvage)             Direct Losses Unpaid
                                                             2                    3                   4                   5                     6                  7

                                             Active      Current Year         Prior Year         Current Year          Prior Year          Current Year          Prior Year
                  States, etc.               Status        To Date             To Date             To Date              To Date              To Date              To Date
    1. Alabama                    AL           L                                          0                                         0                                         0
    2. Alaska                     AK           L                                          0                                         0                                         0
    3. Arizona                    AZ           L                                          0                                         0                                         0
    4. Arkansas                   AR           L                                          0                                         0                                         0
    5. California                 CA           L                                          0                                         0                                         0
    6. Colorado                   CO           L                                          0                                         0                                         0
    7. Connecticut                CT           L                                          0                                         0                                         0
    8. Delaware                   DE           L                                          0                                         0                                         0
    9. District of Columbia       DC           L                                          0                                         0                                         0
   10. Florida                    FL           L                                      1,000                                         0                                         0
   11. Georgia                    GA           L                                          0                                         0                                         0
   12. Hawaii                     HI           L                                          0                                         0                                         0
   13. Idaho                      ID           L                                          0                                         0                                         0
   14. Illinois                   IL           L                                     18,005                                         0                                         0
   15. Indiana                    IN           L                                          0                                         0                                         0
   16. Iowa                       IA           L                                          0                                         0                                         0
   17. Kansas                     KS           L                                          0                                         0                                         0
   18. Kentucky                   KY           L                                          0                                         0                                         0
   19. Louisiana                  LA           L                                          0                                         0                                         0
   20. Maine                      ME           L                                          0                                         0                                         0
   21. Maryland                   MD           L                                          0                                         0                                         0
   22. Massachusetts              MA           L                                          0                                         0                                         0
   23. Michigan                   MI           L                                          0                                         0                                         0
   24. Minnesota                  MN           L                                          0                                         0                                         0
   25. Mississippi                MS           L                                          0                                         0                                         0
   26. Missouri                   MO           L                                          0                                         0                                         0
   27. Montana                    MT           L                                          0                                         0                                         0
   28. Nebraska                   NE           L                                          0                                         0                                         0
   29. Nevada                     NV           L                                          0                                         0                                         0
   30. New Hampshire              NH           L                                          0                                         0                                         0
   31. New Jersey                 NJ           L                                          0                                         0                                         0
   32. New Mexico                 NM           L                                          0                                         0                                         0
   33. New York                   NY           L                  1,130               2,542                                         0                                         0
   34. North Carolina             NC           L                                          0                                         0                                         0
   35. North Dakota               ND           L                                          0                                         0                                         0
   36. Ohio                       OH           L                                          0                                         0                                         0
   37. Oklahoma                   OK           L                                          0                                         0                                         0
   38. Oregon                     OR           L                                          0                                         0                                         0
   39. Pennsylvania               PA           L                                          0                                         0                                         0
   40. Rhode Island               RI           L                                          0                                         0                                         0
   41. South Carolina             SC           L                                          0                                         0                                         0
   42. South Dakota               SD           L                                          0                                         0                                         0
   43. Tennessee                  TN           L                                          0                                         0                                         0
   44. Texas                      TX           L                                          0                                         0                                         0
   45. Utah                       UT           L                                          0                                         0                                         0
   46. Vermont                    VT           L                                          0                                         0                                         0
   47. Virginia                   VA           L                                          0                                         0                                         0
   48. Washington                 WA           L                                          0                                         0                                         0
   49. West Virginia              WV           L                                          0                                         0                                         0
   50. Wisconsin                  WI           L                                          0                                         0                                         0
   51. Wyoming                    WY           L                                          0                                         0                                         0
   52. American Samoa             AS           N                                          0                                         0                                         0
   53. Guam                       GU           N                                          0                                         0                                         0
   54. Puerto Rico                PR           L                                          0                                         0                                         0
   55. U.S. Virgin Islands        VI           N                                          0                                         0                                         0
   56. Northern Mariana Islands MP             N                                          0                                         0                                         0
   57. Canada                     CN           N                                          0                                         0                                         0
   58. Aggregate Other Alien      OT          XXX                     0                   0                     0                   0                     0                   0
   59. Totals                          (a)          52            1,130              21,547                     0                   0                     0                   0
       DETAILS OF WRITE-INS
 5801.                                        XXX                                          0                                        0                                         0
 5802.                                        XXX                                          0                                        0                                         0
 5803.                                        XXX                                          0                                        0                                         0
 5898. Summary of remaining write-
       ins for Line 58 from overflow
       page                                   XXX                       0                  0                    0                   0                     0                   0
 5899. TOTALS (Lines 5801 through
       5803 plus 5898) (Line 58
       above)                                 XXX                       0                  0                    0                   0                     0                   0
(L) Licensed or Chartered - Licensed Insurance Carrier or Domiciled RRG; (R) Registered - Non-domiciled RRGs; (Q) Qualified - Qualified or Accredited Reinsurer; (E) Eligible -
Reporting Entities eligible or approved to write Surplus Lines in the state; (N) None of the above - Not allowed to write business in the state.
(a) Insert the number of L responses except for Canada and Other Alien.




                                                                                    10
                                                                                STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

     SCHEDULE Y - INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP
                                                                                                                            PART 1 - ORGANIZATIONAL CHART



                                                                                                                                                  MBIA INC.
                                                                                                                                                 (Connecticut)
                                                                                                                                                  06-1185706




          Optinuity Alliance                                                                                        Cutwater                                                             MBIA Insurance                            National Public
                                               CapMAC
             Resources                                                                                            Holdings, LLC                                                           Corporation                            Finance Guarantee                              Trifinium
                                             Holdings Inc.                                                                                                                                                                                                                  Holdings Limited
            Corporation                                                                                            (Delaware)                                                              (New York)                               Holdings, Inc.
                                              (Delaware)                                                                                                                                                                                                                   (England and Wales)
             (Delaware)                                                                                            06-1185706                                                             43-0899449                                 (Delaware)
                                              13-3670828                                                                                                                                                                                                                      93481 23290
             27-1070081                                                                                        100 % Owned by MBIA                                                        NAIC: 12041                                26-3847823
                                       100% Owned by MBIA Inc.                                                                                                                                                                                                           100% Owned by MBIA Inc.
        100% Owned by MBIA Inc.                                                                                        Inc.                                                           100% Owned by MBIA Inc.                   100% Owned by MBIA Inc.




                                                                                                                 Cutwater Asset               Cutwater Asset                                              MBIA Mexico,             National Public
                            LatAm Capital                                           Cutwater Investor                                                                       MBIA UK                                                                                                            Trifinium
                                                         CapMAC Asia Ltd.                                       Management UK                Management Corp.                                              S.A. de C.V.          Finance Guarantee             Trifinium
                            Advisors, Inc.                                           Services Corp.                                                                     (Holdings) Limited                                                                  Services Limited               Advisors Limited
                                                            (Bermuda)                                                Limited                    (Delaware)                                                   (Mexico)               Corporation
                              (Delaware)                                               (Delaware)                                                                      (England and Wales)                                                                (England and Wales)             (England and Wales)
                                                             EC20670                                           (England and Wales)              13-3750425                                                MME070223L66                (New York)                                             47373 27758
                             13-3670831                                                13-3594521                                                                         77542 18315                       AA-2730041                                        72786 20444
11




                        100% Owned by CapMAC
                                                           30.7% Owned by
                                                                                  100% Owned by Cutwater
                                                                                                                  24514 19851               100 % Owned by Cutwater                                                                  37-6025608                                          100% Owned by Trifinium
                                                         CapMAC Holdings Inc.                                                                                          100% Owned by MBIA              99.9% Owned by MBIA                                100% Owned by Trifinium
                             Holdings Inc.                                            Holdings, LLC          100% Owned by Cutwater              Holdings, LLC                                                                      NAIC: 23825              Holdings Limited               Holdings Limited
                                                                                                                 Holdings, LLC                                         Insurance Corporation           Insurance Corporation,
                                                                                                                                                                                                                                100 % Owned by NPFGHI
                                                                                                                                                                                                          .1% by MBIA Inc.


        Administradora de                                                          Cutwater Colorado                 Cutwater
             Projectos                      LCA Prestadora                                                                                                                  MBIA UK                                              National Real Estate
                                        de Servicios, S. de R. L.                  Investor Services              Infrastructure
       de Infraestructura en                                                             Corp.                      GP Limited                                          Insurance Limited                                            Holdings of
                                                de C. V.                                                                                                               (England and Wales)
      Mexico, S.A.P.I. de C.V.                 (Mexico)                                (Colorado)              (England and Wales)                                                                                                  Armonk, LLC
              (Mexico)                                                                22-3655781                   60610 00053                                             94647 17509                                                (Delaware)
                                            LPS100409F90                                                     100% Owned by Cutwater
           API091028R7                   99.99% Owned by LatAm,                   100% Owned by Cutwater                                                                   AA-1120063                                                27-1845124
      99.99% Owned by LatAm,                                                                                  Asset Management UK                                        100% Owned by                                          100% Owned by NPFGC
                                        .01% by CapMAC Holdings                    Investor Services Corp.
           .01% by MBIA                           Inc.                                                                Limited                                           MBIA UK (Holdings)
         Asset Finance, LLC                                                                                                                                                  Limited


                                                                                                              TIF Infrastructure LP
                                                                                                              (England and Wales)
                                                                                                                   19364 51784
                                                                                                               1% Owned by Cutwater                                    MBIA Infrastructure
                                                                                                             Infrastructure GP Limited as                                  LP Limited
                                                                                                                    GP, 99% MBIA                                       (England and Wales)
                                                                                                             Infrastructure LP Limited as                                 606725 21094
                                                                                                                          LP                                          100% Owned by MBIA UK
                                                                                                                                                                         Insurance Limited


                                                                                                               TIF Holdco Limited
                                                                                                                   (Guernsey)
                                                                                                                  32905 19433
                                                                                                                 100% Owned by TIF
                                                                                                               Infrastructure LP where
                                                                                                                Cutwater Infrastructure
                                                                                                              GP Limited is shareholder
                                                                                                                      on behalf of
                                                                                                                 TIF Infrastructure LP



       See next page for additional MBIA Inc. Subsidiaries
                                                    STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

       SCHEDULE Y - INFORMATION CONCERNING ACTIVITIES OF INSURER MEMBERS OF A HOLDING COMPANY GROUP
                                                                                         PART 1 - ORGANIZATIONAL CHART



                                                                                                                          MBIA INC.
                                                                                                                         (Connecticut)
                                                                                                                          06-1185706




                                                                                                                                                                LaCrosse Financial                        MBIA International    Resecuritization
           MBIA Services       Municipal Issuers     MBIA Global         Euro Asset                 MBIA Asset                            MBIA Investment
                                                                                                                                                              Products Member, LLC   MBIA Capital Corp.   Marketing Services,    Holdings, LLC
             Company          Service Corporation   Funding, LLC     Acquisition Limited           Finance, LLC                          Management Corp.          (Delaware)           (Delaware)           Pty. Limited         (Delaware)
            (Delaware)            (New York)          (Delaware)     (England and Wales)            (Delaware)                              (Delaware)            30-0634370            13-3786662            (Australia)         27-0791255
            13-4049098            13-2689375         06-1185706         23843 04605                 45-2088521                              13-3727359         61% Owned by MBIA                                                 100% Owned by
           100% Owned by         100% Owned by      100% Owned by       100% Owned by              100% Owned by                           100% Owned by
                                                                                                                                                                                       100% Owned by       ACN:076-466-34
                                                                                                                                                                Inc., 39% by MBIA         MBIA Inc.         100% Owned by           MBIA Inc.
              MBIA Inc.             MBIA Inc.          MBIA Inc.           MBIA Inc.                  MBIA Inc.                               MBIA Inc.            Capital Corp.                               MBIA Inc.
11.1




                                                                         Promotora de
                                                                        Infraestructura                                                  Meridian Funding
                                                                                                                                                              LaCrosse Financial
            CAH Asset                                               Registral, S.A. de C.V.       Triple-A One                            Company, LLC
                                                                                                                                                                Products, LLC
           Holdings, Inc.                                                 SOFOM ENR            Funding Corporation                          (Delaware)
                                                                                                                                                                  (Delaware)
            (Delaware)                                                      (Mexico)               (Delaware)                              13-3964233
                                                                         PIR090827MJ7                                                                            30-0634370
            14-1984465                                                                             13-3738554                         99% Owned by MBIA
                                                                     99.9% Owned by MBIA                                                                         100% Owned by
         100% Owned by MBIA                                                                       100% Owned by                      Asset Finance, LLC, 1%
                                                                    Asset Finance, LLC, 0.1%                                                                    LaCrosse Financial
          Services Company                                                                     MBIA Asset Finance, LLC                 by MBIA Insurance
                                                                        by LatAm Capital                                                                      Products Member, LLC
                                                                                                                                           Corporation
                                                                          Advisors, Inc.
           STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                                                PART 1 - LOSS EXPERIENCE
                                                                                           Current Year to Date                               4
                                                                             1                       2                 3                Prior Year to
                                                                     Direct Premiums          Direct Losses       Direct Loss          Date Direct Loss
                                  Line of Business                        Earned                 Incurred         Percentage             Percentage
   1.       Fire                                                                                                                 0.0                   0.0
   2.       Allied lines                                                                                                         0.0                   0.0
   3.       Farmowners multiple peril                                                                                            0.0                   0.0
   4.       Homeowners multiple peril                                                                                            0.0                   0.0
   5.       Commercial multiple peril                                                                                            0.0                   0.0
   6.       Mortgage guaranty                                                                                                    0.0                   0.0
   8.       Ocean marine                                                                                                         0.0                   0.0
   9.       Inland marine                                                                                                        0.0                   0.0
  10.       Financial guaranty                                                   64,643                                          0.0                   0.0
  11.1      Medical professional liability -occurrence                                                                           0.0                   0.0
  11.2      Medical professional liability -claims made                                                                          0.0                   0.0
  12.       Earthquake                                                                                                           0.0                   0.0
  13.       Group accident and health                                                                                            0.0                   0.0
  14.       Credit accident and health                                                                                           0.0                   0.0
  15.       Other accident and health                                                                                            0.0                   0.0
  16.       Workers’ compensation                                                                                                0.0                   0.0
  17.1      Other liability occurrence                                                                                           0.0                   0.0
  17.2      Other liability-claims made                                                                                          0.0                   0.0
  17.3      Excess Workers’ Compensation                                                                                         0.0
  18.1      Products liability-occurrence                                                                                        0.0                   0.0
  18.2      Products liability-claims made                                                                                       0.0                   0.0
  19.1,19.2 Private passenger auto liability                                                                                     0.0                   0.0
  19.3,19.4 Commercial auto liability                                                                                            0.0                   0.0
  21.       Auto physical damage                                                                                                 0.0                   0.0
  22.       Aircraft (all perils)                                                                                                0.0                   0.0
  23.       Fidelity                                                                                                             0.0                   0.0
  24.       Surety                                                                                                               0.0                   0.0
  26.       Burglary and theft                                                                                                   0.0                   0.0
  27.       Boiler and machinery                                                                                                 0.0                   0.0
  28.       Credit                                                                                                               0.0                   0.0
  29.       International                                                                                                        0.0                   0.0
  30.       Warranty                                                                                                             0.0                   0.0
  31.       Reinsurance - Nonproportional Assumed Property                 XXX                     XXX                XXX                    XXX
  32.       Reinsurance - Nonproportional Assumed Liability                XXX                     XXX                XXX                    XXX
  33.       Reinsurance - Nonproportional Assumed Financial Lines          XXX                     XXX                XXX                    XXX
  34.       Aggregate write-ins for other lines of business                           0                      0                   0.0                   0.0
  35.       TOTALS                                                               64,643                      0                   0.0                   0.0
       DETAILS OF WRITE-INS
3401.                                                                                                                            0.0                   0.0
3402.                                                                                                                            0.0                   0.0
3403.                                                                                                                            0.0                   0.0
3498. Sum. of remaining write-ins for Line 34 from overflow page                       0                     0                   0.0                   0.0
3499. Totals (Lines 3401 through 3403 plus 3498) (Line 34)                             0                     0                   0.0                   0.0




                                    PART 2 - DIRECT PREMIUMS WRITTEN
                                                                                                   1                    2                     3
                                                                                                 Current            Current              Prior Year
                                              Line of Business                                   Quarter          Year to Date          Year to Date
   1.       Fire                                                                                             0                                          0
   2.       Allied lines                                                                                     0                                          0
   3.       Farmowners multiple peril                                                                        0                                          0
   4.       Homeowners multiple peril                                                                        0                                          0
   5.       Commercial multiple peril                                                                        0                                          0
   6.       Mortgage guaranty                                                                                0                                          0
   8.       Ocean marine                                                                                     0                                          0
   9.       Inland marine                                                                                    0                                          0
  10.       Financial guaranty                                                                             287              1,130                  21,547
  11.1      Medical professional liability-occurrence                                                        0                                          0
  11.2      Medical professional liability-claims made                                                       0                                          0
  12.       Earthquake                                                                                       0                                          0
  13.       Group accident and health                                                                        0                                          0
  14.       Credit accident and health                                                                       0                                          0
  15.       Other accident and health                                                                        0                                          0
  16.       Workers’ compensation                                                                            0                                          0
  17.1      Other liability occurrence                                                                       0                                          0
  17.2      Other liability-claims made                                                                      0                                          0
  17.3      Excess Workers’ Compensation                                                                     0
  18.1      Products liability-occurrence                                                                    0                                            0
  18.2      Products liability-claims made                                                                   0                                            0
  19.1,19.2 Private passenger auto liability                                                                 0                                            0
  19.3,19.4 Commercial auto liability                                                                        0                                            0
  21.       Auto physical damage                                                                             0                                            0
  22.       Aircraft (all perils)                                                                            0                                            0
  23.       Fidelity                                                                                         0                                            0
  24.       Surety                                                                                           0                                            0
  26.       Burglary and theft                                                                               0                                            0
  27.       Boiler and machinery                                                                             0                                            0
  28.       Credit                                                                                           0                                            0
  29.       International                                                                                    0                                            0
  30.       Warranty                                                                                         0                                            0
  31.       Reinsurance - Nonproportional Assumed Property                                         XXX                XXX                    XXX
  32.       Reinsurance - Nonproportional Assumed Liability                                        XXX                XXX                    XXX
  33.       Reinsurance - Nonproportional Assumed Financial Lines                                  XXX                XXX                    XXX
  34.       Aggregate write-ins for other lines of business                                                  0                  0                       0
  35.       TOTALS                                                                                         287              1,130                  21,547
       DETAILS OF WRITE-INS
3401.                                                                                                        0                                            0
3402.                                                                                                        0                                            0
3403.                                                                                                        0                                            0
3498. Sum. of remaining write-ins for Line 34 from overflow page                                             0                     0                      0
3499. Totals (Lines 3401 through 3403 plus 3498) (Line 34)                                                   0                     0                      0




                                                                    12
                                                                         STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                                                                                                                           PART 3 (000 omitted)
                                                                                           LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES SCHEDULE
                                   1                    2                    3                    4                    5                 6                     7                     8                 9                 10                    11                   12                      13

                                                                                                                                                                                                                                          Prior Year-End      Prior Year-End
                                                                                                                                                                              Q.S. Date Known                                           Known Case Loss       IBNR Loss and           Prior Year-End
                                                                                                                  2011 Loss and                         Q.S. Date Known        Case Loss and                                            and LAE Reserves       LAE Reserves           Total Loss and
                                                                         Total Prior         2011 Loss and       LAE Payments on                         Case Loss and        LAE Reserves on                                               Developed           Developed              LAE Reserve
                                                  Prior Year-End       Year-End Loss        LAE Payments on          Claims        Total 2011 Loss      LAE Reserves on       Claims Reported                      Total Q.S. Loss          (Savings)/           (Savings)/             Developed
                              Prior Year-End           IBNR               and LAE           Claims Reported        Unreported         and LAE           Claims Reported         or Reopened      Q.S. Date IBNR       and LAE               Deficiency           Deficiency             (Savings)/
      Years in Which        Known Case Loss       Loss and LAE           Reserves              as of Prior          as of Prior       Payments           and Open as of        Subsequent to      Loss and LAE        Reserves             (Cols. 4 + 7       (Cols. 5 + 8 + 9          Deficiency
     Losses Occurred        and LAE Reserves         Reserves           (Cols. 1 + 2)           Year-End            Year-End        (Cols. 4 + 5)        Prior Year End        Prior Year End       Reserves       (Cols.7 + 8 + 9)        minus Col. 1)       minus Col. 2)          (Cols. 11 + 12)

     1. 2008 + Prior                   156,178                                   156,178               14,763                                 14,763               139,860                                                  139,860                 (1,555)                      0               (1,555)

     2. 2009                           (36,816)                                  (36,816)             (39,093)                               (39,093)               (3,001)                                                   (3,001)               (5,278)                      0               (5,278)

     3. Subtotals 2009 +
          prior                        119,361                     0             119,361              (24,330)                 0             (24,330)              136,859                  0                 0             136,859                 (6,833)                      0               (6,833)

     4. 2010                           (24,562)              1,149               (23,413)              89,332                                 89,332           (115,845)                                                   (115,845)                (1,951)              (1,149)                 (3,100)

     5. Subtotals 2010 +
          prior                         94,800               1,149                95,949               65,002                  0              65,002                21,014                  0                 0               21,014                (8,783)              (1,149)                 (9,932)

     6. 2011                      XXX                  XXX                  XXX                  XXX                       4,099               4,099         XXX                         6,914             1,149               8,063          XXX                  XXX                     XXX
13




     7. Totals                          94,800               1,149                95,949               65,002              4,099              69,101                21,014               6,914             1,149              29,077                (8,783)              (1,149)                 (9,932)
        Prior Year-End
     8.   Surplus As                                                                                                                                                                                                                     Col. 11, Line 7      Col. 12, Line 7         Col. 13, Line 7
          Regards Policy-                                                                                                                                                                                                                As % of Col. 1,      As % of Col. 2,         As % of Col. 3,
          holders                      907,720                                                                                                                                                                                               Line 7               Line 7                  Line 7

                                                                                                                                                                                                                                        1.           (9.3) 2.            (100.0) 3.               (10.4)
                                                                                                                                                                                                                                                                                      Col. 13, Line 7
                                                                                                                                                                                                                                                                                          Line 8

                                                                                                                                                                                                                                                                                     4.           (1.1)
              STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


          SUPPLEMENTAL EXHIBITS AND SCHEDULES INTERROGATORIES
The following supplemental reports are required to be filed as part of your statement filing. However, in the event that your company does not transact the type of business for
which the special report must be filed, your response of NO to the specific interrogatory will be accepted in lieu of filing on “NONE” report and a bar code will be printed below. If
the supplement is required of your company but is not being filed for whatever reason enter SEE EXPLANATION and provide an explanation following the interrogatory questions.



                                                                                                                                                                Response


     1.   Will the Trusteed Surplus Statement be filed with the state of domicile and the NAIC with this statement?                                          SEE EXPLANATION

     2.   Will Supplement A to Schedule T (Medical Professional Liability Supplement) be filed with this statement?                                                  NO

     3.   Will the Medicare Part D Coverage Supplement be filed with the state of domicile and the NAIC with this statement?                                         NO

     4.   Will the Director and Officer Supplement be filed with the state of domicile and the NAIC with this statement?                                             NO


Explanation:


1. National Public Finance Guarantee Corporation is not a U.S. Branch of an Alien Insurer


2.


3.


4.

