Res 1992-038 - Laserfiche WebLink

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In order to provide the City with information required to enable it to comply wi1h certain conditions of the Internal Revenue Code of 1986 relating to the exemption of intcrcat on the Bondi from the gooll income of their ownen, the Purchaacr will be required to complete, execute, and deliver to the City (on or before the 6th bUlinoll day prior to the delivery of the Bondi) a certification II to their "iuuc price" aubstantially in the fonn and to the effect attached hereto or accompanying this Notice of Sale and Bidding Inatroctions. In the event the aucccllful bidder will not reoffer the Bonds for sale, auch certificate may be modified in a manner approved by the City. III DO enllt will1he City fail to deliver tile Bonds as a result of tile IaitiaI Pun:laaser's iDabiIity to seD a SDbstantiaI ..GUIlt of the Bonds at a particular price prior to delivery. Each bidder, by aubmittilli ita bid, aJl'COl to complete, execute, and deliver aueb a certificate by the date of delivery of the Boncb, if ita bid is accepted by the City. It will be the relpOlUlibility of the Purchaacr to institute aueb Iyndicate reporting requirementa to make aueb investigation, or otherwiac to ascertain the facta necClllry to enable it to make auch certification with reasonable certainty. Any questions concernilli such certification should be directed to Bond Counsel. Lt.,.r OpiDioas The Bonds are offered when, al and if illucd, aubject to the approval of the Attorney General of the State of Texas. Delivery of and payment for the Bonds is subject to the receipt by the Purchaacr of opinions of Bond Counsel, to the effect that the Bonds arc valid and binding obligations of the City and that the interest on the Bonds will be excludable from groaa income for federal income tax purpoacs under existing law, subject to the maUCn descn'bed under "Tax Exemption" herein, including the alternative minimum tax on corporations. Certification of 0fIiclaI StatemeDt At the time of payment for, and Initial Delivery of, the Bonds, the City will execute and deliver to the Purchaacr a certificate in the form act fo11h in the Official Statement. CbaDge in Tax Exempt Status At any time before the Bonds are tendered for delivery, the Purchaacr may withdraw ita bid if the interest received by private holden on bonds of the same type and character shall be declared to be taxable income under preacnt federal income tax laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required to be taken into account in computing any federal income taXCl, by the terms of any federal income tax law enacted subsequent to the date of this Notice of Sale and Bidding Inatroctions. GENERAL FiDanciaI Advisor First Southwest Company is employed.. Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. FIl'St Southwest Company may submit a bid for the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds. FU'It Southwest Company, in ita capacity as Fmancial Advisor, has relied on the opinion of Bond Counsel and has not verified and does not aasume any responsibility for the information, covenanta and representations contained in any of the bond documentation with respect to the federal income tax status of the Bonds, or the possible impact of any present, pending or future action taken by any legislative or judicial bodies. Blue Sky Laws By submission of ita bid, the Purchaacr represents that the sale of the Bonds in states other than Texas will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will register the Bonds in accordance with the lCCuritieslaw of the states in which the Bonds arc offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's wriucn request and expense, in registering the Bonds or obtaining an exemption from registration in any state where such action is necessary, provided, however, that the City shall not be obligated to execute a general or special consent to acrvice of process in any such jurisdiction. Not an Offer to Sell This Notice of Sale ad Bidding InstnJctions does not alone constitute an offer to acll the Bonds, but is merely notice of the sale of the Bonda. The offer to acll the Bonda ia being JDlde by means of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement. Prospective purchaacn are urged to carefully examine the Official Statement to detennine the investment quality of the Bonda. Ratiup The preacntly outatanding revenue debt of the C'lty is rated "A" by Moody's Investors Service, Inc. ("Moody's") and" A-" by Standard & Poor's Corporation ("S&P"). Applications for contract ratings on this iasue have been made to both Moody's and S&P. The 1'CIUlta of their determinations will be provided as lOOn u posaible. MUDicipal BoDd IDsurance In the event the Bonda are qualified for municipal bond insurance, and the Purchaser desires to purehaac such insurance, the cost thereof will be paid by the Pun:IIaser. Any fees to be paid to the rating agencies as a result of said insurance will be paid by the City. It will be the responsibility of the Purchaacr to disclose the existence of insurance, ita tenDS and the effect thereof with respect to the reoffering of the Bondi. -iii-