64-1-1207 - Issuance of bond or grant anticipation notes [Enactment contingent on county approval; see the Compiler's notes]. - Tennessee Statutes

64-1-1207. Issuance of bond or grant anticipation notes [Enactment contingent on county approval; see the Compiler's notes].

(a)  The authority may issue, by resolution adopted by the board, interest-bearing bond anticipation notes for all purposes for which bonds can be legally authorized and issued by the authority. Such notes shall be secured by the proceeds from the sale of the bonds in anticipation of which the notes are issued and additionally secured by a lien upon the revenues of the system on a parity with the bonds in anticipation of which such notes are issued. In no event shall the amount of outstanding bond anticipation notes exceed the principal amount of the bonds to be issued by the authority. The notes shall mature not later than two (2) years from their date of issuance and may be extended or renewed for not more than two (2) additional periods of two (2) years each by resolution of the board and the issuance of renewal or extension notes.

(b)  Notes shall be sold at public or private sale for not less than ninety-seven percent (97%) of the par value thereof and accrued interest as the board may direct. Notes may be sold in one (1) or more series, may bear such 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, with or without a premium, all as may be provided by resolution of the board.

(c)  Notes shall be executed in the name of the authority by the proper officials authorized to execute the same, together with the seal of the authority attached thereto.

(d)  The proceeds arising from the sale of such notes shall be disbursed as provided by the resolution authorizing the issuance of the notes. The term “bond anticipation notes” includes interim certificates or other temporary obligations that may be issued by the authority to the purchaser of such notes upon the terms and conditions provided in this section. When the bonds shall be issued and sold, a sufficient amount of the proceeds of the bonds shall be applied to the payment of the notes at their maturity or upon their earlier redemption as directed by the board by resolution.

(e)  The authority granted in this section to issue “bond anticipation notes” also includes the issuance of “grant anticipation notes,” to be secured by the grant in anticipation of which such notes are issued, with all provisions of this section being applicable to such grant anticipation notes.

[Acts 2001, ch. 223, § 8.]