Bar Code:



2.
          *23825201145500003*
3.
          *23825201136500003*
4.
          *23825201150500003*




                                                                                       14
STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                   OVERFLOW PAGE FOR WRITE-INS




                                         15
          STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation



                                               SCHEDULE A – VERIFICATION
                                                                             Real Estate
                                                                                                                    1                         2
                                                                                                                                      Prior Year Ended
                                                                                                               Year To Date            December 31
 1. Book/adjusted carrying value, December 31 of prior year                                                                      0                       0
 2. Cost of acquired:
    2.1 Actual cost at time of acquisition                                                                                                               0
    2.2 Additional investment made after acquisition                                                                                                     0
 3. Current year change in encumbrances                                                                                                                  0
 4. Total gain (loss) on disposals                                                                                                                       0
 5. Deduct amounts received on disposals                                                                                                                 0
 6. Total foreign exchange change in book/adjusted carrying value                                                                                        0
 7. Deduct current year’s other than temporary impairment recognized                                                                                     0
 8. Deduct current year’s depreciation                                                                                                                   0
 9. Book/adjusted carrying value at the end of current period (Lines 1+2+3+4-5+6-7-8)                                            0                       0
10. Deduct total nonadmitted amounts                                                                                             0                       0
11. Statement value at end of current period (Line 9 minus Line 10)                                                              0                       0




                                               SCHEDULE B – VERIFICATION
                                                                           Mortgage Loans
                                                                                                                    1                         2
                                                                                                                                      Prior Year Ended
                                                                                                               Year To Date            December 31
 1. Book value/recorded investment excluding accrued interest, December 31 of prior year                                         0                       0
 2. Cost of acquired:
    2.1 Actual cost at time of acquisition                                                                                                               0
    2.2 Additional investment made after acquisition                                                                                                     0
 3. Capitalized deferred interest and other                                                                                                              0
 4. Accrual of discount                                                                                                                                  0
 5. Unrealized valuation increase (decrease)                                                                                                             0
 6. Total gain (loss) on disposals                                                                                                                       0
 7. Deduct amounts received on disposals                                                                                                                 0
 8. Deduct amortization of premium and mortgage interest points and commitment fees                                                                      0
 9. Total foreign exchange change in book value/recorded investment excluding accrued interest                                                           0
10. Deduct current year’s other than temporary impairment recognized                                                                                     0
11. Book value/recorded investment excluding accrued interest at end of current period (Lines 1+2+3+4+5+6-7-
        8+9-10)                                                                                                                  0                       0
12. Total valuation allowance                                                                                                                            0
13. Subtotal (Line 11 plus Line 12)                                                                                              0                       0
14. Deduct total nonadmitted amounts                                                                                             0                       0
15. Statement value at end of current period (Line 13 minus Line 14)                                                             0                       0




                                             SCHEDULE BA – VERIFICATION
                                                                  Other Long-Term Invested Assets
                                                                                                                    1                         2
                                                                                                                                      Prior Year Ended
                                                                                                               Year To Date            December 31
 1. Book/adjusted carrying value, December 31 of prior year                                                             61,510,341                       0
 2. Cost of acquired:
    2.1 Actual cost at time of acquisition                                                                              1,205,216              65,000,000
    2.2 Additional investment made after acquisition                                                                                                    0
 3. Capitalized deferred interest and other                                                                                                             0
 4. Accrual of discount                                                                                                                                 0
 5. Unrealized valuation increase (decrease)                                                                            (2,433,610)            (3,489,659)
 6. Total gain (loss) on disposals                                                                                                                      0
 7. Deduct amounts received on disposals                                                                                                                0
 8. Deduct amortization of premium and depreciation                                                                           8,379                     0
 9. Total foreign exchange change in book/adjusted carrying value                                                                                       0
10. Deduct current year’s other than temporary impairment recognized                                                                                    0
11. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5+6-7-8+9-10)                                  60,273,567             61,510,341
12. Deduct total nonadmitted amounts                                                                                             0                      0
13. Statement value at end of current period (Line 11 minus Line 12)                                                    60,273,567             61,510,341




                                               SCHEDULE D – VERIFICATION
                                                                          Bonds and Stocks
                                                                                                                    1                         2
                                                                                                                                      Prior Year Ended
                                                                                                               Year To Date            December 31
 1.   Book/adjusted carrying value of bonds and stocks, December 31 of prior year                                  5,277,748,364            5,055,585,180
 2.   Cost of bonds and stocks acquired                                                                              923,448,784            2,430,714,388
 3.   Accrual of discount                                                                                              4,378,308                5,170,658
 4.   Unrealized valuation increase (decrease)                                                                         2,301,791               (1,361,210)
 5.   Total gain (loss) on disposals                                                                                  15,162,251               51,552,520
 6.   Deduct consideration for bonds and stocks disposed of                                                        1,046,913,907            2,233,029,278
 7.   Deduct amortization of premium                                                                                  19,309,653               30,883,894
 8.   Total foreign exchange change in book/adjusted carrying value                                                                                     0
 9.   Deduct current year’s other than temporary impairment recognized                                                                                  0
10.   Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9)                              5,156,815,939            5,277,748,364
11.   Deduct total nonadmitted amounts                                                                                         0                        0
12.   Statement value at end of current period (Line 10 minus Line 11)                                             5,156,815,939            5,277,748,364




                                                                              SI01
                                                                              STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                           SCHEDULE D - PART 1B
                                                                                                                     Showing the Acquisitions, Dispositions and Non-Trading Activity
                                                                                                               During the Current Quarter for all Bonds and Preferred Stock by Rating Class
                                                                                          1                           2                         3                         4                        5                                6                      7                     8
                                                                                   Book/Adjusted                                                                    Non-Trading             Book/Adjusted                    Book/Adjusted          Book/Adjusted         Book/Adjusted
                                                                                   Carrying Value               Acquisitions              Dispositions                 Activity             Carrying Value                   Carrying Value         Carrying Value        Carrying Value
                                                                                    Beginning of                   During                    During                    During                   End of                           End of                 End of            December 31
                                                                                   Current Quarter             Current Quarter          Current Quarter            Current Quarter           First Quarter                   Second Quarter         Third Quarter           Prior Year



               BONDS



           1. Class 1 (a)                                                                  6,416,771,222             4,857,612,946              5,063,692,445                   9,974,759                  6,809,010,233           6,416,771,222         6,220,666,482         6,981,500,238
           2. Class 2 (a)                                                                   132,266,650                  6,053,232                   8,697,725                (14,723,890)                   133,298,657              132,266,650          114,898,267           126,939,198
           3. Class 3 (a)                                                                    11,114,330                                                200,358                 (1,206,903)                    7,741,590                11,114,330            9,707,069             6,854,497
           4. Class 4 (a)                                                                     3,143,990                       510,000                  288,991                     502,044                    1,565,547                 3,143,990            3,867,043                     0
           5. Class 5 (a)                                                                              0                                                                           472,213                            0                        0                472,213                    0
           6. Class 6 (a)                                                                    26,547,797                                              1,863,590                     (39,995)                  29,645,824                26,547,797           24,644,212            32,515,320
           7. Total Bonds                                                                  6,589,843,989             4,864,176,178              5,074,743,109                  (5,021,772)                 6,981,261,851           6,589,843,989         6,374,255,286         7,147,809,253
SI02




               PREFERRED STOCK



           8. Class 1                                                                         5,246,933                       466,875                  549,000                     589,662                    2,535,000                 5,246,933            5,754,470             2,673,650
           9. Class 2                                                                         2,105,730                                                                          (725,730)                            0                 2,105,730            1,380,000                     0
          10. Class 3                                                                         1,032,800                                                                        (1,032,800)                            0                 1,032,800                     0                    0
          11. Class 4                                                                                  0                                                                                                              0                        0                      0                    0
          12. Class 5                                                                                  0                                                                                                              0                        0                      0                    0
          13. Class 6                                                                                  0                                                                                                              0                        0                      0                    0
          14. Total Preferred Stock                                                           8,385,463                       466,875                  549,000                 (1,168,868)                    2,535,000                 8,385,463            7,134,470             2,673,650
          15. Total Bonds & Preferred Stock                                                6,598,229,452             4,864,643,053              5,075,292,109                  (6,190,640)                 6,983,796,851           6,598,229,452         6,381,389,756         7,150,482,903
       (a) Book/Adjusted Carrying Value column for the end of the current reporting period includes the following amount of non-rated short-term and cash equivalent bonds by NAIC designation: NAIC 1 $         1,374,743,000   ; NAIC 2 $                 ;
       NAIC 3 $                           ; NAIC 4 $                          ; NAIC 5 $                         ; NAIC 6 $
                STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation



                                                      SCHEDULE DA - PART 1
                                                                        Short-Term Investments


                                                                    1                    2            3                        4                      5
                                                                                                                                              Paid for Accrued
                                                           Book/Adjusted                                             Interest Collected           Interest
                                                           Carrying Value             Par Value   Actual Cost          Year To Date            Year To Date

 9199999                                                       1,374,743,000            XXX        1,374,743,000                   14,549




                                               SCHEDULE DA - VERIFICATION
                                                                        Short-Term Investments

                                                                                                                     1                             2
                                                                                                                                              Prior Year
                                                                                                                Year To Date              Ended December 31

 1. Book/adjusted carrying value, December 31 of prior year                                                         1,872,731,777                 1,796,626,973
 2. Cost of short-term investments acquired                                                                         5,401,966,430               11,475,034,045
 3. Accrual of discount                                                                                                        2,030                      2,986
 4. Unrealized valuation increase (decrease)                                                                                                                     0
 5. Total gain (loss) on disposals                                                                                             (516)                      3,281
 6. Deduct consideration received on disposals                                                                      5,899,938,066               11,398,859,141
 7. Deduct amortization of premium                                                                                         18,655                        76,367
 8. Total foreign exchange change in book/adjusted carrying value                                                                                                0
 9. Deduct current year’s other than temporary impairment recognized                                                                                             0
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9)                                 1,374,743,000                 1,872,731,777
11. Deduct total nonadmitted amounts                                                                                                                             0
12. Statement value at end of current period (Line 10 minus Line 11)                                                1,374,743,000                 1,872,731,777




                                                                               SI03
STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation




                        Schedule DB - Part A - Verification

                                    NONE
                        Schedule DB - Part B - Verification

                                    NONE
                        Schedule DB - Part C - Section 1

                                    NONE
                        Schedule DB - Part C - Section 2

                                    NONE
                            Schedule DB - Verification

                                    NONE




                               SI04, SI05, SI06, SI07
         STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation



                                                 SCHEDULE E - VERIFICATION
                                                                       (Cash Equivalents)


                                                                                               1                        2
                                                                                            Year To                Prior Year
                                                                                             Date              Ended December 31

 1. Book/adjusted carrying value, December 31 of prior year                                            2,762                       0
 2. Cost of cash equivalents acquired                                                         5,575,649,599          10,807,419,726
 3. Accrual of discount                                                                               26,470                77,038
 4. Unrealized valuation increase (decrease)                                                                                       0
 5. Total gain (loss) on disposals                                                                                                 0
 6. Deduct consideration received on disposals                                                5,575,653,743          10,807,494,000
 7. Deduct amortization of premium                                                                    25,088                       2
 8. Total foreign exchange change in book/adjusted carrying value                                                                  0
 9. Deduct current year’s other than temporary impairment recognized                                                               0
10. Book/adjusted carrying value at end of current period (Lines 1+2+3+4+5-6-7+8-9)                       0                  2,762
11. Deduct total nonadmitted amounts                                                                                               0
12. Statement value at end of current period (Line 10 minus Line 11)                                      0                  2,762




                                                                            SI08
STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation




                                Schedule A - Part 2

                                    NONE
                                Schedule A - Part 3

                                    NONE
                                Schedule B - Part 2

                                    NONE
                                Schedule B - Part 3

                                    NONE
                               Schedule BA - Part 2

                                    NONE
                               Schedule BA - Part 3

                                    NONE




                                   E01, E02, E03
                                                                              STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                      SCHEDULE D - PART 3
                                                                                                           Show All Long-Term Bonds and Stock Acquired During the Current Quarter
               1                                    2                                    3             4                                  5                                       6            7                    8                           9                  10
                                                                                                                                                                                                                                                                 NAIC
                                                                                                                                                                                                                                                             Designation or
             CUSIP                                                                                                                                                           Number of       Actual                                      Paid for Accrued       Market
         Identification                          Description                           Foreign   Date Acquired                           Name of Vendor                    Shares of Stock    Cost               Par Value            Interest and Dividends  Indicator (a)
      Bonds - U.S. Governments
           01N040-67-8     GNMA TBA 4.000% 07/01/41                                                06/08/2011    Salomon SmBarney (Citigroup)                                                        (513,438)            (500,000)                   (1,056)      1FE
           01N040-69-4     GNSF TBA 4.000% 09/01/41                                                08/10/2011    Barclays Capital                                                                     529,668              500,000                     1,111       1FE
           36176M-VA-8     GNSF Pool # 770409 4.500% 06/15/41                                      08/08/2011    BNP Paribas/NY                                                                     1,071,564            1,000,001                     2,125        1
           36209F-DN-6     Government National Mortgage A POOL 4700                                09/16/2011    Nomura Securities Intl Inc.                                                        1,602,656            1,500,000                     3,333        1
           3620AY-5J-1     GNSF 4.500% 06/15/41                                                    08/12/2011    Banc of America Securities LLC                                                     1,058,515            1,000,000                     2,125        1
           36230L-HA-0     GNSF POOL 752025 4.000% 07/15/41                                        06/08/2011    Salomon SmBarney (Citigroup)                                                         513,386              499,950                     1,055       1FE
           880591-DV-1     Tenn. Valley Authority 4.700% 07/15/33                                  09/08/2011    Janney Montgomery Scott Inc.                                                         283,628              250,000                     1,763        1
           912810-QL-5     US Treasury N/B Bonds 4.250% 11/15/40                                   07/13/2011    Banc of America Securities LLC                                                       353,650              350,000                     2,587        1
           912810-QN-1     US Treasury N/B BONDS 4.750% 02/15/41                                   07/29/2011    Various                                                                            6,148,661            5,640,000                   115,858        1
           912810-QQ-4     US Treasury N/B BONDS 4.375% 05/15/41                                   09/06/2011    Morgan Stanley & Co., Inc.                                                        18,313,969           15,050,000                   205,762        1
           912810-QS-0     US Treasury N/B BONDS 3.750% 08/15/41                                   09/16/2011    Morgan Stanley & Co., Inc.                                                           539,297              500,000                     1,783        1
           912828-QN-3     US Treasury N/B NOTES 3.125% 05/15/21                                   08/03/2011    Various                                                                            2,902,528            2,818,000                    19,479        1
           912828-QR-4     US Treasury N/B NOTES 1.500% 06/30/16                                   07/29/2011    Deutsche Bank                                                                        694,474              690,000                       956       1FE
           912828-QT-0     US Treasury N/B NOTES 2.375% 06/30/18                                   07/20/2011    Greenwich Capital-RBS                                                                930,473              920,000                     1,484        1
           912828-QX-1     US Treasury N/B NOTES 1.500% 07/31/16                                   08/10/2011    Various                                                                            6,530,184            6,370,000                     2,660       1FE
           912828-RC-6     US Treasury N/B NOTES 2.125% 08/15/21                                   09/16/2011    Various                                                                            2,010,313            2,000,000                     4,042        1
           912828-RE-2     US Treasury N/B NOTES 1.500% 08/31/18                                   09/06/2011    Various                                                                            3,685,365            3,660,000                     1,357        1
           912828-RF-9     US Treasury N/B Notes 1.000% 08/31/16                                   08/31/2011    Credit Suisse First Boston LLC                                                     1,036,860            1,035,000                       171       1FE
          0599999 - Bonds - U.S. Governments                                                                                                                                                       47,691,753           43,282,951                   366,595      XXX
      Bonds - U.S. States, Territories and Possessions
           13063A-5G-5     State of California CA ST TXB-VAR PURP                                  08/24/2011    Morgan Stanley & Co., Inc.                                                         1,660,463            1,385,000                    42,989       1FE
           373384-PP-5     State of Georgia GENERAL OBLIGATION 5.                                  08/11/2011    Depfa 1st Alb-Jefferies(Persh)                                                     8,077,394            6,560,000                    41,000       1FE
           373384-UR-5     State of Georgia GO 5.000% 07/01/21                                     09/09/2011    Barclays Capital                                                                  16,393,564           13,015,000                   108,458       1FE
           56052A-WW-2     MAINE ST GENERAL OBLIGATION 5.000% 06/                                  08/10/2011    Morgan Stanley & Co., Inc.                                                         4,830,840            4,000,000                    37,222       1FE
E04




           574193-BQ-0     MARYLAND ST GENERAL OBLIGATION 5.000%                                   08/04/2011    Merrill Lynch                                                                      3,739,065            3,225,000                     1,792       1FE
           57582N-XJ-9     Massachusetts State GENERAL OBLIGATION                                  08/04/2011    J.P. Morgan Chase & Co                                                             4,711,719            3,835,000                     4,474       1FE
           604129-WY-8     Minnesota State GENERAL OBLIGATION 5.0                                  08/03/2011    Depfa 1st Alb-Jefferies(Persh)                                                     2,391,060            2,000,000                     1,944       1FE
           658256-H4-7     North Carolina State GENERAL OBLIGATION                                 08/10/2011    Morgan Stanley & Co., Inc.                                                         3,657,180            3,000,000                    43,333       1FE
           658256-H8-8     North Carolina State GENERAL OBLIGATION                                 08/02/2011    Janney Montgomery Scott Inc.                                                       1,208,980            1,000,000                    13,056       1FE
           677521-LY-0     Ohio State GENERAL OBLIGATION 5.000% 0                                  07/20/2011    Morgan Stanley & Co., Inc.                                                         4,663,840            4,000,000                                 1FE
           70914P-LB-6     PENNSYLVANIA ST GENERAL OBLIGATION 5.0                                  08/10/2011    Depfa 1st Alb-Jefferies(Persh)                                                    10,940,940            9,000,000                    50,000       1FE
           76222R-JW-3     RHODE ISLAND ST & PROVIDENCE P GO 5.50                                  09/09/2011    J.P. Morgan Chase & Co                                                             4,023,999            3,525,000                     7,540       1FE
           76222R-KF-8     RHODE ISLAND ST & PROVIDENCE P GO 5.00                                  09/09/2011    J.P. Morgan Chase & Co                                                             5,071,115            4,280,000                     8,322       1FE
           882722-E5-6     Texas St GENERAL OBLIGATION 5.000% 10/                                  08/10/2011    Salomon SmBarney (Citigroup)                                                      14,107,210           11,395,000                    26,905       1FE
           917542-SG-8     State of Utah GENERAL OBLIGATION 5.000                                  08/12/2011    Depfa 1st Alb-Jefferies(Persh)                                                     9,189,900            7,500,000                    42,708       1FE
           97705L-J5-7     Wisconsin State GENERAL OBLIGATION 5.0                                  08/09/2011    Salomon SmBarney (Citigroup)                                                       1,308,923            1,100,000                     1,222       1FE
          1799999 - Bonds - U.S. States, Territories and Possessions                                                                                                                               95,976,192           78,820,000                   430,965      XXX
      Bonds - U.S. Political Subdivisions of States, Territories and Possessions
           03588E-7J-6     County of Anne Arundel MD GENERAL OBLIGA                                08/24/2011    J.P. Morgan Chase & Co                                                             4,403,922            3,585,000                                 1FE
           03588E-7K-3     County of Anne Arundel MD GENERAL OBLIGA                                08/24/2011    J.P. Morgan Chase & Co                                                             4,370,772            3,545,000                                 1FE
           167560-PT-2     Chicago Metropolitan Water Rec WATER 5                                  07/21/2011    J.P. Morgan Chase & Co                                                             5,907,300            5,000,000                                 1FE
           414004-CK-5     Harris Cnty TX GENERAL OBLIGATION 5.12                                  08/10/2011    Stifel-Hanifen Stifel,Nicolaus                                                     7,056,499            5,835,000                                 1FE
           517840-3S-1     Las Vegas Valley Water Distric GENERAL O                                09/30/2011    Salomon SmBarney (Citigroup)                                                       1,093,061            1,050,000                                 1FE
           845389-EV-3     SOUTHWESTERN CMNTY COLLEGE HIGHER EDUCAT                                08/03/2011    Morgan Stanley & Co., Inc.                                                         5,398,484            5,415,000                    5,265        1FE
          2499999 - Bonds - U.S. Political Subdivisions of States, Territories and Possessions                                                                                                     28,230,038           24,430,000                    5,265       XXX
      Bonds - U.S. Special Revenue
           01F032-47-6     FNCI TBA 3.500% 06/01/26                                                06/23/2011    Greenwich Capital-RBS                                                                   234                                                       1FE
           01F032-49-2     FNMA TBA 3.500% 09/01/26                                                08/26/2011    Salomon SmBarney (Citigroup)                                                        521,016              500,000                       875        1FE
           01F040-69-3     FNMA TBA 4.000% 09/01/41                                                08/10/2011    Salomon SmBarney (Citigroup)                                                        522,695              500,000                       667        1FE
           01F040-6A-0     FNMA TBA 4.000% 10/01/41                                                09/02/2011    Wachovia-Wells Fargo Sec                                                          1,040,430            1,000,000                     1,333        1FE
           01F042-6A-6     FNCL TBA 4.500% 10/01/41                                                09/02/2011    Morgan Stanley & Co., Inc.                                                        1,005,293              950,000                     1,425        1FE
           01F060-6A-8     FNMA TBA 6.000% 10/01/41                                                08/10/2011    Barclays Capital                                                                  1,107,148            1,000,000                     2,000        1FE
           02R040-6A-5     FHLMC TBA 4.000% 10/01/41                                               09/09/2011    BNP Paribas/NY                                                                    1,054,030            1,010,000                     1,347        1FE
           02R042-68-6     FHLMC TBA 4.500% 08/01/41                                               07/14/2011    Nomura Securities Intl Inc.                                                         519,219              500,000                       625        1FE
           02R042-6A-1     FHLMC TBA 4.500% 10/01/41                                               09/30/2011    BNP Paribas/NY                                                                    1,321,680            1,250,000                     1,875        1FE
           161045-KG-3     City of Charlotte NC CHARLOTTE WATER 5                                  08/11/2011    J.P. Morgan Chase & Co                                                            6,037,000            5,000,000                    31,250        1FE
           161045-LP-2     City of Charlotte NC CHARLOTTE WATER 5                                  08/18/2011    Depfa 1st Alb-Jefferies(Persh)                                                    4,187,098            3,350,000                     9,306        1FE
           172311-DR-0     Cincinnati OH Wtr Sys Rev WATER 5.000%                                  08/11/2011    Siebert Capital Markets - NFSC                                                    2,510,131            2,315,000                    24,115        1FE
                                                                             STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                          SCHEDULE D - PART 3
                                                                                                              Show All Long-Term Bonds and Stock Acquired During the Current Quarter
                1                                   2                                   3                 4                                  5                                       6                     7                     8                        9                     10
                                                                                                                                                                                                                                                                              NAIC
                                                                                                                                                                                                                                                                          Designation or
               CUSIP                                                                                                                                                                     Number of       Actual                                   Paid for Accrued           Market
           Identification                          Description                     Foreign       Date Acquired                             Name of Vendor                              Shares of Stock    Cost               Par Value         Interest and Dividends      Indicator (a)
             172311-HH-8     Cincinnati OH Wtr Sys Rev WATER 5.000%                                07/27/2011     Morgan Stanley & Co., Inc.                                                                   1,301,000            1,250,000                                   1FE
             3128M5-NP-1     FHLMC POOL G03698 6.000% 12/01/37                                     06/21/2011     Nomura Securities Intl Inc.                                                                    (27,650)             (25,124)                     (54)          1
             3128S4-B6-3     FH ARM Pool 1Q0061 2.477% 03/01/36                                    06/30/2011     Oppenheimer                                                                                       (259)                (246)                                   1
             31292K-4A-2     FGLMC Pool # C03517 4.500% 09/01/40                                   07/14/2011     Nomura Securities Intl Inc.                                                                    519,219              500,000                      625          1FE
             3132GE-AM-2     FHLMC POOL Q00912 4.500% 05/01/41                                     07/12/2011     UBS Warburg LLC                                                                              1,237,100            1,191,578                    1,489           1
             3138A2-CF-4     Fannie Mae POOL AH0969 3.500% 12/01/25                                09/19/2011     BNP Paribas/NY                                                                               1,179,158            1,125,688                    1,861           1
             3138AD-4C-6     Fannie Mae POOL AI0818 4.000% 09/01/41                                09/12/2011     BNP Paribas/NY                                                                               1,033,281            1,000,000                    1,333           1
             3138AJ-R9-5     Fannie Mae POOL AI5011 4.500% 06/01/41                                09/12/2011     BNP Paribas/NY                                                                               1,053,750            1,000,000                    1,500           1
             31398N-X2-5     Fannie Mae SERIES 2010123 CLASS FK 0.6                                08/12/2011     Nomura Securities Intl Inc.                                                                    931,002              933,335                      363           1
             31417Y-UY-1     FNCN Pool MA0598 3.500% 12/01/20                                      07/26/2011     Cortview Capital Sec LLC                                                                       948,263              907,972                    2,472           1
             31417Y-Y8-4     FNCT POOL MA0734 4.500% 05/01/31                                      06/22/2011     Wachovia-Wells Fargo Sec                                                                        (2,123)              (2,023)                      (3)          1
             31418R-HH-7     Fannie Mae POOL AD3831 4.500% 04/01/25                                09/20/2011     Wachovia-Wells Fargo Sec                                                                     1,220,998            1,131,864                    2,405           1
             31419A-BH-9     FNCI Pool #AE0039 4.000% 05/01/25                                     07/12/2011     Wachovia-Wells Fargo Sec                                                                       930,262              883,728                    1,767           1
             31419A-ZA-8     FN Pool AE0736 HYB 3.845% 09/01/39                                    07/28/2011     Oppenheimer                                                                                 20,117,180           19,099,533                   57,103           1
             349515-PN-0     FORT WORTH TEX WTR & SWR REV WATER 5.0                                08/12/2011     J.P. Morgan Chase & Co                                                                       5,943,250            5,000,000                                   1FE
             495289-A2-6     King County WA WATER 5.000% 01/01/22                                  08/23/2011     J.P. Morgan Chase & Co                                                                       3,560,730            3,000,000                                   1FE
             495289-ZW-3     King County WA WATER 5.000% 01/01/20                                  08/23/2011     J.P. Morgan Chase & Co                                                                      15,228,244           12,630,000                                   1FE
             59465H-PA-8     Michigan St Hosp Fin Auth Rev MI HOSP-A-                              07/13/2011     Conversion                                                                                      91,143               90,000                      525          1FE
             59465H-PD-2     Michigan St Hosp Fin Auth Rev MI HOSP-A-                              07/13/2011     Conversion                                                                                     415,206              410,000                    2,392          1FE
             649845-GW-8     NY St Energy R&D Auth Poll Ctl POLLUTION                              09/22/2011     Merrill Lynch                                                                                1,000,000            1,000,000                                   2FE
             797412-AL-7     SAN DIEGO CNTY CALIF WTR AUTH WATER 5.                                07/28/2011     Merrill Lynch                                                                                9,564,420            8,115,000                                   1FE
             797412-AX-1     SAN DIEGO CNTY CALIF WTR AUTH WATER 5.                                09/22/2011     Merrill Lynch                                                                                6,751,755            6,115,000                                   1FE
             91412G-FL-4     UNIVERSITY CALIF REVS GO 5.000% 05/15/                                09/09/2011     Depfa 1st Alb-Jefferies(Persh)                                                              11,400,814            9,680,000                    8,067          1FE
             915137-3E-1     UNIVERSITY TEX UNIV REVS HIGHER EDUCATIO                              08/22/2011     Depfa 1st Alb-Jefferies(Persh)                                                               3,019,025            2,500,000                    3,472          1FE
            3199999 - Bonds - U.S. Special Revenue and Special Assessment and all Non-Guaranteed Obligations of Agencies and Authorities of Government and Their Political Subdivisions                      107,241,742           94,911,305                  160,135         XXX
E04.1




