OFFICIAL STATEMENT FOR MATURITIES, AMOUNTS, INTEREST RATES, YIELDS, & CUSIP NUMBERS, SEE INSIDE COVER.

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1 Rating: S&P: A+ (See "RATING" herein) OFFICIAL STATEMENT NEW ISSUE - BOOK-ENTRY ONLY In the opinion of Maynard, Cooper & Gale, P.C., Bond Counsel, under existing law and upon the conditions and under the circumstances described herein under "TAX MATTERS", interest on the Bonds (i) is presently excluded from gross income for federal income tax purposes if the Building Authority complies with all requirements of the Internal Revenue Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be and remain excluded from gross income, and (ii) will not be an item of tax preference for purposes of the federal alternative minimum tax on individuals and corporations. In the opinion of Bond Counsel, under existing law, interest on the Bonds will be exempt from State of Alabama income taxation. See "TAX MATTERS" herein for further information and certain other federal tax consequences arising with respect to the Bonds. THE PUBLIC BUILDING AUTHORITY OF THE TOWN OF SUMMERDALE (ALABAMA) Dated: Date of Delivery $2,085,000 Building Revenue Bonds Series 2016 Due: June 1, as shown on the inside cover The Bonds are issued pursuant to a Mortgage and Deed of Trust dated as of August 1, 2016 between The Public Building Authority of the Town of Summerdale (the "Building Authority") and Regions Bank, as Trustee. The Bonds are special, limited obligations of the Building Authority payable solely from, and secured by a pledge of, the revenues and receipts derived by the Building Authority from the leasing of the Building described herein. The Bonds will not constitute an indebtedness of the State of Alabama or of the Town of Summerdale, or give rise to a pecuniary liability or charge against the general credit or taxing powers of the State of Alabama or the Town of Summerdale, Alabama. The Building Authority has no taxing power and no source of payment of the principal of and premium (if any) and interest on the Bonds other than revenues derived from or with respect to the Building. See "SOURCE OF PAYMENT AND SECURITY FOR THE BONDS." Interest on the Bonds is payable on December 1, 2016 and on each June 1 and December 1 thereafter. The Bonds will be subject to optional redemption prior to maturity as provided herein. The Bonds are initially issuable as fully registered bonds without coupons in denominations of $5,000 and any integral multiple thereof pursuant to a book-entry only system to be administered by The Depository Trust Company, New York, New York, or any successor or assign thereof or substitute therefor as such securities depository and, when issued, will be registered in the name of and held by Cede & Co., as nominee. The manner and terms upon which the payment of principal of, premium, if any, and interest on the Bonds, and the purchase and transfer of the Bonds or beneficial interests therein, shall be made when the book-entry only system is in effect for the Bonds, and with respect to the Bonds in certificated form when the book-entry only system is not in effect for the Bonds, are described herein under "THE BONDS" and Appendix E-Book-Entry Only System. Regions Bank shall serve as the Trustee, Paying Agent and Bond Registrar for the Bonds. FOR MATURITIES, AMOUNTS, INTEREST RATES, YIELDS, & CUSIP NUMBERS, SEE INSIDE COVER. An investment in the Bonds involves certain risks. See "BONDHOLDER RISKS." The Bonds are offered when, as and if issued by the Building Authority, subject to prior sale, to withdrawal or modification of the offer without notice, and to the approval of validity by Maynard, Cooper & Gale, P.C., Bond Counsel, with certain legal matters being passed upon for the underwriter by Gilpin Givhan, PC, Montgomery, Alabama, Underwriter's Counsel. The Building Authority expects the Bonds will be available for delivery through the Securities Depository in New York, New York on or about August 11, 2016 against payment therefor. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to an informed investment decision. Date July 11,

2 THE PUBLIC BUILDING AUTHORITY OF THE TOWN OF SUMMERDALE (ALABAMA) $2,085,000 Building Revenue Bonds Series 2016 Dated: Date of Delivery Due: June 1, as shown below $220, % Term Bonds maturing June 1, 2028 (Yield 2.100%), CUSIP 86565N AS4 [1] $295, % Term Bonds maturing June 1, 2031 (Yield 2.310%), CUSIP 86565N AT2 [1] $400, % Term Bonds maturing June 1, 2036 (Yield 2.670%), CUSIP 86565N AY1 [1] $1,170, % Term Bonds maturing June 1, 2044 (Yield 3.080%), CUSIP 86565N AZ8 [1] Price of All Bonds: As shown above [1] CUSIP is a registered trademark of the American Bankers Association. CUSIP data contained herein is provided by Standard & Poor s, CUSIP Service Bureau, a division of the McGraw Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services

3 THE PUBLIC BUILDING AUTHORITY OF THE TOWN OF SUMMERDALE, ALABAMA James M. Maloy Jacob Welch TOWN OF SUMMERDALE, ALABAMA MAYOR David Wilson TOWN COUNCIL Norma Wilson Giles Myles Bishop Mary Carolyn McDaniel Travis Townsend Cheryl Wallace Stewart TOWN CLERK Tiffany Lynn BOND COUNSEL Maynard, Cooper & Gale, P.C. UNDERWRITER Stifel, Nicolaus & Company, Incorporated UNDERWRITER COUNSEL Gilpin Givhan, PC TRUSTEE Regions Bank

