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REGISTRATION: . Coupon bonds will be issued by the City. Such bonds are registerable only as to both principal and interest. 1 - PURPOSE OF Said bonds are authorized for the purpose of ISSUE: acquiring, constructing and completing municipal improvements in one group, as set forth in the 1944 City Plan of the City of Redwood City, which plan and the proposal to incur a bonded indebtedness required to carry it out were approved by more than two-thirds vote of the voters at an election held in sa.id City of November 7, 1944. SECURITY: Said bonds are general obligations of the City of Redwood City, and the Cd:ty has power and is obligated to levy ad valorem taxes for the payment of said bonds and the interest thereon upon all property within the City of Redwood City subject to taxation by said City" (eJtcept'certain intangible personal property, which is taxable at limited rates), withaut limitation af rate or amount. TAX EXEMPT In the event that prior to the delivery of STATUS: the bonds the income received by private holders from bonds of the same type and character shall be declared to. be taxable underJany Federal Income Tax Laws, either by the terms of such laws or bJ ruling af a Federal Income Tax authority ar official which is follawed by the Bureau of Internal Revenue, or by decision of any Federal Court, the successful bidder may, at his option, prior to the tender of said bonds by the City, be relieved of his obligation under the cantract to purchase the bands and in such event the deposit accompanying his bid will be returned. LEGAL OPINION: The legal opinion of Messrs. Orrick, Dahlquist, Neff,Brown & Herrington, of San Francisco, California, approving the validity of said bonds, will be furnished to the successful bidder without cha.rge. TERMS OF SALE Highest Bid: I The bonds will be awarded to. the highest and best bidder considering the interest rate or rates specified and the premtum offered, if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from the total amount bf interest which the City would be required to pay frDm the date of said bonds to the respective maturity dates at the coupon rate or -rates speci- fied in the bid, and the award will be made on the basis of the lowest net interest cost to the City. The lowest net interest cost shall be computed between the dates aforesaid according to standard bond interest tables. Th~ purchaser must pay accrued interest from the date of the~bonds to the date of delivery. The cost of printing the bonds will be borne by the City. Ril2:ht of Rejection: The City of Redwoed City reserves the right in its discretion, to reject any and all bids and to waive any irregularity or informality in any bid. 3