11-96 Furnishings & Equip Bonds $316,800

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EXH!E?~ ' INVITATION FOR PROPOSALS $3,331,600 CITY OF LAKEWOOD, OHiO V~RIOUS PURPOSE GENERAL OBLIGATION BOND ANTICIPATION NOTES, SERIES 1996 DATED: May 9, 1996 DUE: May 9, 1997 The City of Lakewood, Ohio (the "City") contemD!ates the issuance of $3,331,600 Various Purpose General ObligatiOn Bond Anticipation Notes, Series 1996 (the "Notes"), as more fully described in the enclosed Preliminary Official Statement. The City is inviting written proposals, or oral proposals, communicated by telephone, for the purchase, at not less than par and accrued interest, ~f the Notes. Proposals will be received by the Fiscal Officer of the City until 11:00 a.m. Eastern Daylight Saving Time, on April 23, 1996, at the office of the Fiscal Officer of the City at the address stated below. Split rate proposals or proposals for less than all of the Notes will not be considered. The proposal shall specify the rate of interest which the Notes are to bear and may specify a rate of interest after maturity different than the rate prior to maturity, but no rate specified shall exceed the maximum interest rate per .annum of 10% determined by Council. Oral proposals should be promptly confirmed in writing to the undersigned by the biddems. THE NOTES ARE NOT "QUALIFIED TAX- EXEMPT OBLIGATIONS" FOR PURPOSES OF SECTION 265(b) (3) OF THE INTERNAL REVENUE CODE' OF 1986, The Notes will be dated May 9, 1996 and will mature on May 9, 1997, with no option in the City to redeem the Notes prior to maturity. The Notes will bear interest (compUted on a 360-day per year basis) from their date payable at maturity; will be issued in such denominations .as requested by the original purchaser; and will be payable at banks or trust companies, as determined by the Fiscal Officer, without deduction for exchange, collection or service charges. On April 23, 1996, the Fiscal Officer will consider the proposals submitted and will award the Notes on the basis of the proposal resulting in the sale of the Notes at the lowest net interest cost to the stated maturity. The lowest net interest cost will be determined by taking the amount of interest from the date of the Notes to the stated maturity date and deducting therefrom the amount of any premium. In the event of tie proposals based on the lowest net interest cost to the stated mauurity, the Fiscal Officer will award the Notes to the bidder submitting the tie proposal who bids the lowest interes= rate after maturity, and if such an award would result in tie proposals, the successful proposal will be selected by lot Ina manner determined by the Fiscal Officer. Any informality or failure to conform to the instructions herein contained may be waived by the Fiscal Officer, and the Fiscal Officer may reject any or all of the proposals presented. Legal matters incident to the issuance of the Notes and wi~h regard ~o the tax exempt status of the interest thereon are subject to the approving legal opinion of Calfee, Halter & Griswold, Bond Counsel, which will be furnished without cost to the original purchaser at the time the Notes are delivered to it. That opinion will include an opinion, based upon and assuming compliance with covenants and the accuracy of representations and certifications of the City, that under the existing law (a) the interest on the Notes (i) is excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), (ii) is nco treated as an item of tax preference for purposes of the a!uernat~ve minimum tax ~mposed on individuals an~ corpora=ions by the Code, and (iii) is exempu from the Ohio personal income tax and excluded from the net income base of the Ohio corporate franchise tax, and (b) the Notes are nou "private activity bonds" as defined in the Code. Under the Code, the interest may be subject to