4 USE OF THIS OFFICIAL STATEMENT This Official Statement is not to be construed as a contract or agreement between The Public Building Authority of the Town of Summerdale, Alabama and the purchasers or holders of the Bonds. No dealer, broker, salesman or other person has been authorized by the Building Authority to give any information or to make any representation other than as contained in this Official Statement, and, if given or made, such other information or representation must not be relied upon as having been authorized by the Building Authority or the Underwriter. 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. The information in this Official Statement is provided as of the date of this Official Statement. Nothing contained in this Official Statement shall under any circumstances create an implication that there has been no change in such information after the date of this Official Statement. The information set forth in this Official Statement has been obtained from the sources which are deemed to be reliable but is not guaranteed as to accuracy or completeness. All estimates and assumptions contained herein are believed to be reliable, but no representation is made that such estimates or assumptions are correct or will be realized. All quotations from and summaries and explanations of provisions of laws and documents in this Official Statement do not purport to be complete, and reference is made to such laws and documents for full and complete statements of their provisions. In connection with this offering the Underwriter may engage in transactions that stabilize, maintain or otherwise affect the price of the Bonds. Such transactions may include purchases of the Bonds for the purpose of maintaining the price of the Bonds. Such transactions, if commenced, may be discontinued at any time. The order and placement of material in this Official Statement, including its appendices, are not to be deemed a determination of relevance, materiality or importance, and all material in this Official Statement, including its appendices, must be considered in its entirety. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. This Official Statement is being provided to prospective purchasers either in bound printed format or in electronic format. This Official Statement may be relied upon only if it is in its bound printed format or as printed in its entirety in such electronic format. In making an investment decision, investors must rely on their own examination of the terms of the offering, including the merits and risks involved

5 CONTENTS INTRODUCTION... 1 DEFINITIONS... 3 SPECIAL QUALIFICATIONS... 5 THE BUILDING AUTHORITY... 6 THE BONDS... 7 THE BUILDING SOURCE OF PAYMENT AND SECURITY FOR THE BONDS USE OF PROCEEDS OF THE BONDS DEBT SERVICE REQUIREMENTS SUMMARY OF DOCUMENTS LITIGATION LEGAL MATTERS TAX MATTERS BANK QUALIFICATION FOR BONDS TORT LIABILITY UNDERWRITER RATING FINANCIAL STATEMENTS CONTINUING DISCLOSURE UNDERTAKING THE UNITED STATES BANKRUPTCY CODE BONDHOLDER RISKS FORWARD-LOOKING STATEMENTS CERTIFICATE Appendix A - Proposed Form of Approving Bond Opinion for Bonds Appendix B - Audited Financial Statement of the Town of Summerdale for the fiscal year ending September 30, 2015 Appendix C - Demographic and Financial Information Related to the Town of Summerdale and Baldwin County Appendix D - Summary of Documents Appendix E - Book-Entry Only System Appendix F - Continuing Disclosure Agreements

6 OFFICIAL STATEMENT THE PUBLIC BUILDING AUTHORITY OF THE TOWN OF SUMMERDALE, ALABAMA $2,085,000 Building Revenue Bonds Series 2016 INTRODUCTION General This Official Statement, including the cover page and the appendices hereto, is furnished by The Public Building Authority of the Town of Summerdale, Alabama, a public corporation under the laws of the State of Alabama (the "Building Authority"), in order to provide certain information in connection with the sale of the above referenced bonds (the "Bonds"). The Bonds will be issued pursuant to Chapter 56 of Title 11 of the Code of Alabama 1975 (the "Enabling Law") and under a Mortgage and Deed of Trust dated as of August 1, 2016 (the "Indenture"), between the Building Authority and Regions Bank, an Alabama banking corporation (said bank, together with its successors in trust, being herein called the "Trustee"). The Bonds are issued for the purposes of (1) advance refunding the Refunded Bonds (herein defined), heretofore issued by the Building Authority to finance the costs of acquiring, constructing and equipping an essential office building for lease to and use by the Town of Summerdale, Alabama, an Alabama municipal corporation (the "Town"), as a new Town Hall (the said office building, the parcel of land on which it is located, the parking spaces related thereto, and the equipment therein being herein together called the "Building") and (2) paying issuances expenses thereof. The Building will be leased to the Town pursuant to a Lease Agreement dated as of August 1, 2016 (the "Lease Agreement"). The Enabling Law provides that it is an essential governmental function of the Town to secure and supply reasonable and adequate building, office and storage space for its departments and agencies engaged in the performance of municipal duties and the rentals payable by the Town for such purpose are and shall constitute necessary governmental operating expenses of the Town. The Building qualifies as an essential governmental function. The Enabling Law further provides that should any space available for rent in the Building leased to the Town become vacant after acquisition, construction and/or renovation of said Building by the Building Authority, then until such time as all such vacant space in the Building shall have been filled, neither the Town nor any offices, department or agency thereof shall thereafter enter into any lease or rental agreement for other space in or about the Town suitable for use for the same purposes for which the vacant space is available. The Bonds shall never constitute or give rise to an indebtedness or pecuniary liability payable from, or a charge against, the revenues, assets, credit, or taxing powers of the State of Alabama, or any political subdivision thereof (except as specifically undertaken by the Town of Summerdale, Alabama, under the Lease Agreement) within the meaning of any constitutional provision or statutory limitation whatsoever

