NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
5. ORANGE COUNTY CALIFORNIA DEBT SECURITIES
As of August 31, 1995, the Money Market Fund held securities issued by Orange County, California, with a
principal amount of $2,000,000 and an estimated fair market value of $1,558,860. Orange County filed for
protection under Chapter 9 of the Federal Bankruptcy Code on December 6, 1994, and defaulted on such
securities on July 10, 1995. The bankruptcy court trustee approved an extension of the securities' maturity to
June 30, 1996, and modification of certain other terms, including increasing the interest rate and providing for
some portion of interest to accrue until the maturity date rather than being due and payable monthly. Concurrent
with the default by Orange County, the Money Market Fund entered into a Credit Enhancement Agreement (the
"Agreement") with WFB, pursuant to which the Fund was named as a beneficiary of an irrevocable letter of
credit issued by Bank of America National Trust and Savings Association ("Bank of America"). The Agreement
provides support for a portion of the Orange County securities held by the Fund such that Bank of America will
make certain payments to the Money Market Fund under defined circumstances, including failure by Orange
County to make any payment of principal when due.
Letter of credit and legal fees of $6,642 were paid by WFB on behalf of the Money Market Fund and were
recorded as a contribution of capital on July 10, 1995. The Money Market Fund recorded the credit
enhancement as an asset and a contribution to capital in the amount of the letter of credit fee. Since December 6,
1994, the Orange County securities have been placed on non-accrual status, with interest income being
recognized when received.
The aforementioned Orange County securities with a principal amount of $2,000,000 were sold during the period
from September 19, 1995 through September 29, 1995 (subsequent to August 31, 1995) for $1,992,429,
resulting in the Money Market Fund realizing a lo