Defense Articles

Group 1

–$118,991,134 classes I-A-1 - I-A-3, I-X, I-PO, I-R-1 and I-R-2 senior certificates ‘AAA’;

–$725,555 class I-B-1 ‘AA’;

–$544,166 class I-B-2 ‘A’;

–$241,851 class I-B-3 ‘BBB’;

–$120,925 privately offered class I-B-4 ‘BB’;

–$120,925 privately offered class I-B-5 ‘B’.

The ‘AAA’ rating on the Group 1 senior certificates reflects the 1.60% subordination provided by the .60% class I-B-1, 0.45% class I-B-2, 0.20% class I-B-3, 0.10% class I-B-4, 0.10% class I-B-5 and 0.15% class I-B-6 (not rated by Fitch). Classes I-B-1, I-B-2, I-B-3, I-B-4 and I-B-5 are rated ‘AA’, ‘A’, ‘BBB’, ‘BB’ and ‘B’ based on their respective subordination only.

fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures and the primary servicing capabilities of Wells Fargo Bank N.A. (rated ‘RPS1′ by Fitch).

The Group 1 mortgage loans consists of 15-year fixed-rate mortgage loans totaling $120,925,951, as of the cut-off date (June 1, 2005), secured by first liens on one- to four-family residential properties. The mortgage pool demonstrates an approximate weighted-average loan-to-value ratio (OLTV) of 61.8%. The weighted average FICO credit score is approximately 750. Cash-out refinance loans represent 32.23% of the mortgage pool and second homes 14.2%. The average loan balance is $544,711. The three states that represent the largest portion of mortgage loans are California (29.61%), New York (13.74%) and Florida (4.92%).

None of the mortgage loans are ‘high cost’ loans as defined under any local, state or federal laws. For additional information on Fitch’s rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled ‘Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation’, available on the Fitch Ratings web site at www.fitchratings.com.

SAMI deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, an election will be made to treat the trust as three separate real estate mortgage investment conduits (REMICs). U.S. Bank National Association will act as trustee.

The bonds are scheduled for competitive sale on or about Aug. 4, 2005. Oppenheimer & Co. and Valdes & Moreno, Inc. are serving as co-financial advisors. The bonds are special obligations of the city, backed by lease rental payments from American Airlines (American; senior unsecured debt rated ‘CCC+’ by Fitch) under a lease agreement, sales tax revenues from the Kansas City International Airport Community Improvement District (CID, a special taxing district that encompasses the airport), and city revenues (including revenues in the airport extension and bond retirement account), which are subject to appropriation by the city council. The airline rental payments and pledged sales tax revenues are expected to sufficiently meet debt service, but the City of Kansas City may use other available revenues for such purpose. Proceeds of the bonds will finance improvements to the maintenance base leased by American at Kansas City International Airport (MCI, or the airport). While Kansas City has a number of revenue sources to meet its lease commitments, the city will benefit from revenues received from project development.

Kansas City’s ‘AAA’ general obligation rating is based on the city’s diverse economic and tax revenue structure, consistently strong financial performance, moderate debt levels, and excellent financial control systems. The city has achieved a record of steady financial improvement through strong management practices as it endeavored to respond to downtown and neighborhood public infrastructure needs. Increased internal funding of capital projects has limited the growth of tax-supported debt, which remains moderate. Labor relations are strong and future personnel costs are expected to be within normal budget constraints. Although a weaker economy has forced the city administration to significantly reduce budgetary spending and personnel levels, the city’s financial position is expected to remain stable.

The ‘AA’ rating for this transaction reflects the city’s pledge to appropriate city revenues as the ultimate source of repayment should lease and sales tax revenues prove insufficient to meet debt service requirements. American’s lease for certain facilities at the maintenance complex runs through 2029, with annual lease payments ranging from $1 million to $1.25 million. These lease payments may increase should American fail to maintain a minimum employment level of 700 at the maintenance base as agreed upon by the airline and the city. Also, as a lease of real property, the lease would be subject to assumption or rejection should American ever file for protection under Chapter 11 of the U.S. Bankruptcy Code. The city estimates that the CID will generate approximately $1.1 million in sales tax revenue annually, which combined with the lease revenue, provides approximately 1.1 times (x) coverage of annual debt service on the bonds.

