9-21-306 - Powers to secure and to covenant as to revenue bonds.
9-21-306. Powers to secure and to covenant as to revenue bonds.
(a) In order to secure the payment of the principal of and interest on revenue bonds issued pursuant to this part and part 1 of this chapter, and the payment of the obligations of any local government under any interest rate agreement authorized by this part, including its obligation for termination or other non-periodic payments, or in connection with such bonds or interest rate agreements, any local government has the power as to such bonds or interest rate agreements to:
(1) Pledge all or any part of the fees, rents, tolls, or other charges received or receivable by the local government from any public works project or projects then existing or thereafter to be constructed, including any revenues derived or to be derived by a local government from a lease, agreement or contract with any other local government, local government instrumentality, the state, or a state or federal agency for the use of or in connection with such public works project or projects, to the punctual payment of the principal of and interest on bonds issued to finance such public works project or projects, or any other public works project or projects, and the payment of the obligations of any local government under any interest rate agreement authorized by this part, and covenant against thereafter pledging any such fees, rents, tolls, or charges to any other bonds or any other obligations of the local government;
(2) Covenant as to the fees, rents or tolls to be charged in connection with any public works project or projects and as to the use and disposition to be made thereof, and enter into appropriate agreements with any other local government, local government instrumentality, the state, or a state or federal agency for such purpose with respect to a public works project which is to be owned or leased by a local government or local government instrumentality;
(3) Provide for the terms, forms, registration, exchange, execution and authentication of the revenue bonds in a manner not inconsistent with this part and part 1 of this chapter;
(4) Covenant as to the use and disposition of the proceeds from the sale of the revenue bonds in a manner not inconsistent with the provisions of this part and part 1 of this chapter;
(5) Covenant as to limitations on the issuance of additional obligations to finance the improving of the public works project and on the lien thereof;
(6) Covenant as to the amount and kind of insurance to be maintained on the public works project, and the use and disposition of insurance moneys;
(7) Covenant as to the transfer from the general funds of the local government to the account or accounts of the public works project, an amount equal to the cost of furnishing the local government or any of its departments, boards or agencies with the services, facilities, and commodities of the public works project;
(8) Covenant as to the operation and maintenance of the public works project;
(9) Covenant to set aside or pay over reserves and sinking funds for the revenue bonds and as to the disposition thereof;
(10) Redeem the revenue bonds, and covenant for their redemption and to provide the terms and conditions thereof;
(11) Covenant as to its books of account, as to the inspection and audit thereof, and as to the accounting methods; provided, that an audit of the books and accounts of the local government shall be made at least annually in accordance with §§ 4-3-304 and 6-56-105. All audits shall be performed in accordance with the standards established by the comptroller of the treasury;
(12) Covenant and prescribe as to what occurrences shall constitute events of default and the terms and conditions upon which any or all of the revenue bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;
(13) Covenant as to the rights, remedies, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation;
(14) Execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties;
(15) Make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure the revenue bonds, or in the discretion of the governing body, to make the revenue bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein; it being the purpose hereof to give the local government power to do all things in the issuance of the revenue bonds and for their security that may be consistent with the Constitution of Tennessee;
(16) Pledge all or any part of the then unpledged rates, fees, rents or other charges to be received from its waterworks system to the punctual payment of the principal of and interest on any sewer bonds for the construction of facilities for the collection, treatment and disposal of sewage and waste matter, including all property, real and personal, appurtenant thereto or in connection therewith, which pledge may be in addition to a pledge of rates, fees, rents and charges received or receivable from any sewer system then existing or to be constructed;
(17) Covenant that it will fix, levy and collect fees, rents, tolls or other charges for the privilege of parking motor vehicles in the space immediately adjacent to any parking meter which in its discretion, it may install and operate and maintain beside specified portions of the public streets;
(18) Covenant that the costs of operating and maintaining parking facilities payable from the revenues of such parking facilities shall not include all or any part of the salaries of police officers employed in the enforcement of on-street parking regulations;
(19) Vest in a trustee or trustees powers and duties, including the right to enforce any covenants made to secure, or to pay, the revenue bonds, limitations on liabilities, and the terms and conditions upon which the holders of the revenue bonds or any portion or percentage of them may enforce any covenants thereunder or duties imposed thereby;
(20) Prescribe a procedure by which the terms of any resolution authorizing revenue bonds, or any other contract with bondholders, including, but not limited to, an indenture of trust or similar instrument, may be amended or abrogated and as to the amount of revenue bonds the holders of which must consent thereto and the manner in which such consent must be given; and
(21) Covenant and provide for the discharge and satisfaction and defeasance of all or any part of revenue bonds and the indebtedness evidenced thereby.
(b) The provisions of this section shall apply to any governmental entity created by private act that has the power to issue revenue bonds and to enter into interest rate agreement of the type authorized by this part.
[Acts 1986, ch. 770, § 3-6; 2004, ch. 589, § 1.]