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<br />Further details regarding the Bonds are set forth in the Official Statement.
<br /> CONDITIONS OF THE SALE
<br />Type of Bids and Interest Rates
<br />The Bonds will be sold in one block on an "AU or None" basis, and at a price of not less than their par
<br />value plus accrued interest to the date of delivery 01 the Bonds. Bidders are invited to name the rate(s) 01
<br />interest to be borne by the Bonds, provided that each rate bid must be in a multiple 011/8 of 196 or 1/20
<br />of 196 and the net effective interest rate must not exceed 1'96. The highest rate bid may not exceed the
<br />lowest rate bid by more than 396 in rate. No limitation is imposed upon bidders as to the number of rates
<br />or changes which may be used. All Bonds of one maturity must bear one and the same rate. No bids
<br />involving supplemental interest rates wiH be considered. Each bidder shall state in the bid the total
<br />interest cost in dollars and the effective interest rate determined thereby (calculated in the manner
<br />prescribed by Article 717k-2, V A TCS), which shall be considered informative only and not as a part of the
<br />bid.
<br />Basis for A ward
<br />For the purpose of awarding the sale of tl-¡e Bonds, the in1erest cost of each bid will be computed by
<br />determining, at the rate or rates specified therein, the total dollar cost of all interest on the Bonds from
<br />the Bond Date to their respective maturities, using the table of Bond Years herein, and deducting
<br />therefrom the premium bid, if any (the "Net Interest Cost Calculation"). Subject to the City's right to
<br />reject any or all bids and to waive any irregularities except time of filing, the Bonds wilJ be awarded to
<br />the bidder or syndicate account manager whose name first appears on the Official Bid Form (the
<br />"Purchaser") whose bid, based on the Net Interest Cost Calcula tion, produces the lowest net effective
<br />interest cost to the City.
<br />Good Faith Deposit
<br />A Good Faith Deposit, payable to the "City of San Marcos, Texas", in the amount of $71,900.00, is
<br />required. Such Good Faith Deposit shall be in the form of a Cashier's Check, or its equivalent, which is to
<br />be retained uncashed by the City pending the Purchaser's compJiance with the terms of the bid and the
<br />Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or
<br />it may be submitted separately. If submitted separately, it shall be made available to the City prior to
<br />the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which
<br />authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions. The
<br />Good Faith Deposit of the Purchaser will be returned to the Purchaser upon payment for the Bonds. No
<br />interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to
<br />take up and pay for the Bonds in accordance with the bid, then said check shall be cashed and accepted by
<br />the City as full and complete liquidated damages. The checks accompanying bids other than the winning
<br />bid will be returned immediately after the bids are opened, and an award of the Bonds has been made.
<br />DELIVER Y OF THE BONDS AND ACCOMPANYING D<X:UMENTS
<br />CUSIP Numbers
<br />It is anticipated that CUSIP identification numbers will appear on the Bonds, but neither the failure to
<br />print or type such number on any Bond nor any error with respect thereto shall constitute cause for a
<br />failure or refusal by the Purchaser to accept delivery, of and pay for the Bonds in accordance with the
<br />terms of this Notice of Sale and Bidding Instructions and the terms of the Official Bid Form. All expenses
<br />in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided,
<br />however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the
<br />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"),
<br />~ither in typed or printed form, in the aggregate principal amount of $3,'9',000, payable in stated
<br />installments to the Purchaser, signed by the Mayor and City Secretary, approved by the Attorney General,
<br />and registered and manually signed by the Comptroller of Public Accounts. Initial Delivery will be at the
<br />principal office of the Paying Agent/Registrar. Payment for the Bonds must be made in immediately
<br />available funds for unconditional credit to the City, or as otherwise directed by the City. The Purçhaser
<br />will be given six business days' notice of the time fixed for delivery of the Bonds. It is anticipated that
<br />Initial Delivery of the Initial Bond(s) can be made on or about June 18, 1991, and it is understood and
<br />agreed that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, COT, on
<br />July 18, 1991, or thereafter on the date the Bond is tendered for delivery, up to and including July 2,1991.
<br />If for any reason the City is unable to make delivery on or before July 2, 1991, the City shall immediately
<br />contact the Purchaser and offer to allow the Purchaser to extend its offer for an additional thkty days. If
<br />the Purchaser does not elect to extend its offer within six days thereafter, then its Good Faith Deposit
<br />will be returned, and both the City and the Purchaser shall be relieved of any further obligation. In no
<br />event shall the City be liable for any damages by reason of its failure to deliver the Bonds, provided such
<br />failure is due to circumstances beyond the City's reasonable controL
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