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City of Ramsey, Minnesota <br />December 12, 1991 <br /> <br />delivering a good faith check with their bid, Capital Guaranty will put up a surety bond, <br />guaranteeing the amount of the good faith check to the City if the purchaser does not deliver <br />such check to Springsted by 3:30 P.M. the day after the sale. We believe that we will not have <br />to invoke the surety bond on your behalf and will forward the good faith check from the <br />purchaser as soon as we receive it. <br /> <br />This is a new product in the municipal bond industry developed by Springsted and Capital <br />Guaranty. Therefore, for your bond sale, you will most likely receive some bids which are <br />accompanied by a good faith check and some which are covered under Sure-Bid. Springsted <br />will be in constant touch with Capital Guaranty to monitor the underwriters which have been <br />admitted to this program and, if Sure-Bid is used, Springsted will follow through after the sale, <br />to make sure you receive your good faith amount from the purchaser. <br /> <br />The 1991 Legislature amended bond sale procedures to permit the non-public issuance of <br />bonds if the issuer retains an independent financial advisor, Springsted remains a proponent <br />of competitive bidding but sees some advantages to the new legislation. We recommend a <br />competitive negotiated sale where all bidders reasonably expected to compete for an issue are <br />notified of the pending sale and competitive bids are received but no legal advertisement is <br />published. The issuer benefits from eliminating the publication costs and any risk of having an <br />issue delayed due to the time required for publication, or the inadvertent failure of a legal notice <br />to be published. In our ever changing industry published notices are no longer a critical <br />source of information for bidders, Other than for publication you should see no change in your <br />issuing procedures or in the bidding results. <br /> <br />We recommend these bonds be offered for sale on Tuesday, January 14, with proposals <br />received at the offices of Springsted Incorporated at 1:00 P.M. At that time, all proposals <br />received will be opened and verified for accuracy, and a bid tabulation will be prepared for <br />presentation to the Council for action at their regular meeting at 7:30 P.M. that same evening, <br />A representative of Springsted Incorporated will attend your meeting to provide <br />recommendations as to the acceptability of the proposals received. <br /> <br />Respectfully submitted, <br /> <br />SPRINGSTED Incorporated <br /> <br />rlw <br /> <br />Page 6 <br /> <br /> <br />