NEW ISSUE Moody's Investors Service: A2 BOOK-ENTRY ONLY Standard & Poor's: A+ (See "RATINGS") In the opinion of Bond Counsel, (i) under existing laws, the Consolidated Public Improvement Bonds, Taxable Build America Bonds (Direct Payment) Series 2010A (the "Series 2010A Bonds") and the Consolidated Public Improvement Bonds, Taxable Build America Bonds (Direct Payment) Series 2010B (the "Series 2010B Bonds" and, together with the Series 2010A Bonds, the "Bonds"), their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind or nature of taxation by the State of Maryland, or by any of its political subdivisions, municipal corporations, or public agencies of any kind, but no opinion is expressed as to Maryland estate or inheritance taxes or any other Maryland taxes not levied or assessed directly on the Bonds, their transfer, or the income therefrom; and (ii) interest on the Bonds will be includable in gross income for federal income tax purposes (See "LEGAL MATTERS-Tax Matters.") $20,830,000 DORCHESTER COUNTY, MARYLAND GENERAL OBLIGATION BONDS Consisting of $8,760,000 $12,070,000 CONSOLIDATED PUBLIC IMPROVEMENT BONDS, CONSOLIDATED PUBLIC IMPROVEMENT BONDS, TAXABLE BUILD AMERICA BONDS TAXABLE BUILD AMERICA BONDS (DIRECT PAYMENT) SERIES 2010A (DIRECT PAYMENT) SERIES 2010B Dated: Date of delivery Due: February 1, as shown below Interest Payable: February 1 and August 1 Denomination: Integral multiples of $5,000 Form: Registered, book-entry only through the facilities of The Depository Trust Company First Interest Payment Due: August 1, 2010 Optional Redemption: Series 2010B Bonds are redeemable prior to maturity as set forth in "THE BONDS—Redemption" herein. Security: The Bonds are general obligations of Dorchester County, Maryland (the "County"), for the payment of which its full faith and credit and unlimited taxing power are pledged (see "THE BONDS—Sources of Payment" herein). FOR MATURITY SCHEDULES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS SEE INSIDE FRONT COVER Conditions Affecting Issuance: The Bonds are offered when, as and if issued, subject to, among other conditions, the delivery of the Bonds and the related approving legal opinion or opinions of Funk & Bolton, P.A., Bond Counsel, and other conditions specified in the official Notice of Sale. Delivery will occur on or about February 16, 2010. This cover page contains certain information for quick reference only. It is not a summary of this issue. Prospective bidders and investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Dated: February 2, 2010 $8,760,000 CONSOLIDATED PUBLIC IMPROVEMENT BONDS, TAXABLE BUILD AMERICA BONDS (DIRECT PAYMENT) SERIES 2010A MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND CUSIPS Maturing Principal Interest Price or Maturing Principal Interest Price or _February 1_ _Amount_ __Rate*__ __Yield*__ __CUSIP__ _February 1_ _Amount_ __Rate*__ __Yield*__ __CUSIP__ 2011 $830,000 1.000% 1.000% 258129QA6 2016 $870,000 3.400% 3.180% 258129QF5 2012 810,000 1.400 1.360 258129QB4 2017 895,000 3.850 3.620 258129QG3 2013 820,000 1.875 1.790 258129QC2 2018 920,000 4.125 3.920 258129QH1 2014 835,000 2.150 1.990 258129QD0 2019 950,000 4.500 4.260 258129QJ7 2015 850,000 3.000 2.880 258129QE8 2020 980,000 4.700 4.460 258129QK4 $12,070,000 CONSOLIDATED PUBLIC IMPROVEMENT BONDS, TAXABLE BUILD AMERICA BONDS (DIRECT PAYMENT) SERIES 2010B MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND CUSIPS Maturing Principal Interest Price or Maturing Principal Interest Price or _February 1_ _Amount_ __Rate*__ __Yield*__ __CUSIP__ _February 1_ _Amount_ __Rate*__ __Yield*__ __CUSIP__ 2021 $1,015,000 4.875% 4.660%** 258129QL2 2026 $1,220,000 5.625% 5.370%** 258129QR9 2022 1,050,000 5.000 4.760** 258129QM0 2027 1,265,000 5.625 5.470** 258129QS7 2023 1,090,000 5.125 4.860** 258129QN8 2028 1,320,000 5.750 5.570** 258129QT5 2024 1,130,000 5.125 4.960** 258129QP3 2029 1,375,000 5.875 5.670** 258129QU2 2025 1,170,000 5.250 5.060** 258129QQ1 2030 1,435,000 6.000 5.770** 258129QV0 * The interest rates and prices or yields shown above are those resulting from the successful bids for the Bonds of each series on February 2, 2010 and were furnished by the successful bidder for each series. Other information concerning the terms of the reoffering of the Bonds, if any, should be obtained from the successful bidder for the applicable series and not from the County. (See "MISCELLANEOUS–Sale at Competitive Bidding" herein.) ** Priced to first call date. CUSIP numbers in the tables above are copyright 2010 by the American Bankers Association. CUSIP data herein is provided by Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc., and the County does not take any responsibility for the accuracy thereof. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Service Bureau's information. DORCHESTER COUNTY, MARYLAND County Council Jay L. Newcomb, President First District William V. Nichols, Vice President Second District Ricky Travers Third District Rick Price Fourth District Effie M. Elzey Fifth District Administration Jane Baynard, County Manager Michael J. Spears, Director of Finance Counsel Bond Counsel Harrington and Merryweather Funk & Bolton, P.A. Cambridge, Maryland Baltimore, Maryland Auditor TGM Group LLC Salisbury, Maryland Bond Registrar and Paying Agent The Bank of New York Mellon West Paterson, New Jersey Financial Advisor Public Advisory Consultants, Incorporated Owings Mills, Maryland This page has been intentionally left blank. No dealer, broker, salesman or other person has been authorized by Dorchester County, Maryland (the "County") or the successful bidder for either series of the Bonds to give any information or to make any representations with respect to the County or the Bonds 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 any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. In connection with this offering, the successful bidder for a series of the Bonds may over-allot or effect transactions that stabilize or maintain the market price of such Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced may be discontinued at any time. ___________ TABLE OF CONTENTS Page Page SYNOPSIS OF STATISTICAL DATA.......................................... ii Income ......................................................................................... 16 THE BONDS .................................................................................... 1 Employment ................................................................................ 17 General ......................................................................................... 1 Industrial Development............................................................... 18 Designation of Taxable Bonds as Build America Bonds........... 1 Economic Development.............................................................. 19 The County................................................................................... 1 Agriculture................................................................................... 19 Application of Proceeds............................................................... 2 Construction Activity .................................................................. 20 Description of the Bonds ............................................................. 2 Housing........................................................................................ 20 Authorization ............................................................................... 2 FINANCIAL INFORMATION....................................................... 21 Sources of Payment ..................................................................... 2 General......................................................................................... 21 Bondholders' Remedies ............................................................... 2 General Fund ............................................................................... 21 Redemption .................................................................................. 3 Taxes............................................................................................ 25 Form and Denominations ............................................................ 4 General Property Taxes............................................................... 25 Book-Entry-Only System—General........................................... 4 Income Tax.................................................................................. 28 Book-Entry-Only System—Miscellaneous ................................ 6 DEBT INFORMATION.................................................................. 29 Termination of Book-Entry-Only System .................................. 6 Bonded Indebtedness of the County........................................... 29 LEGAL MATTERS ........................................................................