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Attachment 3 <br /> <br /> <br /> <br />revenues as security for the bonds, establishes covenants of the Authority, establishes events <br />of default, remedies of bondholders, duties of the trustee, bond redemption provisions and <br />miscellaneous other provisions relating to the 2017 Bonds and the security therefore. <br /> <br />Continuing Disclosure Certificate <br />The SEC does not have the authority to regulate municipal bond issuers. It can, however, <br />regulate bond underwriters. The official statement provides comprehensive disclosure to <br />investors at the time bonds are initially sold. In the interest of requiring more up-to-date <br />information to be provided to investors, the SEC also requires bond underwriters to ensure that <br />issuers of municipal bonds that the underwriters purchase are obligated by a written undertaking <br />to provide continuing disclosure of specific listed events when they occur and key credit <br />information on an annual basis. In this case, the City will execute a continuing disclosure <br />certificate. The continuing disclosure certificate requires the City to annually collect and <br />disseminate to the Municipal Securities Rulemaking Board’s (“MSRB”) Electronic Municipal <br />Market Access (“EMMA”) system audited financial statements of the City, information regarding <br />the sources and amount of the supply of water to the City and the corresponding use, by <br />source, for water acquired by the City, information regarding bonds outstanding and debt <br />service coverage, and the occurrence of certain significant events (all of which are listed) <br />relating to the security provided to investors. <br /> <br />Preliminary Official Statement <br />The preliminary official statement is the primary disclosure document provided to investors in <br />connection with the 2017 Bonds. It discloses material information regarding the City, the water <br />system enterprise and the Authority, the authority for and purpose of the 2017 Bonds, and the <br />security for the payment of interest on and the repayment of the principal of the 2017 Bonds, the <br />terms of the 2017 Bonds and the redemption provisions therefore, debt service on the 2017 <br />Bonds and material risk factors relating to the City’s ability to make installment purchase <br />payments and the Authority’s collection of these payments, as well as material risk factors <br />relating to the security for the 2017 Bonds in general, and other miscellaneous matters. <br /> <br />Official Notice of Sale <br />The Official Notice of Sale sets the terms and conditions for the sale of the 2017 Bonds. In <br />addition to other pertinent information, it establishes the date and time of the sale, the method of <br />sale, the required form of the bid, the maximum discount and interest rate, the acceptable <br />designation of interest rates by the bidders and the method of award of the 2017 Bonds. It <br />summarizes the authorization, purpose and form of the 2017 Bonds. It states the principal <br />maturities, the payment dates, the redemption provisions and the security for the 2017 Bonds. <br />It establishes the requirements to submit a bid, the method by which good faith deposits must <br />be submitted, the rules of the auction process, and the right of the Authority to reject bids or to <br />postpone or cancel the sale. <br /> <br />Bond Purchase Agreement <br />This is the contract between the Authority and the underwriter specifying the interest rates and <br />reoffering yields on the 2017 Bonds and the price the underwriter will pay to the Authority for the <br />purchase of the 2017 Bonds. Because there is a time interval of 2 to 3 weeks between the <br />execution of the contract and the closing (the delivery of the 2017 Bonds and the payment of <br />money), it also specifies various conditions on which the offer to purchase the 2017 Bonds is <br />8.C. - Page 16