5.2. A & B SR 08-12-2002 - Laserfiche WebLink

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Because the EDA is issuing more than $5,000,000 in tax-exempt obligations during this calendar year, the debt will not qualify for the small issuer exemption from arbitrage rebate. You may be exempt from arbitrage rebate if the Bond proceeds, as defined in an arbitrage certificate to be provided upon closing, are expended within two years from the date of issuance as follows: Months from Percent of Net Issuance Proceeds Spent 6 10% 12 45% 18 75% 24 100% In the event the expenditure rules specified above are not met, the Authority will be required to pay any applicable arbitrage rebate in accordance with the general rules of Section 148 (f) of the IRS Code. The Bonds will be global book entry with a bank designated as the paying agent. As "paperless" bonds, you will avoid the costs of bond printing and annual registrar charges. The Paying Agent will invoice you for the interest semi-annually and on an annual basis for the principal coming due. You will be charged only for paying agent/transfer agent services provided by the bank. Bidders on this issue may submit a bid which contains a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption. If the purchaser of the Bonds designates certain of the maturities as Term Bonds, subject to a mandatory call, the EDA will be responsible for providing a Notice of Call to holders of the Bonds at least 45 days prior to the call date. Allowing potential purchasers the term bond option results in increased bidder interest in this issue and possible lower interest rates. Current regulations of the Securities and Exchange Commission on the continuing disclosure of municipal securities apply to long-term securities with an aggregate principal amount of $1,000,000 or more. Because the aggregate amount of this issue is over $1,000,000 and the City has more than $10,000,000 in total municipal obligations outstanding, you will be obligated to comply with Full Continuing Disclosure requirements as required by paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934. You will be required to provide certain financial information and operating data relating to the City annually and to provide notices of the occurrence of certain material events. The specific nature of the Undertaking, as well as the information to be contained in the notices of material events will be set forth in the Continuing Disclosure Certificate that you will enter into at the time of closing for this issue. Page 4