Res 1988-007 - Laserfiche WebLink

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[FORM OF OPINION OF BOND COUNSEL HUTCHISON PRICE BOYLE & BROOKS $1,660,000 CITY OF SAN MARCOS, TEXAS GENERAL OBLIGATION BONDS SERIES 1988 WE HAVE CONDUCTED AN EXAMINATION into the validity of an issue of bonds entitled "City of San Marcos, Texas, General Obligation Bonds, Series 1988" (the "Bonds"), dated February 1, 1988, and issued by the City of San Marcos, Texas (the "City"), as ful1y registered bonds, aggregating $1,660,000, and maturing serially on August 1 in the years 1990 through 2004. Interest on the Bonds is payable semiannual1y on February 1 and August 1 of each year, commencing February 1, 1989. The Bonds mature in the "amounts and bear interest at the rates prescribed for their respective maturity dates in accordance with the schedule provided in the ordinance adopted by the City authorizing the Bonds (the "Ordinance"), to which reference is hereby made for all purposes. Certain of the Bonds are subject to redemption prior to their scheduled maturities in accordance with the terms and conditions set forth in the Ordinance. WE HAVE EXAMINED those portions of the Constitution and laws of the State of Texas considered by us relevant to this opinion, certified copies of the proceedings of the City Council of the City, and other documents authorizing and relating to the issuance of the Bonds, including the form of Bonds approved in the Ordinance. BASED ON SUCH EXAMINATION, IT IS OUR OPINION that the Bonds have been authorized, issued and delivered in accordance with the Constitution and laws of the State of Texas and constitute valid and legally binding obligations of the City; that a continuing ad valorem tax upon all taxable property within the City, necessary to pay the interest on and principal of the Bonds, has been levied and pledged irrevocably for such purposes, within the limit prescribed by law; and that the total indebtedness of the City, including the Bonds. does not exceed any constitutional, statutory or other limitations. BASED ON THE FOREGOING, IT IS OUR FURTHER OPINION that the Bonds will not be "private activity bonds" within the meaning of Section 141(a) of the Internal Revenue Code of 1986. as amended, and applicable regulations, published rulings and court decisions (collectively, the "Code"). Accordingly. interest on the Bonds will not be treated as a preference item under the alternative minimum tax provisions of the Code as applicable to individuals and corporations, except that