Res 1995-121 - Laserfiche WebLink

Home Browse Search

/Oll3JJ OTHER INFOR.\1ATION Ratings The presently outstanding senior lien revenue debt of the City is rated "A" by Moody's and "A" by S&P. The presently outstanding junior lien revenue debt of the City is rated ':A" by Moody's and ':A-" by S&P. Four outstanding issues are rated ')\aa" by Moody's and "AAA" by S&P by virtue of insurance by various commercial insurance companies. Applications for contract ratings on this issue have been made to Moody's and S&P. An explanation of the significance of such ratings may be obtained fÌ'om the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised davinward or withdrawn entirely by either or þoth of such rating companies, if in the judgment of either or both companies, circumstances so warrant Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds. Litigation It is the opinion of the City Staff that there is no pending litigation against the City that would have a material adverse financial impact upon the City or its operations. Registration and Qualification of Bonds for Sale The sale of the Bonds has not been registered tmder the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(aX2)~ and the Bonds have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds under the securities laws of any jurisdiction in "'IDch the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. Legal Investments and Eligibility to Secure Public Funds in Texas . Section 9 of the Bond Procedures Act provides that the Bonds "shall constitute negotiable instruments, and are investment securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions oflaw or court decision to the contrary, and are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Bonds are eligible to secure deposits of any public funds of the state, its agencies and political subdivisioIl3, and are legal security for those deposits to the extent of their market value. No review by the City has been made of the laws in other states to determine whether the Bonds are legal investments for various institutions in those states. Legal Opinions and No-Litigation Certificate Except as hereinafter noted, Bond Counsel has not verified and has not passed upon, and assumes no responsibility for the accuracy, completeness or fairness of the information and statements contained in the Official Statement In the performance of its duties, Bond Counsel has reviewed the information relating to the Bonds and the Ordinance contained under the captions, "Plan of Financing", "Bond Information" (exclusive of subcaptioIl3 "Book-Entry-Only System" and "Municipal Bond Insurance"), ""fa.x Matters", "Other Information -Legal Investments and Eligibility to Secure Public Funds in Texas" and "Other Information - Legal Opinions and No-Litigation Certificate" contained in the Official Statement to detenIÙne whether such information purported to be shown therein is a fair and accurate summary of the information purported to be shown therein and that the information and descriptions contained under such captiOIl3 relating to the provisions of applicable state and federal laws conform to such state and federal laws. The legal fee to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds is contingent on the sale and delivery of the Bonds. The legal opinion will accompany the Bonds deposited with DTC or ",ill be printed on the Bonds in the event of the discontinuance of the Book-Entry-Only System. Certain legal matters will be passed on for the Underwriters by their counsel, . Texas. Financial Advisor First Southwest Company is employed as Financial Advisor to the City in connection ",ith the issuance of the Bonds. The Financial Advisors fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the information, covenants and representations contained in any of the legal documents ",ith respect to the federal income t.a.x status of the Bonds, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies.