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<br />- .; <br />~. 65 <br /> RESOLUTION 1996-95R <br /> A RESOLUTION BY THE CITY COUNCIL OF THE CITY COUNCIL OF THE <br /> CITY OF SA1~ MARCOS, TEXAS, AUTHORiZING THE PURCHASE OF A DEBT <br /> SERVICE RESERVE FUND SURETY POLICY WITH RESPECT TO THE CITY'S <br /> \V A TERWORKS AND SE\VER SYSTEM REVENUE BONDS, SERIES 1996-A, IN <br /> LIEU OF ACCUMULATION OF A CASH RESERVE; AND CONTAINING <br /> OTHER PROVISIONS RELATING TO THE SUBJECT <br /> WHEREAS, the ordinance (the "Ordinance") authorizing the issuance of the bonds of the City of <br /> San Marcos, Texas (the "City") entitled City of San Marcos, Texas, Waterworks and Sewer System <br /> Revenue Bonds, Series 1996-A (the "Series 1996-A Bonds") authorizes the City to purchase from a Surety <br /> a Surety Policy (as such terms are defined in the Ordinance) for the Reserve Fund established and <br /> confinned in the Ordinance, in an amount equal to all or a portion of the amount of the annual requirement <br /> for the payment of principal and interest \vith respect to the Series 1996-A Bonds, in lieu of depositing cash <br /> to the Reserve Fund, upon a rIDding by the City Council that the substitution of a Surety Policy in lieu of <br /> depositing cash to the Reserve Fund is cost effective; <br /> WHEREAS, the City has obtained a commitment to provide such a Surety Policy, with respect to <br /> all of the amount of the annual requirement for the payment of principal and interest -çvith respect to the <br /> Series 1996-A Bonds, from Financial Security Assurance Inc. (the "Commitment"); <br /> WHEREAS, this City Council officially finds and determines that substitution of the Surety Policy <br /> to be pro\ided to the City pursuant to the Commitment, in lieu of depositing cash to the Reserve Fund, is <br /> cost effective and in the best interests of the City; and <br /> . <br /> WHEREAS, it is hereby further found an determined that the interest due on the City's repayment <br /> obligation pursuant to the Surety Policy described in the Commitment does not exceed the highest [a\vful <br /> rate of interest which may be paid at the time of the delivery of such Surety Policy; Now, Therefore <br /> BE IT RESOLVED BY TIffi CITY COUNCIL OF TIffi CITY OF SAN MARCOS, TEXAS: <br /> Section 1. Findings. <br /> <br /> The statements and recitals of fact in the preamble of this Resolution are true and correct and are <br /> hereby adopted as findings of fact and operative provisio,ns hereof. <br /> Section 2. SuretY Policy. <br /> Pursuant to the aforesaid findings, the City shall obtain the Surety Policy described in the <br /> Commitment \\ithout unnecessary delay; the .\-layor and other appropriate officers of the City are hereby <br /> authorized and directed to take all such actions as may be necessary to obtain such Surety Policy: and the <br /> payment of the premium for such Surety Policy out of proceeds of the Series 1996-A Bo~ds is hereby <br /> authorized and approved. Such Surety Policy shall be maintained in lieu of depositing cash to the Reserve <br /> Fund \vith respect to the Series 1996-A Bonds. <br /> R."""""WllWWSS ""'DOCS"3t1Œ'n" RES <br />