Kansas City, with a population of 444,293, is located at the joining of the Kansas and Missouri rivers and is the central part of a growing metropolitan area. The city includes portions of Jackson, Clay, Platte, and Cass counties, and has per capita personal income equal to 4% above the state average and 4% below the national average. Its economic growth tends to follow national patterns, reflecting an industrial mix similar the nation’s. Services account for the largest economic sector (31%), followed by financial services (12%), transportation and utilities (10%), and retail trade (8%). Leading industries include health care, communications, and financial services. Government (15%) is sizable and a stabilizing influence on growth.

The city’s residential employment base has grown 1.1% since 1990 as the labor force expanded 1.2%. Although city unemployment rates declined to a low point of 3.9% in 1999, from the previous peak of 7.3% in 1991, rates gradually increased to 7.7% in May 2005. These rates have tended to be slightly below the national averages, but are about a half-percentage point above the metropolitan and state rates through the period.

Kansas City produced surpluses in its governmental funds for seven of the last 10 fiscal years (April 30 year-end) through the combination of steady economic growth, diverse tax revenue streams, and spending restraints imposed by Hancock Amendment levy limits and statutory balanced-budget mandates. While property values have grown 4.0% annually over the last decade, property taxes make up just 12% of governmental revenues, compared to 21% for earnings and profits taxes and 17% for sales taxes. Although the city experienced small shortfalls in fiscal 2002 and 2003 (partly due to $25 million in extraordinary weather damages), consolidated results in fiscal 2004 were in surplus. Fund balance reserves in the government accounts (general, special revenue, and debt service funds) grew to $207.9 million in fiscal 2004 (27.0% of spending and transfers), from $122.6 million in fiscal 1995 (24.3%). Unreserved balances grew to $122.3 million in fiscal 2004 (15.9%), from $43.8 million (8.7%) in fiscal 1995. City enterprise funds — water, sewer and airport funds — are profitable and consistently meet debt coverage tests. Fiscal 2005 general fund results are expected to yield a small surplus through programmatic cuts, less capital outlays, and personnel reductions.

How many different semi-auto pistol designs have been produced since the origin of the breed? Doubtless the number would stagger the imagination. When the prize project of some hopeful inventor is warily floated on the world market, often as not it slips beneath the waves in short order. It’s a rare design that stands the test of time.

Without question one of the most successful autoloading pistol designs of all time is the Browning Hi-Power. Produced by Fabrique Nationale Herstal in Belgium, today’s Hi-Power shares all the good traits of the original design yet incorporates the upgrades modern shooters demand.

So what’s new? The thumb safety is ambidextrous, larger than earlier versions and more easily manipulated. The redesigned hammer spur is far less likely to pinch the shooter’s hand, and the current 10-round magazines feature a spring to smoothly eject them at a touch of the magazine release.

One recent addition that can’t be seen externally is the positive firing pin safety. The firing pin is absolutely secured against movement until you release it by pressing the trigger. Combined with the Hi-Powers magazine disconnect which deactivates the trigger when the magazine is removed, this is an exceptionally safe pistol.

What’s not new? Everything savvy shooters have loved about the Hi-Power since 1935–excellent accuracy, outstanding reliability, easy takedown for cleaning and human engineering that makes this perhaps the sweetest shooting 9mm pistol ever designed.

This particular version of the Hi-Power features a rust-resistant silver chrome finish, hand-filling Pachmayr stocks with Browning medallions and big, bold adjustable sights. Furnished with two magazines in a lockable hard case, the FN/Browning Hi-Power is an all-time classic that has never lost its appeal.

The ‘BBB’ rating reflects the sound project area characteristics including an established and rapidly growing tax base, the project area’s steady growth in incremental tax value, and good legal provisions. Debt service coverage is good, based on current tax increment and prospects for continued growth are good. Historical project area tax base growth has been strong and will likely continue given substantial open space available for development and the region’s overall healthy and growing economy. Offsetting credit factors include above average but declining concentration of top taxpayers and in particular the top taxpayer. The top 10 taxpayer concentration has declined to 40% of incremental value in fiscal 2005 from 59% in fiscal 2002. The top taxpayer’s share of incremental value declined to 8% from 27% over the same period.

