(a) Capital outlay notes must be sold for not less than ninety-nine percent (99%) of the par value thereof and accrued interest as the governing body of the local government may direct. Capital outlay notes may be sold in one (1) or more series; may bear such date or dates; may bear interest at such rate or rates, which may vary from time to time; may be payable at such time or times; may be in such denomination or denominations; may be in such form, either coupon or registered; may be payable at such place or places; may be executed in such manner; may be payable in such medium of payment; may be subject to such terms of redemption, without a premium or, for notes sold for not less than the par value thereof and accrued interest, without or with a premium of not exceeding one percent (1%) of the principal amount thereof, all as may be provided by resolution of the governing body of the local government.
Terms Used In Tennessee Code 9-21-602
Governing body: means the legislative body of any local government of this state or any other authority charged with the governing of the affairs of any local government in this state. See Tennessee Code 9-21-105
Local government: means any county, municipality or metropolitan government in this state. See Tennessee Code 9-21-105
Notes: means notes or interim certificates issued pending preparation or delivery of definitive notes of a local government issued pursuant to this chapter. See Tennessee Code 9-21-105
(b) The weighted average maturity of capital outlay notes issued pursuant to this part and parts 1 and 4 of this chapter must not exceed the reasonably expected weighted average life of the project being financed as stated in the resolution authorizing the capital outlay notes. An erroneous estimate of the reasonably expected weighted average life of the project must in no way affect the validity of such notes.
