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<br /> -ax Equitv and Fiscal Responsibilit Act of 1982 ("TEFRA") ... TEFRA, as amended, mandates
<br /> among other things, that all municipal securities excepting those with a one vear maturi
<br /> or less must be registered in the owner's name, beginning \.¡ith July 1, 1983."
<br /> Successor PayinG Agent/Registrar '" Provision is made in the Ordinance for replacement of
<br /> the Paying Agent/Regi.strar. The City covenants to maintain and provide a Paying Aqent/ReGi-
<br /> strar at all timesvihlle the Certificates are outstanding and any successor PavinG ~,gent! -
<br /> Registrar shall be a bank, trust company, financial institution, or other entity-duly quali-
<br /> fied ani legally authorized to serve as and perform the duties and services of Paying A.gent!
<br /> Registrar for the Certificates, Upon any change in the Paying Agent/Registrar for the Cer-
<br /> tificates, the City agrees to promptly cause a written notice thereof to be sent to each
<br /> registered Owner of the Certificates by United States mail, first class, postage prepaid,
<br /> ~hich shall al so give the address of the new Paying Agent/Registrar,
<br /> Source of Payment ... The Certificates are special obligations, payable solely from and
<br /> secured by a first lien on and pledge of the revenues of the City's Waterworks and Sewer
<br /> System, after deduction of reasonable expenses of operation and maintenance.
<br /> CONDITIONS OF THE SALE
<br /> Type of Bids and Interest Rates ... The Certificates will be sold in one block on an "All or
<br /> None" basis, and at a pnce at not less than their par value plus accrued interest to the date
<br /> of delivery of the Certificates. Bidders are invited to name the rate(s) of interest to be
<br /> borne by the Certificates, provided that each rate bid must be in a multiple of 1/8 of 1 or
<br /> 1/20 of 1 and the effective interest rate must not exceed 15%, The highest rate bid may not
<br /> exceed the lowest rate bid by more than 3% in rate, No limitation is imposed upon bidders as
<br /> to the number of rates or changes which may be used. All Certificates of one maturity must
<br /> bear one and the same rate. No bids involving supplemental interest rates will be considered.
<br /> Each bidder shall state in his bid the total interest cost in dollars and the net effective
<br /> interest rate determined thereby (calculated in the manner prescribed by Article 717k-2,
<br /> VATCS), which shall be considered informative only and not as a part of the bid,
<br /> Basis for Award,., For the purpose of awarding the sale of the Certificates, the interest
<br /> cost of each bid will be computed by determining, at the rate or rates specified therein, the
<br /> total dollar cost of all interest on the Certificates from the Certificate Date to their
<br /> respective maturities, using the table of Bond Years herein, and deducting therefrom the
<br /> premium bid, if any. Subject to the City's right to reject any or all bids and to waive any
<br /> irregularities except time of filing, the Certificates will be awarded to the bidder or
<br /> syndicate account whose name first appears on the Official Bid Form (the "Initial Purchaser"
<br /> or "Purchaser") whose bid based on the above computation produces the lowest net effective
<br /> interest cost to the City,
<br /> Good Faith Deposit... A Good Faith Deposit, payable to the "City of San Marcos, Texas", in
<br /> the amount of $30,000.00, is required. Such Good Faith Deposit shall be in the form of a
<br /> Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the
<br /> Purchasèr's compliance with the terms of his bid and the Notice of Sale and Bidding Instruc-
<br /> tions. The Good Faith Deposit may accompany the Official Bid Form or it may be submitted
<br /> separately. If submitted separately, it shall be made available to the City prior to the
<br /> opening of the bids, and shall be accompanied by instructions from the bank on which drawn
<br /> which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such
<br /> instructions. The Good Faith Deposit of the Purchaser will be applied on the purchase price
<br /> on the date of delivery of the Certificates. No interest will be allowed on the Good Faith
<br /> Deposit, In the event the Purchaser should fail or refuse to take up and pay for the Cer-
<br /> tificates in accordance with his bid, then said check shall be cashed and accepted by the
<br /> City as full and complete liquidated damages. The checks accompanying bids other than the
<br /> winning bid will be returned immediately after the bids are opened, and an award of the
<br /> Certificates has been made.
<br /> DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS
<br /> CUSIP Numbers ..' It is anticipated the CUSIP identification numbers will appear on the
<br /> Certificates but neither the failure to print or type such number on any Certificate nor
<br /> any error with respect thereto shall constitute cause for a failure or refusal by the Pur-
<br /> chaser to accept delivery of and pay for the Certificates in accordance with the terms of
<br /> this Notice of Sale and the terms of the Official Bid Form. All expenses in relation to the
<br /> printing or typing of CUSIP numbers on the Certificates shall 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 /> Initial Del iver of Initial Certificates of Ob1 i ation ... Initial Del ivery will be accom-
<br /> plished by the issuance of one Initial Certificate also called the "Certificates"), either
<br /> in typed or printed form, in the aggregate principal amount of 51,500,000, payable in stated
<br /> installments to the Purchaser, signed by the Mayor and City Secretary, either manual or
<br /> facsimile, approved by the Attorney General, and registered and manually signed by the Comp-
<br /> troller of Public Accounts. Initial Delivery will be at the principal corporate office of
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