Opinion ID: 1642699
Heading Depth: 3
Heading Rank: 1

Heading: Official statement

Text: On or about March 14, 2002, the Conecuh County Public Building Authority (the Building Authority), a public corporation organized by the Conecuh County Commission, issued an official statement (essentially, a prospectus) in connection with a public offering of a series of revenue warrants in the amount of $8,960,000 (the Series 2002 Warrants), supported, in part, by a pledge of the proceeds from the court fee and the lodging tax. The warrants were issued not only to address the deteriorating county courthouse, but also to refund and retire revenue warrants previously issued to construct a new county jail as mandated by a federal court order (the Series 2000 Warrants). The first two paragraphs of the official statement summarized much of the transaction: This Official Statement is furnished by The Conecuh County Public Building Authority, a public corporation under the laws of the State of Alabama (the `Building Authority'), in order to provide information to prospective purchasers of its $8,960,000 in principal amount of Revenue Warrants (Conecuh County Jail & Courthouse Projects), Series 2002, dated March 1, 2002 (the `Series 2002 Warrants'). The Series 2002 Warrants will be issued under a First Supplemental Indenture dated as of March 1, 2002 (the `First Supplemental Indenture') which will amend and supplement that certain Mortgage and Trust Indenture dated as of May 1, 2000 (the `Original Indenture'), between the Building Authority and Regions Bank, Montgomery, Alabama (said bank, together with its successors in trust, being herein called the `Trustee'). The Building Authority has heretofore issued under the Original Indenture (the Original Indenture and the First Supplemental Indenture being herein together called the `Indenture') its Revenue Warrants (Conecuh County Jail Project) Series 2000, dated May 1, 2000 (the `Series 2000 Warrants'), originally issued in the aggregate principal amount of $3,395,000 and now outstanding in the aggregate principal amount of $3,335,000, in order to acquire, construct and equip a new county jail facility (the `New County Jail') in and for Conecuh County, Alabama (herein called the `County'). The Series 2002 Warrants will be issued in order (i) to finance the costs of renovating, repairing and improving the courthouse building in the County (the `County Courthouse') and (ii) to refund and retire the Series 2000 Warrants and thereby to restructure the funded indebtedness of the County.  Contemporaneously with and as a condition to the issuance of the Series 2002 Warrants, the Building Authority and the County will enter into a First Supplemental Lease Agreement dated as of March 1, 2002 (the `First Supplemental Lease'), which will amend and supplement that certain Lease Agreement dated as of May 1, 2000 (the `Original Lease') between the Building Authority and the County under which the Building Authority has leased the New County Jail to the County (the Original Lease and the First Supplemental Lease being herein together called the `Lease'). Under the First Supplemental Lease, the Building Authority will agree to acquire and also to renovate, repair and improve the County Courthouse and to lease it to the County for a term not longer than the current fiscal year of the County ending on September 30, 2002; provided, however, that the Lease shall contain a grant to the County of successive options to renew the term of the Lease annually until the Series 2002 Warrants are paid. See `Duration of Term' under `THE LEASE.' See also `SPECIAL COVENANTS OF THE COUNTY.' (Emphasis added.)