Opinion ID: 1195969
Heading Depth: 1
Heading Rank: 6

Heading: city's agreement with underwriters:

Text: Another instrument in the record is a joint proposal of Coughlin and Company, Inc., and Boettcher and Company, as underwriters, which proposal over the signature of its mayor was accepted on behalf of the City of Cheyenne, Wyoming, after noting the feasibility and advisability of a bond refunding plan. The substance of this agreement provides that: The underwriters agree to purchase at par and accrued interest from date of the bonds to date of delivery to the underwriters $13,030,000 City of Cheyenne, Wyoming, General Obligation Refunding Bonds to be dated June 1, 1965, and to mature serially April 1 and October 1, as set forth on attached exhibits, such bonds to be payable at any one of four named paying agents, the bonds to be callable at the City's option on October 1, 1980, or any interest-payment date thereafter at par and accrued interest; All expenses incident to the refinancing, including legal fees, bank escrow charges, bond printing, publication costs, and miscellaneous expenses will be assumed and paid by the underwriters; The City will purchase from the underwriters all United States Government securities (with an attached exhibit describing such bonds) necessary to establish the escrow account and complete the refunding plan at a price equivalent to the cost to the underwriters of purchasing said federal securities plus accrued interest thereon for the period held by the underwriters, and $79,285.50 representing all other expenses incident to the refunding plan; As evidence of good faith the underwriters submit with their proposal a check for $50,000 to be held uncashed and applied as part payment for the bonds at time of delivery but, should the underwriters fail or neglect to complete the financing and purchase of the refunding bonds, the check to be forfeited to the City as full liquidated damages; and Upon failure of the City to tender the refunding bonds for delivery on or before June 2, 1965, either the City or the underwriters may, by written notice, terminate any obligations thereunder in which event the $50,000 check is to be returned to the underwriters.