        Bonds - Industrial and Miscellaneous (Unaffiliated)
             001192-AH-6     AGL Capital Corp 5.875% 03/15/41                                      09/15/2011     Goldman Sachs                                                                                   221,196               195,000                    159          2FE
             02005A-BT-4     Ally Master Owner Trust Series 2001-4 Cl                              09/15/2011     Barclays Capital                                                                                749,804               750,000                                 1FE
             03063P-AF-9     AMERICREDIT AUTOMOBILE RECEIVA SERIES 20                              08/30/2011     Barclays Capital                                                                              1,054,883             1,000,000                  3,320          4FE
             049560-AH-8     Atmos Energy BASIC 6.350% 06/15/17                                    08/01/2011     KeyBank                                                                                         482,086               410,000                  3,471          2FE
             06051G-DX-4     Bank of America Corp 5.650% 05/01/18                                  09/01/2011     J.P. Morgan Chase & Co                                                                          692,458               670,000                 13,249          1FE
             1248EP-AS-2     CCO Holdings LLC / CCO Holding 7.000%                                 08/26/2011     J.P. Morgan Chase & Co                                                                          246,250               250,000                  2,236          3FE
             126673-6R-8     Countrywide ABS Certificates Series 2005                              08/25/2011     Interest Capitalization                                                                                                                                       1Z*
             172967-BW-0     Citigroup Inc 4.875% 05/07/15                                         08/25/2011     Salomon SmBarney (Citigroup)                                                                   1,993,940             2,000,000                30,604          1FE
             172967-EW-7     Citigroup Inc 8.125% 07/15/39                                         08/22/2011     Salomon SmBarney (Citigroup)                                                                     533,561               430,000                 3,882          1FE
             172967-EY-3     Citigroup Inc 6.375% 08/12/14                                         08/16/2011     Salomon SmBarney (Citigroup)                                                                     872,200               800,000                   992          1FE
             17308B-AH-1     Citibank Omni Master Trst Series 2009-A8                              08/25/2011     Barclays Capital                                                                               1,009,844             1,000,000                   961          1FE
             29379V-AT-0     ENTERPRISE PRODUCTS OPER BASIC 5.950%                                 08/22/2011     Greenwich Capital-RBS                                                                            532,830               500,000                 1,983          2FE
             36159J-BM-2     GE Capital Cred Card Note Tst Series 200                              08/18/2011     BNP Paribas/NY                                                                                 1,027,539             1,000,000                   820          1FE
             36159J-CC-3     GE Capital Cred Card Note Tst SERIES 201                              08/18/2011     BNP Paribas/NY                                                                                   770,391               750,000                   368          1FE
             36962G-4X-9     General Electric Capital Corp. 2.100%                                 08/16/2011     Greenwich Capital-RBS                                                                            907,758               900,000                 2,205          1FE
             46623E-JE-0     JP Morgan Chase & Co BASIC 2.050% 01/2                                08/16/2011     J.P. Morgan Chase & Co                                                                           903,447               900,000                 1,281          1FE
             46625H-JA-9     JP Morgan Chase & Co BASIC 3.150% 07/0                                08/11/2011     Banc of America Securities LLC                                                                   518,653               520,000                 2,139          1FE
             46625Y-UE-1     JP Morgan Chase Commercial Mtg SERIES 20                              08/11/2011     J.P. Morgan Chase & Co                                                                           860,000             1,000,000                 2,100          1Z*
             539830-AZ-2     Lockheed Martin Corporation 4.850% 09/                                09/06/2011     J.P. Morgan Chase & Co                                                                         1,141,709             1,150,000                                1FE
             61747Y-CF-0     Morgan Stanley 6.000% 05/13/14                                        08/06/2011     Deutsche Bank                                                                                    527,830               500,000                 8,000          1FE
             61747Y-CK-9     Morgan Stanley BASIC 4.200% 11/20/14                                  08/19/2011     Credit Suisse First Boston LLC                                                                   526,202               525,000                 5,758          1FE
             677050-AH-9     OGLETHORPE POWER CORP 5.250% 09/01/50                                 08/16/2011     Goldman Sachs                                                                                    998,000             1,000,000                                1FE
             67755C-W3-9     Ohio State Building Authority/ FACILITIE                              08/30/2011     Morgan Stanley & Co., Inc.                                                                     3,983,690             3,515,000                                1FE
             68233J-AH-7     Oncor Electric Delivery Co LLC 5.250%                                 05/31/2011     Conversion                                                                                       992,748             1,000,000                 8,750          2FE
             843646-AH-3     Southern Power Co 5.150% 09/15/41                                     09/14/2011     Greenwich Capital-RBS                                                                            771,489               775,000                                2FE
             88880T-MU-7     Tobacco Settlement Financing A Asst Bkd                               08/23/2011     Conversion                                                                                     5,002,699             4,970,000                62,263          1FE
             88880T-MV-5     Tobacco Settlement Financing A Asst Bkd                               08/23/2011     Conversion                                                                                     1,791,711             1,780,000                22,299          1FE
             67000X-AM-8     Novelis Inc/GA 8.750% 12/15/20                           A            09/01/2011     Goldman Sachs                                                                                    263,750               250,000                 4,983          4FE
             38741Y-BL-2     Granite Master Issuer PLC Series 2006-1A                 F            08/12/2011     Merrill Lynch                                                                                    790,000             1,000,000                   409          1FE
             806854-AB-1     SCHLUMBERGER INVESTMENT 3.300% 09/14/2                   F            09/07/2011     Salomon SmBarney (Citigroup)                                                                     378,780               380,000                                1FE
            3899999 - Bonds - Industrial and Miscellaneous (Unaffiliated)                                                                                                                                       30,545,448            29,920,000                182,232        XXX
            8399997 - Subtotals- Bonds - Part 3                                                                                                                                                                309,685,173           271,364,256              1,145,192        XXX
                                                                                STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                              SCHEDULE D - PART 3
                                                                                                                    Show All Long-Term Bonds and Stock Acquired During the Current Quarter
                 1                                     2                                  3                     4                                  5                                       6                   7                     8                        9                   10
                                                                                                                                                                                                                                                                                NAIC
                                                                                                                                                                                                                                                                            Designation or
               CUSIP                                                                                                                                                                  Number of              Actual                                    Paid for Accrued        Market
           Identification                         Description                          Foreign         Date Acquired                         Name of Vendor                         Shares of Stock           Cost               Par Value          Interest and Dividends   Indicator (a)
            8399999 - Subtotals - Bonds                                                                                                                                                                          309,685,173          271,364,256                 1,145,192      XXX
        Preferred Stocks - Parent, Subsidiaries, and Affiliates
             40427L-AB-0    HSBC Capital Funding LP Ser. 2 PFD PERP                       F                 09/13/2011   Barclays Capital                                                      375,000.000            466,875                                        8,056        P1A
            8499999 - Preferred Stocks - Industrial and Miscellaneous (Unaffiliated)                                                                                                                                  466,875       XXX                              8,056       XXX
            8999997 - Subtotals - Preferred Stocks - Part 3                                                                                                                                                           466,875       XXX                              8,056       XXX
            8999999 - Subtotals - Preferred Stocks                                                                                                                                                                    466,875       XXX                              8,056       XXX
            9899999 - Subtotals- Preferred and Common Stocks                                                                                                                                                          466,875       XXX                              8,056       XXX
E04.2




           9999999 Totals                                                                                                                                                                                          310,152,048      XXX                           1,153,248      XXX
        (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues                          .
                                                                                             STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                       SCHEDULE D - PART 4
                                                                                                                 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
           1                 2               3       4                    5                   6             7              8               9            10                           Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                        11              12                  13              14                  15
                                             F                                                                                                                                                                                                                                                                                                                NAIC
                                             o                                                                                                                                                                                                                                                                                                               Desig-
                                             r                                                                                                                                                         Current Year’s                                          Book/                                                             Bond                         nation
                                             e                                                                                                       Prior Year      Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
         CUSIP                               i                                             Number of                                               Book/Adjusted      Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
         Identi-                             g   Disposal                                  Shares of                                                  Carrying        Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
        fication         Description         n     Date          Name of Purchaser           Stock     Consideration    Par Value      Actual Cost     Value         (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
      Bonds - U.S. Governments
                   GNSF TBA 4.000%
      01N040-69-4 09/01/41                       08/10/2011   Barclays Capital                               530,938        500,000        529,668                                                                                   0                           529,668                          1,270            1,270              1,111    09/01/2041      1FE
                   GNSF TBA 4.500%                            Banc of America Securities
      01N042-67-4 07/01/41                       07/12/2011   LLC                                            530,859        500,000        528,652                                                                                   0                           528,652                          2,207            2,207              1,188    07/01/2041      1FE
                   GNSF POOL 765929 4.500%
      36176G-VW-3 05/15/41                       09/19/2011   BNP Paribas/NY                                 534,002        488,719        505,653                                              (64)                                (64)                         505,589                          28,413           28,413             8,553    05/15/2041       1
                   GNSF POOL 765929 4.500%
      36176G-VW-3 05/15/41                       09/01/2011   Paydown                                         21,222         21,222         21,957                                            (735)                               (735)                              21,222                                             0                238   05/15/2041       1
                   GNSF Pool # 770409
      36176M-VA-8 4.500% 06/15/41                09/01/2011   Paydown                                           5,882          5,882           6,303                                          (421)                               (421)                              5,882                                              0                22    06/15/2041       1
                   G2SF Pool # 2614 6.000%
      36202C-3X-9 07/20/28                       09/01/2011   Paydown                                           4,622          4,622           4,805         4,799                            (178)                               (178)                              4,622                                              0                179   07/20/2028       1
                   G2SF POOL 3997 5.500%                      Salomon SmBarney
      36202E-NN-5 06/20/37                       09/22/2011   (Citigroup)                                    102,806         92,306        100,354                                              (8)                                 (8)                          100,347                          2,460            2,460              2,806    06/20/2037       1
                   G2SF POOL 3997 5.500%
      36202E-NN-5 06/20/37                       09/01/2011   Paydown                                           5,707          5,707           6,205                                          (498)                               (498)                              5,707                                              0                128   06/20/2037       1
                   G2SF Pool # 4029 6.500%
      36202E-PN-3 09/20/37                       09/01/2011   Paydown                                        403,918        403,918        437,430       437,000                          (33,082)                            (33,082)                           403,918                                                0             17,512   09/20/2037       1
                   G2SF Pool 4073 6.000%
      36202E-Q2-8 01/20/38                       09/01/2011   Paydown                                         65,236         65,236         71,719                                           (6,483)                             (6,483)                             65,236                                             0             1,291    01/20/2038       1
                   G2SF Pool# 4521 5.500%
      36202F-AW-6 08/20/39                       09/01/2011   Paydown                                        364,317        364,317        387,087       386,657                          (22,340)                            (22,340)                           364,317                                                0             13,328   08/20/2039       1
                   G2SF Pool 4715 5.000%
      36202F-GY-6 06/20/40                       09/01/2011   Paydown                                         27,399         27,399         29,154                                           (1,755)                             (1,755)                             27,399                                             0                696   06/20/2040       1
E05




                   G2SF Pool #4771 4.500%
      36202F-JQ-0 08/20/40                       09/01/2011   Paydown                                        716,146        716,146        754,974       754,667                          (38,521)                            (38,521)                           716,146                                                0             21,655   08/20/2040       1
                   G2SF POOL 4802 5.000%
      36202F-KP-0 09/20/40                       09/01/2011   Paydown                                         55,631         55,631         58,978                                           (3,347)                             (3,347)                             55,631                                             0                937   09/20/2040       1
                   G2SF POOL 4923 4.500%
      36202F-PG-5 01/20/41                       09/01/2011   Paydown                                         38,417         38,417         39,801                                           (1,384)                             (1,384)                             38,417                                             0                635   01/20/2041       1
                   GNSF Pool # 352051
      36203L-BU-5 7.500% 10/15/23                09/01/2011   Paydown                                           3,853          3,853           4,157         4,140                            (288)                               (288)                              3,853                                              0                188   10/15/2023       1
                   GNSF Pool # 361771
      36203W-2C-1 7.000% 02/15/22                09/01/2011   Paydown                                           1,150          1,150           1,248         1,243                              (93)                                (93)                             1,150                                              0                53    02/15/2022       1
                   GNSF Pool #365062
      36204B-QP-1 7.500% 06/15/24                09/01/2011   Paydown                                            486             486            523            521                              (35)                                (35)                                486                                             0                24    06/15/2024       1
                   GNSF Pool # 411385
      36206G-6W-5 6.500% 04/15/26                09/01/2011   Paydown                                           4,269          4,269           4,478         4,468                            (199)                               (199)                              4,269                                              0                186   04/15/2026       1
                   GNSF Pool # 445391
      36207X-XU-1 7.500% 01/15/27                09/01/2011   Paydown                                            290             290            312            311                              (21)                                (21)                                290                                             0                14    01/15/2027       1
                   GNSF Pool # 464087
      36208X-RG-8 6.500% 08/15/28                09/01/2011   Paydown                                           1,852          1,852           1,942         1,939                              (87)                                (87)                             1,852                                              0                80    08/15/2028       1
                   GNSF Pool # 469699
      36209E-X4-9 7.000% 11/15/28                09/01/2011   Paydown                                           1,434          1,434           1,553         1,549                            (115)                               (115)                              1,434                                              0                65    11/15/2028       1
                   GNSF Pool # 473996
      36209K-RR-1 6.500% 07/15/28                09/01/2011   Paydown                                           2,269          2,269           2,381         2,376                            (107)                               (107)                              2,269                                              0                98    07/15/2028       1
                   GNSF Pool # 478320
      36209Q-K9-5 6.500% 06/15/28                09/01/2011   Paydown                                           1,459          1,459           1,530         1,528                              (69)                                (69)                             1,459                                              0                63    06/15/2028       1
                   GNSF Pool #718150
      3620A3-ZP-2 4.500% 02/15/40                09/01/2011   Paydown                                        355,862        355,862        375,713       375,544                          (19,682)                            (19,682)                           355,862                                                0             10,810   02/15/2040       1
                   GNSF Pool #724267
      3620AA-TY-4 5.000% 09/15/39                09/01/2011   Paydown                                        349,774        349,774        367,098       366,798                          (17,024)                            (17,024)                           349,774                                                0             11,612   09/15/2039       1
                   GNSF Pool #726269
      3620AC-2A-1 4.500% 09/15/39                09/01/2011   Paydown                                         14,977         14,977         15,646        15,640                              (663)                               (663)                              14,977                                             0                489   09/15/2039       1
                   GNSF Pool # 733733
      3620AM-EE-8 5.000% 06/15/40                09/01/2011   Paydown                                         15,015         15,015         16,173        16,156                             (1,141)                             (1,141)                             15,015                                             0                478   06/15/2040       1
                   GNSF Pool # 733862
      3620AM-JF-0 4.500% 08/15/40                09/01/2011   Paydown                                        247,834        247,834        265,144       265,072                          (17,238)                            (17,238)                           247,834                                                0             6,841    08/15/2040       1
                   GNSF Pool #737085
      3620AQ-2S-1 4.000% 08/15/40                09/01/2011   Paydown                                        607,157        607,157        629,831       629,644                          (22,487)                            (22,487)                           607,157                                                0             16,217   08/15/2040       1
                                                                                            STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                      SCHEDULE D - PART 4
                                                                                                                Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                  2               3       4                    5               6             7              8               9             10                           Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                        11              12                  13              14                  15
                                                F                                                                                                                                                                                                                                                                                                             NAIC
                                                o                                                                                                                                                                                                                                                                                                            Desig-
                                                r                                                                                                                                                      Current Year’s                                          Book/                                                             Bond                         nation
                                                e                                                                                                   Prior Year       Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
          CUSIP                                 i                                         Number of                                               Book/Adjusted       Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
           Identi-                              g   Disposal                              Shares of                                                  Carrying         Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
          fication          Description         n     Date          Name of Purchaser       Stock     Consideration    Par Value      Actual Cost     Value          (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                      GNSF POOL 737183 5.000%
        3620AQ-6U-2   04/15/40                      09/01/2011   Paydown                                     22,676         22,676         24,341                                            (1,665)                             (1,665)                             22,676                                             0                463   04/15/2040       1
        3620AY-5J-1   GNSF 4.500% 06/15/41          09/01/2011   Paydown                                      1,290          1,290          1,366                                               (76)                                (76)                              1,290                                             0                  5   06/15/2041       1
                      GNSF Pool 749734 4.000%                    Nomura Securities Intl
        3620C5-4T-1   12/15/40                      09/16/2011   Inc.                                          5,245          4,914           5,074          5,074                              (1)                                 (1)                              5,073                           172              172                158   12/15/2040       1
                      GNSF Pool 749734 4.000%
        3620C5-4T-1   12/15/40                      09/01/2011   Paydown                                          41            41               42            42                               (1)                                 (1)                                 41                                              0                  1   12/15/2040       1
                      GNSF Pool # 487588
        36210B-UM-5   6.000% 04/15/29               09/01/2011   Paydown                                     75,320         75,320         78,285         78,196                             (2,876)                             (2,876)                             75,320                                             0             3,286    04/15/2029       1
                      GNSF Pool # 521460
        36211S-JD-0   7.500% 01/15/30               09/01/2011   Paydown                                        795             795            856             854                              (59)                                (59)                                795                                             0                38    01/15/2030       1
                      GNSF Pool # 297620
        362205-SH-0   7.500% 09/15/22               09/01/2011   Paydown                                       1,939          1,939           2,090          2,081                            (142)                               (142)                              1,939                                              0                95    09/15/2022       1
                      GNSF Pool # 780570
        36225A-T3-4   7.000% 05/15/27               09/01/2011   Paydown                                       9,593          9,593        10,396         10,369                              (776)                               (776)                              9,593                                              0                452   05/15/2027       1
                      GNSF POOL 752025 4.000%                    Nomura Securities Intl
        36230L-HA-0   07/15/41                      09/16/2011   Inc.                                       532,210        498,631        512,032                                               (64)                                (64)                         511,967                          20,243           20,243             4,432    07/15/2041      1FE
                      GNSF POOL 752025 4.000%
        36230L-HA-0   07/15/41                      09/01/2011   Paydown                                       1,319          1,319           1,355                                             (35)                                (35)                             1,319                                              0                  7   07/15/2041      1FE
                      GNSF Pool # 781944
        36241K-ER-5   5.000% 07/01/35               09/01/2011   Paydown                                    499,944        499,944        513,076       512,759                           (12,815)                            (12,815)                           499,944                                                0             16,259   07/01/2035       1
                      GNSF Pool # 781948
        36241K-EV-6   6.500% 05/15/35               09/01/2011   Paydown                                    390,244        390,244        409,352       408,927                           (18,683)                            (18,683)                           390,244                                                0             15,502   05/15/2035       1
                      GNSF Pool 782198 6.000%
        36241K-NP-9   10/15/37                      09/01/2011   Paydown                                    501,855        501,855        519,899       519,520                           (17,665)                            (17,665)                           501,855                                                0             20,164   10/15/2037       1
E05.1




                      GNSF Pool #782324
        36241K-SM-1   7.000% 05/15/38               09/01/2011   Paydown                                     64,662         64,662         69,258         69,154                             (4,492)                             (4,492)                             64,662                                             0             2,652    05/15/2038       1
                      GNSF Pool #782713
        36241L-AN-6   5.500% 07/15/39               09/01/2011   Paydown                                     61,050         61,050         66,439         66,351                             (5,301)                             (5,301)                             61,050                                             0             2,251    07/15/2039       1
                      GNSF Pool #782949
        36241L-H2-5   5.000% 05/15/40               09/01/2011   Paydown                                  1,840,020      1,840,020      1,961,921      1,961,410                        (121,390)                            (121,390)                          1,840,020                                               0             58,671   05/15/2040       1
                      GNSF POOL 783202 4.500%
        36241L-RX-6   12/15/40                      09/01/2011   Paydown                                     13,908         13,908         14,286                                             (378)                               (378)                              13,908                                             0                206   12/15/2040       1
                      GNSF Pool # 615304
        36290R-RZ-8   5.000% 07/15/33               09/01/2011   Paydown                                     69,933         69,933         71,843         71,794                             (1,861)                             (1,861)                             69,933                                             0             2,264    07/15/2033       1
                      GNSF Pool #617410
        36290T-3T-4   6.000% 02/15/37               09/01/2011   Paydown                                    201,050        201,050        203,548       203,480                              (2,430)                             (2,430)                         201,050                                                0             8,307    02/15/2037       1
                      GNSF Pool # 617792
        36290U-KD-7   6.000% 11/15/37               09/01/2011   Paydown                                     51,421         51,421         53,261         53,222                             (1,801)                             (1,801)                             51,421                                             0             1,915    11/15/2037       1
                      GNSF Pool # 622485
        36291A-RE-1   6.000% 10/15/33               09/01/2011   Paydown                                    282,379        282,379        292,880       292,627                           (10,248)                            (10,248)                           282,379                                                0             12,109   10/15/2033       1
                      GNSF Pool # 651824
        36292L-D5-0   5.500% 05/15/36               09/01/2011   Paydown                                    558,141        558,141        574,972       574,559                           (16,418)                            (16,418)                           558,141                                                0             19,454   05/15/2036       1
                      GNSF Pool #676729
        36295P-Y2-2   4.500% 06/15/40               09/01/2011   Paydown                                    834,605        834,605        884,029       883,644                           (49,039)                            (49,039)                           834,605                                                0             26,049   06/15/2040       1
                      GNSF Pool# 677318
        36295Q-PB-0   6.000% 09/15/38               09/01/2011   Paydown                                     58,525         58,525         64,414         64,335                             (5,810)                             (5,810)                             58,525                                             0             2,371    09/15/2038       1
                      GNSF Pool # 677524
        36295Q-VR-8   6.000% 10/15/37               09/01/2011   Paydown                                       1,605          1,605           1,662          1,661                              (56)                                (56)                             1,605                                              0                64    10/15/2037       1
                      GNSF Pool #677527
        36295Q-VU-1   6.000% 11/15/37               09/01/2011   Paydown                                    118,404        118,404        122,641       122,552                              (4,148)                             (4,148)                         118,404                                                0             4,782    11/15/2037       1
                      GNSF Pool # 684764
        36295Y-WZ-2   5.000% 04/15/38               09/01/2011   Paydown                                    704,487        704,487        758,975       758,626                           (54,139)                            (54,139)                           704,487                                                0             23,480   04/15/2038       1
                      GNSF Pool #710854
        36297F-WP-3   5.000% 09/15/39               09/01/2011   Paydown                                     22,704         22,704         24,634         24,604                             (1,900)                             (1,900)                             22,704                                             0                767   09/15/2039       1
                      GNSF POOL 711532 4.500%
        36297G-PR-5   09/15/40                      09/01/2011   Paydown                                       1,296          1,296           1,338                                             (43)                                (43)                             1,296                                              0                24    09/15/2040       1
                      GNSF Pool # 713872
        36297K-CH-2   4.500% 09/15/39               09/01/2011   Paydown                                     32,181         32,181         33,785         33,771                             (1,590)                             (1,590)                             32,181                                             0                976   09/15/2039       1
                      GNSF Pool #714555
        36297K-ZU-8   4.500% 06/15/39               09/01/2011   Paydown                                  1,556,170      1,556,170      1,642,975      1,642,673                          (86,503)                            (86,503)                          1,556,170                                               0             46,698   06/15/2039       1
                                                                                                 STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                     SCHEDULE D - PART 4
                                                                                                                 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                  2              3       4                   5                     6           7             8              9             10                             Change in Book/Adjusted Carrying Value                                     16             17            18                19                  20               21           22