Rocklin is located approximately 20 miles northeast of Sacramento in Placer County with an estimated population of just over 50,000. The city has served as a bedroom community for nearby labor markets due to its proximity to Interstate 80, but the city has a small and growing, diverse labor base of its own. The project area is large, encompassing 1,652 acres or nearly 17% of the entire city and consists of a good mix of commercial/retail, industrial, residential, and public land uses. The project area, established in 1986, originally encompassed a total of 635 acres in the downtown area of Rocklin. In 1997, the city added an additional 1,015 acres to the project area. In fiscal 2005, commercial properties have increased to 25% of the land use by assessed valuation, from 17% in 2002, while vacant land has decreased to 10%, from 15%. Taxpayer concentration has declined recently due to overall growth in the area as well as a 22% reduction in the assessed valuation of the Sierra Pine, the project area’s top taxpayer. In spite of this Proposition 8 reduction, overall growth in the project area has averaged almost 9% annually since 1998.

Incremental assessed valuation growth averaged a strong 18% annually from 1998-2005. Growth is expected to continue as new construction and completed projects are added to the tax base. Proceeds from the bonds will finance several road projects and other general public improvements, advance refund the series 1997 bonds, and fund a reserve fund. Tax increment revenue from the existing tax base, net of senior pass-throughs, covers maximum annual debt service on these bonds and one parity issue an adequate 1.36 times (x). The series 2005 bond debt service is wrapped around the parity bond series issued in 2002. The additional bonds test (ABT) features a coverage requirement of 1.35x until the top five taxpayers make up less than 20% of the incremental value at which point the ABT would decline to 1.25x. In addition, the ABT requires all appeals to be counted at 50% of requested amount against bondable tax revenues.

Measuring 6.0 x 3.0 x 1.9 mm, TFBS6711 and TFBS6712 FIR (fast infrared) IrDA transceivers work over typ distance of 50 cm. They enable mobile phones and PDAs to function as universal remote controls and can transfer 329 kbyte, 1280 x 960 pixel image in 1.5 sec. Capable of transmitting remote control signals over 6.5 m distance, lead (Pb)-free products feature 2.4-3.6 V operating voltage, 0.01 A shutdown current, and 1.7 mA idle supply current.

For IrDA communication, the new transceivers work over a typical distance of 50 cm at data rates up to 4 Mbit/s. They also enable mobile phones and PDAs to function as universal remote controls for televisions, DVD players/recorders, and other home appliances. Previously, designers needing a low-profile transceiver were forced to choose a relatively slow SIR (serial infrared) transceiver. With the TFBS6711 and TFBS6712, Vishay gives mobile phone and PDA design engineers the speed they require in an exceptionally small package.

In the camera phone market, sharing and printing digital pictures using IrDA transceivers has gained in popularity, said Dr. Heinz Nather, Vice President of Vishay’s Sensors and IRDC Division. As camera resolution increases, data transfer time becomes a concern. Using Vishay’s TFBS6711 or TFBS6712 transceivers, a 329-kbyte 1280 x 960-pixel image can be transferred in 1.5 seconds; 25 seconds faster than SIR. That is a big advantage for our customers.

The TFBS6711 and TFBS6712 are also capable of transmitting remote control signals over a distance of 6.5 meters. Leveraging Vishay’s experience in this application, these transceivers feature an emitter with a wavelength that is closely matched to remote control receivers. By using the TFBS6711 or TFBS6712 in a mobile phone, for example, design engineers can meet their IR remote control distance requirements without having to add a second, bulky emitter.

The TFBS6711 I/O voltage is defined by the external power supply voltage. The TFBS6712 I/O voltage equals 1.8 V, allowing direct connection to a microcontroller operating at 1.8 V. Operating voltage for both transceivers is 2.4 V to 3.6 V. Both devices feature a shutdown current of 0.01 A and an idle supply current of 1.7 mA, roughly half that of the next closest FIR transceiver on the market.