Ord 1993-037 - Laserfiche WebLink

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) ;t~ c.ß finandal institUtions, life insurance companies, property and casualty insuranCè companies, S corporations with subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits, and taxpayers wh,! may be deemed to have incuræd or continued indebtedness to purchase or carry or who have paid or incurred certain expenses allocable to tax-exempt obligations. In the event of the sale or other taxable disposition of a Discount Bond prior to maturity, the amount realized by the owner in excess of the basis of such Discount Bonds in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Discount Bond was held) is includable in gross income. The federal income tax consequences of the purchase, ownership, redemption. sale or other disposition of Discount Bonds which are not purchased in the initial offering at the initial offering price may be detemùned according to rules which differ fn~m those described above. All owners of Discount Bonds should consult their own tax advisors with respect to the determination for federal, state and local income tax purposes of interest accrued upon redemption, sale or other disposition of such Discount Bonds and with respect to the federal, state, local and foreign tax consequences of the purchase. ownership, rèdèmption, sale or other disposition of such Discount Bonds. Litigation It is the opinion of the City Attorney and City Staff that there is no litigation pending against the City thatwould have a material adverse financial impact upon the City or its operations. Registration and Q~alitìcati()n of Bonds for Sale The sale of the Bonds has nc)t beèn registered under the Fe:deral Securities Act uf [933, as amendèd, in rèliam:e upnn the exemption provided thereunder by Secticm 3(a)(2); and thè Bonds have not bèe:n qualitièd undèr thè Se:curities Act of T e:xas in reliance Upl)n various èxèmptions contained therein; nor have: thè Bonds be:en qualitied under the se:curities acts of any jurisdiction. The City assumes no responsibility for qualification of thè Bonds undèr the: sècurities laws of any jurisdictinn in which thè Bc)nds may bè sold, assigned. pledge:d, hypothecated l)r otherwise transferred. This disclaimer of responsibility fl)r qualification for sale or other dispositiûn of the Bonds shall not be: construe:d as an interprètation of any kind with re:gard to the: availability of any exemption from SèCUritièS registration provisions. " Legal lmestments and Eligibility to Secure Public Funds in Texus Sèction 9 of the Bond ProCèdurès Act c)f 1981, Article 717k-6. V A TCS, provides that the Bonds "shall constitutè negotiab[è instruments, and are invèstment sècurities governe:d by Chaptèr 8, Texas Uniform Cc>mmercia[ Codè, notwithstanding any provisions of law or court decision to the contrary, and arè legal and authûrized invèstments fûr banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustèes, and tòr thè sinking fund of cities, towns, villages, school districts. and other political subdivisions or public agencies of the Statè of Texas." State law further provides that if the Bonds have and maintain a CUITènt rating. as to investment quality, of not less than" A" or its e:quivalent, by a nationally recognized rating agency, thè Bonds are: digibk tc> secure deposits of any public funds of thè state, its agenci.:s and political subdivisions, and are legal security fi.Jr thnSè deposits to the èxtent of thèÎr market value. No review by the City has been made of the laws in other state~ to determine whether the Bonds are legal investments für various institutic)ns in those states, To determine whether the Bonds described herein are eligible to secure public deposits, reference should be made to current ratin~s shown herein under Ratin~s (see "Other Information - Ratings"). Le<~al Opinions and No-Litigation Certitïcate The City will furnish a complete transcript of proceedings had incident to the authurization and issuance of the Bonds, induding the unqualitied approving [egal opinion of the Attornq General of the State approving the Initial B,)nd and to the dfect that the Bonds are valid and lègally binding spe<.:ial obligations of the City, and hase:d upnn examination of su<.:h transcript of proceedings and in reliance upon the report of KP~1G Peat Marwick the approving kgal opinion of Hutchison Boy[e Brooks & Fisher, Bond Counsd, t() like e:ffect and to the effect that the interest on the Bonds will be exdudable from gross income for federal income tax purposes under Section ¡ 03(a) of the Code, subject to the matters described under "Tax Exemption" herdn, including the alternative minimum tax on corporatiûns. The customary closing papers, including a certiticate to the effect that no litigation of any nature has been tiled or is then pending to restrain the issuance and delivery of the Bonds, or which would affect thè provision made for their payment or security, or in any manm:r questioning the validity of said Bonds will also be furnished. Bond Counsel was not requested to participate, and did not take part, in the preparation of the Official Statement, and such tirm has not assumed any rèsponsibility with respect therèto nr undertaken independently to verify any of the information contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed the infnrmation describing the Bonds in the Official Statement to verify that such descnption conforms to the provisions of the Ordinance. The legal fee to be paid Bond Counsel for services renderèd in connection with the issuance of the Bonds is contingènt on the sale and delivèry of the Bonds. The legal 2.+