OFFICIAL STATEMENT DATED MARCH 22, 2002 NEW ISSUE - BOOK-ENTRY ONLY Fitch Ratings: AA Standard & Poor’s Ratings Group: AA In the opinion of Bond Counsel, assuming continued compliance with certain covenants described herein, under existing laws, regulations, rulings and judicial decisions, interest on the 2002A Bonds is excludable from the gross income of the recipients thereof for federal income tax purposes under the Code, and such interest will not be treated as a preference item in calculating the alternative minimum tax that may be imposed on individuals and corporations. Under the Code, interest on the 2002A Bonds is to be taken into account in the computation of certain taxes that may be imposed with respect to corporations, including, without limitation, the alternative minimum tax, the environmental tax and the foreign branch profits tax. The principal amount of the 2002A Bonds, their transfer, the interest payable thereon and any income derived therefrom, including any profit realized on their sale or exchange, shall be exempt at all times from every kind and nature of taxation by the State of Maryland or by any of its political subdivisions, municipal corporations or public agencies of any kind; however, the law of the State of Maryland does not expressly refer to, and no opinion is expressed concerning, estate or inheritance taxes, or any other taxes not levied directly on the 2002A Bonds or the interest thereon. See “TAX EXEMPTIONS” herein. $11,600,000 MONTGOMERY COUNTY, MARYLAND SPECIAL OBLIGATION BONDS (WEST GERMANTOWN DEVELOPMENT DISTRICT) SENIOR SERIES 2002A Dated: April 1, 2002 Due: July 1, shown on inside cover page The Montgomery County, Maryland Special Obligation Bonds (West Germantown Development District), Senior Series 2002A (the “2002A Bonds”) are being issued by Montgomery County, Maryland (the “County”) only in fully registered form, in denominations of $5,000 and integral multiples thereof. The 2002A Bonds will bear interest at the rates set forth on the inside cover, calculated on the basis of a 360-day year comprised of twelve thirty-day months, payable semi-annually on each January 1 and July 1, commencing July 1, 2002. The 2002A Bonds are available only in global book-entry form registered in the name of Cede & Co., as nominee for The Depository Trust Company (“DTC”), New York, New York, acting as securities depository for the 2002A Bonds. So long as the 2002A Bonds are registered in the name of Cede & Co., payment of the principal of and interest on the 2002A Bonds will be made by Wachovia Bank, National Association, Richmond, Virginia, as trustee (the “Trustee”), to DTC. Disbursements of such payments to the DTC Participants is the responsibility of DTC and disbursements of such payments to the Beneficial Owners is the responsibility of DTC Participants and the Indirect Participants, as more fully described herein. The 2002A Bonds and the County’s $4,315,000 Special Obligation Bonds (West Germantown Development District), Junior Series 2002B (the “2002B Bonds”) are being issued by the County, a body corporate and politic of the State of Maryland, under and pursuant to Chapters 14 and 20A of the 1994 Montgomery County Code, as amended (collectively, the “Acts”), Resolutions No. 13-1135 and No. 13-1398 of the County Council for the County, as amended, and an Indenture of Trust between the County and the Trustee dated as of April 1, 2002 (the “Indenture”). The 2002A Bonds are being issued to (i) finance a portion of the cost of acquisition of certain road, park and sewer improvements; (ii) fund capitalized interest on the 2002A Bonds through July 1, 2002; (iii) fund the 2002A Reserve Account for the 2002A Bonds; and (iv) pay the costs of issuance of the 2002A Bonds. The 2002B Bonds will be issued simultaneously with the 2002A Bonds to (i) finance the remaining portion of the cost of acquisition of certain road, park and sewer improvements; (ii) fund capitalized interest on the 2002B Bonds through July 1, 2002; (iii) fund the 2002B Reserve Account for the 2002B Bonds; and (iv) pay the costs of issuance of the 2002B Bonds. Payment of principal of and interest on the 2002A Bonds will be insured in accordance with the terms of a financial guaranty insurance policy to be issued simultaneously with the delivery of the 2002A Bonds by ASSET GUARANTY INSURANCE COMPANY, as more fully described herein. The 2002A Bonds are subject to optional, mandatory and extraordinary redemption at the times, in the amounts and at the redemption prices as more fully described herein under the caption “THE 2002A BONDS — Redemption.” THE 2002A