                                                                                                                                                                      11                  12                  13              14                  15
                                               F                                                                                                                                                                                                                                                                                                                  NAIC
                                               o                                                                                                                                                                                                                                                                                                                 Desig-
                                               r                                                                                                                                                         Current Year’s                                          Book/                                                               Bond                         nation
                                               e                                                                                                    Prior Year     Unrealized                             Other Than                         Total Foreign     Adjusted        Foreign                                          Interest/Stock                      or
          CUSIP                                i                                            Number of                                             Book/Adjusted     Valuation       Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain       Total Gain          Dividends                      Market
           Identi-                             g   Disposal                                 Shares of                                                Carrying       Increase/       (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on         (Loss) on           Received         Maturity     Indicator
          fication          Description        n     Date            Name of Purchaser        Stock     Consideration   Par Value     Actual Cost     Value        (Decrease)         Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal          Disposal          During Year        Date           (a)
                     Private Expt Fdg US Govt
        742651-DL-3 Guaranteed 2.                   08/16/2011 Morgan Stanley & Co., Inc.                     775,643       750,000        749,063                                                25                                  25                            749,088                         26,555            26,555              2,568    07/15/2016       1
                     Housing Urban Development
        911759-EW-4 Series 2001-A                   08/01/2011 Redemption          100.0000                 2,374,000     2,374,000      2,531,460     2,412,658                            (38,658)                            (38,658)                          2,374,000                                                0           154,547     08/01/2018       1
                     Housing Urban Development
        911759-EZ-7 Series 2001-A                   08/01/2011 Redemption          100.0000                   938,000       938,000        989,971       950,829                            (12,829)                            (12,829)                            938,000                                                0              62,565   08/01/2021       1
                     US Treasury N/B Bonds
        912810-QL-5 4.250% 11/15/40                 08/24/2011 Barclays Capital                               427,711       385,000        372,488                                                108                                 108                           372,596                         55,115            55,115              12,894   11/15/2040       1
                     US Treasury N/B BONDS
        912810-QN-1 4.750% 02/15/41                 09/06/2011 Various                                     21,741,880    17,060,000     18,573,498                                             (4,231)                             (4,231)                       18,569,267                    3,172,613         3,172,613             449,096     02/15/2041       1
                     US Treasury N/B BONDS
        912810-QQ-4 4.375% 05/15/41                 09/19/2011 Various                                      2,516,913     2,070,000      2,518,931                                              (141)                               (141)                         2,518,790                         (1,877)           (1,877)             29,761   05/15/2041       1
                     US Treasury N/B Notes
        912828-NC-0 1.375% 05/15/13                 08/10/2011 Greenwich Capital-RBS                        2,042,578     2,000,000      2,029,844                                             (4,111)                             (4,111)                        2,025,733                         16,845            16,845              20,326   05/15/2013       1
                     US Treasury N/B Notes
        912828-PT-1 2.625% 01/31/18                 09/23/2011 UBS Warburg LLC                                437,078       400,000        395,203                                                375                                 375                           395,578                         41,500            41,500              6,933    01/31/2018       1
                     US Treasury N/B 3.625%
        912828-PX-2 02/15/21                        08/05/2011 Greenwich Capital-RBS                        1,495,034     1,360,000      1,391,985                                             (1,004)                             (1,004)                        1,390,981                      104,054           104,054                23,833   02/15/2021       1
                     US Treasury N/B NOTES
        912828-QK-9 0.625% 02/28/13                 08/12/2011 Various                                     74,188,734    73,700,000     73,745,309                                             (9,129)                             (9,129)                       73,736,179                      452,555           452,555             207,058     02/28/2013       1
                     US Treasury N/B NOTES
        912828-QM-5 1.000% 05/15/14                 08/10/2011 Greenwich Capital-RBS                        2,010,785     1,970,000      1,975,156                                              (371)                               (371)                         1,974,785                         36,000            36,000              4,711    05/15/2014       1
                     US Treasury N/B NOTES
        912828-QN-3 3.125% 05/15/21                 08/25/2011 Various                                      2,664,219     2,495,000      2,552,674                                              (355)                               (355)                         2,552,319                      111,900           111,900                20,133   05/15/2021       1
                     US Treasury N/B NOTES
E05.2




        912828-QR-4 1.500% 06/30/16                 08/11/2011 Greenwich Capital-RBS                          707,654       690,000        694,474                                                (22)                                (22)                          694,452                         13,202            13,202              1,209    06/30/2016      1FE
                     US Treasury N/B NOTES                        Credit Suisse First Boston
        912828-QT-0 2.375% 06/30/18                 09/23/2011 LLC                                            449,909       420,000        425,102                                              (115)                               (115)                           424,988                         24,921            24,921              2,385    06/30/2018       1
                     US Treasury N/B NOTES
        912828-QX-1 1.500% 07/31/16                 09/06/2011 Various                                      6,563,482     6,370,000      6,530,184                                             (2,359)                             (2,359)                        6,527,825                         35,657            35,657              9,800    07/31/2016      1FE
                     US Treasury N/B NOTES
        912828-RE-2 1.500% 08/31/18                 09/16/2011 Various                                      2,661,626     2,660,000      2,678,391                                                (67)                                (67)                        2,678,324                      (16,699)          (16,699)               2,083    08/31/2018       1
                     US Treasury N/B Notes                        Credit Suisse First Boston
        912828-RF-9 1.000% 08/31/16                 09/06/2011 LLC                                          1,041,307     1,035,000      1,036,860                                              (3)                                  (3)                          1,036,857                        4,450             4,450                 256     08/31/2016      1FE
          0599999 - Bonds - U.S. Governments                                                              136,566,348   130,055,305    133,282,087    14,995,824                0         (683,357)                  0         (683,357)                 0      132,434,793            0       4,131,556         4,131,556           1,401,557         XXX         XXX
        Bonds - All Other Governments
                     Fed Republic of Brazil                       Banc of America Securities
        105756-BR-0 5.625% 01/07/41             F 07/13/2011 LLC                                              772,500       750,000        838,125       837,741                                (719)                               (719)                           837,022                      (64,522)          (64,522)               43,477   01/07/2041      2FE
                     KINGDOM OF SWEDEN
        87020D-AA-2 Sovereign 1.000% 06/        F 08/16/2011 Deutsche Bank                                    304,284       300,000        299,310                                                48                                  48                            299,358                        4,926             4,926                   633   06/03/2014      1FE
          1099999 - Bonds - All Other Governments                                                           1,076,784     1,050,000      1,137,435       837,741                0               (671)                0              (671)                0        1,136,380            0         (59,596)          (59,596)               44,110       XXX         XXX
        Bonds - U.S. States, Territories and Possessions
                     State of California CA
        13063B-FR-8 ST-TXBL-BABS 7.                 07/13/2011 Barclays Capital                               994,877       815,000        910,231       569,607                                (543)                               (543)                           909,415                         85,461            85,461              42,712   03/01/2040      1FE
          1799999 - Bonds - U.S. States, Territories and Possessions                                          994,877       815,000        910,231       569,607                0               (543)                0              (543)                0          909,415            0            85,461            85,461              42,712       XXX         XXX
        Bonds - U.S. Political Subdivisions of States, Territories and Possessions
                     Clayton Boro School
        184062-CN-5 District CLAYTON BOR            09/01/2011 Maturity                                       100,000       100,000        104,109       101,726                               (1,726)                             (1,726)                          100,000                                                0              3,250    09/01/2011      1FE
                     Lawrence Township School
        520394-AL-1 Distr LAWRENCE                  09/01/2011 Maturity                                       115,000       115,000        118,995       116,658                               (1,658)                             (1,658)                          115,000                                                0              3,163    09/01/2011      1FE
                     Los Angeles Unified                          Salomon SmBarney
        544646-ZR-6 School Dis 6.758%               07/13/2011 (Citigroup)                                  1,268,619     1,100,000      1,167,122                                              (631)                               (631)                         1,166,491                      102,128           102,128                40,679   07/01/2034      1FE
                     Montgomery Township Board
        614155-HS-1 Of E MONTGOMER                  09/01/2011 Maturity                                       675,000       675,000        689,243       681,275                               (6,275)                             (6,275)                          675,000                                                0              13,500   09/01/2011      1FE
                     City of New York NY NYC-A                    Salomon SmBarney
        64966H-B4-1 5.000% 08/01                    08/09/2011 (Citigroup)                                  1,192,100     1,000,000      1,160,800     1,153,772                            (11,300)                            (11,300)                          1,142,472                       49,628            49,628              50,000     08/01/2018      1FE
          2499999 - Bonds - U.S. Political Subdivisions of States, Territories and Possessions              3,350,719     2,990,000      3,240,269     2,053,431                0           (21,590)                 0          (21,590)                 0        3,198,963            0         151,756           151,756             110,592         XXX         XXX
                                                                                          STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                              SCHEDULE D - PART 4
                                                                                                              Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                 2             3       4                  5                   6             7              8             9             10                          Change in Book/Adjusted Carrying Value                                     16             17            18                19                  20              21           22

                                                                                                                                                                    11              12                  13              14                  15
                                              F                                                                                                                                                                                                                                                                                                            NAIC
                                              o                                                                                                                                                                                                                                                                                                           Desig-
                                              r                                                                                                                                                    Current Year’s                                          Book/                                                               Bond                        nation
                                              e                                                                                                  Prior Year      Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                          Interest/Stock                     or
           CUSIP                              i                                      Number of                                                 Book/Adjusted      Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain       Total Gain          Dividends                     Market
           Identi-                            g  Disposal                             Shares of                                                   Carrying        Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on         (Loss) on           Received        Maturity     Indicator
          fication         Description        n    Date        Name of Purchaser        Stock      Consideration Par Value        Actual Cost      Value         (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal          Disposal          During Year       Date           (a)
        Bonds - U.S. Special Revenue and Special Assessment and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions
                     FNCI TBA 3.500%
        01F032-47-6 06/01/26                     08/01/2011 Greenwich Capital-RBS                                                          234                                                                                   0                                  234                        (234)             (234)                      06/01/2026      1FE
                     FNMA TBA 3.500%                        Salomon SmBarney
        01F032-49-2 09/01/26                     08/30/2011 (Citigroup)                                  521,719         500,000       521,016                                                                                   0                           521,016                             703               703                875   09/01/2026      1FE
                     FNMA TBA 4.000%                        Salomon SmBarney
        01F040-69-3 09/01/41                     08/10/2011 (Citigroup)                                  522,813         500,000       522,695                                                                                   0                           522,695                             117               117                667   09/01/2041      1FE
                     FNMA TBA 5.000%                        Nomura Securities Intl
        01F050-47-8 07/01/26                     07/12/2011 Inc.                                         805,313         750,000       803,643                                                                                   0                           803,643                          1,670             1,670               1,875   07/01/2026      1FE
                     FNMA TBA 6.000%
        01F060-6A-8 10/01/41                     09/27/2011 Barclays Capital                           1,096,250      1,000,000      1,107,148                                                                                   0                          1,107,148                      (10,898)          (10,898)               2,000   10/01/2041      1FE
                     FHLMC TBA 4.500%                       Nomura Securities Intl
        02R042-68-6 08/01/41                     07/27/2011 Inc.                                         516,875         500,000       519,219                                                                                   0                           519,219                          (2,344)           (2,344)               625   08/01/2041      1FE
                     Atlanta GA Arpt Rev Ref-
        04780M-AZ-2 Gen-Ser A 5.87               08/15/2011 Call      100.5000                         5,025,000      5,000,000      5,147,450      5,025,000                         (15,431)                            (15,431)                          5,009,569                         15,431            15,431           329,653    01/01/2017      1FE
                     Atlanta GA Arpt Rev Ref-
        04780M-BC-2 Gen-Ser A- 5.7               08/15/2011 Call      100.5000                         3,602,925      3,585,000      3,671,434      3,620,850                                                                    0                          3,620,850                      (17,925)          (17,925)            231,332    01/01/2020      1FE
                     FGLMC Pool # G00377
        31283G-M2-0 7.000% 08/01/25              09/01/2011 Paydown                                        4,614           4,614         4,897          4,886                             (273)                               (273)                              4,614                                               0                205   08/01/2025       1
                     FGLMC Pool # G00473
        31283G-Q2-6 7.500% 03/01/26              09/01/2011 Paydown                                          629             629           670             669                              (40)                                (40)                                629                                              0                31    03/01/2026       1
                     FGLMC Pool # G01680
        31283H-2M-6 6.000% 03/01/34              09/01/2011 Paydown                                      269,574         269,574       280,658        280,377                         (10,804)                            (10,804)                           269,574                                                 0              9,614   03/01/2034       1
                     FGLMC Pool # C62887
        31287N-F4-5 6.000% 01/01/32              09/01/2011 Paydown                                       11,761          11,761        12,267         12,253                             (492)                               (492)                              11,761                                              0                493   01/01/2032       1
E05.3




                     FGLMC Pool # C62982
        31287N-J3-3 6.500% 01/01/32              09/01/2011 Paydown                                        3,142           3,142         3,314          3,309                             (168)                               (168)                              3,142                                               0                133   01/01/2032       1
                     FGLMC Pool # C63101
        31287N-NS-3 6.000% 01/01/32              09/01/2011 Paydown                                       40,231          40,231        41,936         41,889                            (1,658)                             (1,658)                             40,231                                              0              1,791   01/01/2032       1
                     FGLMC Pool # C63730
        31287P-EB-5 6.500% 02/01/32              09/01/2011 Paydown                                        1,684           1,684         1,777          1,774                               (90)                                (90)                             1,684                                               0                70    02/01/2032       1
                     FGLMC Pool # C65739
        31287R-LU-1 7.000% 04/01/32              09/01/2011 Paydown                                        1,567           1,567         1,672          1,669                             (102)                               (102)                              1,567                                               0                72    04/01/2032       1
                     FGLMC Pool # C67238
        31287T-BF-1 6.500% 11/01/32              09/01/2011 Paydown                                       34,047          34,047        35,913         35,865                            (1,818)                             (1,818)                             34,047                                              0              1,291   11/01/2032       1
                     FGLMC Pool # C69107
        31287V-DL-1 6.500% 07/01/32              09/01/2011 Paydown                                       84,852          84,852        89,503         89,382                            (4,530)                             (4,530)                             84,852                                              0              3,534   07/01/2032       1
                     FGTW POOL D98517 4.500%
        3128E5-PA-1 01/01/31                     09/01/2011 Paydown                                       18,513          18,513        19,262                                            (749)                               (749)                              18,513                                              0                258   01/01/2031       1
                     FGLMC Pool # D63881
        3128F3-J2-0 7.000% 09/01/25              09/01/2011 Paydown                                           79              79            84              84                              (5)                                 (5)                                 79                                               0                  4   09/01/2025       1
                     FGLMC Pool # D65375
        3128F4-6L-0 7.000% 11/01/25              09/01/2011 Paydown                                       20,950          20,950        22,243         22,195                            (1,245)                             (1,245)                             20,950                                              0                977   11/01/2025       1
                     FGLMC Pool # D65471
        3128F5-CG-1 7.500% 11/01/25              09/01/2011 Paydown                                       11,114          11,114        11,845         11,818                             (705)                               (705)                              11,114                                              0                555   11/01/2025       1
                     FGLMC Pool # D70773
        3128FB-2E-4 9.000% 05/01/25              09/01/2011 Paydown                                          582             582           617             607                              (16)                                (16)                                582                                              0                35    05/01/2025       1
                     FGLMC Pool # D77121
        3128FJ-4E-5 7.500% 01/01/27              09/01/2011 Paydown                                          287             287           306             305                              (18)                                (18)                                287                                              0                14    01/01/2027       1
                     FGLMC Pool # D77889
        3128FK-XS-9 7.500% 02/01/27              09/01/2011 Paydown                                          501             501           533             532                              (31)                                (31)                                501                                              0                25    02/01/2027       1
                     FGCI Pool # E91058
        3128GV-E7-1 6.000% 08/01/17              09/01/2011 Paydown                                       63,469          63,469        66,457         66,093                            (2,624)                             (2,624)                             63,469                                              0              2,532   08/01/2017       1
                     FGCI Pool # E91049
        3128GV-EW-6 5.500% 09/01/17              09/01/2011 Paydown                                       66,909          66,909        69,599         69,292                            (2,383)                             (2,383)                             66,909                                              0              2,379   09/01/2017       1
                     FGLMC Pool #A47297                     Nomura Securities Intl
        3128K8-DA-1 5.000% 10/01/35              07/12/2011 Inc.                                         374,326         350,862       365,774                                              (70)                                (70)                         365,703                          8,622             8,622               9,405   10/01/2035       1
                     FGLMC Pool #A47297
        3128K8-DA-1 5.000% 10/01/35              07/01/2011 Paydown                                        4,504           4,504         4,695                                            (191)                               (191)                              4,504                                               0                113   10/01/2035       1
                                                                                                STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                          SCHEDULE D - PART 4
                                                                                                                    Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                  2               3       4                    5                   6             7              8               9             10                           Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                            11              12                  13              14                  15
                                                F                                                                                                                                                                                                                                                                                                                 NAIC
                                                o                                                                                                                                                                                                                                                                                                                Desig-
                                                r                                                                                                                                                          Current Year’s                                          Book/                                                             Bond                         nation
                                                e                                                                                                       Prior Year       Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
          CUSIP                                 i                                             Number of                                               Book/Adjusted       Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
           Identi-                              g   Disposal                                  Shares of                                                  Carrying         Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
          fication          Description         n     Date          Name of Purchaser           Stock     Consideration    Par Value      Actual Cost     Value          (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                      FGLMC Pool # A52736
        3128KF-BD-1   6.000% 09/01/36               09/01/2011   Paydown                                        786,332        786,332        815,100       814,416                           (28,085)                            (28,085)                           786,332                                                0             30,543   09/01/2036       1
                      FGLMC Pool # A54797
        3128KH-KJ-4   6.500% 06/01/36               09/01/2011   Paydown                                        531,486        531,486        557,052       556,466                           (24,980)                            (24,980)                           531,486                                                0             22,090   06/01/2036       1
                      FGLMC Giant Pool G01823
        3128LX-AY-6   6.000% 05/01/3                09/01/2011   Paydown                                        288,453        288,453        299,952       299,669                           (11,216)                            (11,216)                           288,453                                                0             11,455   05/01/2035       1
                      FGLMC Giant Pool G01981
        3128LX-FW-5   5.000% 12/01/3                09/01/2011   Paydown                                        470,414        470,414        480,368       480,102                              (9,688)                             (9,688)                         470,414                                                0             15,400   12/01/2035       1
                      FGCI Giant Pool G12365
        3128M1-QS-1   6.500% 09/01/2                09/01/2011   Paydown                                        476,394        476,394        498,452       496,683                           (20,289)                            (20,289)                           476,394                                                0             20,282   09/01/2021       1
                      FGLMC POOL G02408
        3128M4-AH-6   5.500% 12/01/36               09/01/2011   Paydown                                         92,420         92,420         99,568                                            (7,148)                             (7,148)                             92,420                                             0             1,712    12/01/2036       1
                      FHLMC POOL G03388
        3128M5-CZ-1   6.000% 10/01/37               09/01/2011   Paydown                                         46,286         46,286         50,401                                            (4,115)                             (4,115)                             46,286                                             0                918   10/01/2037       1
                      FGLMC Pool #G03696
        3128M5-NM-8   5.500% 01/01/38               09/01/2011   Paydown                                        585,553        585,553        604,858       604,267                           (18,713)                            (18,713)                           585,553                                                0             21,487   01/01/2038       1
                      FHLMC POOL G03698
        3128M5-NP-1   6.000% 12/01/37               09/01/2011   Paydown                                         45,100         45,100         49,634                                            (4,534)                             (4,534)                             45,100                                             0                339   12/01/2037       1
                      FGLMC FG G03941 6.000%
        3128M5-WA-4   02/01/38                      09/01/2011   Paydown                                        641,419        641,419        664,648       663,523                           (22,105)                            (22,105)                           641,419                                                0             24,481   02/01/2038       1
                      FGLMC Pool #G04452
        3128M6-H5-0   6.000% 07/01/38               09/01/2011   Paydown                                        595,374        595,374        648,120       647,141                           (51,767)                            (51,767)                           595,374                                                0             24,032   07/01/2038       1
                      FGLMC POOL G04601
        3128M6-NS-3   5.500% 07/01/38               09/01/2011   Paydown                                         25,636         25,636         27,419                                            (1,783)                             (1,783)                             25,636                                             0                480   07/01/2038       1
                      FGLMC Pool #G05661
E05.4