7 Investment Risks The purchase of the Bonds involves certain risks. See "BONDHOLDERS RISKS" hereinafter. Date of Information change. This Official Statement speaks only as of its date, and the information contained herein is subject to

8 DEFINITIONS For purposes of this Official Statement the following terms have the following meanings: Authorized Denomination means with respect to all Bonds the amount of $5,000 and any integral multiple thereof for each maturity. Beneficial Owners means the registered owners of beneficial interests in the Bonds. Bond Fund means the bond fund established pursuant to the Indenture. Bond Register means the register for the registration and transfer of Bonds maintained by the Trustee for the Building Authority under the Indenture. Bonds means the Building Revenue Bonds, Series 2016, of the Building Authority offered hereby. Book-Entry Only System means a book-entry only system of evidence of purchase and transfer of beneficial ownership interests in the Bonds. Building shall have the meaning assigned under "INTRODUCTION." Business Day means a day, other than a Saturday or a Sunday, on which commercial banking institutions are open for business in the Town where the principal corporate office of the Trustee is located and a day on which the payment system of the Federal Reserve System is operational. Code means the Internal Revenue Code of 1986, as amended, and all references to specific sections of the Code shall be deemed to include any and all respective successor provisions to such sections. Direct Participant means securities brokers and dealers, banks, trust companies, clearing corporations and other financial institutions which have access to the Book Entry System. Fiscal Year means the period beginning on October 1 of one calendar year and ending on September 30 of the next succeeding calendar year or such other fiscal year as may hereafter be adopted by the Building Authority. Holder when used with respect to any Series 2016 Bond means (i) the Securities Depository or the Securities Depository Nominee during the time either thereof is the registered owner of the Bonds in accordance with the Book Entry System and (ii) in all other cases, the person in whose name such Series 2016 Bond is registered as provided in the Indenture. Indirect Participant means a broker, dealer, bank or other financial institution for which the Securities Depository holds bonds as securities depository through a Direct Participant. Lease Agreement means the Lease Agreement dated August 1, 2016, as any time amended, restated, or supplemented, by the Building Authority, as lessor, and the Town, as lessee, with respect to the Building

9 Letter of Representation means and includes (i) the Letter of Representation with respect to the Bonds by the Building Authority and the Securities Depository and (ii) any other or subsequent agreement with respect to the Bonds among said parties by whatever name or identification. Record Date means, with respect to the Bonds, that date which is 15 calendar days before any date on which interest is due and payable on the Bonds. Refunded Bonds means the Building Revenue Bonds, Series 2010, of the Building Authority. Securities Depository means The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, and the successors and assigns thereof, and any substitute securities depository therefor that maintains a Book-Entry Only System for the Bonds. Securities Depository Nominee means the Securities Depository or the nominee of such Securities Depository in whose name there shall be registered on the Bond Register the Bonds to be delivered to such Securities Depository during the period in which the Bonds are held pursuant to the Book-Entry Only System. Trustee means Regions Bank as paying agent, trustee and registrar for the Bonds

10 SPECIAL QUALIFICATIONS No Federal or State Registration The Bonds have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and neither the Securities and Exchange Commission nor any federal, state or other governmental regulatory agency will approve or confirm the accuracy, completeness or adequacy of this Official Statement. The Indenture has not been qualified under the Trust Indenture Act of 1939, as amended. Any representation to the contrary is a criminal offense. General So far as any statements are made in this Official Statement involving matters of opinion, projections or estimates, whether or not expressly so stated, they are set forth as such, made in good faith and not as representations of fact, and no representation is made nor assurance given that any such projections or estimates will be realized. The information contained in this Official Statement does not purport to be comprehensive or definitive. All references to the Constitution and laws of the State of Alabama and all summaries of the Indenture, the Lease Agreement, the Bonds, contracts, documents, or official acts are qualified by the exact terms of such Constitution, laws, Indenture, the Lease Agreement, the Bonds, contracts, documents or acts, each being an item of public record. The Building Authority has furnished all information in this Official Statement relating to the Building Authority and has obtained all other information from sources which are considered reliable and which are customarily relied upon in the preparation of similar official statements. Neither this Official Statement nor any statement that may have been made verbally or in writing is to be construed as a contract with the Holders or Beneficial Owners of any of the Bonds

