|
INTRODUCTORY STATEMENT
<br />
<br />This Official Statement provides certain information in connect[on with the issuance by the City of Paris, Texas (the ~City" or
<br />~lssuer") of its $5,190,000' Tax and Revenue Refunding Bonds, Series 2001 (the 'Bonds") identified on the cover page hereof.
<br />
<br />The Issuer is a political subdivision of the State of Texas (the "State") and operates under the statutes and the Constitution of
<br />the State of Texas and the Issuer's Home Rule Charter. The Bonds are being issued pursuant to the Constitution and general
<br />laws of the State, including V.T.C.A., Government Code, Chapters 1207 and 1331, as amended, the City's Home Rule Charter
<br />and an ordinance (the "Ordinance") adopted by the City Council, (See "THE BONDS - Authority for Issuance" herein.)
<br />
<br />Unless otherwise indicated, capitalized terms used in this Official Statement have the same meanings assigned to such terms
<br />in the Ordinance. Included in this Official Statement are descriptions of the Bonds and certain information about the Issuer and
<br />its finances. ALL DESCRIPTIONS OF DOCUMENTS CONTAINED HEREIN ARE SUMMARIES ONLY AND ARE QUALIFIED
<br />IN THEIR ENTIRETY BY REPERENCE TO EACH SUCH DOCUMENT. Copies of such documents may be obtained from the
<br />Issuer or the Financial Advisor.
<br />
<br />PLAN OF FINANCING
<br />
<br />Purpose
<br />
<br />The proceeds of the Bonds, together with a cash contribution from the City, ara being used to refund the 2001 through 2011
<br />maturities of the City's Tax and Revenue Refunding Bonds, Series 1991 (the "Refunded Bonds") in order to achieve debt
<br />service savings (see "Schedule I - Schedule of Refunded Bonds') and to pay the costs of issuance for the Bonds.
<br />
<br />Refunded Bonds
<br />
<br />The Refunded Bonds, and interest due thereon, are to be paid from funds deposited with The Bank of New York, New York,
<br />New York (the "Escrow Agent") or its successor. The Ordinance approves and authorizes the execution of an escrow
<br />agreement (the "Escrow Agreement") between the Issuer and the Escrow Agent. The Ordinance further provides that, from a
<br />portion of the proceeds of the sale of the Bonds and other lawfully available funds of the Issuer, if any, the Issuer will deposit
<br />with the Escrow Agent the amount sufficient to accomplish the discharge and final payment of the Refunded Bonds. Such
<br />amount will be held by the Escrow Agent in an escrow account (the "Escrow Fund") and used to purchase direct obligations of
<br />the United States of America (the "Escrowed Securities").
<br />
<br />By the deposit of the Escrowed Securities and cash with the Escrow Agent pursuant to the Escrow Agraement, the City will
<br />have effected the defeasance of the Refunded Bonds pursuant to the terms of V.T.C.A.. Government Code, Chapters 1207 and
<br />1331, as amended, and the Ordinance authorizing the issuance of the Refunded Bonds, It is the opinion of Bond Counsel that,
<br />as a result of such defeasance, the Refunded Bonds will no longer be deemed outstanding obligations under the ordinances
<br />authorizing their issuance, but will be payable solely from the funds and Escrowed Securities deposited in escrow and will not
<br />be considered debt of the City for purposes of taxation or applying any limitation on the city's ability to issue debt or for any
<br />other purpose.
<br />
<br />The City has covenanted in the Escrow Agreement to make timely deposits to the Escrow Fund, from lawfully available funds,
<br />of additional funds in the amount required to pay the principal of and interest on the Refunded Bonds should, for any reason,
<br />the cash balances on deposit or scheduled to be on deposit in the Escrow Fund be insufficient to make such payments.
<br />
<br />THE BONDS
<br />
<br />General Description
<br />
<br />The Bonds will be dated September 15, 2001. The Bonds are stated to mature on December 15 in the years and in the
<br />principal amounts set forth on the cover page heraof. The Bonds shall bear interest from their dated date on the unpaid
<br />principal amounts, and the amount of interest to be paid each payment period shall be computed on the basis of a 360-day
<br />year of twelve 30-day months. Interast on the Bonds will be payable on June 15 and December 15 of each year commencing
<br />June 15, 2002, Principal is payable at maturity, upon presentation and surrender of the Bonds, at the designated office of the
<br />Paying Agent/Registrar, initially The Bank of New York, New York, New York, or its successor, interest on the Bonds is payable
<br />to the ragistered owner on the Record Date (as defined herein) appearing on the registration and transfer books of the Paying
<br />Agent/Registrar and shall be paid by check mailed on or before each interest payment date by the Paying Agent/Registrar to
<br />the address appearing on the Paying Agent/Registrar's books or by such other method acceptable to the Paying
<br />Agent/Registrar, requested by and at the risk and expense of the registered owner. The bonds will be issued in fully registered
<br />form in denominations of $5,000 or any integral multiple thereof for any one stated maturity.
<br />
<br />· Preliminary, subject to change
<br />
<br /> 5
<br />
<br />
<br />
|