        3128M7-TS-5   5.000% 09/01/39               09/01/2011   Paydown                                      1,394,467      1,394,467      1,489,139      1,487,204                          (92,736)                            (92,736)                          1,394,467                                               0             46,798   09/01/2039       1
                      FHLMC Pool# G05733
        3128M7-V2-9   5.000% 11/01/39               09/01/2011   Paydown                                        858,033        858,033        921,581       921,191                           (63,158)                            (63,158)                           858,033                                                0             28,249   11/01/2039       1
                      FHLMC Pool # G05832
        3128M7-Y5-9   5.000% 03/01/40               09/01/2011   Paydown                                         50,526         50,526         52,760         45,537                             (2,220)                             (2,220)                             50,526                                             0             1,614    03/01/2040       1
                      FHLMC POOL G06027
        3128M8-A4-6   5.500% 04/01/38               09/01/2011   Paydown                                         47,461         47,461         51,013                                            (3,552)                             (3,552)                             47,461                                             0             1,105    04/01/2038       1
                      FHLMC Pool #G12987
        3128MB-RG-4   5.500% 02/01/23               09/01/2011   Paydown                                         34,259         34,259         37,000         36,932                             (2,673)                             (2,673)                             34,259                                             0             1,253    02/01/2023       1
                      FHLMC Pool G13833
        3128MC-PS-8   4.500% 05/01/25               09/01/2011   Paydown                                      1,009,367      1,009,367      1,066,774      1,065,780                          (56,413)                            (56,413)                          1,009,367                                               0             30,741   05/01/2025       1
                      FGLMC Pool #G13996
        3128MC-UV-5   4.000% 11/01/25               09/22/2011   Morgan Stanley & Co., Inc.                     394,501        371,623        381,436                                             (220)                               (220)                          381,216                          13,285           13,285             10,983   11/01/2025       1
                      FGLMC Pool #G13996
        3128MC-UV-5   4.000% 11/01/25               09/01/2011   Paydown                                         10,896         10,896         11,184                                             (288)                               (288)                              10,896                                             0                254   11/01/2025       1
                      FGLMC Pool G08015
        3128MJ-AR-1   5.500% 10/01/34               09/01/2011   Paydown                                        389,212        389,212        400,367       400,061                           (10,849)                            (10,849)                           389,212                                                0             14,122   10/01/2034       1
                      FGLMC Giant Pool G08152
        3128MJ-E2-2   6.500% 09/01/3                09/01/2011   Paydown                                        632,921        632,921        663,367       662,664                           (29,742)                            (29,742)                           632,921                                                0             26,491   09/01/2036       1
                      FGLMC Giant Pool G08151
        3128MJ-EZ-9   6.000% 09/01/3                09/01/2011   Paydown                                        366,666        366,666        380,080       379,759                           (13,093)                            (13,093)                           366,666                                                0             14,752   09/01/2036       1
                      FGCI Pool G18391 4.000%
        3128MM-NH-2   06/01/26                      08/08/2011   BNP Paribas/NY                                 517,206        492,284        510,976                                             (197)                               (197)                          510,778                          6,428            6,428              4,102    06/01/2026       1
                      FGCI Pool G18391 4.000%
        3128MM-NH-2   06/01/26                      08/01/2011   Paydown                                           7,716          7,716           8,009                                           (293)                               (293)                              7,716                                              0                45    06/01/2026       1
                      FHARM- HYBRID POOL
        3128NC-XF-6   #1G0678 5.425% 01/0           09/01/2011   Paydown                                        180,713        180,713        187,592       187,564                              (6,852)                             (6,852)                         180,713                                                0             6,495    01/01/2036       1
                      FHLMC GOLD POOL C91366
        3128P7-QT-3   4.500% 04/01/31               09/01/2011   Paydown                                         12,915         12,915         13,430                                             (515)                               (515)                              12,915                                             0                153   04/01/2031       1
                      FGCI Pool # J02923
        3128PE-G8-5   5.000% 06/01/21               09/01/2011   Paydown                                        544,493        544,493        559,822       558,862                           (14,370)                            (14,370)                           544,493                                                0             17,656   06/01/2021       1
                      FGCI Pool #J11326
        3128PQ-PK-1   4.000% 12/01/24               07/26/2011   Cortview Capital Sec LLC                       428,972        410,500        426,583       426,248                               (267)                               (267)                          425,981                          2,992            2,992              10,855   12/01/2024       1
                      FGCI Pool #J11326
        3128PQ-PK-1   4.000% 12/01/24               07/01/2011   Paydown                                           3,971          3,971           4,127          4,124                            (152)                               (152)                              3,971                                              0                93    12/01/2024       1
                                                                                             STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                       SCHEDULE D - PART 4
                                                                                                                 Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                   2               3       4                    5               6             7              8               9            10                           Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                        11              12                  13              14                  15
                                                 F                                                                                                                                                                                                                                                                                                            NAIC
                                                 o                                                                                                                                                                                                                                                                                                           Desig-
                                                 r                                                                                                                                                     Current Year’s                                          Book/                                                             Bond                         nation
                                                 e                                                                                                   Prior Year      Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
          CUSIP                                  i                                         Number of                                               Book/Adjusted      Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
           Identi-                               g   Disposal                              Shares of                                                  Carrying        Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
          fication          Description          n     Date          Name of Purchaser       Stock     Consideration    Par Value      Actual Cost     Value         (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                      FGCI Pool #J12628
        3128PR-4M-8   4.500% 07/01/25                09/01/2011   Paydown                                     55,701         55,701         59,044        58,973                             (3,271)                             (3,271)                             55,701                                             0             1,731    07/01/2025       1
                      FGCI POOL J15081 4.500%
        3128PU-UE-0   04/01/26                       09/20/2011   UBS Warburg LLC                            895,029        838,312        887,301                                            (424)                               (424)                          886,877                          8,153            8,153              11,212   04/01/2026       1
                      FGCI POOL J15081 4.500%
        3128PU-UE-0   04/01/26                       09/01/2011   Paydown                                     44,550         44,550         47,153                                           (2,603)                             (2,603)                             44,550                                             0                457   04/01/2026       1
                      FH ARM Pool 1Q0061
        3128S4-B6-3   2.477% 03/01/36                09/01/2011   Paydown                                     11,898         11,898         12,538                                            (640)                               (640)                              11,898                                             0                49    03/01/2036       1
                      FH POOL 1B8060 2.891%
        3128UG-KY-2   03/01/41                       09/01/2011   Paydown                                     42,770         42,770         43,034                                            (264)                               (264)                              42,770                                             0                356   03/01/2041       1
                      FGLMC Pool # C00834
        31292G-4T-0   6.000% 07/01/29                09/01/2011   Paydown                                     22,069         22,069         23,045        23,016                              (947)                               (947)                              22,069                                             0                909   07/01/2029       1
                      FGLMC Pool # C00731 Pool
        31292G-MT-0   # C00370 7.00                  09/01/2011   Paydown                                     16,777         16,777         17,807        17,765                              (988)                               (988)                              16,777                                             0                870   08/01/2024       1
                      FGLMC Pool # C00731 Pool
        31292G-RA-6   # C00481 8.50                  09/01/2011   Paydown                                       2,677          2,677           2,912         2,903                            (226)                               (226)                              2,677                                              0                151   10/01/2026       1
                      FGLMC Pool # C00731 Pool
        31292G-SD-9   # C00516 8.00                  09/01/2011   Paydown                                       1,228          1,228           1,303         1,300                              (72)                                (72)                             1,228                                              0                65    05/01/2027       1
                      FGLMC Pool # C00731 Pool
        31292G-WT-9   # C00658 6.50                  09/01/2011   Paydown                                       5,103          5,103           5,396         5,387                            (283)                               (283)                              5,103                                              0                222   10/01/2028       1
                      FGLMC Pool # C00731 Pool
        31292G-Y4-2   # C00731 6.50                  09/01/2011   Paydown                                     12,166         12,166         12,864        12,842                              (676)                               (676)                              12,166                                             0                521   03/01/2029       1
                      FGLMC Pool # C00760
        31292G-ZZ-2   6.500% 05/01/29                09/01/2011   Paydown                                     11,746         11,746         12,412        12,392                              (646)                               (646)                              11,746                                             0                489   05/01/2029       1
                      FHLMC Pool # C01287
E05.5




        31292H-NC-4   6.500% 01/01/32                09/01/2011   Paydown                                     33,859         33,859         35,736        35,686                             (1,827)                             (1,827)                             33,859                                             0             1,448    01/01/2032       1
                      FHLMC Pool # C01501
        31292H-U2-8   5.500% 03/01/33                09/01/2011   Paydown                                    161,136        161,136        165,956       165,818                             (4,682)                             (4,682)                         161,136                                                0             5,787    03/01/2033       1
                      FGLMC Pool C03491
        31292K-2Y-2   5.000% 08/01/40                09/01/2011   Paydown                                     42,493         42,493         44,591                                           (2,098)                             (2,098)                             42,493                                             0             1,059    08/01/2040       1
                      FGLMC Pool # C03517                         Nomura Securities Intl
        31292K-4A-2   4.500% 09/01/40                08/12/2011   Inc.                                       530,782        500,000        519,219                                              (59)                                (59)                         519,161                          11,621           11,621             1,000    09/01/2040      1FE
                      FGLMC POOL C03424
        31292K-YV-3   6.000% 10/01/39                09/01/2011   Paydown                                     16,737         16,737         18,194                                           (1,457)                             (1,457)                             16,737                                             0                339   10/01/2039       1
                      FGLMC Pool A87994
        312934-3B-6   5.000% 08/01/39                09/01/2011   Paydown                                     56,140         56,140         59,526        59,432                             (3,292)                             (3,292)                             56,140                                             0             1,899    08/01/2039       1
                      FGLMC Pool# A89507
        312936-R4-1   4.500% 10/01/39                09/01/2011   Paydown                                     48,458         48,458         50,397        50,356                             (1,898)                             (1,898)                             48,458                                             0             1,620    10/01/2039       1
                      FGLMC Pool # C19966 Pool
        31293G-CB-9   # C19966 6.50                  09/01/2011   Paydown                                     73,433         73,433         77,642        77,514                             (4,081)                             (4,081)                             73,433                                             0             3,516    01/01/2029       1
                      FGLMC Pool # C28289
        31293S-F6-1   6.500% 07/01/29                09/01/2011   Paydown                                       3,599          3,599           3,803         3,797                            (198)                               (198)                              3,599                                              0                164   07/01/2029       1
                      FGLMC Pool # C29990
        31293U-C3-6   6.000% 08/01/29                09/01/2011   Paydown                                       5,133          5,133           5,360         5,353                            (220)                               (220)                              5,133                                              0                206   08/01/2029       1
                      FGLMC Pool #A93594
        312941-7F-8   4.500% 08/01/40                09/01/2011   Paydown                                       4,050          4,050           4,230         4,226                            (176)                               (176)                              4,050                                              0                122   08/01/2040       1
                      FGLMC Pool #A93093
        312941-NJ-2   4.500% 07/01/40                09/01/2011   Paydown                                     19,660         19,660         20,729        20,706                             (1,046)                             (1,046)                             19,660                                             0                578   07/01/2040       1
                      FGLMC Pool #A94066
        312942-QT-5   4.500% 09/01/40                09/01/2011   Paydown                                    839,800        839,800        882,052       881,887                          (42,087)                            (42,087)                           839,800                                                0             25,782   09/01/2040       1
                      FGLMC POOL A97150                           Nomura Securities Intl
        312945-5K-0   4.000% 03/01/41                07/14/2011   Inc.                                       979,441        970,795        960,328                                              20                                  20                           960,348                          19,092           19,092             10,787   03/01/2041       1
                      FGLMC POOL A97150
        312945-5K-0   4.000% 03/01/41                09/01/2011   Paydown                                     38,176         38,176         37,764                                              412                                 412                              38,176                                             0                573   03/01/2041       1
                      FHLMC Pool A96413
        312945-DS-4   4.000% 02/01/41                09/01/2011   Paydown                                     22,463         22,463         21,754                                              709                                 709                              22,463                                             0                383   02/01/2041       1
                      FGLMC POOL A97040
        312945-ZD-3   4.000% 02/01/41                09/01/2011   Paydown                                     13,766         13,766         13,675                                              90                                  90                               13,766                                             0                185   02/01/2041       1
                      FGCI Pool # E00625
        31294J-VS-4   6.000% 02/01/14                09/01/2011   Paydown                                     18,446         18,446         19,136        18,938                              (492)                               (492)                              18,446                                             0                720   02/01/2014       1
                                                                                            STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                      SCHEDULE D - PART 4
                                                                                                                Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                   2                3       4                  5               6             7              8               9            10                           Change in Book/Adjusted Carrying Value                                     16             17            18            19                 20               21           22

                                                                                                                                                                       11              12                  13              14                  15
                                                  F                                                                                                                                                                                                                                                                                                       NAIC
                                                  o                                                                                                                                                                                                                                                                                                      Desig-
                                                  r                                                                                                                                                   Current Year’s                                          Book/                                                          Bond                         nation
                                                  e                                                                                                 Prior Year      Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                     Interest/Stock                      or
          CUSIP                                   i                                       Number of                                               Book/Adjusted      Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain   Total Gain         Dividends                      Market
           Identi-                                g   Disposal                            Shares of                                                  Carrying        Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on     (Loss) on          Received         Maturity     Indicator
          fication          Description           n     Date          Name of Purchaser     Stock     Consideration    Par Value      Actual Cost     Value         (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal      Disposal         During Year        Date           (a)
                      FGCI Pool # E01007
        31294K-DL-6   6.000% 08/01/16                 09/01/2011   Paydown                                   47,729         47,729         49,731        49,429                             (1,701)                             (1,701)                             47,729                                          0             1,853    08/01/2016       1
                      FGCI Pool # E01159
        31294K-JC-0   6.500% 06/01/17                 09/01/2011   Paydown                                  131,680        131,680        137,776       136,826                             (5,145)                             (5,145)                         131,680                                             0             5,475    06/01/2017       1
                      FGCI Pool # E01251
        31294K-L8-6   5.500% 11/01/17                 09/01/2011   Paydown                                  132,606        132,606        138,011       137,414                             (4,808)                             (4,808)                         132,606                                             0             4,683    11/01/2017       1
                      FGCI Pool #E01343
        31294K-P4-1   5.000% 04/01/18                 09/01/2011   Paydown                                  177,567        177,567        183,802       183,164                             (5,597)                             (5,597)                         177,567                                             0             5,742    04/01/2018       1
                      FGCI Pool # E01378
        31294K-Q7-3   5.000% 05/01/18                 09/01/2011   Paydown                                  189,783        189,783        196,374       195,711                             (5,928)                             (5,928)                         189,783                                             0             6,232    05/01/2018       1
                      FGCI Pool # B10223 Pool #
        312962-G8-0   B10223 5.500                    09/01/2011   Paydown                                  150,949        150,949        156,829       156,280                             (5,331)                             (5,331)                         150,949                                             0             5,365    10/01/2018       1
                      FGCI Pool B15197 5.000%
        312967-X2-3   06/01/19                        09/01/2011   Paydown                                   71,041         71,041         76,180                                           (5,139)                             (5,139)                             71,041                                          0             1,648    06/01/2019       1
                      FGLMC Pool # A15900
        31296Q-RV-4   5.500% 11/01/33                 09/01/2011   Paydown                                  171,818        171,818        176,957       176,814                             (4,996)                             (4,996)                         171,818                                             0             6,099    11/01/2033       1
                      FGLMC Pool # A16902 Pool
        31296R-U3-0   # A16902 6.50                   09/01/2011   Paydown                                     6,268          6,268           6,604         6,596                            (327)                               (327)                              6,268                                           0                265   12/01/2033       1
                      FGLMC Gold Pool # A23672
        31297B-CH-3   6.000% 06/01/                   09/01/2011   Paydown                                  130,653        130,653        135,862       135,731                             (5,077)                             (5,077)                         130,653                                             0             5,195    06/01/2034       1
                      FGLMC Pool # A25387
        31297C-6Y-1   5.500% 08/01/34                 09/01/2011   Paydown                                  431,507        431,507        443,875       443,534                          (12,027)                            (12,027)                           431,507                                             0             15,575   08/01/2034       1
                      FGLMC Pool # A27485
        31297F-J6-1   6.000% 10/01/34                 09/01/2011   Paydown                                  369,076        369,076        383,790       383,422                          (14,346)                            (14,346)                           369,076                                             0             13,796   10/01/2034       1
                      FGLMC Gold Pool # A28158
E05.6




        31297G-B3-4   6.000% 11/01/                   09/01/2011   Paydown                                  385,305        385,305        400,666       400,284                          (14,979)                            (14,979)                           385,305                                             0             16,365   11/01/2034       1
                      FGLMC Pool # A29335
        31297H-LQ-0   5.500% 01/01/35                 09/01/2011   Paydown                                  148,181        148,181        152,289       152,177                             (3,996)                             (3,996)                         148,181                                             0             4,833    01/01/2035       1
                      FGLMC Pool # A30648
        31297K-WH-1   5.500% 12/01/34                 09/01/2011   Paydown                                  309,056        309,056        317,914       317,672                             (8,616)                             (8,616)                         309,056                                             0             10,519   12/01/2034       1
                      FGLMC Pool # C41806
        31298A-AF-0   8.000% 09/01/30                 09/01/2011   Paydown                                     1,053          1,053           1,116         1,114                              (62)                                (62)                             1,053                                           0                54    09/01/2030       1
                      FHLMC Pool # C41822
        31298A-AX-1   7.000% 08/01/30                 09/01/2011   Paydown                                      213             213            227            227                              (14)                                (14)                                213                                          0                10    08/01/2030       1
                      FGLMC Pool # C54237
        31298Q-V6-2   7.000% 07/01/31                 09/01/2011   Paydown                                      388             388            415            414                              (25)                                (25)                                388                                          0                18    07/01/2031       1
                      FHLMC POOL Q00912
        3132GE-AM-2   4.500% 05/01/41                 09/01/2011   Paydown                                   35,034         35,034         36,373                                           (1,338)                             (1,338)                             35,034                                          0                131   05/01/2041       1
                      FGLMC Pool # C80444 Pool
        31335G-C4-5   # C80091 6.50                   09/01/2011   Paydown                                   19,822         19,822         20,991        20,939                             (1,117)                             (1,117)                             19,822                                          0                851   01/01/2024       1
                      FGLMC Pool # C80444 Pool
        31335G-M5-1   # C80380 7.50                   09/01/2011   Paydown                                     1,171          1,171           1,248         1,245                              (74)                                (74)                             1,171                                           0                59    02/01/2026       1
                      FGLMC Pool # C80444 Pool
        31335G-NZ-4   # C80408 7.50                   09/01/2011   Paydown                                     5,466          5,466           5,824         5,811                            (345)                               (345)                              5,466                                           0                299   06/01/2026       1
                      FGLMC Pool # C90651
        31335H-WL-3   6.000% 02/01/23                 09/01/2011   Paydown                                   59,430         59,430         61,853        61,737                             (2,306)                             (2,306)                             59,430                                          0             2,367    02/01/2023       1
                      Freddie Mac Series 2155
        3133TL-4A-3   Class Series 215                09/01/2011   Paydown                                   39,986         39,986         41,747        41,956                             (1,970)                             (1,970)                             39,986                                          0             1,600    05/15/2029       1
                      FHLMC Pool # 298215 Pool
        313448-DU-3   # 298215 8.00                   09/01/2011   Paydown                                     3,183          3,183           3,362         3,334                            (150)                               (150)                              3,183                                           0                172   07/01/2017       1
                      FNR Series 1991-85 Class
        31358H-HV-0   Z 8.000% 06/2                   09/01/2011   Paydown                                   14,101         14,101         15,180        15,038                              (937)                               (937)                              14,101                                          0                738   06/25/2021       1
                      FNR Series 1990-35 Class
        313603-2H-4   E 9.500% 04/2                   09/01/2011   Paydown                                      449             449            493            497                              (48)                                (48)                                449                                          0                28    04/25/2020       1
                      FNCL Pool # 52164
        313616-5Z-3   7.500% 06/01/17                 09/01/2011   Paydown                                     3,479          3,479           3,684         3,661                            (182)                               (182)                              3,479                                           0                190   06/01/2017       1
                      FNCL Pool # 124561
        31365D-JE-6   7.500% 11/01/22                 09/01/2011   Paydown                                     9,320          9,320           9,949         9,918                            (598)                               (598)                              9,320                                           0                485   11/01/2022       1
                      FNCI Pool # 250738
        31371F-PX-4   7.000% 10/01/11                 09/01/2011   Paydown                                     3,784          3,784           3,920         3,821                              (37)                                (37)                             3,784                                           0                175   10/01/2011       1
                      FNCI Pool # 250952
        31371F-WM-0   6.500% 06/01/12                 09/01/2011   Paydown                                     5,178          5,178           5,428         5,292                            (114)                               (114)                              5,178                                           0                222   06/01/2012       1
                                                                                            STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                      SCHEDULE D - PART 4
                                                                                                                Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                   2                3       4                  5               6             7              8               9             10                           Change in Book/Adjusted Carrying Value                                     16             17            18            19                 20               21           22

                                                                                                                                                                        11              12                  13              14                  15
                                                  F                                                                                                                                                                                                                                                                                                        NAIC
                                                  o                                                                                                                                                                                                                                                                                                       Desig-
                                                  r                                                                                                                                                    Current Year’s                                          Book/                                                          Bond                         nation
                                                  e                                                                                                 Prior Year       Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                     Interest/Stock                      or
          CUSIP                                   i                                       Number of                                               Book/Adjusted       Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain   Total Gain         Dividends                      Market
           Identi-                                g   Disposal                            Shares of                                                  Carrying         Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on     (Loss) on          Received         Maturity     Indicator
          fication          Description           n     Date          Name of Purchaser     Stock     Consideration    Par Value      Actual Cost     Value          (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal      Disposal         During Year        Date           (a)
                      FNCL Pool # 252315
        31371H-GY-8   5.500% 02/01/29                 09/01/2011   Paydown                                   23,931         23,931         24,826         24,796                              (866)                               (866)                              23,931                                          0                924   02/01/2029       1
                      FNCL Pool # 252645
        31371H-TA-6   6.500% 08/01/29                 09/01/2011   Paydown                                   16,886         16,886         17,832         17,804                              (918)                               (918)                              16,886                                          0                693   08/01/2029       1
                      FNCL Pool # 253114
        31371J-DT-8   8.000% 03/01/30                 09/01/2011   Paydown                                     7,766          7,766           8,289          8,273                            (507)                               (507)                              7,766                                           0                444   03/01/2030       1
                      FNCL Pool # 254218
        31371K-K7-5   7.000% 02/01/32                 09/01/2011   Paydown                                   11,928         11,928         12,793         12,770                              (842)                               (842)                              11,928                                          0                563   02/01/2032       1
                      FNCL Pool # 254235
        31371K-LQ-2   6.000% 03/01/17                 09/01/2011   Paydown                                   35,803         35,803         37,489         37,261                             (1,458)                             (1,458)                             35,803                                          0             1,424    03/01/2017       1
                      FNCL Pool # 254239
        31371K-LU-3   6.500% 03/01/32                 09/01/2011   Paydown                                   18,459         18,459         19,459         19,432                              (973)                               (973)                              18,459                                          0                758   03/01/2032       1
                      FNCL Pool # 254510
        31371K-VB-4   5.000% 11/01/17                 09/01/2011   Paydown                                  223,042        223,042        230,611       229,753                              (6,711)                             (6,711)                         223,042                                             0             7,240    11/01/2017       1
                      FNCL Pool # 254631
        31371K-Y4-7   5.000% 02/01/18                 09/01/2011   Paydown                                  179,985        179,985        186,093       185,433                              (5,448)                             (5,448)                         179,985                                             0             5,844    02/01/2018       1
                      FNCL Pool # 255580
        31371L-2M-0   5.500% 02/01/35                 09/01/2011   Paydown                                  152,383        152,383        164,430       164,196                           (11,813)                            (11,813)                           152,383                                             0             5,665    02/01/2035       1
                      FNCL POOL 255814 5.500%
        31371M-DT-1   08/01/35                        09/01/2011   Paydown                                   36,950         36,950         39,854                                            (2,904)                             (2,904)                             36,950                                          0                843   08/01/2035       1
                      FNCT Pool #255994
        31371M-KF-3   5.500% 11/01/25                 09/01/2011   Paydown                                1,190,748      1,190,748      1,291,217      1,288,748                          (98,000)                            (98,000)                          1,190,748                                            0             43,256   11/01/2025       1
                      FNCL Pool # 256436
        31371M-Y9-2   6.000% 09/01/36                 09/01/2011   Paydown                                  531,370        531,370        550,110       549,648                           (18,279)                            (18,279)                           531,370                                             0             21,002   09/01/2036       1
                      FNCL Pool # 256437
E05.7