11 THE BUILDING AUTHORITY The Building Authority is a public corporation and instrumentality of the State of Alabama incorporated pursuant to the provisions of Chapter 56 of Title 11 of the Code of Alabama 1975, as amended (Section et seq. of the Code of Alabama 1975, as amended) and a resolution adopted by the governing body of the Town. The Building Authority was organized for the purpose (among others) of constructing, renovating, owning and leasing the Building to the Town. The Building Authority is empowered, among other things, to lease or operate its properties, to issue interest-bearing revenue bonds, to grant to the Town the power to rent said properties on a yearto-year basis and to pledge revenues received from such leasing. All powers of the Building Authority are vested in a Board of Directors, consisting of three members elected by the governing body of the Town. Each director must be a duly qualified resident of the Town, but no director may be an officer of the State of Alabama, the Town of Summerdale or any incorporated municipality. The following are the current directors of the Building Authority and their respective occupations: Name Occupation James M. Maloy Jacob Welch Electrician Contractor

12 THE BONDS General Description The Bonds will be issued in the aggregate principal amount of $2,085,000, will be dated the date of delivery, will bear semiannual interest (payable on each June 1 and December 1) at the rates set forth on the inside cover page hereof and will mature on June 1 in the years and in the principal amounts set forth on said inside cover page. Interest on the Bonds will be computed on the basis of a 360 day year of twelve (12) consecutive thirty (30) day months. The Bonds will be issued as fully registered bonds, registerable as to both principal and interest, in Authorized Denominations. The principal of and the interest and premium (if any) on the Bonds will be payable in lawful money of the United States of America. Registration and Transfer; Method of Payment agent. Regions Bank will be the Trustee under the Indenture. The Trustee is also Bond Registrar and paying The Bonds are initially issued in Authorized Denominations pursuant to a Book-Entry Only System to be administered by the Securities Depository and registered in the name of and held by Cede & Co., as Securities Depository Nominee. During the period in which Cede & Co. is the registered owner of the Bonds, purchases and transfers of ownership of beneficial interests in the Bonds will be evidenced by book-entry only and all payments of principal of, premium (if any) and interest on the Bonds will be made by the Trustee to Cede & Co. (as registered owner) for the Securities Depository for disbursement by the Securities Depository to the Direct Participants of the Securities Depository and for subsequent disbursement by the Direct Participants (and, where appropriate, by the Indirect Securities Depository Participants) to the owners of beneficial interests in the Bonds, as more particularly provided in the Indenture and described herein in Appendix E "BOOK-ENTRY ONLY SYSTEM". In the event the Book-Entry Only System for the Bonds is discontinued, Bonds in certificated form in Authorized Denomination will be physically distributed to the owners of beneficial interests in the Bonds, the Bonds will be registered in the names of the owners thereof on the registration books of the Trustee pertaining thereto, the Trustee shall make payments of principal of, premium (if any) and interest on the Bonds to the registered owners thereof as provided in the Bonds and the Indenture, and the following provisions with respect to registration, transfer and exchange of the Bonds by the registered owners thereof shall apply, subject to the further conditions set forth in the Indenture with respect thereto: (a) The Bonds will be transferable only on the Bond Register maintained at the principal corporate trust office of the Trustee. Upon surrender of a Series 2016 Bond to be transferred, properly endorsed, a new Series 2016 Bond will be issued to the designated transferee. (b) The Bonds may be exchanged for other Bonds of the same maturity of any Authorized Denominations and of a like aggregate principal amount, as requested by the Holder surrendering the same

13 The Indenture provides that interest on the Bonds shall be payable solely by check or draft mailed by the Trustee to the holders of the Bonds at the addresses shown on the Bond Register. Payment of interest on the Bonds shall be deemed timely made if mailed to the registered owner on the interest payment date with respect to which such payment is made or of such interest payment date is not a Business Day, then on the first Business Day following such interest payment date. The Indenture provides that each registered owner of the Bonds, by receiving or accepting the Series 2016 Bond, consents and agrees and is estopped to deny that, insofar as the Building Authority and the Trustee are concerned, the Series 2016 Bond may be transferred only in accordance with the provisions of the Indenture. Redemption Provisions for Bonds Optional Redemption The Bonds are subject to redemption, at the option of the Building Authority (which option shall be exercisable upon direction and consent of the Town if the Lease Agreement is still in effect and no default exists thereunder), to the extent of moneys on deposit in the Bond Fund for such purpose, as a whole or in part (but if in part only in Authorized Denominations and in such order and amount of their maturities as the Building Authority shall determine with the consent of the Town, and if less than all of the Bonds of a single maturity are to be redeemed, those bonds of such maturity to be called for redemption to be selected by lot by the Trustee), on June 1, 2022 or on any date thereafter, such redemption, whether in whole or in part, to be at and for the redemption price equal to the principal amount thereof to be redeemed, plus accrued interest thereon to the redemption date, without premium or penalty. Mandatory Redemption The Bonds having a stated maturity on June 1, 2028 (the "2028 Term Bonds") are subject to scheduled mandatory redemption, by lot, on June 1 in each of the years and in the aggregate principal amounts set forth below (subject to a credit for the principal amount of the 2028 Term Bonds then cancelled or redeemed and not previously claimed as a credit), at a redemption price for each 2028 Term Bond to be redeemed equal to the principal amount thereof, plus accrued interest thereon to the redemption date, without premium or penalty: Year Principal Amount to Be Mandatorily Redeemed 2027 $110,000 $110,000 principal amount of the 2028 Term Bonds is scheduled to be retired at maturity on June 1,

