Laserfiche WebLink
incurred (or continued) indebtedness to purchase or carry the Bonds. Bond Counsel expresses no opinion <br /> regarding any other tax consequences. <br /> Original Issue Discount <br /> The initial public offering price of certain Bonds may be less than the stated redemption price <br /> thereof at maturity. The difference between the initial public offering price for any such Bond and the <br /> stated redemption price at maturity is "original issue discount." For federal income tax purposes, original <br /> issue discount on any Bond accrues to original holders of the Bond over the period of its maturity based <br /> on the constant yield method compounded annually as interest with the same tax exemption and <br /> alternative minimum tax status as regular interest. The accrual of original issue discount increases the <br /> holder's tax basis in any Bond for determining taxable gain or loss on the maturity, redemption,prior sale <br /> or other disposition of such Bond. Purchasers of the Bonds should consult their tax advisors for an <br /> explanation of the accrual rules for original issue discount and any other federal, state or local tax <br /> consequences of the purchase of any Bonds with original issue discount <br /> Original Issue Premium <br /> The initial public offering price of certain Bonds may be greater than the stated redemption price <br /> thereof at maturity. The difference between the initial public offering price for any such Bond and the <br /> stated redemption price at maturity is "original issue premium." For federal income tax purposes, original <br /> issue premium is amortizable periodically over the term of a Bond through reductions in the holder's tax <br /> basis for such Bond for determining taxable gain or loss from sale or from redemption prior to maturity. <br /> Amortizable premium is accounted for as reducing the tax-exempt interest on the Bond rather than <br /> creating a deductible expense or loss. Purchasers of the Bonds should consult their tax advisors for an <br /> explanation of the accrual rules for original issue premium and any other federal, state or local tax <br /> consequences of the purchase of any Bonds with original issue premium. <br /> Miscellaneous <br /> Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the <br /> federal or state level, could adversely affect the tax-exempt status of interest on the Bonds under federal <br /> or state law or otherwise prevent beneficial owners of the Bonds from realizing the full current benefit of <br /> the tax status of such interest. In addition, such legislation or actions (whether currently proposed, <br /> proposed in the future, or enacted) or such decisions could affect the market price or marketability of the <br /> Bonds. <br /> Prospective purchasers of the Bonds should consult their own tax advisors regarding the <br /> foregoing matters. <br /> UNDERWRITING <br /> The Sturges Company (the "Underwriter") is offering the Bonds at the price set forth on the <br /> cover hereof. The initial offering price may be changed from time to time and concessions from the <br /> offering price may be allowed to dealers, banks and others. Pursuant and subject to the terms and <br /> conditions set forth in a Bond Purchase Agreement, among the Underwriter, the Issuer and the Borrower, <br /> the Underwriter has agreed to purchase the Bonds at price equal to the principal amount thereof plus the <br /> accrued interest on the Bonds to the Closing Date. For its services relating to the transaction, the <br /> Underwriter will receive a fee of $ , from which the Underwriter will pay certain fees and <br /> expenses relating to the issuance of the Bonds. <br /> -31 - <br />