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<br />January 1, 199& or any interest payment date thereafter, at the par value thereof plus accrued interest to
<br />the date fixed for redemption. If less than all of the Bonds are to be redeemed by the City, the City shall
<br />determine the maturity or maturities and the amounts thereof to be redeemed and if less than all of a
<br />maturity is to be redeemed, the Paying Agent/Registrar shall determine by lot the Bonds, or portions
<br />thereof, within such maturity to be redeemed. Not less than 30 days prior to a redemption date for the
<br />Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage
<br />prepaid, to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder
<br />appearing on the registration books of the Paying Agent/Registrar at the close of business on the business
<br />day next preceding the date of mailing such notice.
<br />
<br />Further details with reference to the Bonds are set forth in the Official Statement.
<br />
<br />Source of Payment. . . The Bonds are payable from and secured by an irrevocable first lien on and pledge
<br />of the net revenues of the City's Waterworks and Sewer System, as provided in the Ordinance authorizing
<br />the Bonds.
<br />
<br />CONDITIONS OF THE SALE
<br />
<br />Type of Bids and Interest Rates. . . The Bonds wi.Ll be sold in one block on an "AU or None" basis, and at a
<br />price of not less than their par value plus accrued interest to the date of delivery of the Bonds. Bidders
<br />are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be in
<br />a multiple of 1/& of 1 % or 1/20 of 1 % and the effective interest rate must not exceed 15%. The highest
<br />rate bid may not exceed the lowest rate bid by more than 396 in rate. No limitation is imposed upon
<br />bidders as to the number of rates or changes which may be used. All Bonds of one maturity must bear one
<br />and the same rate. No bids involving supplemental interest rates will be considered. Each bidder shall
<br />state in his bid the total interest cost in dollars and the effective interest rate determined thereby
<br />(calculated in the manner prescribed by Article 717k-2, V A TCS), which shall be considered informative
<br />only and not as a part of the bid.
<br />
<br />Basis for Award... For the purpose of awarding the sale of the Bonds, the interest cost of each bid will
<br />be computed by determining, at the rate or rates specified therein, the total dollar cost of all interest on
<br />the Bonds from the Bond Date to their respective maturities, using the table of Bond Years herein, and
<br />deducting therefrom the premium bid, 1f any. Subject to the City's right to reject any or aU bids and to
<br />waive any irregularities except time of filing, the Bonds will be awarded to the bidder or syndicate
<br />account whose name first appears on the Official Bid Form (the "Initial Purchaser" or "Purchaser") whose
<br />bid based on the above computation produces the lowest effective interest cost to the City (calculated in
<br />the manner prescribed by Article 717k-2, VATCS).
<br />
<br />Good Faith Deposit.. . A Good Faith Deposit, payable to the "City of San Marcos, Texas", in the amount
<br />of $26,400.00, is required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its
<br />equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance with the
<br />terms of his bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany
<br />the Official Bid Form or it may be submitted separately. If submitted separately, it shall be made
<br />available to the City prior to the opening of the bids, and shall be accompanied by instructions from the
<br />bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named
<br />in such instructions. The Good Faith Deposit of the Purchaser wiU be returned upon payment for the
<br />Bonds. No interest wiU be allowed on the Good Faith Deposit. In the event the Purchaser should fail or
<br />refuse to take up and pay for the Bonds in accordance with his bid, then said check shall be cashed and
<br />accepted by the City as fun and complete liquidated damages. The checks accompanying bids other than
<br />the winning bid will be returned immediately after the bids are opened, and an award of the Bonds has
<br />been made.
<br />
<br />DELIVER Y OF THE BONDS AND ACCOMPANYING DOCUMENTS
<br />
<br />CUSIP Numbers.. . It is anticipated that CUSIP identification numbers will appear on the Bonds, but
<br />neither the failure to print or type such number on any Bond nor any error with respect thereto shall
<br />constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in
<br />accordance with the terms of this Notice of Sale and the terms of the Official Bid Form. AU expenses in
<br />relation to the printing or typing of CUSIP numbers on the Bonds Shail be paid by the City; provided,
<br />however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the
<br />responsibility of and shall be paid for by the Purchaser.
<br />
<br />Initial Delivery of Initial Bond. . . Initial Delivery will be accomplished by the issuance of the Initial Bond
<br />(also called the "Bonds"), either in typed or printed form, in the aggregate principal amount of the Bonds,
<br />payable to the Purchaser, signed by the Mayor and City Secretary, either manual or facsimile, approved
<br />by the A ttorney General, and registered and manually signed by the Comptroller of Public Accounts.
<br />Initial Delivery will be at the principal corporate office of the Paying Agent/Registrar. Payment for the
<br />Bonds must be made in immediately available funds for unconditional credit to the City, or as otherwise
<br />
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