14 The Bonds having a stated maturity on June 1, 2031 (the "2031 Term Bonds") are subject to scheduled mandatory redemption, by lot, on June 1 in each of the years and in the aggregate principal amounts set forth below (subject to a credit for the principal amount of the 2031 Term Bonds then cancelled or redeemed and not previously claimed as a credit), at a redemption price for each 2031 Term Bond to be redeemed equal to the principal amount thereof, plus accrued interest thereon to the redemption date, without premium or penalty: Year Principal Amount to Be Mandatorily Redeemed 2029 $110, ,000 $70,000 principal amount of the 2031 Term Bonds is scheduled to be retired at maturity on June 1, The Bonds having a stated maturity on June 1, 2036 (the "2036 Term Bonds") are subject to scheduled mandatory redemption, by lot, on June 1 in each of the years and in the aggregate principal amounts set forth below (subject to a credit for the principal amount of the 2036 Term Bonds then cancelled or redeemed and not previously claimed as a credit), at a redemption price for each 2036 Term Bond to be redeemed equal to the principal amount thereof, plus accrued interest thereon to the redemption date, without premium or penalty: Year Principal Amount to Be Mandatorily Redeemed 2032 $75, , , ,000 $85,000 principal amount of the 2036 Term Bonds is scheduled to be retired at maturity on June 1, The Bonds having a stated maturity on June 1, 2044 (the "2044 Term Bonds") are subject to scheduled mandatory redemption, by lot, on June 1 in each of the years and in the aggregate principal amounts set forth below (subject to a credit for the principal amount of the 2044 Term Bonds then cancelled or redeemed and not previously claimed as a credit), at a redemption price for each 2044 Term Bond to be redeemed equal to the principal amount thereof, plus accrued interest thereon to the redemption date, without premium or penalty: Year Principal Amount to Be Mandatorily Redeemed 2037 $85, , , , , , ,000 $170,000 principal amount of the 2044 Term Bonds is scheduled to be retired at maturity on June 1,

15 Extraordinary Redemption The Bonds will be subject to redemption, as a whole, on any date, at the option of the Building Authority (which option shall be exercisable upon the direction and consent of the Town if the Lease Agreement is still in effect and no default exists thereunder), at and for a redemption price equal to the principal amount thereof plus accrued interest thereon to the redemption date, without premium or penalty, in the event that (a) the Building, or any parts thereof, are damaged or destroyed to such extent that in the opinion of the Town, (i) the Building cannot reasonably be substantially restored to the condition thereof immediately preceding such damage or destruction within a period of six (6) consecutive months, (ii) the Town will thereby be prevented, or is likely to be thereby prevented, from using the Building for a period of not less than six (6) consecutive months, or (iii) the cost of restoration thereof would exceed by more than $10,000 the sum of the net insurance proceeds referable to such damage or destruction, or (b) title to, or the temporary use of, any part of the Building is taken under the exercise of the power of eminent domain by any governmental authority or person, firm or corporation acting under governmental authority and such taking or takings result (or, in the opinion of the Town are likely to result) in the Town being thereby prevented from using the Building for a period of not less than six (6) consecutive months, or (c) as a result of any changes in the Constitution of the State of Alabama or the Constitution of the United States of America or of legislative or administrative action (whether state or federal) or by final decree, judgment or order of any court or administrative body (whether state or federal), entered after the contest thereof by the Town in good faith, the Lease Agreement becomes void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed therein or unreasonable burdens or excessive liabilities are imposed on the Building Authority or the Town, or (d) in the event of default or non-renewal of the Lease Agreement by the Town. Selection of Bonds for Partial Redemption If less than all of the outstanding Bonds are to be redeemed during a period in which the Book-Entry Only System is in effect for the Bonds, the Building Authority shall designate the order and amount of maturities of the Bonds (or portions thereof) to be redeemed not less than 30 nor more than 60 days prior to the redemption date and, in accordance with the Letter of Representations, the Securities Depository shall determine the amount of the interest of each Direct Participant in the Bonds to be redeemed, on the basis of the smallest Authorized Denomination of the Bonds, by lot or by such other method as the Securities Depository shall deem fair and appropriate. If less than all the outstanding Bonds are to be redeemed during a period in which the Book-Entry Only System is not in effect for the Bonds, the Trustee shall select the particular Bonds to be redeemed not less than 30 nor more than 60 days prior to the redemption date of the outstanding Bonds which have not previously been called for redemption, on the basis of the smallest Authorized Denomination of the Bonds, by lot or by such method as the Trustee shall deem fair and appropriate

