All non-rated bonds considered by our Portfolio Managers must first be researched and approved by our Credit Research Department. No credit is approved unless certain requirements are met. Certain non-rated approved credits receive a Bernardi BSI* non-rated designation. Here is a sample of some of the credit metrics used:

ESSENTIAL SERVICE UTILITY REVENUE BONDS
Minimum Projected or Actual Debt Covered:	1.25X
Debt Per User:	$3,000 or Less
Number of Users:	600 or More
Population:	2,000 or More

GENERAL OBLIGATION BONDS
Population:	2,000 or More
Direct Debt Per Capita:	$1,000 or Less
Direct Debt to Assessed:	5% or Less
DD & OD Per Capita:	$3,000 or Less
DD & OD to AV:	12% or Less
Tax Collections:	Minimum 98.5% (3 Year Average)

Disclaimer - The Bernardi designation indicates we have researched the bond and have determined the credit suitable for recommendation for some bond portfolios. Our opinion constitutes our judgment as of the date a bond is placed into a client's portfolio and is subject to change without notice. There is no correlation, stated or implied, between our designation and ratings given by the various rating agencies. The designation has been made based upon information which we believe to be reliable, but cannot guarantee to be error free.

app 8/18/09