        31371M-ZA-8   6.500% 09/01/36                 09/01/2011   Paydown                                  341,816        341,816        358,045       357,666                           (15,849)                            (15,849)                           341,816                                             0             14,741   09/01/2036       1
                      FNCL Pool #256636
        31371N-BD-6   5.500% 03/01/37                 09/01/2011   Paydown                                1,331,583      1,331,583      1,422,817      1,421,238                          (89,655)                            (89,655)                          1,331,583                                            0             47,229   03/01/2037       1
                      FNCL Pool #256805
        31371N-GN-9   5.500% 07/01/22                 09/01/2011   Paydown                                1,592,585      1,592,585      1,649,315      1,646,146                          (53,561)                            (53,561)                          1,592,585                                            0             60,012   07/01/2022       1
                      FNCL Pool # 262284
        31371U-J5-9   6.500% 12/01/23                 09/01/2011   Paydown                                     2,225          2,225           2,352          2,346                            (121)                               (121)                              2,225                                           0                97    12/01/2023       1
                      FNCL Pool # 303805
        31373U-NW-3   6.500% 04/01/26                 09/01/2011   Paydown                                   12,591         12,591         13,305         13,278                              (687)                               (687)                              12,591                                          0                547   04/01/2026       1
                      FNCL Pool # 323259
        31374T-B4-0   6.000% 08/01/13                 09/01/2011   Paydown                                   14,737         14,737         15,449         15,209                              (472)                               (472)                              14,737                                          0                588   08/01/2013       1
                      FNCL Pool # 323290
        31374T-C3-1   6.000% 09/01/13                 09/01/2011   Paydown                                   17,755         17,755         18,613         18,332                              (577)                               (577)                              17,755                                          0                692   09/01/2013       1
                      FNCL Pool # 323569
        31374T-MS-5   6.500% 01/01/29                 09/01/2011   Paydown                                   47,819         47,819         50,530         50,446                             (2,627)                             (2,627)                             47,819                                          0             2,189    01/01/2029       1
                      FNCL Pool # 331911
        31375D-VC-4   7.000% 12/01/25                 09/01/2011   Paydown                                     1,835          1,835           1,966          1,961                            (127)                               (127)                              1,835                                           0                77    12/01/2025       1
                      FNCI Pool # 357861
        31376K-QN-9   5.500% 06/01/20                 09/01/2011   Paydown                                  151,177        151,177        156,688       156,284                              (5,107)                             (5,107)                         151,177                                             0             5,123    06/01/2020       1
                      FNCL Pool # 412550
        31378Y-H3-1   6.500% 01/01/28                 09/01/2011   Paydown                                     9,331          9,331           9,860          9,843                            (512)                               (512)                              9,331                                           0                355   01/01/2028       1
                      FNCI Pool # 417150
        31379E-L7-0   6.000% 02/01/13                 09/01/2011   Paydown                                     4,770          4,770           5,000          4,909                            (139)                               (139)                              4,770                                           0                191   02/01/2013       1
                      FNCI Pool # 432294
        31379X-GB-5   6.500% 06/01/13                 09/01/2011   Paydown                                   12,185         12,185         12,793         12,553                              (368)                               (368)                              12,185                                          0                527   06/01/2013       1
                      FHLMC Multifamily Stru.PT
        3137A2-AZ-4   Series K009 Cl                  09/01/2011   Paydown                                   42,751         42,751         43,177         43,169                              (418)                               (418)                              42,751                                          0                783   05/25/2020       1
                      FNCL Pool # 436830
        31380D-HF-6   6.500% 07/01/28                 09/01/2011   Paydown                                     1,755          1,755           1,855          1,852                              (96)                                (96)                             1,755                                           0                76    07/01/2028       1
                      FNCL Pool # 449234
        31380T-BB-6   5.500% 01/01/29                 09/01/2011   Paydown                                     1,521          1,521           1,578          1,576                              (55)                                (55)                             1,521                                           0                56    01/01/2029       1
                      FNCL Pool # 456076
        31381B-T9-0   6.000% 12/01/28                 09/01/2011   Paydown                                  181,194        181,194        189,056       188,804                              (7,611)                             (7,611)                         181,194                                             0             6,626    12/01/2028       1
                      FNCL Pool # 457020
        31381C-VM-6   6.500% 01/01/29                 09/01/2011   Paydown                                     3,132          3,132           3,310          3,304                            (172)                               (172)                              3,132                                           0                136   01/01/2029       1
                      FNCL Pool # 481622
        31382G-AX-5   5.500% 01/01/29                 09/01/2011   Paydown                                     2,801          2,801           2,906          2,903                            (101)                               (101)                              2,801                                           0                103   01/01/2029       1
                                                                                               STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                         SCHEDULE D - PART 4
                                                                                                                   Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                   2                3       4                    5                6             7              8               9             10                           Change in Book/Adjusted Carrying Value                                     16             17            18              19                 20               21           22

                                                                                                                                                                           11              12                  13              14                  15
                                                  F                                                                                                                                                                                                                                                                                                             NAIC
                                                  o                                                                                                                                                                                                                                                                                                            Desig-
                                                  r                                                                                                                                                       Current Year’s                                          Book/                                                            Bond                         nation
                                                  e                                                                                                    Prior Year       Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                       Interest/Stock                      or
          CUSIP                                   i                                          Number of                                               Book/Adjusted       Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain     Total Gain         Dividends                      Market
           Identi-                                g   Disposal                               Shares of                                                  Carrying         Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on       (Loss) on          Received         Maturity     Indicator
          fication          Description           n     Date          Name of Purchaser        Stock     Consideration    Par Value      Actual Cost     Value          (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal        Disposal         During Year        Date           (a)
                      FNCL Pool # 489139
        31382Q-LU-7   6.500% 07/01/29                 09/01/2011   Paydown                                        1,361          1,361           1,437          1,435                              (74)                                (74)                             1,361                                             0                59    07/01/2029       1
                      FNCL Pool # 490829
        31382S-HE-4   6.500% 05/01/29                 09/01/2011   Paydown                                      16,708         16,708         17,644         17,616                              (908)                               (908)                              16,708                                            0                693   05/01/2029       1
                      FNCL Pool # 491318
        31382S-YP-0   6.000% 04/01/29                 09/01/2011   Paydown                                        2,056          2,056           2,141          2,139                              (83)                                (83)                             2,056                                             0                80    04/01/2029       1
                      FNCI Pool # 499241
        31383C-S6-3   6.500% 07/01/14                 09/01/2011   Paydown                                        9,413          9,413           9,874          9,738                            (325)                               (325)                              9,413                                             0                400   07/01/2014       1
                      FNCL Pool # 500986
        31383E-RF-0   6.500% 07/01/29                 09/01/2011   Paydown                                         903             903            954             952                              (49)                                (49)                                903                                            0                39    07/01/2029       1
                      FNCL Pool # 511231
        31383R-4Q-2   7.500% 10/01/29                 09/01/2011   Paydown                                         751             751            803             802                              (50)                                (50)                                751                                            0                38    10/01/2029       1
                      FNCI Pool # 511973
        31383S-XA-3   7.000% 10/01/14                 09/01/2011   Paydown                                        7,083          7,083           7,381          7,297                            (214)                               (214)                              7,083                                             0                331   10/01/2014       1
                      FNCI Pool # 515939
        31383X-EL-9   7.000% 10/01/29                 09/01/2011   Paydown                                        7,457          7,457           7,997          7,981                            (524)                               (524)                              7,457                                             0                310   10/01/2029       1
                      FNCL Pool # 560457
        31386D-TN-0   7.500% 12/01/30                 09/01/2011   Paydown                                        6,466          6,466           6,908          6,896                            (430)                               (430)                              6,466                                             0                321   12/01/2030       1
                      FNCL Pool # 579454
        31387B-WP-4   6.000% 04/01/31                 09/01/2011   Paydown                                      52,483         52,483         54,695         54,631                             (2,148)                             (2,148)                             52,483                                            0             2,087    04/01/2031       1
                      FNCL Pool # 581638
        31387E-EK-9   7.000% 06/01/31                 09/01/2011   Paydown                                      47,805         47,805         51,272         51,177                             (3,372)                             (3,372)                             47,805                                            0             1,920    06/01/2031       1
                      FNCI POOL AH1519 3.500%
        3138A2-VM-8   12/01/25                        09/01/2011   Paydown                                      15,498         15,498         15,634                                             (136)                               (136)                              15,498                                            0                142   12/01/2025       1
                      FNCL POOL AH2541 4.500%
E05.8




        3138A3-ZF-7   01/01/41                        09/01/2011   Paydown                                      34,769         34,769         35,611                                             (842)                               (842)                              34,769                                            0                632   01/01/2041       1
                      FNCI POOL AH5414 4.000%
        3138A7-AQ-1   01/01/26                        09/01/2011   Paydown                                        2,180          2,180           2,251                                             (71)                                (71)                             2,180                                             0                29    01/01/2026       1
                      FNCI Pool AH6822
        3138A8-SL-1   3.500% 03/01/26                 09/01/2011   Paydown                                      12,529         12,529         12,582                                               (53)                                (53)                             12,529                                            0                148   03/01/2026       1
                      FNCL POOL AH7012 5.000%
        3138A8-YJ-9   03/01/41                        09/01/2011   Paydown                                      62,317         62,317         65,569                                            (3,252)                             (3,252)                             62,317                                            0             1,084    03/01/2041       1
                      FNCL POOL AH7039 5.000%
        3138A8-ZD-1   03/01/41                        08/05/2011   Jefferies & Co (JPM-BS)                     735,577        682,473        733,125                                             (211)                               (211)                          732,913                          2,664           2,664              6,635    03/01/2041       1
                      FNCL POOL AH7039 5.000%
        3138A8-ZD-1   03/01/41                        08/01/2011   Paydown                                      14,569         14,569         15,651                                            (1,081)                             (1,081)                             14,569                                            0                117   03/01/2041       1
                      FNCL POOL AH9405 4.500%
        3138AB-NX-3   04/01/41                        09/01/2011   Paydown                                        8,398          8,398           8,706                                           (308)                               (308)                              8,398                                             0                70    04/01/2041       1
                      FNCL Pool # 640287
        31390A-J8-4   6.500% 07/01/32                 09/01/2011   Paydown                                     132,893        132,893        140,095       139,903                              (7,010)                             (7,010)                         132,893                                               0             5,544    07/01/2032       1
                      FNCI Pool # 659891
        31390Y-C4-8   6.500% 09/01/32                 09/01/2011   Paydown                                      37,384         37,384         39,410         39,357                             (1,972)                             (1,972)                             37,384                                            0             1,580    09/01/2032       1
                      FNCL Pool # 673776
        31391Q-Q5-6   6.500% 06/01/32                 09/01/2011   Paydown                                        5,519          5,519           5,825          5,817                            (298)                               (298)                              5,519                                             0                234   06/01/2032       1
                      Fannie Mae Whole Loan
        313921-6F-0   Series 2001-W3 Cla              09/01/2011   Paydown                                      35,358         35,358         37,634         37,371                             (2,013)                             (2,013)                             35,358                                            0             1,557    09/25/2041       1
                      Fannie Mae Whole Loan
        31392C-MJ-0   Series 2002-W1 Cla              09/01/2011   Paydown                                      60,285         60,285         57,604         57,954                             2,332                               2,332                               60,285                                            0             2,277    02/25/2042       1
                      Fannie Mae Series 2003-35
        31393B-Q7-3   Class TS 3.7                    09/01/2011   Paydown                                     402,037        402,037        404,678       403,392                              (1,355)                             (1,355)                         402,037                                               0             9,975    04/25/2017       1
                      Feddie Mac Series 2617
        31393R-6W-5   Class HG 4.000%                 08/01/2011   Paydown                                     249,137        249,137        252,268       250,364                              (1,227)                             (1,227)                         249,137                                               0             6,429    06/15/2016       1
                      Feddie Mac Series 2812
        31395A-SR-7   Class DA 5.500%                 09/01/2011   Paydown                                     261,380        261,380        272,534       272,337                           (10,957)                            (10,957)                           261,380                                               0             9,494    06/15/2023       1
                      Feddie Mac Series 2936
        31395L-ZN-4   Class PC 5.000%                 09/01/2011   Paydown                                   1,245,830      1,245,830      1,293,124      1,267,557                          (21,727)                            (21,727)                          1,245,830                                              0             44,942   09/15/2030       1
                      Feddie Mac Series 2929
        31395M-AS-8   Class DM 5.000%                 09/01/2011   Paydown                                     331,107        331,107        341,503       343,072                           (11,965)                            (11,965)                           331,107                                               0             10,264   11/15/2032       1
                      Feddie Mac Series 3085
        31396F-RY-1   Class QL 6.000%                 09/01/2011   Paydown                                     545,341        545,341        546,420       544,459                                 882                                 882                          545,341                                               0             21,604   11/15/2035       1
                      Fannie Mae SERIES 2010123
        31398N-X2-5   CLASS FK 0.6                    09/25/2011   Paydown                                      15,288         15,288         15,250                                               38                                  38                               15,288                                            0                13    11/25/2040       1
                                                                                     STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                           SCHEDULE D - PART 4
                                                                                                        Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
             1                   2         3       4                  5               6             7             8              9            10                         Change in Book/Adjusted Carrying Value                                     16             17            18            19                 20               21           22

                                                                                                                                                            11              12                  13              14                  15
                                           F                                                                                                                                                                                                                                                                                                   NAIC
                                           o                                                                                                                                                                                                                                                                                                  Desig-
                                           r                                                                                                                                               Current Year’s                                          Book/                                                          Bond                         nation
                                           e                                                                                               Prior Year    Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                     Interest/Stock                      or
          CUSIP                            i                                       Number of                                             Book/Adjusted    Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain   Total Gain         Dividends                      Market
           Identi-                         g   Disposal                            Shares of                                                Carrying      Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on     (Loss) on          Received         Maturity     Indicator
          fication          Description    n     Date          Name of Purchaser     Stock     Consideration   Par Value     Actual Cost     Value       (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal      Disposal         During Year        Date           (a)
                      FNCL Pool # 681857
        31400A-QJ-0   6.000% 03/01/33          09/01/2011   Paydown                                   88,632        88,632        92,090        91,996                           (3,365)                             (3,365)                             88,632                                          0             3,842    03/01/2033       1
                      FNCL Pool # 681887
        31400A-RG-5   6.000% 04/01/33          09/01/2011   Paydown                                   85,610        85,610        88,951        88,861                           (3,250)                             (3,250)                             85,610                                          0             3,294    04/01/2033       1
                      FNCI Pool # 685505
        31400E-R2-8   5.000% 05/01/18          09/01/2011   Paydown                                  100,990       100,990       104,291       103,950                           (2,960)                             (2,960)                         100,990                                             0             3,275    05/01/2018       1
                      FNCL Pool #688458
        31400H-ZX-4   6.000% 03/01/33          09/01/2011   Paydown                                  174,256       174,256       181,273       181,085                           (6,829)                             (6,829)                         174,256                                             0             7,771    03/01/2033       1
                      FNCL Pool # 694760
        31400Q-ZZ-9   5.500% 04/01/33          09/01/2011   Paydown                                  174,697       174,697       180,031       179,874                           (5,178)                             (5,178)                         174,697                                             0             6,230    04/01/2033       1
                      FNCL Pool # 695785
        31400R-6W-6   5.500% 04/01/18          09/01/2011   Paydown                                  261,885       261,885       272,170       271,095                           (9,210)                             (9,210)                         261,885                                             0             8,998    04/01/2018       1
                      FNCL Pool # 703712
        31401B-YH-2   5.500% 02/01/18          09/01/2011   Paydown                                  278,169       278,169       289,093       287,913                           (9,744)                             (9,744)                         278,169                                             0             10,525   02/01/2018       1
                      FNCL Pool # 704281
        31401C-M6-7   5.500% 05/01/33          09/01/2011   Paydown                                  417,292       417,292       430,035       429,661                        (12,369)                            (12,369)                           417,292                                             0             16,728   05/01/2033       1
                      FNCI Pool # 725584
        31402D-CV-0   5.000% 07/01/34          09/01/2011   Paydown                                  378,058       378,058       386,928       386,675                           (8,617)                             (8,617)                         378,058                                             0             12,212   07/01/2034       1
                      FNCL Pool # 728780
        31402G-UD-3   6.000% 07/01/33          09/01/2011   Paydown                                   13,706        13,706        14,241        14,226                            (521)                               (521)                              13,706                                          0                536   07/01/2033       1
                      FNCI Pool # 729759
        31402H-WU-1   5.000% 06/01/18          09/01/2011   Paydown                                  287,905       287,905       297,315       296,355                           (8,450)                             (8,450)                         287,905                                             0             8,839    06/01/2018       1
                      FNCL Pool #745355
        31403D-BY-4   5.000% 03/01/36          09/01/2011   Paydown                                  638,356       638,356       677,655       676,661                        (38,305)                            (38,305)                           638,356                                             0             21,447   03/01/2036       1
                      FNCL Pool # 745751
E05.9




        31403D-QC-6   5.500% 09/01/35          09/01/2011   Paydown                                  112,109       112,109       120,832       120,576                           (8,467)                             (8,467)                         112,109                                             0             4,160    09/01/2035       1
                      FNCL Pool # 746579
        31403E-M4-6   5.000% 10/01/33          09/01/2011   Paydown                                  358,652       358,652       367,458       367,204                           (8,552)                             (8,552)                         358,652                                             0             11,683   10/01/2033       1
                      FNCL Pool # 747728
        31403F-VV-3   5.500% 11/01/33          09/01/2011   Paydown                                  488,201       488,201       503,108       502,678                        (14,478)                            (14,478)                           488,201                                             0             18,176   11/01/2033       1
                      FNCL Pool # 752903
        31403M-NU-9   5.500% 01/01/34          09/01/2011   Paydown                                  263,489       263,489       271,535       271,304                           (7,815)                             (7,815)                         263,489                                             0             10,358   01/01/2034       1
                      FNCL Pool # 758259
        31403U-MG-3   6.000% 12/01/33          09/01/2011   Paydown                                   40,801        40,801        42,393        42,351                           (1,550)                             (1,550)                             40,801                                          0             1,684    12/01/2033       1
                      FNCL Pool # 776463
        31404R-TU-1   5.000% 03/01/34          09/01/2011   Paydown                                   20,007        20,007        20,498        20,484                            (477)                               (477)                              20,007                                          0                665   03/01/2034       1
                      FNCL Pool # 777710
        31404T-AK-9   5.500% 06/01/34          09/01/2011   Paydown                                  186,410       186,410       191,869       191,714                           (5,304)                             (5,304)                         186,410                                             0             6,606    06/01/2034       1
                      FNCL Pool # 785168
        31405C-JM-2   5.500% 07/01/34          09/01/2011   Paydown                                  574,842       574,842       591,677       591,197                        (16,355)                            (16,355)                           574,842                                             0             20,020   07/01/2034       1
                      FNCL Pool # 787809
        31405F-GS-5   5.500% 07/01/34          09/01/2011   Paydown                                  302,187       302,187       311,037       310,785                           (8,598)                             (8,598)                         302,187                                             0             10,956   07/01/2034       1
                      FNCI Pool # 790006
        31405H-U7-1   5.500% 08/01/19          09/01/2011   Paydown                                   40,075        40,075        41,561        41,437                           (1,362)                             (1,362)                             40,075                                          0             1,471    08/01/2019       1
                      FNCL Pool # 793349
        31405M-L6-2   6.000% 08/01/34          09/01/2011   Paydown                                  489,139       489,139       507,918       507,433                        (18,294)                            (18,294)                           489,139                                             0             19,788   08/01/2034       1
                      FNCL Pool # 793340
        31405M-LV-7   5.500% 08/01/34          09/01/2011   Paydown                                  342,427       342,427       352,455       352,170                           (9,743)                             (9,743)                         342,427                                             0             12,350   08/01/2034       1
                      FNCL Pool # 793670
        31405M-W7-8   6.000% 09/01/34          09/01/2011   Paydown                                  956,268       956,268       992,982       992,033                        (35,766)                            (35,766)                           956,268                                             0             37,485   09/01/2034       1
                      FNCL Pool # 796281
        31405Q-UE-6   5.500% 12/01/34          09/01/2011   Paydown                                  374,247       374,247       385,207       384,897                        (10,650)                            (10,650)                           374,247                                             0             14,123   12/01/2034       1
                      FNCL Pool # 799858
        31405U-TP-4   5.000% 11/01/34          09/01/2011   Paydown                                  824,751       824,751       844,100       843,555                        (18,804)                            (18,804)                           824,751                                             0             26,331   11/01/2034       1
                      FNCL Pool # 800665
        31405V-QS-9   6.000% 10/01/34          09/01/2011   Paydown                                  120,439       120,439       125,063       124,944                           (4,505)                             (4,505)                         120,439                                             0             5,081    10/01/2034       1
                      FNCL Pool # 800938
        31405V-ZB-6   5.500% 10/01/34          09/01/2011   Paydown                                  279,200       279,200       287,377       287,145                           (7,945)                             (7,945)                         279,200                                             0             9,886    10/01/2034       1
                      FNCL Pool # 804722
        31406B-AX-8   5.000% 12/01/34          09/01/2011   Paydown                                   22,520        22,520        23,048        23,033                            (513)                               (513)                              22,520                                          0                751   12/01/2034       1
                      FNCL Pool # 806625
        31406D-D6-0   6.000% 12/01/34          09/01/2011   Paydown                                   18,613        18,613        19,328        19,310                            (696)                               (696)                              18,613                                          0                745   12/01/2034       1
                                                                                            STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                  SCHEDULE D - PART 4
                                                                                                               Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
              1                   2               3       4                    5             6             7             8              9            10                         Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                   11              12                  13              14                  15
                                                  F                                                                                                                                                                                                                                                                                                      NAIC
                                                  o                                                                                                                                                                                                                                                                                                     Desig-
                                                  r                                                                                                                                               Current Year’s                                          Book/                                                             Bond                         nation
                                                  e                                                                                               Prior Year    Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
           CUSIP                                  i                                       Number of                                             Book/Adjusted    Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
            Identi-                               g   Disposal                            Shares of                                                Carrying      Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
           fication          Description          n     Date          Name of Purchaser     Stock     Consideration   Par Value     Actual Cost     Value       (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                       FNLB POOL 816593 1.922%
         31406Q-GA-9   02/01/35                       09/01/2011   Paydown                                   12,980        12,980        13,580                                          (600)                               (600)                              12,980                                             0                88    02/01/2035       1
                       FNCL Pool # 821707
         31406V-3Q-7   5.500% 06/01/35                09/01/2011   Paydown                                  187,033       187,033       192,335       192,187                           (5,154)                             (5,154)                         187,033                                                0             5,850    06/01/2035       1
                       FNCL Pool # 822953
         31406X-H6-2   5.500% 02/01/35                09/01/2011   Paydown                                  153,083       153,083       157,566       157,440                           (4,357)                             (4,357)                         153,083                                                0             4,893    02/01/2035       1
                       FNCL Pool # 822962
         31406X-JF-0   5.500% 03/01/35                09/01/2011   Paydown                                  269,100       269,100       276,981       276,759                           (7,660)                             (7,660)                         269,100                                                0             9,828    03/01/2035       1
                       FNCL Pool # 832483
         31407J-2Q-4   5.000% 09/01/35                09/01/2011   Paydown                                  396,316       396,316       405,304       405,052                           (8,736)                             (8,736)                         396,316                                                0             12,841   09/01/2035       1
                       FNARM Pool Pool # 848520
         31408D-VM-3   Hybrid 2.315%                  09/01/2011   Paydown                                   26,628        26,628        27,380        27,360                            (732)                               (732)                              26,628                                             0                414   12/01/2035       1
                       FNCL POOL 870962 6.000%
         31409G-TT-3   11/01/36                       09/01/2011   Paydown                                   58,700        58,700        64,304                                         (5,604)                             (5,604)                             58,700                                             0             1,404    11/01/2036       1
                       FNCL Pool # 887458
         31410E-5T-1   6.500% 09/01/23                09/01/2011   Paydown                                  334,930       334,930       350,832       350,092                        (15,162)                            (15,162)                           334,930                                                0             12,819   09/01/2023       1
                       FNCI POOL 888595 5.000%
         31410G-GC-1   01/01/22                       09/01/2011   Paydown                                   67,207        67,207        72,153                                         (4,946)                             (4,946)                             67,207                                             0             1,109    01/01/2022       1
                       FNCI POOL 889992 5.500%
         31410K-XV-1   06/01/38                       09/01/2011   Paydown                                   81,888        81,888        88,132                                         (6,244)                             (6,244)                             81,888                                             0             1,497    06/01/2038       1
                       FNCL Pool # 892972
         31410P-CH-4   6.000% 09/01/36                09/01/2011   Paydown                                  638,700       638,700       661,225       660,670                        (21,971)                            (21,971)                           638,700                                                0             27,054   09/01/2036       1
                       FNCL Pool # 895327
         31410R-VU-0   6.500% 09/01/36                09/01/2011   Paydown                                  108,131       108,131       113,265       113,145                           (5,014)                             (5,014)                         108,131                                                0             4,685    09/01/2036       1
                       FNCL Pool 929957 6.000%
E05.10




