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<br /> CONDITIONS OF THE SALE
<br /> Type of Bids and fut~ Rat~
<br /> The Bonds will be sold in one block on an "All or None' basis, and at a price of not less than their par value plus accrued interest to the date
<br /> of delivery of the Bonds, Bidders are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be in
<br /> a mulûple of 1/8 of 1 % or 1/20 of 1 % and the net effecûve interest rate must not exceed 15 %. The highest rate bid may not exceed the lowest
<br /> rate bid by more than 3 % iñ rate. No limitaûon is imposed upon bidders as to the number of rates or changes which may be used. All Bonds
<br /> of one maturity must bear one and the same rate. No bids involving supplemental interest rates will be considered. Each bidder shall state in
<br /> the bid the total interest cost in dollars and the effecûve interest rate determined thereby (calculated in the manner prescribed by Article 717k-2,
<br /> V ATCS), which shall be considered informative only and not as a part of the bid.
<br /> Basis for Award
<br /> For the purpose of awarding the sale of the Bonds, the interest cost of each bid will be computed by determining, at the rate or rates specified
<br /> therein, the total dollar cost of all interest on the Bonds from the Bond Date to their respective maturiûes, using the table of Bond Years herein,
<br /> and deducting therefrom the premium bid, if any (the "Net Interest Cost Calculaûon"). Subject to the City's right to reject any or all bids and
<br /> to waive any irregularities except ûme of filing, the Bonds will be awarded to the bidder or syndicate account manager whose name first appears
<br /> on the Official Bid Form (the "Purchaser') whose bid, based on the Net Interest Cost Calculation, produces the lowest net effective interest,cost
<br /> to the City.
<br /> Good Faith Deposit
<br /> A Good Faith Deposit, payable to the "City of San Marcos, Texas", in the amount of $92,000.00, is required. Such Good Faith Deposit shall
<br /> be in the form of a Cashier's Check, or its equivalent, which is to be retained uncashed by the City pending the Purchaser's compliance witlt
<br /> the terms of the bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or it may
<br /> be submitted separately. If submitted separately, it shall be made available to tlte City prior to the opening of the bids, and shall be accompanied
<br /> by instructions from the bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such
<br /> instructions. The Good Faith Deposit of the Purchaser will be returned to the Purchaser upon payment for the Bonds. No interest will
<br /> be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to take up and pay for the Bonds in accordance with
<br /> the bid, then said check shaH 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 inunediately after the bids are opened, and an award of the Bonds has been made.
<br /> DELIVERY OF THE BONDS MiD ACCOMPANYING DOCUMENTS
<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 shaH constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in
<br /> accordance with the terms of this Notice of Sale and Bidding Instructions and the terms of the Official Bid Form. All expenses in relation to
<br /> the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge
<br /> for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser.
<br /> Initial Delivery of Initial Bond
<br /> Initial Delivery will be accomplished by the issuance of one or more Initial Bonds (also called "Bonds"), either in typed or printed form, in the
<br /> aggregate principal amount of $4,600,000, 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 Accounts. Initial Delivery will be at the principal
<br />- office of the Paying AgentlRegistrar. Payment for the Bonds must be made in inunediately available funds for unconditional credit to the City;
<br /> or as otherwise directed by the City. The Purchaser will be given six business days' notice of the time fixed for delivery of the Bonds. It is
<br /> anticipated that Initial Delivery of the Initial Bond(s) can be made on or about December 22, 1992, and it is understood and agreed that the
<br /> Purchaser will accept delivery and make payment for the Bonds by 10:00 AM,ICST, on December 22, 1992, or thereafter on the date the Bond
<br /> is tendered for delivery, up to and including January 5, 1993. If for any reason the City is unable to make delivery on or before January 5,
<br /> 1993, the City shaH inunediately contact the Purchaser and offer to allow the Purchaser to extend its offer for an additional thirty days. If the
<br /> Purchaser does not elect to extend its offer within six days thereafter, then its Good Faith Deposit will be returned, and both the City and the
<br /> Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any damages by reason of its failure to deliver the
<br /> Bonds, provided such failure is due to circumstances beyond the City's reasonable control.
<br /> Delivery of Defmitive Bonds
<br /> Upon payment for the Bonds at the time of the Initial Delivery, the Paying AgenúRegistrar shall cancel the Initial Bond, provided registration
<br /> instructions have been received by the Paying AgentlRegistrar, and shall register and deliver the registered definitive Bonds, in any integral
<br /> multiple of $5,000 for anyone maturity, in accordance with instructions received from the Purchaser and/or members of the Purchaser'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 instructions designating the names in which the Bonds are to be registered, the addresses of the registered owners, the
<br /> maturities, interest rates and denominations. The Paying AgentlRegistrar will not be required to accept registration instructions after the fifth
<br /> business day prior to Initial Delivery. If such written instructions arc not received within the specified time period, the cancellation of the Initial
<br /> Bond(s) and delivery of registered definitive Bonds may be delayed until such instructions are received.
<br /> Conditions to Delivery
<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 Boy[e
<br /> Brooks & Fisher, A Professional Corporation, Austin and Dallas, Texas, Bond Counsel for the City ("Bond Counsel"), (b) the no-litigation
<br /> certificate, and (c) the certification as to tlte Official Statement, all as further described in tlte Official Statement.
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