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	LAW OFFICES
	MSCALL, PARKHURST & NORTON L.L.P.
717 NORTH HARWOOD	JOO N. ST MARY'S STREET
NINTH FLOOR	1525 ONE RIVERWALK PLACE
DALLAS, TEXAS 75 201-658 7	SAN ANTONIO, TEXAS 78205-3503
TELEPHONE: 214 J84-9200	TELEPHONE 210 225-2800
FACSIMILE: 214 J54-9250	FACSIMILE 210 225-2984
Apri13, 2006
Judge Pat Tinley
Kerr County, Texas
700 Main Street
Kemille, Texas 78028
600 CONGRESSAVENUE
1250 ONE AMERICAN CENTER
AUSTIN, TEXAS 78701-3248
TELePI-IONS. 512 4J8 3805
FPCSIMRE 512 472-OB>I
Re: $1,030,000 Master Lease/Purchase Agreement Between Kerr County, Texas and
Banc of America Leasing & Capital, LLC
Dear Judge Tinley:
In connection with the above-captioned transaction, enclosed please find an executed Investor
Aclrnowledgement Letter.
Should you have any questions, please do not hesitate to contact us.
Cordially your/s, ~~
Syl O. lbarra
s>
enclosure
BankofAmeric ~~'
Bank of America
Banc of America Leasing
INVESTOR ACKNOWLEDGMENT LETTER Government finance
IL1-231-13-38
231 la5alle St.
Mazch 24, 2006 Chicago, IL 60604
Tel 312.828.5319
fax 312.974.3288
Kerr County, Texas
700 Main Street
Kerrville, Texas 78028
RBC Dain Rauscher Inc.
153 Treeline Pazk, Suite 100
San Antonio, Texas 78209
McCall, Parkhurst & Horton L.L.P.
700 N. St. Mary's, Suite 1525
San Antonio, Texas 78205
RE: $1,030,000 MASTER LEASE/PURCHASE AGREEMENT BETWEEN KERB
COUNTY, TEXAS AND BANC OF AMERICA LEASING & CAPITAL, LLC
Ladies and Gentlemen:
The undersigned (herein referred to as the "Banc"), as the "Lessor" under the MASTER
EQUIPMENT LEASE/PURCHASE AGREEMENT, dated as of March 16, 2006 (the "Lease Agreement"),
between KERR COUNTY, TEXAS (herein referred to as the "County"), as "Lessee" under the Lease
Agreement, hereby acknowledges and confirms that it has been furnished such financial, statistical and
other information with respect to the County and the Lease Agreement, including an executed copy of the
Lease Agreement and the Order of the Commissioners Court of the County which authorized the County
to enter into the Lease Agreement (the "Order"), as the Banc deems necessary to enable it to make an
informed investment decision with respect to entering into the Lease Agreement with the County and
providing funds thereunder to enable the County to purchase the equipment and personal property
described therein. The Banc further acknowledges that:
1. The "Rental Payments" (as defined in the Lease Agreement) aze payable from and secured by
a pledge of ad valorem taxes to be levied annually of the County, within the limits provided by law, and
by a security interest in the "Equipment" being financed thereunder, all in accordance with the provisions
of the Lease Agreement.
2. The Banc, as a fmancial institution, has sufficient knowledge and experience in financial and
business matters, including the purchase and ownership of municipal and other tax-exempt obligations
and entering into lease-purchase ageements of a nature similaz to the Lease Agreement, to be able to
evaluate the risks and merits of the investment represented by entering into the Lease Agreement with the
County.
3. The Banc has entered into the Lease Agreement with the County for its own account as
evidence of a loan and not with a view to, or for sale in connection with, any distribution of the Rental
Payments received from the County or any part thereof. The Banc has not offered to sell, solicited offers
to buy, or agreed to sell the Rental Payments or any part thereof, and the Banc has no present intention of
reselling or otherwise disposing of the Rental Payments.
USA
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Investor Acknowledgment Letter re: Master Equipment Lease/Purchase Agreement
with Kerr County, Texas
March 24, 2006
Page 2
4. As a sophisticated investor, the Banc has made its own credit inquiry and analysis with respect
to the County and the Lease Agreement and has made an independent credit decision based upon such
inquiry and analysis. The County has furnished to the Banc all the information which the Banc as a
reasonable investor has requested of the County, and the Banc has had the opportunity to ask questions of
and receive answers from knowledgeable individuals concerning the County and the Lease Agreement.
The Banc is able and willing to beaz the economic risk of entering into the Lease Agreement with the
County and serving as the Lessor thereunder.
5. The Banc further aclmowledges that it has been informed by the County of certain events
regarding $5,140,000 in principal amount of HILL COUNTRY JUVENILE FACILITY CORPORATION
LEASE REVENUE BONDS, SERIES 2002 (KERB COUNTY, TEXAS JUVENILE DETENTION FACILITIES
PROJECT) (the "Lease Revenue Bonds") issued by the HILL COUNTRY JUVENILE FACILITY
CORPORATION (the "Corporation") in December 2002, and the subsequent decision in September 2004
by the Commissioners Court of the County to exeicise its rights set forth in a lease agreement between the
County (as the lessee thereunder) and the Corporation (as the lessor thereunder) not to appropriate for
rental payments (i.e., debt service payments on the Lease Revenue Bonds) for the County's 2004-2005
fiscal year. The County has further informed the Banc that the Lease Revenue Bonds are no longer
outstanding and all holders of the Lease Revenue Bonds executed a full release of the County and the
Corporation with respect to their obligations related to the Lease Revenue Bonds. The County has
furnished to the Banc all the information which the Banc as a reasonable investor has requested of the
County regarding the Lease Revenue Bonds, and the Banc has had the opportunity to ask questions of and
receive answers from knowledgeable individuals concerning the Lease Revenue Bonds.
6. RBC Dain Rauscher (the County's Financial Advisor) and McCall, Parkhurst & Horton L.L.P.
(the County's Bond Counsel) have not undertaken steps to ascertain the accuracy or completeness of
information famished to the Banc with respect to the County or the Lease Revenue Bonds described in
pazagaph 5 above, and the Banc has not looked to either of those firms or entities for, nor have either of
them made, any representations to the County with respect to that information.
7. The Banc understands that the Lease Agreement and the County's obligation to make Rental
Payments due thereunder have not been rated by any rating agency or registered with any federal or state
securities agency or commission.
Very truly yours,
Banc of America Leasing & Capital, LLC
231 S. LaSalle Street, 13th Fl
IL1-231-13-38
Chicago, Illinois 60604
NamX e ,eoffrey C!"1 ~ ~,~~-''
Title: Vice President
cc: Rhonda Calvert
Jason Eshler