Res 1992-038 - Laserfiche WebLink

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earnings and profita, individual recipients of Social Security or Railroad Rctircmcnt benefita, and taxpayen who may ~ deemed to have incurred or continued indc:btedncss to purchase or carry or who have paid or incurred certain expenses allocable to tax- exempt obligatiol1l. 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 Bond in the hands of such owner (adjusted upward by the portion of the original ill~ discount allocable to the period for which such Discount Bond wu held) is includable in gross income. Ownen of Discount Bonds should CODluh with their own tax advison with respect to the determination for federal income tax purposes of accrued interest upon disposition of Discount Bonds and with respect to the state and local tax conseqUCl1CCl of owning Discount Bonds. It is possible that, under applicable provisions governing determination of state and local income taxCI, accrued interest on Discount Bonds may be deemed to be received in the year of accrual even though therc will not be a corresponding cash paymenL Litigation It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that would have a material adverse financial impact upon the City or its operatioDl. Registration and QualirlC8tion of Bonds Cor Sale The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a) (2); and the Bonds have not been qualified under the Securities Act of Texas in rcliance upon various exemptioDl 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 which 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 of law 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.. Texas law further provides that if the Bonds have and maintain a current rating, as to investment quality, of not less than . A. or its equivalent, by a nationally recognized rating agency, the Bonds arc eligible to secure deposits of any public funds of the state, its agenciea and political subdivisions, 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 institutiODl in those states. To determine whether the Bonds described herein are eligible to secure public deposits, reference should be made to current ratings shown herein under Ratings (see "Ratings"). Legal Opinions and No-Li6ption CertifICate The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Bond and to the effect that the Bonds are valid and legally binding obligatiODl of the City, and based upon examination of such transcript of proceedings, the approving legal opinion of Bond Counsel, to lib effect and to the effect that the interest on the Bonds will be excludable from gross income for federal income tax purposes under Section 103(a) of the Code, subject to the matten described under "Tax Exemption- herein, including the alternative minimum tax on corporations. The customary closing papen, including a ~ to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds, or which would affect the provision made for their payment or security, or in any manner questioning the validity of said BondI will also be furnished. Bond Counsel wu not n:qucsted to participate, and did not take part, in the preparation of the Notice of Sale and Bidding InatructioDl, the Official Bid Porm and the Official Statement, and luch firm has not assumed any reBpODlibility with respect thereto or undertaken independently to verify any of the information contained therein, except that, in ita capacity as Bond Counsel, such firm has reviewed the information describing the Bonds in the Official Statement to verify that such description conforms to the provisioDl of the Ordinance. The legal fee to be paid Bond Counsel for services rendcmI in connection with the issuance of the Bonds is contingent on the sale and delivery of the Bonds. The legal opinion wiD be printed on the Bonds. 20