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<br />In ordor to provido the Cd)' with iaf'onnation required to enable it to comply with <<Rain eoaditioaa of die InternallleveDUC Code of 1986
<br />re1adq to the exemption of iatemt on the Bo" from the iroaI income of tbeir owocn, tbe Purd1ucr wiD be required to complcte, execute,
<br />aDd deliver to the City (00 or before tbe 6th bvMc.. cbly prior to the delivery of tbe Bond.) a certification a. to dleir "iNuo price" IUblCaotiaUy
<br />in the form and to the effect attached "rcto or accompanyilli 1hiJ Notice of Sale aDd Biddina 1nstNctiooI. In tho evollldle IUccellful bidder
<br />will not reoffer the Bond. for llle, IUCh certifi..te may be modified in a manner approved by the Cd)'. Ill.. h'eat will tile City fail to deJiy..
<br />die Bonds as a result 01 die IDitiaI ftudwer'. iDability to seD a substantial 8IIlOU8t 01 tile Bonds at a partic'aIar price prior to deliy.,..
<br />Each bidder, by IUbmilliDl ill bid, IJI'"I to complete, execute, and delivor lUeb . certifi..te by die date of delivery of tbe Bond., if ita bid it
<br />accepted by the City. It wiD be die relpOllIibUity of the PurchalU to iIlItilUte lUeb I)'ndicate repoq requiremelltl to mate IUCh invCItiJation,
<br />or oIherwilO to aJ<:el1ain tho facllllClCCSllry to eDIble it to malee IUch certification with lellOnable certlinty. Any queltiolll concernine IUCh
<br />certification should be directed to Bond COUDIIel.
<br />
<br />Lecal Opinioas
<br />
<br />The Bond. are offered when, u and if illUcd, IUbject to the approval of the AtIomCy General of the State of Texu. Delivery of and payment
<br />for the Bond. i. IUbject to Ibc receipt by the Purchuer of opiniolll of Bond CoulllC1, to the eft'ect that the Bond. are valid aDd bindm, obliptiou
<br />of the City and that the barelt on the Bo" wiD be excludable from iroaI income for federal income tax PUrpolCl under exiltina law, IU~
<br />to the matten dclcn'bcd under"T1X Exemption. "rein, includm, the altcmative minimum tax 00 COIpOOItiou.
<br />
<br />Certificatioa of 0tIiciaI Statemellt
<br />
<br />At the time of p.yment for, .nd Jnitia1 Delivery of, the Bond., the City will execute aDd deliver to the PurchalOr a certificate in the form ICC
<br />fottb in the Offici.l Statement.
<br />
<br />Chanae ill Tax Exempt Statui
<br />
<br />At any time before the Bonda are tendered for delivery, the PurcbalOr may withdraw ill bid if the intcrcat received by private holden OIl hondt
<br />of the lame type and character IhaU be declared to be taxable income under prelClll federal income tax law., either by ruli. of die Internal
<br />Revenue Service or by . deci.ion of any Federal court, or shall be declared taxable or be required to be taken into account in computing any
<br />federal income tax.., by Ibc tenns of .ny federal income tax law enacted IUbMquelll to the cblte of 1hiJ Notice of Sale aDd Biddm, InItnJctioftl.
<br />
<br />GENERAL
<br />
<br />F'UuuIciaI AclYiror
<br />
<br />r1I'lt Southwelt Company iI employed.. rmancial AdvilOr to the City in connection with the illUlJlCO of the Bond.. The r1JlanCial AdvilOl'"
<br />fee for IOrvice. rendered with reapcct to the lIIe of the Bond. i. contingent upon the illUlllCe and delivery of the Bond.. r1I'lt SouthwClt
<br />Company may IUbmit . bid for the Bond., either independently or a. a member of a .yndic.te organized to IUbmit . bid for the Bond.. r1I'lt
<br />Southwelt Company, in ill capacity u r1JlanCiaI AdvilOr, hu relied on tho opinion of Bond CauDleI and b.. not verified aDd doe. not allUme
<br />any responsibility for the information, covenanll and representations contained in any of the bond documentation with respect to the federal
<br />income tax Ilatu. of the Bond', or the pouible impact of any present, pendm, or future action taken by any legillative or judicial bodi...
<br />
<br />Blue Sky Laws
<br />
<br />By submiuion of ill bid, the Purchuer reprelOntI that the lIIe of the Bonds in Ilate. other th.n Texu will be made only pursuant to exemptiou
<br />from registration or, where necellal)', the PurchalOr will register the Bond. in accordance with the ICCUritiea law of the lltate. in whicb the BondI
<br />are offered or IOld. The City aifCC' to cooperate with the Purchaser, at the Purchaller'. written reqUClt aDd ellpCDIe, in regiltering the BondI
<br />or obtaining an exemption from registration in any lltate where IUcb action iI nece&llr)', provided, however, that the City IhaU not be obligated
<br />to execute . gellCral or special consent to service of proceu in any IUcb jurisdiction.
<br />
<br />Not an Offer to SeD
<br />
<br />Tbia Notice of Sale ad Bidding lDItructiolll doe. not alone collltitute an oft'er to ..n the Bond., but ia merely notice of the IIIc of the Boock.
<br />The offer to seU the Bonda it bem, made by means of the Notice of Sale and Biddina InItructioDl, the Official Bid Form and the Official
<br />Statement. Prospective purchasers arc U1'Jed to carcfuUy examine tbe Official StatemeDt to determine the inveltmeDt quality of tbe Boada.
<br />
<br />IssuaDce of AdditioaaI BGDds
<br />
<br />The City baa called a bond election for May 2. 1992 in a totallDlOUDt of $9,100,000, of which approximately $4,500,000 IIIIy be i8Iucd within
<br />tbe next 11 montba.
<br />
<br />Ratiap
<br />
<br />The prelCntly outItanding tax IUpportccJ debt of the City it rated "A" by Moody'. Inveaton Service, Ine. ("Moody'.") and "A" by Standard
<br />&; Poor'. Corporation ("SAP"), Applicatioftl for contract raq. OIl thi. iIIUo have been made to both Moody'. aDd $&P. The I'CIUltI oftbeir
<br />dcterminatiOlll will be provided u IOOIl u pouib..
<br />
<br />Mu&icipeI Boud IDsuruce
<br />
<br />In the cvCDt the Booda arc qualified for lI1IInicipal bond inlurance, aDd die Purcbuer doairea to purchue IUCh inlurance, tbe COlt thereof wiI
<br />lie pcIid by tile hrdaaser, Any feci to be paid to the rali11i agcnciea u a rcIUJt of Mid inlurance willie paid by die Cif,y. It will be the
<br />l'CIpOOIibility of the PurchalOr to dilcloae the exiltoncc of inlurance, ita termI and the effect thereof with respect to the reofferine of the Boock.
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