OFFICIAL STATEMENT DATED AUGUST 24, 2010
In the opinion of Bond Counsel, interest on the Series 2010A Certificates is excludable from gross income for federal income tax purposes under existing law, subject to the matters described under “TAX MATTERS” herein, and is not includable in the federal alternative minimum taxable income of individuals or corporations. See “TAX MATTERS” for a discussion of the opinionof Bond Counsel and other possible tax consequences of an investment in such Certificates. Interest on the Taxable Series 2010BCertificates is not excludable from gross income for federal income tax purposes. See “TAX MATTERS FOR BUILD AMERICA BONDS.”
NEW ISSUE: BOOK-ENTRY-ONLY
Ratings: S&P ......................................................................“AA”Moody’s .............................................................“Aa2”
$9,055,000MONTGOMERY COUNTY, TEXASCertificates of Obligation, Series 2010A(Mental Health Treatment Facility)$23,395,000MONTGOMERY COUNTY, TEXASCertificates of Obligation,Taxable Series 2010B(Direct Subsidy Build America Bonds)(Mental Health Treatment Facility)
Dated: September 1, 2010 Due: March 1,
as shown on the inside cover page hereof The $9,055,000 Montgomery County, Texas, Certificates of Obligation, Series 2010A (the “Series 2010A Certificates”) and the$23,395,000 Montgomery County, Texas, Certificates of Obligation, Taxable Series 2010B (the “Taxable Series 2010BCertificates,” together with the Series 2010A Certificates, the “Certificates” ), are being issued by the Commissioners’ Court of Montgomery County (the “County”) pursuant to the terms of an order adopted by the Commissioners’ Court of the County. TheCertificates are payable from an annual ad valorem tax levied on all taxable property in the County, within the limits prescribedby law, and by a pledge of a subordinate lien on the net revenues of the County’s park system. See ”THE CERTIFICATES –Source of Payment of the Certificates” and “TAXING PROCEDURES AND TAX BASE ANALYSIS – Tax Rate Limitations.”Interest on the Certificates will accrue from September 1, 2010, and will be payable March 1 and September 1 of each year,commencing March 1, 2011. The Certificates will initially be registered and delivered only to Cede & Co., the nominee of TheDepository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial ownership of theCertificates may be acquired in denominations of $5,000 or integral multiples thereof.
No physical delivery of the Certificateswill be made to the beneficial owners thereof.
Principal of and interest on the Certificates will be payable by Regions Bank,Houston, Texas (the “Paying Agent/Registrar”) to Cede & Co., which will make distribution of the amounts so paid to thebeneficial owners of the Certificates. See “THE CERTIFICATES - Book-Entry-Only System” herein. Interest on theCertificates is payable to the registered owners (initially Cede & Co.) appearing on the registration books of the PayingAgent/Registrar on the 15
day of the month preceding each interest payment date (the “Record Date”). See “THECERTIFICATES - General.”The Certificates maturing on March 1, 2020 and thereafter are subject to optional redemption by the County in whole, or fromtime to time in part, on March 1, 2019 or any date thereafter at a price of par plus accrued interest to the date of redemption. See“THE CERTIFICATES - Optional Redemption.” Certain of the Taxable Series 2010B Certificates are subject to mandatoryredemption as describe herein under “THE CERTIFICATES – Mandatory Redemption.” The Taxable Series 2010B Certificatesare also subject to extraordinary optional redemption on any date up to and including March 1, 2019 in whole or in part inprincipal amounts of $5,000 or any integral multiple thereof. See “THE CERTIFICATES – Extraordinary OptionalRedemption.”
See Principal Amounts, Maturities, Interest Rates and Prices on the Inside Cover Page
Proceeds from the sale of the Certificates will be used for (i) the construction of a 100-bed forensic psychiatric hospital located at700 Hilbig Road, Conroe, Texas 77301, and (ii) payment of professional services and payment of the costs of issuance of theCertificates. See “PLAN OF FINANCE – Purpose.”The Certificates are offered when, as and if issued by the County and accepted by the Underwriters, subject to the approvingopinion of the Attorney General of the State of Texas and the opinion of Andrews Kurth LLP, Houston, Texas, Bond Counsel.Certain legal matters will be passed upon for the County by Andrews Kurth LLP, Houston, Texas, Disclosure Counsel. Certainlegal matters will be passed upon for the Underwriters by Allen Boone Humphries Robinson LLP, Counsel for the Underwriters.It is expected that the Certificates will be delivered through the facilities of DTC on or about September 21, 2010.