In connection with the issuance of bonds and/or the incurring of any obligation under a lease and in order to secure the payment of such bonds and/or obligations, the authority has the power to:

(1) Pledge by resolution, trust indenture, mortgage, subject to the limitation hereinafter imposed, or other contract all or any part of its rents, fees or revenues;

Terms Used In Tennessee Code 13-20-603

  • Bonds: means any bonds, interim certificates, notes, debentures, or other obligations of the authority issued pursuant to this chapter. See Tennessee Code 13-20-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means any agreement of an authority with or for the benefit of an obligee whether contained in a resolution, trust indenture, mortgage, lease, bond or other instrument. See Tennessee Code 13-20-102
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Government: includes the state and federal governments and any subdivision, agency or instrumentality, corporate or otherwise, of either of them. See Tennessee Code 13-20-102
  • Housing project: includes all real and personal property, buildings and improvements, stores, offices, lands for farming and gardening, and community facilities acquired or constructed or to be acquired or constructed pursuant to a single plan or undertaking, to:
    (i) Demolish, clear, remove, alter or repair unsanitary or unsafe housing. See Tennessee Code 13-20-102
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: includes deeds of trust, mortgages, building and loan contracts or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof. See Tennessee Code 13-20-102
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • obligee: includes any bondholder, trustee or trustees for any bondholders, any lessor demising property to the authority used in connection with a housing project or any assignee or assignees of the lessor's interest or any part thereof, and the United States, when it is a party to any contract with the authority. See Tennessee Code 13-20-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • State: means the state of Tennessee. See Tennessee Code 13-20-102
  • Trust indenture: includes instruments pledging the revenues of real or personal properties but not conveying such properties or conferring a right to foreclose and cause a sale thereof. See Tennessee Code 13-20-102
  • Trustee: A person or institution holding and administering property in trust.
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(2) Covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired, or against permitting or suffering any lien thereon;
(3) Covenant with respect to limitations on its right to sell, lease or otherwise dispose of any housing project or any part thereof, or with respect to limitations on its right to undertake additional housing projects;
(4) Covenant against pledging all or any part of its rents, fees and revenues to which its right then exists or the right to which may thereafter come into existence or against permitting or suffering any lien thereon;
(5) Provide for the release of property, rents, fees and revenues from any pledge or mortgage, and reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage;
(6) As to the bonds to be issued pursuant to any resolution, trust indenture, mortgage or other instrument and as to the issuance of such bonds in escrow or otherwise, covenant regarding the use and disposition of the proceeds thereof;
(7) Covenant as to what other or additional debt may be incurred by it;
(8) Provide for the terms, form, registration, exchange, execution and authentication of bonds;
(9) Provide for the replacement of lost, destroyed or mutilated bonds;
(10) Covenant that the authority warrants the title to the premises;
(11) Covenant as to the rents and fees to be charged, the amount (calculated as may be determined) to be raised each year or other period of time by rents, fees, and other revenues and as to the use and disposition to be made thereof;
(12) Covenant as to the use of any or all of its property, real or personal;
(13) Create or authorize the creation of special funds in which there shall be segregated:

(A) The proceeds of any loan and/or grant;
(B) All of the rents, fees and revenues of any housing project or projects or parts thereof;
(C) Any moneys held for the payment of the costs of operation and maintenance of any such housing projects or as a reserve for the meeting of contingencies in the operation and maintenance thereof;
(D) Any moneys held for the payment of the principal of and interest on its bonds or the sums due under its leases and/or as a reserve for such payments; and
(E) Any moneys held for any other reserves or contingencies;

and to covenant as to the use and disposal of the moneys held in such funds;

(14) Redeem the bonds, and covenant for their redemption and provide the terms and conditions thereof;
(15) Covenant against extending the time for the payment of its bonds or interest thereon, directly or indirectly, by any means or in any manner;
(16) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto and the manner in which such consent may be given;
(17) Covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys;
(18) Vest in an obligee of the authority the right, in the event of the failure of the authority to observe or perform any covenant on its part to be kept or performed, cure any such default and advance any moneys necessary for such purposes, and the moneys so advanced may be made an additional obligation of the authority with such interest, security and priority as may be provided in any trust indenture, mortgage, lease or contract of the authority with reference thereto;
(19) Covenant and prescribe as to the events of default and terms and conditions upon which any or all of its 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;
(20) Covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation;
(21) Covenant to surrender possession of all or any part of any housing project or projects upon the happening of an event of default, as defined in the contract, and vest in an obligee the right without judicial proceedings to take possession of and use, operate, manage and control such housing projects or any part thereof, and collect and receive all rents, fees and revenues arising therefrom in the same manner as the authority itself might do, and to dispose of the moneys collected in accordance with the agreement of the authority with such obligee;
(22) Vest in a trustee or trustees the rights to enforce any covenant made to secure, pay, or in relation to the bonds, provide for the powers and duties of such trustee or trustees, limit liabilities thereof and provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant;
(23) Make covenants other than, and in addition to, the covenants herein expressly authorized, of like or different character;
(24) Execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties, which may contain such covenants and provisions in addition to those above specified as the government or any purchaser of the bonds of the authority may reasonably require; and
(25) Make all covenants and do any and all acts and things which may be necessary or convenient or desirable in order to secure its bonds, or which tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein, it being the intention hereof to give the authority power to do all things in the issuance of bonds, in the provisions for their security that are not inconsistent with the constitution of the state, and no consent or approval of any judge or court shall be required therefor; provided, that the authority shall have no power to mortgage all or any part of its property, real or personal, except as provided in § 13-20-604.
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