|
<br />¡{'IllS
<br />
<br />
<br /><:'ùu-.p\h"¡l<;<: ",;.t'ill' rior 'Und<:rtakin.gs
<br />
<br />The: Ci')'!:..:is not ?re:~iously ~ (:lor Us it ~ r4cir<:d to ~e:) a con~q è.:s.::losure ag:;:-~::::lt in =r~~ v.1:h SEC
<br />Rule: 15c2-12.
<br />
<br />OTHER L;-.70R3-iATION
<br />
<br />R3ci.ngs
<br />
<br />Th.e pres..."':ldy out>-.:.:i!lding revenu.:: ~bt of the City is rab:! "..;," by Mcooy's fuv<:stors Servi~, 1'1c. ("Mc,x:y's') and ':.;," by
<br />Standard 6:: Poor's R3.tings S<::t"<'Îc<:s, A Di..isioo. ofTne McGraw-Hill Compa:1Í<:.s, Inc. ('S6::P'). The: one OU3".:.:i!lcling i~ is
<br />raco:! ':.1..a.3."b>' Moody's and ':-\.-\..;,"by S&P by virtu.:: of ÍIls1.4-an~ by 1.íBL-\. .-\:1 e:-..-pla:utio:l of tb.e:'s¡:ifi=c~ of such
<br />ratings m:.y b.: obtained from the company furnishing the ra~g. Tne ra~gs rdkct only the r~-p.;:::tiv'e views of such
<br />organi:utioD.3 a.c.d the City mak<:.s no r::pr~"':ltation 3..5 to the appropria~es.s of tl:e ratings. Th~e is no 3.s,S1.:ren~ ili:at such
<br />ratings ",ill coo.tin~ for a:¡y given p:ricd of time or eMt they ",ill not b.: re~i&d ¿o"'l1ward or withdra""'n ctirely by e¡th~ or
<br />both of su6 rating companies, if in the: judgment of eith~ or both compa.:Ùs, circt.=st3.rJ.~s so ""-arrant .-\:J.y such ¿ow¡r,,-a.rd
<br />re~ision or ",ithdrawal of such ratings, or eith.er ofth<:m, m:.y h.!we an a.d~'ers.e eff~t 00. the market pri~ of the Bonds.
<br />
<br />I1tig9.rion
<br />
<br />Th.: City is a c!.:::"'=:6nt in various !crt cl.3.irns an<! Lawsuits in~'olving genaa! liability, civil rights actions, a::¿ va:iou.s c...--ntractual
<br />~. fu the: opicion of the: City's I:D.3J:'.2.g<:më:lt and ú~ City A::...--rnt:y's offi~, the: ot::c:Jme: of the: pending liti:":on will Got have: a
<br />rn.a!~i:J.l ~v= e~ en the: City's .f1-..anC:..3l ~ition er DF"-"'a!Ìons.
<br />
<br />U¡:œ t.1e C!;!.i.,.~y of the Bonds, the City ""ill c.e:rtify th.3..t [)O litigztion of any œ!l!re h.::.s ~ filed er is then p::'.cEng to r::::¡'~,.ùn the:
<br />ÎSS'..!.an~ a::d Celi~'::-;;,' ofú1e: &r.ds or \:.ruch would aff'ð:t ú1~ provi."icns 1I'..1d::= fer their ~lmèTIt or sc:c:.:rity er in 2...,:' ¡nann.::: q~,joa
<br />th~ validi¡y ò=[
<br />
<br />R~istr:ltioa 9.ad Qu9.lir1c:1tion of Bonds for S:1le
<br />
<br />¡ Tne: sale: of the Bonds !us not C<:-"':l regis-u:red und~ the: Federal Securitie:s Act of 1933, as-<ar:lende.d, in rdiJ..n,c~ t:~o. the:
<br />I e:xe::nptioo. pro~i~ th~ell.",d~ by Sõ:tioo. 3(aX2); and the Boads have not C<:-"':l qt:.iliiled un¿~ úi.e: S<:::cu..~ties Act of Te:X3.S in
<br />I rdian~ u::oo. V2..~ou.s exemptions coo.taine.d th~ein; nor hav'~ the: Bonds ~::=;¡ qu.:ilifie.d und~ th~ sc:cu..-ities acts of any
<br />I jlldsdictioa. The: City a.s.>urnes no r::.:,-ponsibility for qu.aliilc.:.tion of the: Bonds 'u::¿er th~ s.::cu..~tie:s laws of:uy juri.>.:iction in
<br />. which the Boads C3.y b.: sold, assigned, pledged, hypothe:ca~d or oth::rv.is.:: tran.sc-;:rred. 'This dis.::laim~ of resp<¡o.sibility for
<br />qualliic.:.tion tòr sale or oth,~ disp<¡sition of the: Bonds shall not b.: coo.stru.d as :u l..'1t::rprd.:J.tion of any kind ....ith reg~d to th~
<br />availabili¡y of 3..:ly ex=ption from =uriti~s registration provisions.