         31412N-E6-9   09/01/38                       09/01/2011   Paydown                                   86,706        86,706        94,645        94,446                           (7,740)                             (7,740)                             86,706                                             0             3,476    09/01/2038       1
                       FNCL Pool 929964 6.000%
         31412N-FD-3   09/01/38                       09/01/2011   Paydown                                   26,950        26,950        29,396        29,335                           (2,385)                             (2,385)                             26,950                                             0             1,126    09/01/2038       1
                       FNCL Pool #931997
         31412Q-NN-5   5.000% 09/01/39                09/01/2011   Paydown                                   54,375        54,375        57,196                                         (2,821)                             (2,821)                             54,375                                             0                976   09/01/2039       1
                       FNCL Pool #932807
         31412R-KU-0   4.000% 09/01/40                09/01/2011   Paydown                                  958,881       958,881       989,071       988,743                        (29,862)                            (29,862)                           958,881                                                0             25,599   09/01/2040       1
                       FNCL Pool # 935537
         31412U-ZA-1   4.500% 08/01/39                08/24/2011   BNP Paribas/NY                         2,390,036     2,261,418     2,339,508     2,337,835                           1,130                               1,130                          2,338,965                         51,071           51,071             71,235   08/01/2039       1
                       FNCL Pool # 935537
         31412U-ZA-1   4.500% 08/01/39                09/01/2011   Paydown                                   65,128        65,128        67,377        67,329                           (2,201)                             (2,201)                             65,128                                             0             10,532   08/01/2039       1
                       FNCL Pool# 937715
         31412X-GY-4   6.000% 06/01/37                09/01/2011   Paydown                                1,296,221     1,296,221     1,423,211     1,419,784                      (123,563)                            (123,563)                          1,296,221                                               0             52,828   06/01/2037       1
                       FNCL POOL 954875 6.000%
         31413T-JU-7   11/01/37                       09/01/2011   Paydown                                   11,069        11,069        12,106                                         (1,038)                             (1,038)                             11,069                                             0                188   11/01/2037       1
                       FNCL Pool# 990520
         31415V-K9-5   5.500% 09/01/38                09/01/2011   Paydown                                1,439,089     1,439,089     1,478,680     1,477,630                        (38,541)                            (38,541)                          1,439,089                                               0             53,126   09/01/2038       1
                       FNCL Pool #995587
         31416B-6Y-9   5.500% 08/01/37                09/01/2011   Paydown                                   33,823        33,823        36,566        36,480                           (2,657)                             (2,657)                             33,823                                             0             1,267    08/01/2037       1
                       FNCL Pool 995228 6.500%
         31416B-SR-0   11/01/38                       09/01/2011   Paydown                                   24,287        24,287        27,194                                         (2,907)                             (2,907)                             24,287                                             0                795   11/01/2038       1
                       FNCL Pool# 995752
         31416C-EZ-5   4.500% 05/01/39                09/01/2011   Paydown                                1,411,275     1,411,275     1,485,587     1,484,211                        (72,936)                            (72,936)                          1,411,275                                               0             42,485   05/01/2039       1
                       FNCL Pool # AA5062
         31416N-TU-6   4.500% 03/01/39                09/01/2011   Paydown                                   25,401        25,401        26,091        26,085                            (685)                               (685)                              25,401                                             0                772   03/01/2039       1
                       FNCL POOL AB1141 4.500%
         31416W-HT-2   06/01/40                       09/01/2011   Paydown                                   14,629        14,629        14,971                                          (343)                               (343)                              14,629                                             0                213   06/01/2040       1
                       FNCL Pool #AB1387
         31416W-RH-7   4.500% 08/01/40                09/01/2011   Paydown                                  817,384       817,384       853,399       852,731                        (35,347)                            (35,347)                           817,384                                                0             24,836   08/01/2040       1
                       FNCI POOL AB1496 3.500%
         31416W-UW-0   09/01/25                       09/19/2011   BNP Paribas/NY                           553,745       529,029       537,130                                          (208)                               (208)                          536,922                          16,823           16,823             5,503    09/01/2025       1
                       FNCI POOL AB1496 3.500%
         31416W-UW-0   09/01/25                       09/01/2011   Paydown                                   20,917        20,917        21,237                                          (320)                               (320)                              20,917                                             0                128   09/01/2025       1
                       FNCI POOL AB2452 4.000%
         31416X-WN-6   03/01/26                       09/01/2011   Paydown                                   26,298        26,298        27,231                                          (933)                               (933)                              26,298                                             0                381   03/01/2026       1
                       FN Pool AC8636 HYB
         31417V-S2-0   3.613% 02/01/40                09/01/2011   Paydown                                1,442,862     1,442,862     1,502,267     1,501,772                        (58,911)                            (58,911)                          1,442,862                                               0             34,909   02/01/2040       1
                                                                                               STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                         SCHEDULE D - PART 4
                                                                                                                   Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
              1                   2                3       4                     5              6             7              8               9             10                           Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                           11              12                  13              14                  15
                                                   F                                                                                                                                                                                                                                                                                                             NAIC
                                                   o                                                                                                                                                                                                                                                                                                            Desig-
                                                   r                                                                                                                                                      Current Year’s                                          Book/                                                             Bond                         nation
                                                   e                                                                                                   Prior Year       Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
           CUSIP                                   i                                         Number of                                               Book/Adjusted       Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
            Identi-                                g   Disposal                              Shares of                                                  Carrying         Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
           fication          Description           n     Date          Name of Purchaser       Stock     Consideration    Par Value      Actual Cost     Value          (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                       FN POOL MA0516 5.000%
         31417Y-SE-8   09/01/40                        09/01/2011   Paydown                                     17,013         17,013         17,893                                             (880)                               (880)                              17,013                                             0                285   09/01/2040       1
                       FNCT Pool # MA0559
         31417Y-TR-8   5.000% 09/01/30                 09/01/2011   Paydown                                       7,308          7,308           7,722                                           (414)                               (414)                              7,308                                              0                210   09/01/2030       1
                       FNCN Pool MA0598 3.500%
         31417Y-UY-1   12/01/20                        09/01/2011   Paydown                                     38,537         38,537         40,247                                            (1,710)                             (1,710)                             38,537                                             0                170   12/01/2020       1
                       FNCT POOL MA0734 4.500%
         31417Y-Y8-4   05/01/31                        09/01/2011   Paydown                                       8,313          8,313           8,727                                           (414)                               (414)                              8,313                                              0                49    05/01/2031       1
                       FN Pool# AD2922 HYB
         31418Q-G8-0   3.577% 04/01/40                 09/01/2011   Paydown                                     40,274         40,274         42,149         42,136                             (1,862)                             (1,862)                             40,274                                             0                972   04/01/2040       1
                       FNCI POOL AD3775 4.500%
         31418R-FR-7   03/01/25                        09/01/2011   Paydown                                     60,138         60,138         63,258                                            (3,120)                             (3,120)                             60,138                                             0             1,209    03/01/2025       1
                       FNCI POOL AD5603 4.000%
         31418T-GM-3   04/01/25                        09/01/2011   Paydown                                     29,760         29,760         30,560                                             (800)                               (800)                              29,760                                             0                358   04/01/2025       1
                       FNCI POOL AD5693 4.500%
         31418T-KF-3   05/01/25                        09/20/2011   BNP Paribas/NY                             510,309        477,832        504,635                                             (286)                               (286)                          504,350                          5,960            5,960              8,183    05/01/2025       1
                       FNCI POOL AD5693 4.500%
         31418T-KF-3   05/01/25                        09/01/2011   Paydown                                     23,055         23,055         24,349                                            (1,293)                             (1,293)                             23,055                                             0                278   05/01/2025       1
                       FNCL POOL AD5833 5.000%
         31418T-PT-8   07/01/40                        09/01/2011   Paydown                                     10,694         10,694         11,261                                             (566)                               (566)                              10,694                                             0                178   07/01/2040       1
                       FNCL Pool #AD8536                            Nomura Securities Intl
         31418W-PW-4   5.000% 08/01/40                 07/12/2011   Inc.                                       470,886        441,499        467,265       466,940                                 227                                 227                          467,167                          3,719            3,719              13,674   08/01/2040       1
                       FNCL Pool #AD8536
         31418W-PW-4   5.000% 08/01/40                 07/01/2011   Paydown                                       5,948          5,948           6,295          6,290                            (343)                               (343)                              5,948                                              0                173   08/01/2040       1
                       FNCI Pool #AE0039
E05.11




         31419A-BH-9   4.000% 05/01/25                 09/01/2011   Paydown                                     72,770         72,770         76,162         45,890                             (3,352)                             (3,352)                             72,770                                             0             1,385    05/01/2025       1
                       FN Pool# AE0209 4.331%
         31419A-GT-8   06/01/20                        09/01/2011   Paydown                                       3,044          3,044           3,223          3,213                            (169)                               (169)                              3,044                                              0                88    06/01/2020       1
                       FNCL POOL AE0411 4.500%
         31419A-N5-2   09/01/40                        09/01/2011   Paydown                                     26,022         26,022         26,400                                             (378)                               (378)                              26,022                                             0                485   09/01/2040       1
                       FNCI POOL AE0704 4.000%
         31419A-YA-9   01/01/26                        09/01/2011   Paydown                                       7,929          7,929           8,143                                           (214)                               (214)                              7,929                                              0                135   01/01/2026       1
                       FN Pool AE0736 HYB
         31419A-ZA-8   3.845% 09/01/39                 09/01/2011   Paydown                                  1,599,780      1,599,780      1,685,019                                         (85,238)                            (85,238)                          1,599,780                                               0             8,809    09/01/2039       1
                       FNCL POOL AE0908 2.500%
         31419B-AJ-4   06/01/34                        09/01/2011   Paydown                                       6,417          6,417           6,755                                           (338)                               (338)                              6,417                                              0                52    06/01/2034       1
                       FNCL Pool #AE3047
         31419D-L5-8   4.500% 09/01/40                 09/01/2011   Paydown                                    756,671        756,671        796,396       795,788                           (39,117)                            (39,117)                           756,671                                                0             21,196   09/01/2040       1
                       FNCI Pool #AE3069
         31419D-MT-5   4.000% 09/01/25                 09/01/2011   Paydown                                  1,462,570      1,462,570      1,539,584      1,538,968                          (76,398)                            (76,398)                          1,462,570                                               0             38,817   09/01/2025       1
                       FNCL POOL AE8927 4.500%
         31419K-4M-4   01/01/41                        09/01/2011   Paydown                                       7,001          7,001           7,136                                           (136)                               (136)                              7,001                                              0                105   01/01/2041       1
                       Florida Water Pollution
         343246-DR-2   Contro FL WTR-A-                09/21/2011   Merrill Lynch                            1,259,685      1,125,000      1,291,331      1,276,009                          (30,933)                            (30,933)                          1,245,076                         14,609           14,609             62,031   07/15/2014      1FE
                       GNMA Series 2006-37 Class
         38374D-AJ-8   JA 5.000% 05                    09/01/2011   Paydown                                  1,141,608      1,141,608      1,173,836      1,144,360                             (2,752)                             (2,752)                        1,141,608                                               0             38,362   05/20/2030       1
                       GNMA Series 2005-93 Class
         38374M-MA-4   AH 5.500% 11                    09/01/2011   Paydown                                    191,587        191,587        201,583       197,187                              (5,600)                             (5,600)                         191,587                                                0             6,851    11/20/2016       1
                       GNMA Series 2005-92 Class
         38374M-VJ-5   AB 5.000% 01                    09/01/2011   Paydown                                    264,291        264,291        273,542       273,221                              (8,930)                             (8,930)                         264,291                                                0             8,556    01/20/2032       1
                       GOV NATL MORTG ASSOC
         38376G-A9-1   SERIES 20116 CLASS              09/01/2011   Paydown                                       3,874          3,874           3,928                                             (54)                                (54)                             3,874                                              0                39    12/16/2037       1
                       Inland Empire,CA Solid
         45735A-AX-2   Waste Amt-Lndfl I               08/01/2011   Maturity                                   665,000        665,000        693,555       672,057                              (7,057)                             (7,057)                         665,000                                                0             41,563   08/01/2011      1FE
                       Jefferson Cnty KY Hlt
         472902-JJ-5   Facs Rev Unrefd Ba              08/24/2011   Call       100.0000                        955,000        955,000        955,076       955,000                                                                      0                           955,000                                                0             43,913   10/01/2017      2FE
                       Maricopa County
         566816-FP-4   Industrial Dev Catholic         07/25/2011   Call       100.0000                      2,000,000      2,000,000      1,888,700      1,901,163                             3,998                               3,998                          1,905,160                         94,840           94,840          106,667     07/01/2021      1FE
                       Massachusetts Port
         575896-HQ-1   Authority MA ST PORT-           07/18/2011   Merrill Lynch                              510,995        500,000        517,775       514,163                              (5,220)                             (5,220)                         508,943                          2,052            2,052              14,125   07/01/2012      1FE
                       Massachusetts St Water
         57604P-UH-5   Polluti Prerefund               08/01/2011   Call       100.0000                      2,795,000      2,795,000      3,039,842      2,854,011                          (59,011)                            (59,011)                          2,795,000                                               0          146,738     02/01/2015      1FE
                                                                                           STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                    SCHEDULE D - PART 4
                                                                                                               Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
              1                 2             3       4                  5                   6            7              8              9              10                             Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                     11                  12                  13              14                  15
                                              F                                                                                                                                                                                                                                                                                                                NAIC
                                              o                                                                                                                                                                                                                                                                                                               Desig-
                                              r                                                                                                                                                         Current Year’s                                          Book/                                                             Bond                         nation
                                              e                                                                                                   Prior Year      Unrealized                             Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
           CUSIP                              i                                          Number of                                              Book/Adjusted      Valuation       Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
            Identi-                           g   Disposal                               Shares of                                                 Carrying        Increase/       (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
           fication          Description      n     Date           Name of Purchaser       Stock     Consideration    Par Value     Actual Cost     Value         (Decrease)         Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                     Michigan State Hospital
         59465H-EC-6 Financ MI HOSP-A              07/13/2011 Conversion                                   506,349        500,000        507,315        506,895                                (547)                               (547)                           506,349                                               0             15,417   12/01/2026      1FE
                     New York St Dorm Auth Lse
         64982P-SV-5 Rev Mun Hlth F                07/15/2011 Maturity                                   1,500,000      1,500,000      1,622,670      1,527,930                            (27,930)                            (27,930)                          1,500,000                                               0             82,500   01/15/2014      1FE
                     Phoenix AZ Str & Hwy User
         718867-LT-9 Rev REF - JR L                07/01/2011 Maturity                                     300,000        300,000        300,102        300,000                                                                        0                           300,000                                               0             18,750   07/01/2011       1
                     Sacramento City Financing
         785846-CT-1 Auth SACRAMENT                07/20/2011 Call        100.0000                         555,000        555,000        481,840        488,466                               2,008                               2,008                            490,474                         64,526           64,526             2,267    07/15/2027      2FE
                     Texas State University                     Siebert Capital Markets -
         88278P-MA-9 Systems TX UNIV-R             09/22/2011 NFSC                                         581,915        500,000        578,110        572,990                               (9,886)                             (9,886)                          563,104                         18,811           18,811             28,125   03/15/2016      1FE
                     Truckee Meadows NV Wtr
         897825-AT-2 Auth SER A 5.50               07/01/2011 Call        100.0000                       3,000,000      3,000,000      3,257,430      3,055,182                            (55,182)                            (55,182)                          3,000,000                                               0          165,000     07/01/2014      1FE
                     Wisconsin HSG & Econ. Dev
         97689P-2P-2 WI HSG-SER C                  09/01/2011 Call        100.0000                       1,240,000      1,240,000      1,032,784      1,038,484                               2,174                               2,174                          1,040,658                      199,342          199,342               62,000   09/01/2036      1FE
           3199999 - Bonds - U.S. Special Revenue and Special Assessment and all Non-Guaranteed
                        Obligations of Agencies and Authorities of Governments and Their Political
                        Subdivisions                                                                    86,603,098     85,659,076     89,171,279     76,225,602                0        (2,301,428)                 0       (2,301,428)                 0       86,071,968            0         531,130          531,130          3,200,222        XXX          XXX
         Bonds - Industrial and Miscellaneous (Unaffiliated)
                     ACE Securities Corp
         00441Y-AC-6 Series 2006-OP2 Clas          09/26/2011 Paydown                                       69,688         69,688         62,480                                              7,208                               7,208                               69,688                                             0                99    08/25/2036      1Z*
                     Countrywide Alternative
         02147F-AS-5 Ln Tr Series 200              09/26/2011 Paydown                                         5,436       157,141           4,445                                                991                                 991                              5,436                                              0                374   07/25/2036      6FE
                     American Home Mortgage
         02660Y-AL-6 Inv Tr SERIES 200             09/26/2011 Paydown                                       15,589         15,589           7,327                                             8,262                               8,262                               15,589                                             0                19    06/25/2046      6FE
E05.12




                     AmeriCredit Automobile
         03064G-AB-7 Rcv Tr Series 201             09/06/2011 Paydown                                      197,324        197,324        197,324        197,324                                                                        0                           197,324                                               0             1,550    02/06/2014      1FE
                     Anheuser-Busch InBev
         03523T-BC-1 Worldwide 0.802%              08/05/2011 Jefferies & Co (JPM-BS)                      502,101        500,000        502,258                                               (257)                               (257)                           502,000                            101              101             2,254    01/27/2014      1FE
                     ATHERTON FRANCHISEE LOAN
         047445-AP-6 FUNDI SERIES 19               09/01/2011 Paydown                                      273,516        273,516        266,678                                              6,838                               6,838                            273,516                                               0             7,443    05/15/2020      4FE
                     Bank of America NA
         060505-CL-6 5.750% 08/15/16               09/01/2011 J.P. Morgan Chase & Co                       669,940        670,000        711,795                                              (2,766)                             (2,766)                          709,029                      (39,089)         (39,089)              21,617   08/15/2016      1FE
                     CIT Equipment Collateral
         12557Y-AC-1 Series 2010-VT1               09/15/2011 Paydown                                       82,387         82,387         83,523                                              (1,136)                             (1,136)                             82,387                                             0             1,321    05/15/2013      1FE
                     CSAB Mortgage Backed
         12629E-AF-2 Trust Series 2007-1           09/01/2011 Paydown                                       13,822         13,822         10,998                                              2,824                               2,824                               13,822                                             0                249   05/25/2037      1Z*
                     Countrywide ABS
         126670-VY-1 Certificates Series 2006      08/25/2011 Paydown                                       29,284         29,284         25,485                                              3,799                               3,799                               29,284                                             0                44    06/25/2036      1Z*
                     Countrywide ABS
         126673-6R-8 Certificates Series 2005      09/26/2011 Paydown                                                                                                                                                                  0                                                                                 0                      01/25/2036      1Z*
                     Countrywide Home Equity
         126673-KR-2 Ln Tst Series 20              09/15/2011 Paydown                                       30,732         30,732         18,639                                              12,094                              12,094                              30,732                                             0                63    02/15/2034      1Z*
                     Countrywide Home Equity
         12668F-AB-0 Ln Tr Series 200              09/15/2011 Paydown                                       26,559         26,559         20,489                                              6,070                               6,070                               26,559                                             0                40    01/15/2037      1Z*
                     Capital One Mult-Asst
         14041N-DA-6 Exec Tr Series 200            08/15/2011 Paydown                                    1,730,000      1,730,000      1,806,161      1,778,794                            (48,794)                            (48,794)                          1,730,000                                               0             59,397   06/16/2014      1FE
                     Carmax Auto Owner Trust
         14313C-AB-2 Series 2010-1 Cl              08/15/2011 Paydown                                      536,264        536,264        536,250        536,260                                    4                                   4                           536,264                                               0             2,776    11/15/2012      1FE
                     Citigroup Inc 8.125%                       Nomura Securities Intl
         172967-EW-7 07/15/39                      07/29/2011 Inc.                                         969,758        750,000        945,390        944,600                               (1,510)                             (1,510)                          943,090                         26,667           26,667             63,984   07/15/2039      1FE
                     CITICORP MORTGAGE
         172973-5L-9 SECURITIES, SERIES 200        09/01/2011 Paydown                                      147,276        147,276        147,276                                                                                       0                           147,276                                               0             1,037    02/25/2016      3FE
                     Credit Suisse Mtg Capital
         2254ER-AA-4 Cert CSMC 2007                09/15/2011 Paydown                                       26,890         26,890         25,814                                              1,076                               1,076                               26,890                                             0                26    02/15/2022      1Z*
                     Countrywide Home Eqty
         23242L-AB-9 Loan Tst Series 20            09/15/2011 Paydown                                       25,844         25,844         20,330                                              5,514                               5,514                               25,844                                             0                38    07/15/2036      1Z*
                     DT Auto Owner Trust
         23336E-AA-4 Series 2011-1A Clas           09/15/2011 Paydown                                      233,151        233,151        233,145                                                   6                                   6                           233,151                                               0             1,164    05/15/2013      1FE
                     DT AUTO OWNER TRUST
         23336J-AA-3 Series 2011-2A Class          09/15/2011 Paydown                                      105,216        105,216        105,213                                                   3                                   3                           105,216                                               0                215   11/15/2012      1FE
                     Dow Chemical Co/The
         260543-BX-0 8.550% 05/15/19               07/20/2011 Morgan Stanley & Co., Inc.                   524,000        400,000        511,460                                              (2,840)                             (2,840)                          508,620                         15,380           15,380             23,750   05/15/2019      2FE
                                                                                                   STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                           SCHEDULE D - PART 4
                                                                                                                      Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
              1                   2                3       4                      5                 6             7             8              9             10                         Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                           11              12                  13              14                  15
                                                   F                                                                                                                                                                                                                                                                                                             NAIC
                                                   o                                                                                                                                                                                                                                                                                                            Desig-
                                                   r                                                                                                                                                      Current Year’s                                          Book/                                                             Bond                         nation
                                                   e                                                                                                     Prior Year     Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
           CUSIP                                   i                                             Number of                                             Book/Adjusted     Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
            Identi-                                g   Disposal                                  Shares of                                                Carrying       Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
           fication          Description           n     Date          Name of Purchaser           Stock     Consideration   Par Value     Actual Cost     Value        (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                       Equity One ABS Inc Series
         294751-BX-9   2003-1 Class M                  09/01/2011   Paydown                                         15,476        15,476        13,154                                          2,321                               2,321                               15,476                                             0                354   07/25/2033      4Z*
                       FDIC Trust Series 2010-R1
         30250R-AA-2   Class 1 2.18                    09/01/2011   Paydown                                        772,479       772,479       772,459       772,445                               34                                  34                           772,479                                                0             10,751   05/25/2050      1FE
                       First Franklin Mtg Loan
         32027N-PD-7   AB Cer Series 20                09/26/2011   Paydown                                        322,318       322,318       320,606       320,807                            1,511                               1,511                           322,318                                                0             1,817    01/25/2035      1Z*
                       First Horizon Alt Mtg Sec
         32051H-AD-5   Series 2006-FA                  09/26/2011   Paydown                                         17,426        23,485        15,447                                          1,979                               1,979                               17,426                                             0                65    07/25/2036      1Z*
                       Ford Credit Auto Lease
         34529D-AC-6   Trust Series 2009               08/15/2011   Paydown                                        157,493       157,493       160,422       159,137                            (1,644)                             (1,644)                         157,493                                                0             3,600    01/15/2014      1FE
                       GE Business Loan Trust
         36159G-AN-7   Series 2004-1 Cla               09/15/2011   Paydown                                         16,270        16,270        13,027                                          3,244                               3,244                               16,270                                             0                66    05/15/2032      1FE
                       GE Business Loan Trust
         36159G-BV-8   Series 2005-2A Cl               09/15/2011   Paydown                                         14,283        14,283           9,600                                        4,682                               4,682                               14,283                                             0                44    11/15/2033      1FE
                       Health Care Properties                       Salomon SmBarney
         40414L-AD-1   5.375% 02/01/21                 08/03/2011   (Citigroup)                                    965,070       900,000       895,311                                             206                                 206                          895,517                          69,553           69,553             26,069   02/01/2021      2FE
                       Home Equity Loan Trust
         43710X-AB-4   Series 2007-FRE1                09/26/2011   Paydown                                         35,127        35,127        26,845                                          8,282                               8,282                               35,127                                             0                54    04/25/2037      1Z*
                       Illinois Hsg Dev Auth
         45201Y-QU-4   Homeowne Homeowner              08/01/2011   Call      100.0000                              40,000        40,000        33,321         33,506                              62                                  62                               33,567                       6,433            6,433              2,000    08/01/2036      1FE
                       Jefferson County Series
         55263G-AA-8   1998-A 6.348%                   09/15/2011   Paydown                                         22,499        22,499        22,668         22,671                            (172)                               (172)                              22,499                                             0                626   09/15/2012       6
                       MBIA CC - T.E. Grantor
         55263G-AT-7   Trust Series 2000               09/15/2011   Paydown                                         20,891        20,891        21,048         21,051                            (159)                               (159)                              20,891                                             0                876   08/15/2012       6
                       Hawaii Health #31, #35
E05.13




