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8.A. - Page 72 <br /> Under the Tax Code, original issue premium is amortized on an annual basis over the <br /> term of the Bond (said term being the shorter of the Bond's maturity date or its call date). The <br /> amount of original issue premium amortized each year reduces the adjusted basis of the owner <br /> of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of <br /> original issue premium on a Bond is amortized each year over the term to maturity of the Bond <br /> on the basis of a constant interest rate compounded on each interest or principal payment date <br /> (with straight-line interpolations between compounding dates). Amortized Bond premium is <br /> not deductible for federal income tax purposes. Owners of premium Bonds, including <br /> purchasers who do not purchase in the original offering, should consult their own tax advisors <br /> with respect to State of California personal income tax and federal income tax consequences of <br /> owning such Bonds. <br /> In the further opinion of Bond Counsel, interest on the Bonds is exempt from California <br /> personal income taxes. <br /> Owners of the Bonds should also be aware that the ownership or disposition of, or the <br /> accrual or receipt of interest on, the Bonds may have federal or state tax consequences other <br /> than as described above. Bond Counsel expresses no opinion regarding any federal or state tax <br /> consequences arising with respect to the Bonds other than as expressly described above. <br /> Form of Opinion <br /> The form of Bond Counsel's anticipated opinion is included as APPENDIX E—FORM <br /> OF FINAL OPINION OF BOND COUNSEL. The statutes, regulations, rulings, and court <br /> decisions on which such opinion will be based are subject to change. <br /> UNDERWRITING <br /> The Bonds were purchased by , as underwriter (the "Underwriter"), following <br /> a competitive sale, at a purchase price of $ (consisting of the $ aggregate <br /> principal amount of the Bonds, plus$ of original issue premium, less $ of <br /> Underwriter's discount). <br /> The initial public offering prices stated on the inside cover of this Official Statement may <br /> be changed from time to time by the Underwriter. The Underwriter may offer and sell the <br /> Bonds to certain dealers (including dealers depositing Bonds into investment trusts), dealer <br /> banks,banks acting as agent and others at prices lower than said public offering prices. <br /> MUNICIPAL ADVISOR <br /> The City has entered into an agreement with William Euphrat Municipal Finance, Inc. <br /> (the "Municipal Advisor"),whereunder the Municipal Advisor is providing municipal advisory <br /> services to the City with respect to preparation and sale of the Bonds. The Municipal Advisor <br /> has read and participated in the drafting of certain portions of this Official Statement. The <br /> Municipal Advisor has not audited, authenticated or otherwise verified the information set <br /> forth in the Official Statement, or any other related information available to the City with <br /> respect to accuracy and completeness of disclosure of such information, and the Municipal <br /> Advisor makes no guaranty, warranty or other representation respecting accuracy and <br /> completeness of the Official Statement or any other matter related to the Official Statement. The <br /> compensation of the Municipal Advisor is contingent upon the sale of the Bonds. <br /> -48- <br />