Res 1988-007 - Laserfiche WebLink

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LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS Section 9 of the Bond Procedures Act of 1981 states: "All bonds issued by an issuer shall constitute negotiable instruments. and are investment securities governed by Chapter 8. Texas Uniform Commercial Code. notwithstanding any provisions of law or court decision to the contrary. and are legal and authorized investments for banks. savings banks, trust companies. building and loan associations. savings and loan associations. insurance companies. fiduciaries. and trustees. and for the sinking fund of cities. towns. villages. school districts. and other political subdivisions or public agencies of the State of Texas". The Act further provides that the bonds are eligible to secure deposits of public funds of the state. its agencies and political subdivisions. and are legal security for those deposits to the extent of their market value. No review by the City has been made of the laws in other states to determine whether the Bonds and the Certificates are legal investments for various institutions in those states. LEGAL OPINIONS AND NO-LITIGATION CERTIFICATE The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds and Certificates. including the unqualified approving legal opinion of the Attorney General of the State of Texas to the effect that the Bonds and Certificates are valid and binding obligations of the City. and based upon examination of such transcript of proceedings. the approving legal opinion of Bond Counsel. to like effect and to the effect that the Bonds and Certificates issued in compliance with the provisions of the Ordinance are valid and legaUy binding obligations of the City and the interest on such Bonds and Certificates is exempt from Federal income taxation under existing statutes. published rulings. regulations. and court decisions. (See "Tax Exemption" herein.) The customary closing papers. including a certificate to the effect that no Ii tigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds and Certificates. or which would affect the provision made for their payment or security, or in any manner questioning the validity of said Bonds and Certificates will also be furnished. Bond Counsel was not requested to participate. and did not take part, in the preparation of the Notice of Sale and Bidding Instructions. the Official Bid Form and the Official Statement, and such firm has not assumed any responsibility with respect thereto or undertaken independently to verify any of the information contained therein. except that. in its capacity as Bond Counsel, such firm has reviewed the information describing the Bonds and Certificates in the Official Statement to verify that such description conforms to the provisions of the Bond Ordinance and Certificate Ordinance. The legal fees to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds and Certificates are contingent on the sale and delivery of the Bonds and Certificates. The legal opinion will be printed on the definitive Bonds and Certificates. AUTHENTICITY OF FINANCIAL INFORMATION The financial data and other information contained herein have been obtained from the City's records. audited financial statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein wiU be realized. AU of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions of such statutes. documents and resolutions. . These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further information. Reference is made to original documents in aU respects. FINANCIAL ADVISOR First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds and Certificates. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds and Certificates is contingent upon the issuance and delivery of the Bonds and Certificates. First Southwest Company may submit a bid for the Bonds and Certificates. either independently or as a member of a syndicate organized to submit a bid for the Bonds and Certificates. First Southwest Company. in its capacity as Financial Advisor. has not verified and does not assume any responsibHity for the information, covenants and representations contained in any of the certificate documentation with respect to the Federal income tax status of the Bonds and Certificates. - 25-