16 During a period in which the Book-Entry Only System is in effect for the Bonds, the recordation and evidence of any reduction in the aggregate principal amount of the Bonds as a result of the redemption of a portion thereof shall be made in accordance with the Letter of Representation and the rules and procedures of the Securities Depository with respect thereto from time to time in effect. During a period in which the Book-Entry Only System is not in effect for the Bonds, unless otherwise provided in the Indenture, any Series 2016 Bond which is to be redeemed only in part shall be surrendered at the designated office of the Trustee (with, if the Building Authority or the Trustee requires, due endorsement by, or a written instrument of assignment or transfer in form satisfactory to the Building Authority and the Trustee duly executed by the Holder thereof or his attorney duly authorized in writing) and the Building Authority shall execute and the Trustee shall authenticate and deliver to the Holder of such Series 2016 Bond, without service charge, a new Series 2016 Bond or Bonds of any authorized denomination or denominations as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Series 2016 Bond surrendered. Notice of Redemption; Interest Ceases to Accrue After Redemption Date Notice of any intended redemption shall be given by the Trustee to the Holder of each Series 2016 Bond, all or a portion of the principal of which is to be redeemed, not less than 30 days prior to the proposed redemption date by United States registered or certified mail (first class, postage prepaid), at the address of such Holder appearing in the Bond Register or, if the Securities Depository or Securities Depository Nominee is the Holder, at the times and in the manner as provided in the Letter of Representation; provided, however, any Holder may waive the requirement of notice as to the redemption (in whole or in part) of the Series 2016 Bond or Series 2016 Bond thereof. During a period in which the Book-Entry Only System is in effect for the Bonds, notice of any intended redemption may also be given to each Beneficial Owner, all or portion of the interest of which in the Bonds is to be redeemed, by the Direct Participants and, where appropriate, by the Indirect Participants, pursuant to arrangements among said parties, subject to statutory and regulatory requirements in effect from time to time; provided, however, any Beneficial Owner may waive the requirement of notice as to the redemption of the interest thereof in the Bonds

17 THE BUILDING The parcel for the Building is approximately 406 feet by 304 feet in size (the "Building Site"). Appropriate equipment, furniture and fixtures (the "Building Equipment") have been acquired for the Building. The Building is located in Summerdale, Alabama, is owned by the Building Authority, and is leased to the Town for use as a Town Hall. SOURCE OF PAYMENT AND SECURITY FOR THE BONDS Investment Risks An investment in the Bonds involves certain risks. See "BONDHOLDER RISKS" hereinafter. General The Bonds will not be general obligations of the Building Authority and will not constitute a general obligation debt, liability or obligation of the State of Alabama, the Town or any other political subdivision of the State. No holder of any of the Bonds shall have the right to compel any exercise of the taxing power of the State of Alabama, the Town or any other political subdivision to pay the Bonds or any interest thereon. The Building Authority has no taxing power. Neither the principal of nor the interest on the Bonds, nor the agreements in the Indenture shall ever constitute a personal or pecuniary liability of or charge against the general credit of the Building Authority, the Town or the State of Alabama. The Bonds will be special limited obligations of the Building Authority and will be payable solely from and secured by a pledge of the rentals and other receipts to be derived by the Building Authority from the leasing of the Building to the Town. Contemporaneously with the issuance of the Bonds, the Building Authority will enter into the Lease Agreement pursuant to which the Building Authority will agree to acquire, construct and/or equip the Building and lease the Building to the Town. The initial term of the Lease Agreement shall not be longer than the current fiscal year of the Town, which ends on September 30, The Lease Agreement will contain a grant to the Town of successive options to renew the term of the Lease Agreement annually on a year-to-year basis until the Bonds are paid, and each of those options to renew the term of the Lease Agreement will be automatically exercised unless the Town shall affirmatively give notice that it will not exercise any such option. There is no obligation on the Town to renew the Lease Agreement for any fiscal year beyond the fiscal year ending September 30, If the Town does not elect to renew the Lease Agreement, the Building Authority will have no funds with which to pay the principal of and interest on the Bonds, except such funds as may be derived from the leasing of the Building. The Building constitutes an essential governmental function, and should any space available for rent in the Building leased to the Town become vacant after acquisition, construction and/or renovation of said Building by the Building Authority, then until such time as all such vacant space in the Building shall have been filled, neither the Town nor any offices, department or agency thereof shall thereafter enter into any lease or rental agreement for other space in or about the Town suitable for use for the same purposes for which the vacant space is available

18 Factors Adversely Affecting the Ability of the Town to Pay under Lease Agreement Prospective purchasers of the Bonds should understand the following concerning the ability of the Town to make due and punctual payment of the amounts required to be paid thereby under the Lease Agreement: Limited Tax Base of Town The Town has a limited corporate and demographic base upon which to increase local taxes of any kind or nature to produce revenues for the General Fund of the Town. Limited Taxing Authority of Town The Town can increase ad valorem taxes only after the prior approval of the legislature of the State of Alabama therefor and the majority vote in favor thereof of the qualified electors of the Town voting at an election therefor. The Town may increase certain privilege license and excise taxes without legislative approval or an election, but the Town currently levies sales and use taxes, business license taxes, lodging taxes, and similar privilege license taxes at rates commensurate with county and municipal jurisdictions and taxing authorities in the regional trade area of the Town. Law-Imposed Requirement on Use of General Fund Revenue of Town Pursuant to Alabama common law, all revenues of the Town available for general municipal purposes (and not dedicated by law to a specific purpose) are subject to the law-imposed requirement that, if necessary, there must first be paid from such revenues the legitimate and necessary governmental expenses of operating the Town, prior to the payment of debt service on obligations of the Town, such as the Lease Agreement. Summary of Revenues and Expenditures of the Town A summary of the Town s General Fund revenues and expenditures for the last five fiscal years, and the outstanding long-term debt of the Town, is set forth herein under "TOWN FINANCIAL SYSTEM" in Appendix C

