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<br />Authorization
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<br />The Bonds are issued pursuant to the general laws of the State of Texas, particularly Article 717k, Vernon's Texas Civil Statutes, as
<br />amended, and a Resolution adopted by the Board of Directors of the Authority authorizing the issuance and sale of the Bonds (the "Bond
<br />Resolution").
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<br />Use of Proceeds
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<br />The proceeds from the sale of the Bonds will be used to reflUld on December 1, 1999, all of the Authority's outstanding Bonds,
<br />$4,055,000 of the Authority's Contract Revenue Bonds, Series 1988, maturing serially on December 1,2000, through and including 2015,
<br />and $4,025,000 of the Authority's Contract Revenue Bonds, Series II 1988, maturing serially on December 1, 2000, through and including
<br />2016.
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<br />Securitv
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<br />The Bonds will constitute valid and legally binding special obligations of the La Porte Area Water Authority, payable from and secured
<br />by a first lien on and pledge ofllie revenues derived from the operation of the Authority's Water System, after deduction of the necessary
<br />and reasonable expenses of maintenance and operation of the system. The owner(s) of the Bonds shall never have the right to demand
<br />payment of the principal and interest on the Bonds out of any fimds raised or to be raised by taxation.
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<br />Attorney General of the State of Texas and Akin, Gump, Strauss, Hauer & Feld, L.L.P., Attorneys, San Antonio, Texas.
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<br />Pavment Record
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<br />The Authority has never defaulted.
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<br />BIDDING CONDITIONS
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<br />Address of Bids
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<br />Bids should be in sealed envelopes plainly marked "Bid for Contract Revenue Refunding Bonds" addressed to the President, Board of
<br />Directors, La Porte Area Water Authority, 604 West Fairmont Parkway, La Porte, Texas 77571.
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<br />Deliverv of Bids
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<br />Bids should be mailed or delivered so that they arrive at the place of sale not later than 5:00 p.m., CDST, September 8, 1999. For
<br />convenience of bidders, bids may be delivered to Moroney, Beissner & Co., Inc., 1980 Post Oak Boulevard, Suite 2100, HoustOD,
<br />Texas 77056, Agent for the Authority, and, if delivered not later than 3:00 p.m., CST, September 8, 1999, will be deemed to have been
<br />delivered to the Authority in accordance with the tenDS of this Official Notice of Sale. Bids so delivered will not be opened except by the
<br />Board of Directors of the La Porte Area Water Authority and will not be opened prior to 5:00 p.m., CDST, September 8, 1999. Late bids
<br />will not be considered.
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<br />Bids may be submitted by Telephone or Facsimile if signed blank Bid Fonns are received by Moroney, Beissner & Co, Inc. on or before
<br />the day of sale. Telephone bids (713/960-8900) and facsimile bids (713/960-8904) must be received by 3:00 p.m. CDST on the day of
<br />the sale to the attention of R. David Fetzer or Moss K Fetzer.
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<br />No Bid From the Financial Advisor
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<br />Under the terms of the contract with Moroney, Beissner & Co., Inc., Financial Advisors to the Authority, it is agreed and IUlderstood that
<br />Moroney, Beissner & Co., Inc. shall not be permitted to purchase any Bonds from the Authority nor have any interest directly or
<br />indirectly, in the original purchase and sale of the Bonds, except as agent for the Authority. As Financial Adviso:rs to the Authority,
<br />Moroney, Beissner & Co., Inc. will be paid a fee based upon a percentage of the principal amolUlt of Bonds actually sold and delivered,
<br />which fee is contingent upon such sale and delivery.
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<br />Type of Bids and Interest Rates
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<br />All bids must be submitted on the Official Bid Form enclosed herewith without change. The Bonds ~ll be sold in one block, all or
<br />none, at a price of not less than par value plus accrued interest from date of the Bonds to date of delivery. Bidders are requested to
<br />specify the rate or rates of interest that the Bonds will bear. There is no limit on the number of interest rates (hat may be named;
<br />however, all Bonds maturing on the same date must bear interest at one and the same rate. Interest rates must be in. multiples of 1/8 or
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