(Butler County, Pennsylvania) Sewer Revenue Bonds, Series of 2010
PRELIMINARY OFFICIAL STATEMENT DATED DECEMBER 2, 2010 NEW ISSUE -- BOOK-ENTRY ONLY Rating: Standard & Poor’s: “A” In the opinion of Bond Counsel, based upon an analysis of existing laws, regulations, rulings and court decisions, interest on the Bonds (including, in the case of Bonds sold at an original issue discount, the difference between the initial offering price and par) is excluded from gross income for Federal income tax purposes. Bond Counsel is also of the opinion that interest on the Bonds is not a specific item of tax preference under §57 of the Internal Revenue Code of 1986, as amended (the “Code”) for purposes of the Federal individual or corporate alternative minimum taxes. The Bonds, and interest income therefrom, are free from taxation for purposes of personal income, corporate net income and personal property taxes within the Commonwealth of Pennsylvania. (See “TAX MATTERS” herein.) The Authority has designated the Bonds as “Qualified Tax-Exempt Obligations” pursuant to §265(b)(3) of the Code (relating to the deductibility of interest expense by certain financial institutions). $19,290,000* Butler Area Sewer Authority (Butler County, Pennsylvania) Sewer Revenue Bonds, Series of 2010 Dated: Date of Delivery Principal Due: July 1, as shown herein Interest Payable: January 1 and July 1 First Interest Payment: July 1, 2011 The Butler Area Sewer Authority Sewer Revenue Bonds, Series of 2010 (the "Bonds"), in the aggregate principal amount of $19,290,000*, will be issued in registered form, without coupons in denominations of $5,000 principal amount or any integral multiple thereof. The Bonds will be registered in the name of Cede & Co., as the registered owner and nominee of the Depository Trust Company ("DTC"), New York, New York.
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