19 Provisions of the Indenture Pursuant to the provisions of the Indenture, the Building Authority will be required to make deposits from the rent received from the lease of the Building (i) into the Bond Fund established under the Indenture and (ii) for the payment of the Trustee's fees and expenses. Pursuant to the provisions of the Indenture, the Building Authority will, for the benefit of the holders of the Bonds and to secure payment of the principal thereof and the interest and premium (if any) thereof, mortgage, assign and pledge to the Trustee, subject to the "Permitted Encumbrances" (as defined in the Indenture), the following properties, rights and interests: (a) the Building Site (hereinafter defined); (b) the Building and all other buildings and improvements now or hereafter constructed or situated on the land constituting part of the Building Site; (c) the Building Equipment hereinafter defined, including those items thereof that are generally described in the Lease Agreement and the Indenture and all other items of equipment, furniture or fixtures that under the provisions of said documents are to constitute part of the Building Equipment; (d) all rents, revenues, issues, earnings and income derived by the Building Authority from the Building; (e) all right, title and interest of the Building Authority in and to the Lease Agreement; and (f) Money and investments from time to time on deposit in, or forming a part of, the Bond Fund, subject to the terms and provisions of the Indenture. THE MORTGAGE OF THE BUILDING CONTAINED IN THE INDENTURE WILL NOT BE SUBJECT TO FORECLOSURE AND SALE. The Building Authority will reserve the right in the Indenture to issue Additional Bonds (as defined in the Indenture) secured by the Indenture on an equal and proportionate basis and parity of lien with the Bonds and any Additional Bonds then outstanding, subject, however, to the terms, conditions and limitations set forth in the Indenture, and only for equipping, rehabbing or improving the Building and only to the extent that proceeds of the Bonds are not sufficient for that purpose

20 USE OF PROCEEDS OF THE BONDS as follows: The Building Authority expects that the proceeds from the sale of the Bonds will be applied substantially SOURCES: Bonds $2,085, Bond Fund 14, Original Issue Discount (34,199.85) Total Sources $2,065, USES Refunding Escrow Deposits [1] $1,994, Costs of Issuance [2] 70, Total Uses $2,065, [1] The proceeds of the Bonds allocable to the refunding of the Refunded Bonds shall be held in trust and applied, together with all investment income therefrom, to the payment, redemption, and retirement of the Refunding Bonds. The proceeds of the Bonds held in trust for the benefit of the Refunded Bonds shall not secure, or be available for payment of, the Bonds. [2] Includes without limitation underwriter's compensation, fees and expenses of bond counsel, insurance premiums, ratings, printing, accounting services, and similar costs

21 DEBT SERVICE REQUIREMENTS The following table presents the projected debt service on the Bonds. Fiscal Year Total Ended 9/30 Principal Interest Debt Service 2017 $45, $45, , , , , , , , , , , , , , , , , , , $110,000 55, , ,000 53, , ,000 51, , ,000 49, , ,000 46, , ,000 45, , ,000 43, , ,000 41, , ,000 39, , ,000 37, , ,000 35, , ,000 32, , ,000 28, , ,000 24, , ,000 19, , ,000 14, , ,000 10, , ,000 5, , TOTALS $2,085,000 $1,181, $3,266,

22 SUMMARY OF DOCUMENTS Set forth herein in "SUMMARY OF DOCUMENTS" in Appendix D is a summary of certain provisions of the Lease Agreement and the Indenture. Such summaries do not purport to be complete descriptions and contain only brief outlines of the terms and provisions of such documents. The summaries are qualified in their entirety by reference to such documents, all of which will be available for inspection at the offices of the Trustee and the offices of the Town Clerk of the Town. LITIGATION or affecting: There is not now pending or threatened any litigation restraining, enjoining or in any manner questioning (a) the creation, organization or existence of the Building Authority; the title of the present members of the Board of Directors or other officers of the Building Authority to their respective offices; the proceedings and authority under which the Bonds are issued; the validity of the Bonds; or the validity and enforceability of the Indenture; or (b) the creation, existence, or boundaries of the Town; the title of the present members of the governing body of the Town to their respective offices; the authority and proceedings under which the Lease Agreement is issued and delivered; or the validity and enforceability of the Lease Agreement or the ability of the Town to perform its obligations under the Lease Agreement. LEGAL MATTERS The legality and validity of the Bonds will be approved by Bond Counsel, Maynard, Cooper & Gale, P.C., Birmingham, Alabama. Bond Counsel has been employed primarily for the purpose of preparing certain legal documents and supporting certificates, reviewing the transcript of proceedings by which the Bonds have been authorized to be issued, and rendering opinions in conventional form as to the validity and legality of the Bonds and the exemption of interest thereon from Alabama income taxes and the exclusion of interest thereon from gross income for federal income taxation. Although Bond Counsel assisted in the preparation of certain portions of this Official Statement and is of the opinion that the statements made therein under the captions "THE BONDS," "LEGAL MATTERS," and "TAX MATTERS" fairly summarize the matters therein referred to, Bond Counsel has not been requested to check or verify, has not checked or verified, and will express no opinion with respect to the adequacy, accuracy, completeness or fairness of any other information contained in this Official Statement or in Appendix B, Appendix C, Appendix E and Appendix F hereto