         55263G-CM-0   Series 2001-D 6                 09/15/2011   Paydown                                         37,671        37,671        37,953         37,958                            (288)                               (288)                              37,671                                             0                201   01/15/2012       6
                       Hawaii Health #37 Series
         55263G-CS-7   2001-F 6.250%                   09/15/2011   Paydown                                        175,571       175,571       176,887       176,916                            (1,346)                             (1,346)                         175,571                                                0             7,043    01/15/2015       6
                       MBIA CC - T.E. Grantor
         55263G-DA-5   Trust Series 2002               09/15/2011   Paydown                                        267,177       267,177       269,181       269,219                            (2,042)                             (2,042)                         267,177                                                0             13,465   01/15/2016       6
                       Savannah GA Eco Dev Auth
         55263G-DD-9   Rev Series 2002                 09/15/2011   Paydown                                        299,745       299,745       301,993       302,033                            (2,288)                             (2,288)                         299,745                                                0             9,845    09/15/2017       6
                       Syracuse Series 2002-H
         55263G-DE-7   5.129% 07/15/15                 07/15/2011   Paydown                                        180,240       180,240       181,592       181,616                            (1,376)                             (1,376)                         180,240                                                0             6,633    07/15/2015       6
                       Hawaii Health- Real
         55263G-DG-2   Estate Series 2002-I            09/15/2011   Paydown                                         52,496        52,496        52,890         52,898                            (402)                               (402)                              52,496                                             0             1,641    11/15/2012       6
                       MBIA CC - T.E. Grantor
         55263G-DL-1   Trust Series 2003               09/15/2011   Paydown                                        253,306       253,306       255,206       255,243                            (1,937)                             (1,937)                         253,306                                                0             10,258   01/15/2018       6
                       Hawaii Health-Maui Cardio
         55263G-DM-9   Series 2003-D                   09/15/2011   Paydown                                         81,532        81,532        82,143         82,156                            (624)                               (624)                              81,532                                             0             3,050    03/15/2013       6
                       MBNA America Bank NA
         5526E2-AC-3   Notes 7.125% 11/1               08/02/2011   KeyBank                                      1,065,930     1,000,000     1,100,100      1,086,594                        (27,098)                            (27,098)                          1,059,496                         6,434            6,434              51,458   11/15/2012      1FE
                       Massachusetts Housing
         575930-V8-2   Finance AMT-Rental              07/01/2011   Call      100.0000                             365,000       365,000       340,293       341,963                               470                                 470                          342,433                          22,567           22,567             18,798   07/01/2026      1FE
                       MBIA CC - T.E. Grantor
         578875-AA-4   Trust Series 2003               09/15/2011   Paydown                                         58,173        58,173        58,610         58,618                            (444)                               (444)                              58,173                                             0             1,568    05/16/2018       6
                       MBIA CC - T.E. Grantor
         578875-AB-2   Trust Series 2003               09/15/2011   Paydown                                         73,098        73,098        73,647         73,657                            (559)                               (559)                              73,098                                             0             2,224    10/15/2013       6
                       Hawaii Health Series
         578875-AD-8   2004-A 6.873% 06/               09/15/2011   Paydown                                         58,291        58,291        58,728         58,739                            (448)                               (448)                              58,291                                             0             2,074    06/15/2014       6
                       Merrill Lynch Floating
         59023U-AC-6   Trust Series 2006               09/15/2011   Paydown                                        478,320       478,320       464,470                                          13,850                              13,850                          478,320                                                0                689   06/15/2022      1Z*
                       Merrill Lynch Mtge
         59024E-AC-1   Investors Series 2007           09/26/2011   Paydown                                         16,741        16,741           6,471                                        10,270                              10,270                              16,741                                             0                28    02/25/2037      1Z*
                       Microsoft Corp 5.300%
         594918-AM-6   02/08/41                        07/29/2011   Wells Fargo                                    330,210       300,000       297,462                                             17                                  17                           297,479                          32,731           32,731             7,729    02/08/2041      1FE
                       Morgan Stanley 5.500%
         617446-7P-8   07/24/20                        07/29/2011   Morgan Stanley & Co., Inc.                     769,913       750,000       757,830       757,657                             (362)                               (362)                          757,295                          12,617           12,617             42,052   07/24/2020      1FE
                       Morgan Stanley Capital I
         61745M-4T-7   SERIES 20053AR                  09/01/2011   Paydown                                         45,402        45,402        40,295                                          5,108                               5,108                               45,402                                             0                240   07/25/2035      1Z*
                       Morgan Stanley 6.000%
         61747Y-CF-0   05/13/14                        08/19/2011   Morgan Stanley & Co., Inc.                     525,490       500,000       546,425                                          (4,740)                             (4,740)                         541,685                       (16,195)         (16,195)              23,417   05/13/2014      1FE
                                                                                                   STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                              SCHEDULE D - PART 4
                                                                                                                       Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
              1                   2                3       4                       5                6             7              8                9              10                         Change in Book/Adjusted Carrying Value                                     16             17            18                19                  20               21           22

                                                                                                                                                                               11              12                  13              14                  15
                                                   F                                                                                                                                                                                                                                                                                                                   NAIC
                                                   o                                                                                                                                                                                                                                                                                                                  Desig-
                                                   r                                                                                                                                                          Current Year’s                                          Book/                                                               Bond                         nation
                                                   e                                                                                                        Prior Year      Unrealized                         Other Than                         Total Foreign     Adjusted        Foreign                                          Interest/Stock                      or
           CUSIP                                   i                                             Number of                                                Book/Adjusted      Valuation   Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain       Total Gain          Dividends                      Market
            Identi-                                g   Disposal                                  Shares of                                                   Carrying        Increase/   (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on         (Loss) on           Received         Maturity     Indicator
           fication          Description           n     Date          Name of Purchaser           Stock     Consideration    Par Value       Actual Cost     Value         (Decrease)     Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal          Disposal          During Year        Date           (a)
                       Morgan Stanley ABS
         61749B-AD-5   Capital I Series 2006           07/25/2011   Paydown                                         15,516         15,516           13,519                                          1,997                               1,997                               15,516                                              0                 17    10/25/2036      1Z*
                       Morgan Stanley ABS
         61749B-AD-5   Capital I Series 2006           09/26/2011   Paydown                                         44,618         44,618           38,875                                          5,743                               5,743                               44,618                                              0                 68    10/25/2036      1Z*
                       Morgan Stanley Mortgage
         61751G-AB-3   Ln Trt Series 20                09/26/2011   Paydown                                         34,163         34,163           15,808                                          18,355                              18,355                              34,163                                              0                 44    02/25/2037      1Z*
                       Morgan Stanley Capital I
         61756L-AA-9   Series 2007-XLF                 09/15/2011   Paydown                                         14,740         14,740           14,150                                             590                                 590                              14,740                                              0                 44    12/15/2020      1Z*
                       NCUA Guaranteed Notes
         62888V-AB-4   Series 2010-R1 Cla              08/30/2011   Barclays Capital                             2,959,808      2,921,463        2,921,200      2,921,201                                3                                   3                         2,921,205                         38,603            38,603              40,018   10/07/2020      1FE
                       NCUA Guaranteed Notes
         62888V-AB-4   Series 2010-R1 Cla              08/04/2011   Paydown                                        220,456        220,456          220,436        220,436                              20                                  20                            220,456                                                0              2,531    10/07/2020      1FE
                       NCUA Guaranteed Notes
         62888X-AB-0   Series 2010-C1 Cla              08/30/2011   Barclays Capital                             2,295,052      2,190,000        2,184,416      2,184,501                              421                                 421                         2,184,922                      110,130           110,130                42,869   10/29/2020      1FE
                       NCUA Guaranteed Notes
         62889D-AA-5   Series 2011-C1 Cla              09/28/2011   Paydown                                        118,942        118,942          118,942                                                                                   0                           118,942                                                0                 314   02/28/2020      1FE
                       NCUA Guaranteed Notes
         62889E-AA-3   SERIES 2011R3 CLAS              09/11/2011   Paydown                                           7,747          7,747            7,747                                                                                  0                              7,747                                               0                 22    03/11/2020      1FE
                       NCUA Guaranteed Notes
         62889F-AA-0   SERIES 2011R4 CLAS              09/07/2011   Paydown                                        105,615        105,615          105,615                                                                                   0                           105,615                                                0                 220   03/06/2020      1FE
                       NCUA Guaranteed Notes
         62889G-AA-8   SERIES 2011R5 CLAS              09/07/2011   Paydown                                         50,922         50,922           50,922                                                                                   0                              50,922                                              0                 92    04/06/2020      1FE
                       New Century Home Equity
         64352V-MN-8   Ln Tr SERIES 200                09/01/2011   Paydown                                         14,837         14,837           14,151                                             686                                 686                              14,837                                              0                 309   08/25/2035      1Z*
                       Oncor Electric Delivery
E05.14




         68233J-AG-9   Co LLC 5.250%                   05/31/2011   Conversion                                     992,748      1,000,000          992,640        992,686                              62                                  62                            992,748                                                0              37,479   09/30/2040      2FE
                       Pride International Inc                      Salomon SmBarney
         74153Q-AH-5   6.875% 08/15/2                  07/20/2011   (Citigroup)                                    558,149        470,000          551,813                                           (662)                               (662)                           551,151                         6,997             6,997               14,361   08/15/2020      2FE
                       Reliance Holdings USA Inc
         759468-AA-9   4.500% 10/19                    07/29/2011   Greenwich Capital-RBS                          485,680        500,000          474,500                                             578                                 578                           475,078                         10,602            10,602              6,500    10/19/2020      2FE
                       Residential Accredit
         761118-AG-3   Loans Inc Series 20             09/26/2011   Paydown                                              9                9              1                                               8                                   8                                   9                                              0                       06/25/2035      6FE
                       Resi Funding Mtge Sec II
         76113J-AA-0   Series 2006-HSA                 09/25/2011   Paydown                                         43,751         43,751           32,859                                          10,892                              10,892                              43,751                                              0                 55    05/25/2036      1Z*
                       SLM Student Loan Trust
         78445P-AA-1   Series 2010-BA Cl               09/15/2011   Paydown                                         44,173         44,173           44,173         44,173                                                                    0                              44,173                                              0                 618   07/15/2016      1FE
                       SANTANDER DRIVE AUTO
         80282F-AC-1   RECEIVABL SERIES 20             09/15/2011   Paydown                                        206,621        206,621          207,331                                           (710)                               (710)                           206,621                                                0                 946   08/15/2013      1FE
                       SANTANDER DRIVE AUTO
         80282N-AA-8   RECEIVABL SERIES 20             09/15/2011   Paydown                                        110,526        110,526          110,525                                               1                                   1                           110,526                                                0                 571   06/15/2017      1FE
                       Schering-Plough Corp
         806605-AE-1   5.300% 12/01/13                 08/16/2011   Cantor, Fitzgerald & Co.                     1,099,520      1,000,000        1,130,610      1,117,650                        (25,212)                            (25,212)                          1,092,438                         7,082             7,082               37,983   12/01/2013      1FE
                       Sonic Capital LLC Series
         83546D-AA-6   2011-1A Class A                 09/20/2011   Paydown                                           4,313          4,313            4,313                                                                                  0                              4,313                                               0                 59    05/20/2041      3FE
                       Soundview Home Equity Ln
         83611P-AJ-0   Tst Series 2001                 09/01/2011   Paydown                                           3,761          3,761            3,749                                            12                                  12                               3,761                                               0                 85    04/15/2031      1Z*
                       TAL ADVANTAGE LLC SERIES
         872162-AH-5   20112A CLASS A                  09/20/2011   Paydown                                         21,425         21,425           21,425                                                                                   0                              21,425                                              0                 256   05/20/2026      1FE
                       Tobacco Settlement
         88880T-BG-0   Financing A Asset Bkd           07/22/2011   Call         100.0000                        2,000,000      2,000,000        2,034,780      2,000,000                                                                    0                         2,000,000                                                0              70,583   06/01/2016      1FE
                       Tobacco Settlement
         88880T-BL-9   Financing A Asst Bkd            08/23/2011   Conversion                                   6,794,410      6,750,000        6,928,538      6,830,391                        (35,982)                            (35,982)                          6,794,410                                                0           270,188     06/01/2018      1FE
                       Tobacco Settlement
         88880T-FX-9   Financing A Ser G1              07/22/2011   Call         100.0000                        6,145,000      6,145,000        6,144,877      6,145,228                              (50)                                (50)                        6,145,178                          (178)             (178)           207,010     06/01/2013      1FE
                       Tobacco Settlement
         88880T-GB-6   Financing A Series C-           07/22/2011   Call         100.0000                       15,000,000     15,000,000       15,455,550     15,086,151                        (86,151)                            (86,151)                         15,000,000                                                0           529,375     06/01/2016      1FE
                       Tobacco Settlement
         88880T-GD-2   Financing A Series C-           07/22/2011   Call      100.0000                          10,940,000     10,940,000       11,200,263     10,989,387                        (49,387)                            (49,387)                         10,940,000                                                0           386,091     06/01/2017      1FE
                       Travelers Cos Inc/The                        Banc of America Securities
         89417E-AH-2   5.350% 11/01/40                 07/29/2011   LLC                                            247,353        250,000          248,448        248,451                              13                                  13                            248,464                         (1,111)           (1,111)             10,106   11/01/2040      1FE
                       Washington Mutual Serie
         92922F-5U-8   2005-AR15 Class                 09/26/2011   Paydown                                         13,179         13,179           10,597                                          2,582                               2,582                               13,179                                              0                 29    11/25/2045      1Z*
                                                                                                 STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                                                                                                                                   SCHEDULE D - PART 4
                                                                                                                       Show All Long-Term Bonds and Stock Sold, Redeemed or Otherwise Disposed of During the Current Quarter
               1                  2             3        4                    5                   6               7              8                     9               10                             Change in Book/Adjusted Carrying Value                                     16             17            18               19                 20               21           22

                                                                                                                                                                                     11                  12                  13              14                  15
                                                F                                                                                                                                                                                                                                                                                                                              NAIC
                                                o                                                                                                                                                                                                                                                                                                                             Desig-
                                                r                                                                                                                                                                       Current Year’s                                          Book/                                                             Bond                         nation
                                                e                                                                                                                Prior Year       Unrealized                             Other Than                         Total Foreign     Adjusted        Foreign                                        Interest/Stock                      or
            CUSIP                               i                                              Number of                                                       Book/Adjusted       Valuation       Current Year’s        Temporary     Total Change in       Exchange       Carrying Value Exchange Gain Realized Gain      Total Gain         Dividends                      Market
             Identi-                            g    Disposal                                  Shares of                                                          Carrying         Increase/       (Amortization)/       Impairment       B./A.C.V.          Change in            at         (Loss) on     (Loss) on        (Loss) on          Received         Maturity     Indicator
            fication         Description        n      Date          Name of Purchaser           Stock       Consideration    Par Value            Actual Cost     Value          (Decrease)         Accretion           Recognized      (11+12-13)           B./A.C.V.     Disposal Date     Disposal      Disposal         Disposal         During Year        Date           (a)
                      Western Corporate Federal
         95806A-AB-9 Cred US Govt G                  08/08/2011 Morgan Stanley & Co., Inc.                         915,363        900,000               916,477                                               (2,722)                             (2,722)                          913,755                         1,608            1,608              9,844    11/02/2012      1FE
                      ARTS LTD SERIES 2005CA
         00971V-AC-0 CLASS C 0.597%             F 09/15/2011 Redemption            100.0000                        138,938        138,938               136,298                                               2,640                               2,640                            138,938                                               0                375   06/15/2012      2FE
                      BP Capital Markets Plc
         05565Q-BN-7 3.125% 10/01/15            F 08/16/2011 Greenwich Capital-RBS                                 526,900        500,000               498,580         498,646                                  169                                 169                           498,815                         28,085           28,085             13,802   10/01/2015      1FE
                      CREDIT SUISSE GUERNSEY                      Credit Suisse First Boston
         225448-AH-2 BASIC 2.600% 05            F 08/16/2011 LLC                                                   519,200        500,000               502,030                                                  (69)                                (69)                          501,961                         17,239           17,239             2,961    05/27/2016      1FE
                      Genesis Funding Ltd
         37184V-AA-9 Series 2006-1A Class       F 09/19/2011 Paydown                                                  3,704           3,704                3,284                                                 420                                 420                              3,704                                              0                  7   12/19/2032      1FE
                      Kildare Securities Ltd
         493897-AB-8 Series 2007-1A Cl          F 09/12/2011 Paydown                                                65,952            65,952             60,016                                               5,936                               5,936                               65,952                                             0                116   12/10/2043      1FE
                      Nomura CRE CDO LTD Series
         65537H-AA-5 2007-2A Class              F 08/22/2011 Paydown                                                  2,625           2,625                2,048                                                 578                                 578                              2,625                                              0                  7   05/21/2042      1FE
                      Nordea Bank AB 4.875%                       Salomon SmBarney
         65557C-AD-5 01/14/21                   F 07/29/2011 (Citigroup)                                           520,225        500,000               497,615                                                  104                                 104                           497,719                         22,506           22,506             13,474   01/14/2021      1FE
                      Olympic CLO LTD OLYMP
         68158X-AC-8 2004-14 A1LB 1.0           F 08/15/2011 Paydown                                               134,422        134,422               123,893                                               10,529                              10,529                           134,422                                               0                701   05/15/2016      1FE
                      SCL Term Aereo Santiago
         784010-AA-8 144A 6.950% 07             R 07/01/2011 Redemption            100.0000                        200,358        200,358               215,537         203,385           2,531               (5,559)                             (3,028)                          200,358                                               0             13,925   01/01/2012      3FE
                      Sanofi-Aventis BASIC
         80105N-AC-9 0.673% 03/28/14            F 07/12/2011 Mizuho Secs USA Inc.                                  231,138        230,000               230,000                                                                                        0                           230,000                         1,138            1,138                 416   03/28/2014      1FE
                      Santander Drive Auto Rec
         80282D-AB-8 Trust Series 20            F 09/15/2011 Paydown                                               398,840        398,840               400,476         399,369                                (529)                               (529)                           398,840                                               0             3,623    03/15/2013      1FE
                      Sinochem Overseas Capital
E05.15




         82937A-AB-9 Co L 6.300%                F 07/13/2011 UBS Warburg LLC                                     1,018,500      1,000,000               995,190         995,198                                  31                                  31                            995,228                         23,272           23,272             43,050   11/12/2040      2FE
                      State Bank of
                      India/London 4.500%
         85628U-AA-4 07/2                       F 07/29/2011 Deutsche Bank                                         904,939        870,000               896,535                                               (1,534)                             (1,534)                          895,001                         9,938            9,938              20,228   07/27/2015      2FE
                      WILLIS GROUP HOLDINGS LT                    Salomon SmBarney
         97063P-AB-0 5.750% 03/15/              F 07/29/2011 (Citigroup)                                           519,155        500,000               495,475                                               127                                  127                             495,602                       23,554           23,554             10,861     03/15/2021      2FE
           3899999 - Bonds - Industrial and Miscellaneous (Unaffiliated)                                        70,441,708     69,540,383            70,924,791      59,398,715           2,531          (142,577)                  0         (140,046)                 0       70,005,042            0         436,664          436,664          2,228,428         XXX         XXX
         Bonds - Hybrid Securities
                      MetLife Inc Reset on
         59156R-AP-3 12/36 to FLT 6.40               07/13/2011 Goldman Sachs                                      490,000        500,000               462,500         462,749                                287                                 287                             463,036                       26,964           26,964             18,933     12/15/2036      2FE
           4899999 - Bonds - Hybrid Securities                                                                     490,000        500,000               462,500         462,749               0                287                  0              287                  0          463,036            0          26,964           26,964             18,933         XXX         XXX
           8399997 - Subtotals - Bonds - Part 4                                                                299,523,534    290,609,764           299,128,592     154,543,669           2,531         (3,149,879)                 0       (3,147,348)                 0      294,219,597            0       5,303,935        5,303,935          7,046,554         XXX         XXX
           8399999 - Subtotals - Bonds                                                                         299,523,534    290,609,764           299,128,592     154,543,669           2,531         (3,149,879)                 0       (3,147,348)                 0      294,219,597            0       5,303,935        5,303,935          7,046,554         XXX         XXX
         Preferred Stocks - Industrial and Miscellaneous (Unaffiliated)
                      Wells Fargo Capital PFD
         949801-AA-2 PERP XV Fi 9.75%                07/21/2011 Wachovia-Wells Fargo Sec       500,000.000         531,875                              549,000                                                                                       0                           549,000                      (17,125)          (17,125)            16,250        XXX         P1LFE
           8499999 - Preferred Stocks - Industrial and Miscellaneous (Unaffiliated)                                531,875      XXX                     549,000               0                0                  0                 0                 0                 0         549,000             0        (17,125)          (17,125)            16,250        XXX          XXX
           8999997 - Total - Preferred Stocks - Part 4                                                             531,875      XXX                     549,000               0                0                  0                 0                 0                 0         549,000             0        (17,125)          (17,125)            16,250        XXX          XXX
           8999999 - Subtotals - Preferred Stocks                                                                  531,875      XXX                     549,000               0                0                  0                 0                 0                 0         549,000             0        (17,125)          (17,125)            16,250        XXX          XXX
           9899999 - Subtotals - Preferred and Common Stocks                                                       531,875      XXX                     549,000               0                0                  0                 0                 0                 0         549,000             0        (17,125)          (17,125)            16,250        XXX          XXX




            9999999 Totals                                                                                 300,055,409          XXX                 299,677,592     154,543,669           2,531         (3,149,879)                 0       (3,147,348)                 0      294,768,597            0       5,286,810        5,286,810          7,062,804        XXX          XXX
         (a) For all common stock bearing the NAIC market indicator "U" provide: the number of such issues                                     .
STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation




                         Schedule DB - Part A - Section 1

                                    NONE
                         Schedule DB - Part B - Section 1

                                    NONE
                               Schedule DB - Part D

                                    NONE
                               Schedule DL - Part 1

                                    NONE
                               Schedule DL - Part 2

                                    NONE




                             E06, E07, E08, E09, E10
            STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation


                                                    SCHEDULE E - PART 1 - CASH
                                                                     Month End Depository Balances
                                   1                                 2       3           4                   5                  Book Balance at End of Each              9
                                                                                                                                Month During Current Quarter
                                                                                         Amount of       Amount of            6               7              8
                                                                                          Interest        Interest
                                                                                         Received        Accrued at
                                                                             Rate          During         Current
                                                                              of          Current        Statement
                            Depository                              Code   Interest       Quarter           Date          First Month     Second Month     Third Month   *
 Open Depositories
J P Morgan Chase                          New York, NY                        0.270                  0                0     147,989,458       97,579,411     65,382,310 XXX
 0199998    Deposits in                      depositories that do
            not exceed the allowable limit in any one depository
            (See Instructions) - Open Depositories                   XXX     XXX                                                                                        XXX
 0199999 Total Open Depositories                                     XXX     XXX                     0                0     147,989,458       97,579,411     65,382,310 XXX




0399999 Total Cash on Deposit                                        XXX     XXX                     0                0     147,989,458       97,579,411     65,382,310 XXX
0499999 Cash in Company’s Office                                     XXX     XXX            XXX             XXX                                                         XXX
0599999 Total                                                        XXX     XXX                     0                0     147,989,458       97,579,411     65,382,310 XXX




                                                                                   E11
                                                     STATEMENT AS OF SEPTEMBER 30, 2011 OF THE National Public Finance Guarantee Corporation

                                                               SCHEDULE E - PART 2 - CASH EQUIVALENTS
                                                                                     Show Investments Owned End of Current Quarter
                                            1                     2          3                       4                            5             6                    7                        8
                                                                           Date                  Rate of                      Maturity   Book/Adjusted        Amount of Interest       Amount Received
                                       Description               Code     Acquired               Interest                       Date     Carrying Value        Due & Accrued             During Year
E12




      8699999 Total Cash Equivalents                                                                                                                      0                        0                     0

								
To top