|
<br /> RATUiC',S
<br /> A,oplications ~Ot' conVact ,'atinc:" on this issue 'la\e 'Jeen rwde to Moody's Investors Ser',ice,
<br /> I",c. it'd Standa"d i, :')oor", Cor'['cl'atior:, A~ explanüticn of the si9nifica~ce of such ,'atirgs
<br /> )~ obtained 'rom the company furnishing the rating, The ratings reflect only the respec-
<br /> tive views cf such oroanizations and the City makes no representation as to the appropriate-
<br /> ness of the ratings, There is no assurance that such ratings will continue for any given
<br /> period of time or that they will not be revised downward or withdrawn entirely by either or
<br /> both of SuCh rating companies, if in the judgment of either or both companies, circumstances
<br /> so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may
<br /> have an adverse effect on the market price of the Certificates.
<br /> TAX EXEMPTION
<br /> The delivery of the Certificates is subject to an opinion of Mr, Rick p, Fisher, Bond Counsel
<br /> to the City ("Bond Counsel"), to the effect that interest on the Certificates is exempt from
<br /> all present Federal income taxes under the application statutes, published rulings, regula-
<br /> tions and court decisions existing on the date of such opinion. The laws, regulations, court
<br /> decisions and administrative regulations and rulings upon which the conclusion stated in Bond
<br /> Counsel's opinion will be based are subject to change by the Congress, the Treasury Department
<br /> and later judicial and administrative decisions.
<br /> REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE
<br /> The sale of the Certificates has not been registered under the Federal Securities Act of 1933,
<br /> as amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and the
<br /> Certificates have not been qualified under the Securities Act of Texas in reliance upon
<br /> various exemptions contained therein; nor have the Certificates been qualified under the
<br /> securities acts of any jurisdiction. The City assumes no responsibility for qualification of
<br /> the Certificates under the securities laws of any jurisdiction in which the Certificates may
<br /> be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of respon-
<br /> sibility for qualification for sale or other disposition of the Certificates shall not be con-
<br /> strued as an interpretation of any kind with regard to the availability of any exemption from
<br /> securities registration provisions.
<br /> LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
<br /> Section 9 of the Bond Procedures Act of 1981 states: "All bonds issued by an issuer shall
<br /> constitute negotiable instruments, and are investment securities governed by Chapter 8, Texas
<br /> Uniform Commercial Code, notwithstanding any provisions of law or court decision to the con-
<br /> trary, and are legal and authorized investments for banks, savings banks, trust companies,
<br /> building and loan associations, savings and loan associations, insurance companies, fiduci-
<br /> aries, and trustees, and for the sinking fund of cities, towns, villages, school districts,
<br /> and other political subdivisions or public agencies of the State of Texas", The Act further
<br /> provides that the bonds andlor certificates are eligible to secure deposits of public funds
<br /> of the state, its agencies and political subdivisions, and are legal security for those
<br /> deposits to the extent of their market value. No review by the City has been made of the
<br /> laws in other states to determine whether the certificates are legal investments for various
<br /> institutions in those states.
<br /> LEGAL OPINIONS AND NO-LITIGATION CERTIFICATE
<br /> The City will furnish a complete transcript of proceedings had incident to the authorization
<br /> and issuance of the Certificates, including the unqualified approving legal opinion of the
<br /> Attorney General of the State of Texas as to the Initial Certificate and any changes in denom-
<br /> ations or form authorized in said proceedings, to the effect that the Certificates are valid
<br /> and legally binding obligations of the City, and based upon examination of such transcript of
<br /> proceedings, the unqualified approving legal opinion of Bond Counsel, to like effect and to
<br /> the effect that the interest on the Certificates is exempt from Federal income taxation under
<br /> applicable statutes, published rulings, regulations, and court decisions. The customary
<br /> closing papers, including a certificate to the effect that no litigation of any nature has
<br /> been filed or is then pending to restrain the issuance and delivery of the Certificates, or
<br /> which would affect the provision made for their payment or security, or in any manner ques-
<br /> tioning the validity of said Certificates will also be furnished. Bond Counsel was not
<br /> requested to participate, and did not take part, in the preparation of the Notice of Sale and
<br /> Bidding Instructions, the Official Bid Form and the Official Statement, and such firm has not
<br /> assumed any responsibility with respect thereto or undertaken independently to verify any of
<br /> -27-
<br />
|