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Iolated and as a result the ISO will be in default under the Reimbursement Agreement VIII (Defaults and Remedies), Section 8.1c (Events of Default). The banks s will restrict access to the proceeds of the bond issuance, impose large increase penalties, force early retirement of disbursed funds in 1999 and require that funds not disbursed be 2 used to collateralize the Letter of Credit and to redeem issued bonds.2 Any of these results will substantially increase the ISO costs of operatin.

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