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<br />OTHER RELEVANT INFORMATION
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<br />Ratings . . . Request for ratings bas been made to Standard &""i'oor's Ratings Services, A Division of The McGraw-Hill
<br />Companies. Inc. ("S&.P") and Moody's Investors Service, Inc. ("Moody's"). The presently outstanding revenue debt of the City
<br />is rated "An by Moody's and "A" by S&P. The outstanding issue is rated "ABa" by Moody's and "AAA" by S&P by virtue of
<br />insurance by:MBIA An explanation of the significance of such mtings may be obtained from the company furnishing the rating.
<br />The ratings reflect only the respective views of such organizations and the City makes no representation as to the
<br />appropriateness of the ratings. There is no assuranœ that such ratings will continue for any given period of time or that they
<br />will not be revised downward or withdrawn entirely by either or both of such rating companies, if in the jl1r1g7T1~t of either or
<br />both companies, circumstances 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 Bonds. .
<br />
<br />litigation. . . The City is a defentismt in various tort claims and Jawsuits involving ge:nexalIiability, civil rights actiœs, and various
<br />cœb:actual matters. In the opinion of the City's TT1RJ1SI~t and the City Atta-ney's office, the outcome of the peDding 1itigatien will
<br />¡ not have a matcial ~ effect en the City's financial positicn or operatiœs.
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<br />Upcn the delivery of the Bands, the City will certify that no tingRnnn of any nature has been filed oc is then pending to restrain the
<br />issuance and delivery ofthc Bonds IX which would affect the provisions made for their payment IX security IX in any manner question
<br />the validity the:reaf:
<br />
<br />Rqistration and Qualification of Bonds for Sale . . . The sale of the Bonds bas not been registered under the Federal
<br />Securities Act of 1933, as IIrn.-n"¡""¡, in reliance upon the exemption provided thereunder by Section 3(aX2)~ and the Bonds
<br />have not been qualified under the Securities Act of Texas in reliance upon various ext:mptions contained therein; nor have the
<br />Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the
<br />Bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypoth.,--ated or
<br />otherwise tmnsfem:d. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be
<br />construed as an interpretation of any kind with regard to the availability of any exemption from securities registration
<br />proV1Slons.
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<br />LEGAL :INVESTMENTS AND ELIGffiILlTY
<br />TO SECURE PUBLIC FUNDS IN TEXAS ~
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<br />Texas Revised Statutes Anootated Article 717k:-ó, as ~. lXOvides that obligations, such as the Bands, are legal and authorized
<br />investments for banks, savings banks, trust Cfl( )p¡mit'c'C, building and loan I!$.~;!tinns, savings and loan as.~;!nnns, insurance
<br />rnn¡vmi~. fiduciaries, and t:rustees, and far the sinking funds of cities, toWDS, villages, .school districts, and other political subdivisioos
<br />or public agenc:ies of the State of Texas. The Baods are elig¡.òle to secure deposits of any public funds of the State of Texas, its agenc:ies
<br />and political subdivisiœs, and are legal security for those deposits to the extt:nt ofthcir marlæt value. Fer political subdivisiœs in
<br />Texas which have adopted investment policies and g¡""¡"'li,,..,. in accordance with the Public FUIJds Investment Act (V.T.CA,
<br />Government Code. Cbapter2256), the Bonds may have to be assigned a rating of"p:' oc its equivalent as to investment quality by a
<br />natiaoal rating agency before such obligations are eliglòle investments of sinking funds and other public funds. (See "O1HER
<br />RElEVANT JNFORMATION - Ratings" herein.)
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<br />, No investigation has been made of any other Jaws, ruJes, ægulations, or investment criteria that might affect the suitability of the Bonds
<br />! for any of the above purposes IX Iimit the autbai1y of any of the above entities or per¡;oos to puxchase or invest in the Bonds.
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<br />Legal Opinions and N~Litigation Certificate. . . Except as hereinafter noted, Bond Counsel has not verified and has not
<br />passed upon, and assumes no responsibility for the accuracy, completeness or fairness of the information and qf"tPTTtPnt!l
<br />contained in the Official StJlt~~t In the performance of its duties, Bond Counsel has reviewed the information relating to
<br />the Bonds and the Ordinance contained under the captions, "Plan of Financing", «Bond Information" (exclusive of subcaptions
<br />"Book-Eníry-Only System" and '~cipa1 Bond Insurance"), wrAX MATTERS", "OTIIER RELEVANT INFORMATION-
<br />Legal Investments and Eligibility to Secure Public Funds in Texas", "OTIIER RELEVANT INFORMATION - Registration and
<br />Qualification of Bonds for Sale", and "OTIIER RELEVANT INFORMATION - Legal Opinions and No-Litigation Certificate"
<br />contained in the Otlicial Statement to det.eImiIu: whether such information purported to be shown therein is a' fair and accurate
<br />summary of the information purported to be shown therein and that the information and descriptions rontai.ned under such
<br />captions relating to the provisions of applicable state and federal laws ronform to such stat:e and federal laws. The legal fee to
<br />be paid Bond Counsel for services rendered in connection with the issuance of the Bonds is rontingent on the sale and delivery
<br />of the Bonds. The legal opinion will accompany the Bonds deposited with DTC or will be printed on the Bonds in the event of
<br />the discontinuance of the Book-Entry-Only System. Certain legal matters will be passed on for the Purchasers by their rounsel,
<br />Fulbright & Jaworski L.L.P., San Antonio, Texas.
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<br />Financial Advisor. . . First Southwest Company is employed as Financial Advisor to the City in connection with the issuanœ
<br />of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is rontingent upon the
<br />i.ssuanœ and delivery of the Bonds. First Southwest Company may submit a bid for the Bonds, either independently or as a
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