PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

Home Browse Search

upon the price for the Series 2001 Bonds in the secondary market or upon a Bondholder's ability to sell the Series 2001 Bonds. Absence of Rating The Series 2001 Bonds have not received a credit rating from any organization engaged in the business of publishing such ratings. Typically,unrated bonds lack liquidity in the secondary market compared to rated bonds. As a result of the foregoing, the Series 2001 Bonds are believed to bear interest at higher rates than would prevail for bonds with comparable maturities and redemption provisions that have investment grade ratings. Nevertheless, Series 2001 Bonds should not be purchased by any investor who, because of financial condition,investment policies or otherwise,does not desire to assume,or have the ability to bear, the risks inherent in an investment in the Series 2001 Bonds. Other Factors An investment in the Series 2001 Bonds, involves a substantial element of risk. In order to identify risk factors and make an informed investment decision,potential investors should be thoroughly familiar with this entire Official Statement in order to make a judgment as to whether the Series 2001 Bonds are an appropriate investment. Purchasers of the Series 2001 Bonds, particularly purchasers that are corporations (including S corporations and foreign corporations operating branches in the United States of America), property or casualty insurance companies, banks, thrifts or other financial institutions or certain recipients of Social Security benefits, are advised to consult their tax advisors as to the tax consequences of purchasing or holding the Series 2001 Bonds. Summary The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Series 2001 Bonds. In order for potential investors to identify risk factors and make an informed decision,potential investors should be thoroughly familiar with this entire Official Statement and the appendices hereto. SUITABILITY STANDARDS FOR MINNESOTA INVESTORS Minnesota. The Series 2001 Bonds have not been rated by any rating agency. Consequently,in accordance with regulations of the Commerce Department of the State of Minnesota,with respect to Minnesota residents,the Series 2001 Bonds may be offered solely to and may be purchased only by persons having a minimum annual gross income of$30,000 and a net worth of$30,000, or in the alternative, a net worth of$75,000. Net worth is determined exclusive of home, home furnishings and automobiles. THE SERIES 2001 BONDS