<br />
<br />LEGAL L;-.rvESTIr1L.,TI AND EUGllHIlTY
<br />TO SECURE PUBUC FlJl',1)S IN" IEX.AS
<br />
<br />Tex.s.s Re:~isci S~i..:!e:S Annocatd Article: 71 í1.:-6, as a!!lè:I1dð:i, pro~iC!;S th.3.t obüg:ui~. such as ú~ &nds, 2...-:: l~ and æ:.10r1zd
<br />in~'~ots fer œ:-~<.s., savings banks, trust oompanies, building and lcan a.ssoci.:cicns, savings a::d lean. as.s.x:.ations, i."'ì....ë.I1ce
<br />eu--mpanÎes, fi:::UC:":::':'es, a:nd tn.Js-...e:::s, and fer th~ i.nkir2g funds of .:ides, 'towns, vill.ages, s.:;-;,cd distriC"..s, and othcr politiC:J..! S"..::.;.¿j~isions
<br />cr public ag:::::cies of the St.at.e ofT<::<as. Tne: Bvüds are eligible: to =..:re cL~ts of 2...-.:, ?llblic funds ofú1~ S~ ofTe:X3.S, its :.gè:I1cies
<br />e:r.d politid scix!i..i.-,ions, and are 1eg3l =..rrity fer thcs<: cL'?C'>its to th~ o.e;:nt of t..':à ¡n2r'.<et valt;<:. Fer politid sub::ii~i.sions in
<br />T= whiÒ have !!doped inVes<IDot policies and gu.i¿dines in ~.::.a.'1ce ""16 t.::e: Public Ft=lds 1'wesê:r.ct .Act (V.T.CA,
<br />C~~'e:rnmC'.t CXe:, Ch.:p~ 125ó), th~ Bv--nds may have: to b.: assig::1ð:l a øi.r.g of ':.;," cr its 4UÍvalé:':1t 3..5 to inv:=::.-::n<:nt ~¡y by a
<br />n.a.c:cr.:Jl ra:::.-:.g ag::::cy ~fere: such oblig.arions are eligible: inv~ots of i.r_icÎrlg r.=:ds and oche=: public fi..:¡¡ds. (Sè:: 'OTrlëR
<br />INFOR.\fATION - R2.tir.gs"h~.n.)
<br />
<br />No invesci:~,.;en i:.3.s 1::.=l m.ad:= of any othcr laws, rules; regula.cicn.s, cr in~.estmClt cric¿.a th.at might af;:ct the sui::L::ility of t..":e: Bv--nds
<br />fer any ofth~ a:ove: ¡;;...~ cr limit the a.u.hcricy of any of the abo~':: Cltities er p=--,-,:oJ pur-..h2.s.:: cr L:l":::st in th~ &nds.
<br />
<br />Legal Opinions 9.nd No-IJtig9.rion Certificate
<br />
<br />ExC<.-pt 3..5 he-.ei:l.:li"..er no~d, Bond Coun.s<:l has not vcritïc;d a:¡d !us not pass.ed t:;::<Jn, a.'1d assu..-:1.es no re:spcnsibili'Y for th~
<br />a.c:cura.cy, COC?!::t.::l= or fairn::ss of t..i.~ in.còrmation a."\d st:J.t=::=;¡ts containe.d in :.':e hivate Plac<.-:ne-nt ~k:r.ora."\¿u..-n. In the
<br />p.::-'."-orman~ ofits duties, Bond Coll!lS<:1 has re:vi~wed the: l..'"'.,fCffi'.:J.tioo. rdating to ~:: Bonds and L":e: Ordinance contal.,d u..,d~
<br />th~ captions, 'Plan of Fl.."\a.!lcÎng", 'Bond Inrònnation" (~xc1usi~'~ of subcaptions 'Ec-ok-Entry-OI'ly S]'st:.--:n" a..d '1-.Ü:,:J.Ïciç.a1
<br />Bond Irtsur-=.ce'), 'TA.X MATTE.qs", 'O1HE..~ !},'FOR.\í.-\. TION - Legall:J.vest::::::-.t.s and Eligibility to Se:c:.::e: Public Fu..'1ds
<br />in Te:xas", 'OTI-:E~ ~"FOR.'-íA. TION - Registration 2..,d Q=lific.:.tion of Bonò f~r S.:lk", a."\d 'OUtER !}<"FOR.'-í..;, TION -
<br />Legal Opinions 2...,d No-Litigatioo. Ce-.Jficar.e" contained in th~ Priva~ PI~e::t ~kmorandu.."!l to ~t~rmir.e wb.ct..i.~ such
<br />
<br />20
<br />
|