5. Subsequent Event

On July 19, 2012, the Company purchased 100% of the residual participation receipts (“LIFERs”) in tender option bond trusts (the “TOB Trusts”) which acquired approximately $65.3 million of Public Housing Capital Fund Certificates (“PHC Certificates”) issued by three trusts sponsored by DB (the “PHC Trusts”). The assets held by the PHC Trusts consist of custodial receipts evidencing loans made to a number of local public housing authorities. Principal and interest on these loans are payable by the respective public housing authorities out of annual appropriations to be made to the public housing authorities by the United States Department of Housing and Urban Development (“HUD”) under HUD's Capital Fund Program established under Quality Housing and Work Responsibility Act of 1998 (the “Capital Fund Program”). The PHC Trusts have a first lien on these annual Capital Fund Program payments to secure the public housing authorities' respective obligations to pay principal and interest on their loans. Interest payable on the public housing authority debt held by the PHC Trusts is exempt from federal income taxes. The PHC Certificates issued by each of the PHC Trusts have been rated investment grade by Standard & Poor's.

The following table sets forth certain information relating to the PHC Certificates held in the TOB Trusts:



	Weighted Average Lives (Years)	Investment Rating	Weighted Average Interest Rate over Life		Principal Outstanding June 30, 2012
Public Housing Capital Fund Trust I	12.75	AA-	5.330	%	$	26,406,558
Public Housing Capital Fund Trust II	12.3	AA-	4.240	%	17,959,713
Public Housing Capital Fund Trust III	13.3	BBB	5.410	%	20,898,432
Total Public Housing Capital Fund					$	65,264,703

The Company purchased the LIFERS issued by the TOB Trusts for approximately $16 million and pledged the LIFERS to the trustee to secure certain reimbursement obligations of the Company as the holder of LIFERS. The TOB Trusts also issued senior floating-rate participation interest (“SPEARS”) of approximately $49 million to unaffiliated investors. The SPEARS represent senior interests in the TOB Trusts and have been credit enhanced by DB. The LIFERS entitle to Company to all principal and interest payments received by the TOB Trusts on the $65.3 million of PHC Certificates held by it after payments due to the holders of the SPEARS and trust costs. The SPEARS bear interest at a variable rate based on SIFMA.

The Company is still assessing the appropriate accounting treatment for the LIFERs ownership and the manner in which they will be reflected on its consolidated balance sheet for the period ending September 30, 2012.

The Company executed an investment placement agreement with AFCA 2 in connection with this transaction. AFCA 2 received a fee of $652,640 from the Company in connection with this agreement which was paid in July 2012. This fee is consistent with the mortgage placement fees that AFCA 2 has earned previously in connection with the acquisition of tax-exempt mortgage revenue bonds by the Company.