(a) Notwithstanding any general statute, special act, charter or ordinance to the contrary, a county has the power and is hereby authorized to issue from time to time its bonds and notes in such principal amounts as the county shall determine to be necessary to provide sufficient funds for achieving the purposes of this chapter.
Terms Used In Tennessee Code 7-60-203
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Contract: A legal written agreement that becomes binding when signed.
County: means any county or any metropolitan form of government in this state having a population of two hundred thousand (200,000) or more, according to the 1980 federal census or any subsequent federal census, that by resolution has made the findings and determinations required by §. See Tennessee Code 7-60-103
Home: means residential housing, including real property and improvements on real property, consisting of one (1) or more dwelling units, including, but not limited to, condominium units, owned by one (1) person or family of lower or moderate income that occupies or intends to occupy one (1) of such units. See Tennessee Code 7-60-103
Home mortgage: means an interest-bearing loan to a person or family of lower or moderate income for the purpose of purchasing or improving a home, constituting a first lien on real property and evidenced by a promissory note and secured by a mortgage, deed of trust or other security instrument on such home, but does not include a loan primarily for the purpose of refinancing an existing loan. See Tennessee Code 7-60-103
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. 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.
notes: means the bonds and notes respectively authorized to be issued by counties under this chapter. See Tennessee Code 7-60-103
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.
Purposes of this chapter: means ameliorating the deterioration of counties by preserving and expanding employment opportunities in the construction and related industries and the tax base of counties by undertaking or assisting in the financing of home mortgages for persons and families of lower and moderate income. See Tennessee Code 7-60-103
Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
Trustee: A person or institution holding and administering property in trust.
(b) A county has the power, from time to time, to issue:
(1) Notes to renew notes; and(2) Bonds to pay notes, including the interest on the notes and, whenever the county deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding for any of the purposes of this chapter. The refunding bonds may be exchanged for the bonds to be refunded or sold and the proceeds applied to the purchase, redemption or payment of such bonds.(c) The bonds and notes shall be authorized by resolution of the county, shall bear such date or dates and shall mature at such time or times not exceeding forty (40) years from the date of the bonds or notes as such resolution may provide. The bonds may be issued as serial bonds or as term bonds or as a combination of serial bonds and term bonds. The bonds and notes shall bear interest at such rate or rates, be in such denominations, be in such form, either bearer or registered, carry such exchange, transfer and registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, as such resolution may provide. Such bonds and notes may be sold by the county at public or private sale, at such price or prices as the governing body of the county shall determine.(d) Any resolution authorizing bonds or notes or any issue of bonds or notes may contain provisions, which shall be a part of the contract or contracts with the holders of the bonds or notes:
(1) To pledge all or any part of the revenues or receipts derived by the county from the home mortgages or qualified home improvement loans to the punctual payment of bonds or notes issued for such home mortgages or qualified home improvement loans and interest on the mortgages and loans, and covenant against thereafter pledging any such revenues or receipts to any other bonds or notes of the county for any other purpose, except as otherwise provided in the resolution for the issuance of additional bonds or notes to be equally and ratably secured by a lien upon such revenues and receipts;(2) To covenant as to limitations on the use and purposes and disposition of the proceeds from the sale of such bonds or notes and the pledging of such proceeds to secure the bonds or notes or of any issue of the bonds or notes;(3) To covenant as to the rates or charges fixed in connection with the home mortgages or qualified home improvement loans for which such bonds or notes are to be issued and as to the use and disposition to be made of the mortgages or loans, including the maximum interest rate payable on any home mortgage;(4) To provide for the replacement of lost, destroyed or mutilated bonds or notes;(5) To provide limitations on the issuance of additional bonds or notes; the terms upon which additional bonds or notes may be issued and secured; and the refunding of outstanding or other bonds or notes;(6) The procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated, the amount of bonds or notes the holders of which must consent to the amendment or abrogation, and the manner in which such consent may be given;(7) Limitations on the amount of moneys to be expended by the county for its operating expenses with respect to home mortgage loans;(8) Vesting in a trustee or trustees property, rights, powers and duties in trust as the county may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders or noteholders pursuant to this chapter, and limiting or abrogating the right of the bondholders or noteholders to appoint a trustee under this chapter or limiting the rights, powers and duties of such trustee;(9) To covenant to set aside or pay over reserves and sinking funds for such bonds or notes and as to the regulation and disposition of the reserves and sinking funds;(10) To redeem such bonds or notes, and to covenant for their redemption and to provide the terms and conditions of redemption;(11) To covenant and prescribe as to what happenings or occurrences shall constitute “events of default” as to such bonds or notes and to provide for the rights and remedies of the holders of the bonds or notes in the event of such default, including the right to appointment of a receiver; provided, that such rights and remedies are not inconsistent with the general laws of the state and the other provisions of this chapter;(12) To covenant as to the terms and conditions upon which any or all of such bonds or notes 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) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, conditions or obligation;(14) To vest in a trustee or trustees the right to receive all or any part of the revenues and receipts pledged and assigned to, or for the benefit of, the holder or holders of bonds or notes issued under this chapter, and to hold, apply and dispose of the revenues and receipts, including the investment of the revenues and receipts, and the right to enforce any covenant made to secure or pay in relation to the bonds or notes; to execute and deliver a trust agreement or trust agreements that may set forth the powers and duties and the remedies available to such trustee or trustees, and limiting the liabilities of the trustee or trustees, and describing what happenings or occurrences shall constitute events of default, and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds or notes of any specified amount or percentage of such bonds or notes may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate;(15) To execute all instruments necessary or convenient in the exercise of the powers granted in this chapter, or in the performance of its covenants and duties; and(16) To make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to protect and secure such bonds or notes and the holders of the bonds or notes, or in the discretion of the governing body of the county, tend to make such bonds or notes more marketable, notwithstanding that such covenants, acts or things may not be enumerated in this chapter, it being the purpose of this chapter to give each county power to do all things in the issuance of the bonds or notes and for their security that may be consistent with the Constitution of Tennessee.(e) Any pledge made by the county shall be valid and binding from the time when the pledge is made, and the revenues or property so pledged and thereafter received by the county shall immediately be subject to the lien of such pledge without any physical delivery of the revenues or property or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the county, without regard to whether such parties have notice of the lien. Neither the resolution nor any other instrument by which a pledge is created need be recorded.(f) No bonds shall be issued pursuant to this chapter until after a public hearing on the issuance of such bonds. Not less than thirty (30) days prior to such public hearing, a notice of public hearing shall be published in a newspaper of general circulation in the county.(g) Any county issuing bonds or notes under this chapter and any official of the county is empowered to take such action as may be necessary from time to time to preserve the exemption from federal income taxation of the interest on such bonds or notes.