BONDS AND ANY ADDITIONAL BONDS ISSUED UNDER THE INDENTURE ARE SECURED BY A SENIOR LIEN ON AND A SENIOR PRIORITY INTEREST IN THE SPECIAL REVENUES, WHICH LIEN AND INTEREST IS SENIOR TO THE RIGHTS OF THE OWNERS OF THE 2002B BONDS, SUCH THAT THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE 2002A BONDS AND ANY ADDITIONAL BONDS WILL BE PAID FROM THE SPECIAL REVENUES ON EACH DATE ON WHICH SUCH PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST IS DUE AND PAYABLE, PRIOR TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE 2002B BONDS THEN DUE AND PAYABLE. THE 2002A BONDS ARE SPECIAL OBLIGATIONS OF THE COUNTY, THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON WHICH ARE PAYABLE SOLELY FROM THE SPECIAL TAXES AND SPECIAL ASSESSMENTS AND CERTAIN OTHER ASSETS AND REVENUES OF THE WEST GERMANTOWN DEVELOPMENT DISTRICT PLEDGED BY THE COUNTY UNDER THE INDENTURE, INCLUDING AMOUNTS DEPOSITED IN CERTAIN FUNDS AND ACCOUNTS HELD BY THE COUNTY AND THE TRUSTEE UNDER THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN. THE 2002A BONDS DO NOT CONSTITUTE A GENERAL OBLIGATION DEBT OF THE COUNTY OR A PLEDGE OF THE COUNTY’S FULL FAITH AND CREDIT OR TAXING POWER. THE 2002A BONDS ARE NOT AN INDEBTEDNESS OF THE COUNTY WITHIN THE MEANING OF THE MONTGOMERY COUNTY CHARTER. EXCEPT FOR THE SPECIAL TAXES AND SPECIAL ASSESSMENTS, NO OTHER TAXES OR ASSESSMENTS ARE PLEDGED TO THE PAYMENT OF THE 2002A BONDS. This cover page contains information for quick reference only. It is not a summary of the 2002A Bonds. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. The 2002A Bonds are offered for delivery when, as and if issued by the County and accepted by the Underwriter, subject to prior sale, withdrawal or modification of the offer without notice and the receipt of the approving legal opinion of McGuireWoods LLP, Baltimore, Maryland, Bond Counsel. Certain disclosure matters will be passed upon by McGuireWoods LLP, Baltimore, Maryland, Disclosure Counsel. Certain legal matters will be reviewed for the Underwriter by Ballard Spahr Andrews & Ingersoll, LLP, Washington, D.C. It is expected that the 2002A Bonds will be available for delivery through the facilities of DTC on or about April 11, 2002. Legg Mason Wood Walker Incorporated $1,605,000 Serial Bonds Amount Due Interest Yield CUSIP Amount Due Interest Yield CUSIP July 1 Rate July 1 Rate $ 75,000 2003 2.15% 2.25% 613368AB5 $ 165,000 2008 4.35% 4.40% 613368AG4 90,000 2004 2.90 3.00 613368AC3 190,000 2009 4.50 4.56 613368AH2 110,000 2005 3.45 3.55 613368AD1 210,000 2010 4.60 4.66 613368AJ8 125,000 2006 3.80 3.90 613368AE9 235,000 2011 4.70 4.75 613368AK5 145,000 2007 4.20 4.20 613368AF6 260,000 2012 4.80 4.84 613368AL3 $3,340,000 5.375% Term Bonds due July 1, 2020 – Yield 5.48% - CUSIP: 613368AM1 $6,655,000 5.50% Term Bonds due July 1, 2027 – Yield 5.60% CUSIP: 613368AN9 THE 2002A BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR HAS THE INDENTURE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED. THE REGISTRATION OR QUALIFICATION OF THE 2002A BONDS UNDER THE SECURITIES LAWS OF ANY JURISDICTIONS IN WHICH THEY MAY HAVE BEEN REGISTERED OR QUALIFIED, IF ANY, SHALL NOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THE STATE OF MARYLAND, THE COUNTY, NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE 2002A BONDS. EXCEPT FOR THE INFORMATION RELATING TO THE COUNTY IN APPENDIX D HERETO AND THE DESCRIPTION OF THE COUNTY’S TAX COLLECTION PROCEDURES APPEARING UNDER THE CAPTION “SECURITY FOR THE 2002A BONDS — SPECIAL TAXES AND SPECIAL ASSESSMENTS — LEVY, PAYMENT AND COLLECTION,” THE COUNTY HAS ASSUMED NO RESPONSIBILITY FOR THE PREPARATION, ACCURACY, COMPLETENESS OR CONTENT OF THIS OFFICIAL STATEMENT. No broker, dealer, salesperson, or other person has been authorized by the County or the Underwriter to give any information or to make any representations, other than those contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by either of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy any of the 2002A Bonds and there shall be no offer, solicitation, or sale of the 2002A Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been obtained from public documents, records and other sources, including the Developers, which are believed by the Underwriter to be reliable. The Trustee has not reviewed or participated in the preparation of this Official Statement and is not responsible for the content hereof. Bank One, NA, and Ohio Savings Bank have not reviewed or participated in the preparation of this Official Statement or the transactions to which their respective Tax Liability Letter of Credit relates.