Issuance of bonds in lieu of certificates of indebtedness.

Memphis Charter, art. 53, § 514

in effect

Sec. 514. - Issuance of bonds in lieu of certificates of indebtedness. Instead of issuing certificates of indebtedness as provided in section 513 hereof, the legislative body of the City shall have the power, at their option, to issue negotiable bonds of the municipality to an amount in par value not to exceed two-thirds of the estimated cost of any improvement or improvements, which cost shall for this purpose be estimated by the legislative body in the ordinance authorizing the issue of said bonds. Such bonds shall be made payable to bearer in lawful money of the United States, either at the office of the treasurer of the municipality or at such other place in the United States as may be designated in the bond, and be in such form and signed by such officers as may be provided in the ordinance directing their issue. Coupons may bear facsimile signature or signatures. In case any of such officers whose signatures appear on the bonds or coupons shall cease to be such officer before the delivery of such bonds to the purchaser, such signatures shall nevertheless be valid and sufficient for all purposes, the same as if they had remained in office until the delivery of the bonds. The bonds shall run for one, two, three, four and five years, and bear interest at a rate not exceeding six percent per annum, as may be designated in the bonds, payable semiannually, and such bonds shall be of such denomination as the legislative body may direct. The municipality may, in its discretion, in such ordinances provide that any bonds shall be payable at the option of the municipality at any interest-paying period; and in the event of bonds being thus made payable at the option of the municipality before maturity, and in the event that the municipality shall elect to pay any such bond in full at any interest period before its maturity, it shall pay as a bonus to the holder thereof a sum equal to one-half of the annual interest thereon for one year; provided, however, that the legislative body shall give public notice before any such interest period by publication three times once a week for three consecutive weeks in a daily newspaper published in such municipality, the first publication to be not less than thirty days prior to the interest period at which it is proposed to redeem the bonds, such notice stating the intention to redeem the bonds, and describing them by number and series. The municipality shall have no right or option to pay any bonds prior to maturity unless such right or option is expressly reserved in the bonds. Said bonds shall be sold at public or private sale at not less than par and accrued interest. Such bonds shall be the absolute and general obligation of the municipality. The legislative body of the municipality shall provide by ordinance that the assessments levied upon the property abutting on the streets, alleys or highways, or part or parts thereof, in respect of which any such bonds are issued, shall be set apart as a fund for the payment of such bonds and interest. It shall be the duty of the legislative body of the municipality to levy an ad valorem tax upon all the taxable property in the municipality to pay the principal and interest of said bonds as it becomes due, or to pay such part or parts thereof as are not provided for by the assessments levied and actually collected and in the treasury of the municipality set apart for the payment of such bonds and interest. Such tax shall be in addition to all other taxes which such municipality is by law authorized to levy. Any ordinance authorizing the issuance of any such bonds may be passed by both branches of the legislative body, if there be two branches, in joint session, upon two readings, one reading being on each of two separate days, the ordinance to be approved by the Mayor or passed over the veto of the Mayor by a vote of not less than two-thirds of the total number of members-elect of the joint session, and neither such ordinance nor the bill for the same need be published at any time before passage; and after passage the ordinance need be published only once in some daily newspaper published in the municipality. Such ordinance may, in the discretion of the legislative body, provide for the issuance of bonds in one lot or amount in respect of any one or more of such improvements on one or more streets, alleys or highways, or part or parts thereof, and may, in the discretion of the legislative body, provide that any assessments levied in respect of any such improvement or improvements, on one or more streets, alleys or highways, or part or parts thereof, may be applied as a whole toward payment of such entire lot or amount of bonds or interest thereon; and it shall not be necessary that each assessment for each separate improvement shall be kept separate and applied to the bonds issued in respect of that particular improvement. After the passage of any ordinance authorizing the issue of bonds, any proceedings authorizing the advertisement or sale or award of the bonds may be taken by order made at a joint session of the two branches of the legislative body, if there be two branches, and need not be by ordinance. No proceeding on the part of any such municipality in respect to the issuance of such bonds shall be necessary, except such proceedings as are required by this Act. Any such bonds may, in the discretion of the legislative body of the municipality, be issued in substantially the following form, or in such other form as the legislative body of the municipality may from time to time prescribe: (Here follows the form of bond and of coupon.) If the municipality reserves the right or option to pay off said bonds before maturity, such right or option shall be expressly reserved in the bonds, and the language of such reservation inserted in such case in the bond may be substantially as follows, or in any other appropriate language: (Here follows form of option to retire before maturity.) (Acts 1907, ch. 341, § 9; Acts 1909, ch. 109, § 5)

Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/charter?nodeId=PTICHRELA_ART53STIMUNFRFOASLA_S514ISBOLICEINFetched: 10/28/2026