Updated May 22, 2009

NatLUST's "carrying costs" are a combination of fixed and variable costs that are set to cover the costs of running the program.

FIXED CHARGES: Depending on our projection of how long it takes claims to turn over in a particular state, NatLUST allocates a fixed charge that ranges from 2/10 of 1% to 1.25%% of the amount advanced. This charge is allocated at the time we fund the claim. As of the date of this report, we assess fixed charges as follows:

• California - TBA
• Connecticut - not to exceed 2/10 of 1%
• Georgia - not to exceed 1/2 of 1%
• Illinois - Varies From 1/2 of 1% to 1 1/4% % depending position in queue (details)
• Massachusetts - Not to exceed 1/2 of 1%
• New Hampshire - TBA
• New Mexico - TBA
• Rhode Island - TBA
• Virginia - Not to exceed 1/2 of 1%

VARIABLE CHARGES: Variable charges are tied to one-month Libor plus a margin of 2.75% annually. As of May 22, one month Libor is currently .46%, which means that NatLUST is charging just under 3.25% annually (.46% + 2.75%). Variable charges are based on the amount advanced, and compound monthly from the date the claim is funded until the date the reimbursement is processed. The rate will vary directly with changes in one-month Libor.

NatLUST expects to sell a $35,000,000 tax exempt VRDN bond issue in the next 90 days. The bond issue will, over time, allow us to offer less expensive financing to our participants.

Historical carrying costs can be found by clicking on the below links:

Virginia
Connecticut
Illinois