§ 885 — Additional powers of City to secure bonds and make agreements

Sec. 885. - Additional powers of City to secure bonds and make agreements.

In order to secure the payment of any of the bonds issued pursuant to this Act, and interest thereon, or in connection with such bonds, any municipality shall have power as to such bonds: (a) To pledge the full faith and credit and unlimited taxing power of the municipality to the punctual payment of the principal of and interest on such bonds, except bonds payable exclusively from the revenues of a public works project. (b) To pledge all or any part of the fees, rents, tolls, or other charges received or receivable by the municipality from any public works project then existing or thereafter to be constructed to the punctual payment of bonds issued for such public works project, and interest thereon, and to covenant against thereafter pledging any such fees, rents, tolls, or charges to any other bonds or any other obligations of the municipality for any other purposes. (c) To provide for the terms, form, registration, exchange, execution and authentication of such bonds. (d) To provide for the replacement of lost, destroyed or mutilated bonds. (e) To covenant as to the use and disposition of the proceeds from the sale of such bonds. (f) To covenant as to the fees, rents, or tolls to be charged in connection with the public works project for which such bonds are to be issued and as to the disposition to be made thereof. (g) To covenant to set aside or pay over reserves and sinking funds for such bonds and as to the disposition thereof. (h) To redeem such bonds, and to covenant for their redemption, and to provide the terms and conditions thereof. (i) To covenant as to its books of account and as to the inspection and audit thereof and as to the accounting methods. (j) To covenant and prescribe as to what happenings or occurrences shall constitute "events of default" and the terms and conditions upon which any or all of such 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. (k) To covenant as the rights, liabilities, powers and duties arising upon the breach by it of any covenant, conditions, or obligations. (l) To vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay in relation to the bonds; to execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what happenings or occurrences shall constitute events of default and prescribing the terms and conditions upon which such trustee or trustees of the holder or holders of bonds of any specified amount or percentage of such bonds may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate. (m) To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties. (n) To make such covenants and do any and all such acts and things as may be necessary or convenient or desirable in order to secure such bonds, or in the discretion of the governing body of the municipality tend to make such bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein; it being the purpose hereof to give the municipality power to do all things in the issuance of the bonds and for their security that may be consistent with the Constitution of the State of Tennessee.

(Priv. Acts 1935, ch. 108, § 18, 1st Spec. Sess.)