7-82-503 - Covenants. - Tennessee Statutes

7-82-503. Covenants.

Any resolution authorizing the issuance of bonds under this chapter may contain covenants, including, but not limited to:

     (1)  The purpose or purposes to which the proceeds of the sale of the bonds may be applied and the deposit, use and disposition of the bonds;

     (2)  The use, deposit, securing of deposits, and disposition of the revenues of the district, including the creation and maintenance of reserves;

     (3)  The issuance of other additional bonds payable from the revenues of the district;

     (4)  The operation and maintenance of the system or systems;

     (5)  The insurance to be carried thereon and the use, deposit and disposition of insurance moneys;

     (6)  Books of account and the inspection and audit of the books, and the accounting methods of the district;

     (7)  The nonrendering of any free service by the district; and

     (8)  The preservation of the system or systems, so long as any of the bonds remain outstanding, from any mortgage, sale, lease or other encumbrance not specifically permitted by the terms of the resolution.

[Acts 1937, ch. 248, § 10; C. Supp. 1950, § 3695.36 (Williams, § 3695.35); T.C.A. (orig. ed.), § 6-2621.]