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<br />immediately avajJabJe funds for unconditional credit to the City, or as otherwise directed by the City.
<br />The Purchaser will be given six business days' notice of the tjme fixed for delivery of the Bonds. It is
<br />anticipa ted that Initial Delivery of the Initial Bond(s) can be made on or about January 5, 1989, and it is
<br />understood and agreed that the Purchaser will accept delivery and make payment lor the Bonds by 10:%
<br />A,\!, CST, on January 5, 1989, or thereafter on the date the Bond is tendered for deJiver)', up to dnG
<br />including January 19, 1989. If for any reason the City is unable to make delivery on or before
<br />January 19, 1989, the City shaH immediately contact the Purchaser and offer to allow the Purchaser to
<br />extend his offer for an additional thirty days. If the Purchaser does not elect to extend hIs oHer wlthu)
<br />six days thereafter, then his Good Faith Deposit will be returned, and both the City and the Purchaser
<br />shall be relieved oLany further obligation. In no event shaH the C¡ty be liable for any damages by reason
<br />of its failure to deliver the Bonds, provided such failure is due to circumstances beyond the City's
<br />reasonable control.
<br />
<br />Delivery of Definitive Bonds
<br />
<br />Upon payment for the Bonds at the time of the Initial Delivery, the Paying Agent/Registrar shaH cancel
<br />the Initial Bond, provided registration instructions have been received by the Paying Agent/Registrar, and
<br />shall register and deliver the registered definitive Bonds, in any integral multiple of $5,000 for anyone
<br />maturity, jn accordance with instructions received from the Purchaser and/or members of the Purchaser's
<br />syndicate account. [t shall be the duty of the Purchaser to furnish to the Paying Agent/Registrar, at least
<br />five business days prior to the Initial Delivery, written instructions designating the names in wh1ch the
<br />Bonds are to be registered, the addresses of the registered owners, the maturities, interest rates and
<br />denominations. The Paying Agent/Registrar will not be required to accept registration instructions after
<br />the fifth busjness day prior to Initial Delivery. If such written instructions are not received within the
<br />specified time period, the cancellation of the Initial Bond(s} and delivery of registered definitive Bonds
<br />may be delayed until such instructions are received.
<br />
<br />Conditions to Delivery
<br />
<br />The obligation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of
<br />(a) the legal opinion of Hutchison Boyle Brooks &: Dransfield, a Professional Corporation, Austin, Texas,
<br />Bond Counsel for the City ("Bond Counsel"), (b) the no-litigation certificate, and (c) the certification as to
<br />the Official Statement, aJl as further described in the Official Statement.
<br />
<br />In order to provide the City with information required to enable it to comply with certain condjtions of
<br />the Internal Revenue Code of 1986 relating to the exemption of interest on the Bonds from the gross
<br />income of their owners, the Purchaser wiU be required to complete, execute, and deliver to the City (on
<br />or before the date of delivery of the Bonds) a certification as to their "issue price" substantiaUy in the
<br />form and to the effect attached hereto or accompanying this Notice of Sale and Bidding Instructions. In
<br />the event the successful bidder wil1 not reoffer the Bonds for sale, such certificate may be modified in a
<br />manner approved by the City. In no event will the City fail to deliver the Bonds as a resuJt of the Initial
<br />Purchaser's inability to sell a substantial amount of the Bonds at a particular price prior to delivery. Each
<br />bidder, by submitting its bid, agrees to complete, execute, and de1iver such a certificate by the date of
<br />delivery of the Bonds, if its bid is accepted by the City. It wiU be the responsibility of the Purchaser to
<br />institute such syndicate reporting requirements to make such investigation, or otherwise to ascertain the
<br />facts necessary to enable it to make such certification with reasonable certainty. Any questions
<br />concerning such certification should be directed to Bond Counsel.
<br />
<br />Legal Opinions
<br />
<br />The Bonds are offered when, as and if issued, subject to the approval of the Attorney General of the State
<br />of Texas. Delivery of and payment for the Bonds is subject to the receipt by the Purchaser of opinions of
<br />~ond Counsel, to the effect that the Bonds are valid and binding obligations of the City and that the
<br />Interest on the Bonds will be excludable from gross income under existing laws, assuming compliance by
<br />the City with certain covenants described in the Official Statement under the heading "Tax Exemption".
<br />
<br />Certification of Official Statement
<br />
<br />At the time of payment for, and Initial Delivery of, the Bonds, the City will execute and deliver to the
<br />Purchaser a certificate in the form set forth in the Official Statement.
<br />
<br />Change in Tax Exempt Status
<br />
<br />At any time before the Bonds are tendered for delivery, the Purchaser may withdraw his bid if the
<br />jnterest received by private holders on bonds of the same type and character shall be declared to be
<br />taxable income under present federal income tax la ws, ei ther by ruling of the Internal Revenue Serv ice or
<br />by a decision of any Federal court, or shall be declared taxable or be required to be taken into account in
<br />computing any federal income taxes, by the terms of any federal income tax law enacted subsequent to
<br />the date of this Notice of Sale and Bidding Instructions.
<br />
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