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SELECTED DATA FROM THE OFFICIAL STATEMENT The selected data is subject in all respects to the more complete information and definitions contained or incoq~orated in this Official Statement. The offedng of the Bonds to potential investors is made only by means of this entire Official Statement. No person is authorized to detach this page from this Official Statement or to othe/wise use it without the entire Ofiicial Statement. The Issuer The City of Paris, Texas (the "City" or UlssueK') is located in Lamar County and is the County seat and principal commemial center of the County. The City operates under a Council/Manager form of government, with the City Council comprised of seven members including the Mayor. All seven Council members are elected by district for two-year staggered terms. (See Appendix B - "General Information Regarding the City of Paris and Lamar County, Texas" herein.) The Bonds The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas (the "State"), V.T.C.A. Government Code, Chapters 1207 and 1331, as amended, the City's Home Rule Charter and an ordinance adopted by the City Council (the "Ordinance"). (See "THE BONDS - Authority for Issuance" herein.) Security for Payment The Bonds are direct and general obligations of the issuer payable from an annual ad valorem tax levied against all taxable property in the City1 within the limits prescribed by law, and further secured by a pledge of surplus net ~evenues derived from the operation of the Issuer's combined Waterworks and Sewer System (the "System), (See "THE BONDS - Security for Payment" herein.) Paying AgentJRegistrar The initial Paying Agent/Registrar is The Bank of New York, New York, New York. Redemption Provisions of The Issuer reserves the right at its sole option to redeem the Bonds maturing on and the Bonds after December 15, 2010, on December 15, 2009, or any date thereafter, in whole or in part, in principal amounts of $5,000 or any integral multiple thereof, at the redemption price of par plus accrued interest as further described herein. (See "THE BONDS - Redemption Provisions" herein.) Tax Matters in the opinion of Bond Counsel, the interest on the Bonds will be excludable from gross income for federal tax purposes under statutes, regulations, published rulings and court decisions existing on the date thereof, subject to the matters described under "TAX MATTERS" herein, including the alternative minimum tax on corporations. (See "TAX MATTERS" and "Appendix C - Form of Opinion of Bond Counsel" herein.) Qualified Tax-Exempt The Issuer will designate the Bonds as "Qualified Tax-Exempt Obligations" for financial Obligations institutions. (See "TAX MATTERS - Qualified Tax-Exempt Obligations" herein.) Use of Bond Proceeds Proceeds from the sale of the Bonds, together with a cash contribution from the City are being used to refund the 2001 through 2011 maturities of the City's Tax and Revenue Refunding Bonds, Sedes 1991 to achieve debt service savings, and to pay the cost of issuance of the Bonds. (See "PLAN OF FINANCING - Purpose" herein.) Bond Insurance Payment of the principal of and interest on the Bonds when due will be insured by a municipal bond insurance policy to be issued by Financial Guaranty Insurance Company ("Financial Guaranty") concurrently with the delivery of the Bonds. See "BOND INSURANCE" herein. Book-Entry-Only System The Issuer intends to utilize the Book-Entry-Only System of The Depository Trust Company, New York, New York relating to the method and timing of payment and the method and transfer relating to the Bonds. (See *BOOK-ENTRY-ONLY SYSTEM" herein.) Ratings it is anticipated that Moody's Investors Service, Inc. ("Moody's") will assigned a rating of "Aaa" to the Bonds with the understanding that, concurrently with the delivery of the Bonds, a municipal bond insurance policy will be issued by Financial Guaranty Insurance Company. The City currentJy has an underlying Moody's rating of "A2" on its general obligation debt and the City has made applications for an underlying on the Sedes 2001 bonds. (See "BOND INSURANCE" and "OTHER PERTINENT INFORMATION - Ratings" herein.) Payment Record The City has never defaulted. Delivery When issued, anticipated on or about September 26, 2001. Legality Delivery of the Bonds is subject to the approval by the Attorney General of the State of Texas and the rendering of an opinion as to legality by McCall, Parkhuret & Horton, L.L.P., Bond Counsel, Dallas, Texas. 4