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<br />CONDITIONS OF THE SALE
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<br />Type of Bids and Ioterest Rates
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<br />The Bonds will be sold in 0110 block on an "All or NollO" basis, and at a price of not 1018 lhan their par value plus accmed interest to the date
<br />of delivery of the Bonds, Bidden are invited to namo the rate(s) of interest to be bomo by the Bonda, provided that cach rate bid must be in
<br />a multiple of 118 of I ~ or 1120 of I ~ and the IIOt effective interest rate must not exceed 15 ~. Tho higboat rate bid may not exceed the lowest
<br />rate bid by more than 3 ~ in rate. No limitation is imposed upon bidden as to the numboc of ratea or changes which may be used. All Bonds
<br />of 0110 maturity must bear one and the lamo rate. No bids involving supplemontal interest rates will be considered. Each bidder shall state in
<br />the bid the total interest cOlt in dollan and the effective interest rate detennined thereby (calculated in the manner prescn'bed by Article 717k-2,
<br />V ATCS), which shall be considered infonnativo only and not as a part of the bid.
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<br />Basis for Award
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<br />For the PUrpolO of awarding the sale of the Bonds, the interest cost of cach bid will be computed by determining, at the rate or rates specified
<br />therein, the total dollar cOlt of all interest on the Bonds from the Bond Date to their respective maturities, using the table of Bond Y can berein,
<br />and deducting therefrom the premium bid, if any (the "Net Interest Cost Calculation"). Subject to the City's ript to reject any or all bids and
<br />to waive any irregularities except time of tiling, the Bonda will be awarded to the bidder or syndicate account manaier whose namo first appeIn
<br />on the Official Bid Form (the .Purchaser") whose bid, based on the Net Interest COlt CakuJation, produces the lowest net effective interest cOlt
<br />to the City.
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<br />Good Faith Deposit
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<br />A Good Faith Deposit, payable to the "City of San Marcos, Texas", in the amount of $21,000.00, ia requirod. Such Good Faith Deposit shall
<br />be in the form of a Cashier's Check, or ita equivalent, which is to be retained uncashed by the C'lty pending the Purchaser's compliance with
<br />the tenna of the bid and the Notice of Sale and Bidding lnattuctions. The Good Faith Deposit may accompany the Official Bid Form or it may
<br />be submitted aeparately. If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied
<br />by illltn1ctions from the bank on which drawn which authorize ita use as a Good Faith Deposit by the Purchaser who shall be named in such
<br />instructions. The Good Faith Deposit of the Pun:haser will be returned to the Pun:haser llpclll paymeot fol' the Bonds. . No interest will
<br />be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refulO to take up and pay for the Bonds in accordance with
<br />the bid, then laid check shall be cashed and accepted by the City as full and complete liquidated damages. The checks accompanying bids other
<br />than the winning bid will be returned immediately after the bids are opened, and an award of the Bonds baa been made.
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<br />DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS
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<br />CUSIP Numbers
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<br />It is anticipated that CUSIP identification numbers will appear on the Bonds, but neither the failure to print or type such number on any Bond
<br />nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in
<br />accordance with the tenna of this Notice of Sale and Bidding InstIuctioDll snd the tenns of the Official Bid Form. All expenses in relation to
<br />the printing or typing of CUSIP numbers on the Bonds shan be paid by the City; provided, however, that the CUSIP Service Bureau charge
<br />for the auignment of the numbers shall be the responsibility of and shall be paid for by the Purcbuer.
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<br />Initial Delivery of Initial Bood
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<br />Initial Delivery will be accomplished by the issuance of one or more Initial Bonds (also called "Bomb"), either in typed or printed form, in the
<br />aggregate principal amount of $1,050,000, payable in stated installments to the Purchaser, signed by the Mayor and City Secretary, approved
<br />by the Attorney General, and registered and manually signed by the Comptroller of Public AccounIs. Initial Delivery will be at the principal
<br />office of the Paying Agent/Registrar. Payment for the Bonds must be madCf in immediately available funds for unconditional credit to the City,
<br />or as otherwise directed by the City. The Purchaser will be given six busineu days' IlOIico of the time fixed for delivery of the Bonds. It ia
<br />anticipated that Initial Delivery of the Initial Bond(s) can be made on or about May 26, 1992, and it ia undentood and agreed that the PurchalOr
<br />will accept delivery and make paymont for the Bonds by 10:00 AM, cur, on May 26, 1992, or thereafter on the date the Bond is tendered for
<br />delivery, up to and including JulIO 8, 1992. If for any reason the City is unable to make delivory on or before June 8, 1992, the City shall
<br />immediately contact the Purchaser and offer to allow the Purchaser to extend its offer for an additiooal thirty days. If the Purchaser does not
<br />elect to extend ita offer within six days thereafter, then ita Good Faith Deposit will be returned, and both the City and the Purchaser shall be
<br />relieved of any further obligation. In no event shall the City be liable for any damages by reaaon of its faiIuro to deliver the Bonds, provided
<br />such failure ia due to circumstances beyond the City's reasonable cODtrOI.
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<br />Delivery of Defioitive Bonds
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<br />Upon paymont for the Bonds at the time of the Initial Delivery, the Paying Agent/Registrar shall cancel the Initial Bond, provided registration
<br />iIIItn1ctions have been received by the Paying Agent/Registrar, and shall register and deliver the registered definitive Bonds, in any integral
<br />multiple of $5,000 for any 0110 maturity, in accordance with instructions received from the Purchaser and/or mombers of the PurchaJer's
<br />syndicate account. It shall be the duty of the Purchaser to furnish to the Paying AgentlRegistrar, at least five business days prior to the Initial
<br />Delivery, written iIIItn1ctions designating the namos in which the Bonda are to be registered, the addreases of the registered owners, the
<br />maturities, interest ratea and denominations. The Paying Agent/Registrar will not be required to accept regimation instructions after the fifth
<br />busillClS day prior to Initial Delivery. If such written instructions are not received within the specified time perind, the cancellation of the Initial
<br />Bond(s) and delivery of registered definitive Bonds may be delayed until such instructions are received.
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<br />Cooditious to Ddivery
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<br />The obligation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of (a) the legal opinion of Hutchison Boyle
<br />Broob & Fisher, A Prof_ional Corporation, Austin and Dallas, Texas, Bond Counsel for the C'1ly ("Bond Counsel"), (b) the no-litiiation
<br />certificate, and (c) the certification as to the Official Statement, all as further descn'bed in the Official Statement.
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