23 TAX MATTERS General; Opinion of Bond Counsel In the opinion of Bond Counsel, under existing law, interest on the Bonds: (a) will be excludable from gross income for federal income tax purposes if the Building Authority complies with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be and remain excludable from gross income; (b) will not be an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, with respect to corporations, such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax imposed on such corporations; and (c) will be exempt from State of Alabama income taxation. Bond Counsel will express no opinion regarding other federal or state tax consequences arising with regard to the Bonds other than the opinions referred to in the preceding paragraph. to the Bonds. The form of Bond Counsel s opinion is expected to be substantially as set forth in Appendix A with respect The opinion on tax matters will be based on and will assume the accuracy of certain representations and certifications, and continuing compliance with certain covenants, of the Building Authority contained in the transcript of proceedings and that are intended to evidence and assure the foregoing, including that the Bonds are and will remain obligations the interest on which is excluded from gross income for federal income tax purposes. Bond Counsel will not independently verify the accuracy of the certifications and representations of the Building Authority or the continuing compliance with the covenants of the Building Authority with respect thereto. The opinion of Bond Counsel is based on current legal authority and covers certain matters not directly addressed by such authority. It represents Bond Counsel s legal judgment as to exclusion of interest on the Bonds from gross income for federal income tax purposes but is not a guaranty of that conclusion. The opinion is not binding on the Internal Revenue Service ("IRS") or any court. Bond Counsel expresses no opinion about (i) the effect of future changes in the Code and the applicable regulations under the Code or (ii) the interpretation and the enforcement of the Code or those regulations by the IRS

24 Ancillary Tax Matters Under the Code, the exclusion of interest from gross income for federal income tax purposes may have certain adverse federal income tax consequences on items of income, deduction or credit for certain taxpayers, including financial institutions, certain insurance companies, recipients of Social Security and Railroad Retirement benefits, those that are deemed to incur or continue indebtedness to acquire or carry tax-exempt obligations, and individuals otherwise eligible for the earned income tax credit. Payments of interest on tax-exempt obligations, including the Bonds, are generally subject to IRS Form 1099INT information reporting requirements. If an owner of a Bond is subject to backup withholding under those requirements, then payments of interest will also be subject to backup withholding. Those requirements do not affect the excludability of such interest from gross income for federal income tax purposes. The applicability and extent of these and other tax consequences will depend upon the particular tax status or other tax items of the owner of the Bonds. Bond Counsel will express no opinion regarding those consequences. Interest on the Bonds may be subject to a federal branch profits tax imposed on certain foreign corporations doing business in the United States and to a federal tax imposed on excess net passive income of certain S corporations. Changes in Law and Post Issuance Compliance and Events Legislation affecting tax-exempt obligations is regularly considered by the United States Congress, and legislation affecting the exemption of interest or other income thereon for purposes of state taxation may be considered by the legislative body of the State of Alabama. Court proceedings may also be filed the outcome of which could modify the tax treatment of obligations such as the Bonds. There can be no assurance that legislation enacted or proposed, or actions by a court, after the date of issuance of the Bonds will not have an adverse effect on the tax status of interest or other income on the Bonds or the market value of the Bonds. The Code prescribes a number of qualifications and conditions for the interest on state and local government obligations to be and to remain excluded from gross income for federal income tax purposes, some of which require future or continued compliance after issuance of the obligations. Noncompliance with these requirements by the Building Authority may result in the interest on the Bonds being included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. The Building Authority has covenanted to take the actions required of it for the interest on the Bonds to be and to remain excluded from gross income for federal income tax purposes, and not to take any actions that would adversely affect that exclusion. After the date of issuance of the Bonds, Bond Counsel will not undertake to determine (or to so inform any person) whether any actions taken or not taken, or any events occurring or not occurring, or any other matters coming to Bond Counsel s attention, may adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds or the market prices of the Bonds. Consultation with Tax Advisors Prospective purchasers of the Bonds should consult their own tax advisors regarding the federal and state consequences of owning and disposing of the Bonds, pending or proposed federal and state tax legislation, and other tax considerations, such as the consequences of market discount, as to all of which Bond Counsel expresses no opinion