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Form a Business

PUBLIC WORKS ACT

Memphis Charter art. 78
in effect

Memphis Charter, art. 78, § 868 Definitions.

Sec. 868. - Definitions. The following terms wherever used or referred to in this Act shall have the following meaning unless a different meaning appears from the context: (a) The term "municipality" shall mean the City of Memphis. (b) The term "governing body" shall mean the Board of Commissioners of the City of Memphis. (c) The term "law" shall mean any act or statute, general, special or local, of this State, including without being limited to, the Charter of the City of Memphis. (d) The term "bonds" shall mean bonds, interim certificates or other obligations of the City of Memphis issued by its governing body pursuant to this Act, or pursuant to any other law, as supplemented or in conjunction with this Act. (e) The term "public works project" shall include any one or more or any combination of the following: Electric light and/or power plants and/or generating stations, and/or substations, and/or distribution systems for the manufacture and distribution of electrical energy, including the sale and distribution of all appliances, instrumentalities of service and appurtenances connected therewith. The power to be distributed may be furnished by the Tennessee Valley Authority, or any governmental agency, or manufactured by the City of Memphis, or any agency thereof, or derived from any other source whatsoever, for any and all purposes, as the Board of Commissioners of the City of Memphis may by ordinance determine. Said term shall also include abattoirs, airports, auditoriums, bridges, tunnels, viaducts, City and town halls, fire halls, community houses, stadiums, courthouses, grain elevators, wharves, docks, harbors and waterfront improvements, facilities for the exchange from means of river transportation to land transportation and vice versa; facilities for the storage, handling and transshipment of grain, ore, coal, produce, steel, freight and merchandise of every character, hospitals, sanitaria, dispensaries, almshouses, jails, workhouses, reformatories, libraries, markets, memorials, parks, playgrounds, recreation centers, reclamation of land, public buildings, plazas, reservoirs, waterworks, water distribution systems, schools, gymnasia, sewers, sewerage or drainage systems, sewerage disposal or treatment plants, incinerators, streets, roads, avenues, alleys, highways, sidewalks, curbs, gutters, storm water sewers or drains, swimming pools, and all property, real and personal, appurtenant thereto or connected with such works, undertaking or project and the existing work, undertaking or project, if any, to which such work, undertaking or project is an extension, addition, betterment, or improvement. (f) The term "to construct" shall mean to build, to construct, to reconstruct, to erect, to replace, to extend, to repair, to better, to equip, to develop, to embellish, to improve, to acquire by gift, purchase or the exercise of the right of eminent domain, of any one or more or all of the foregoing. (g) The term "construction" shall mean building, construction, reconstruction, erection, replacement, extension, repairing, betterment, equipment, development, embellishment, improvements, acquisition by gift, purchase, or the exercise of the right of eminent domain, of any one or more or all of the foregoing. (h) The term "Recovery Act" shall mean Title 11 of the National Industrial Recovery Act being the Act of the Congress of the United States of America, approved June sixteenth, nineteen hundred and thirty-three, entitled, "An Act to encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes," and any acts amendatory thereof, and any acts supplemental thereto, and revisions thereof, the Emergency Relief Appropriation Act of 1935, and any further acts or joint resolutions of the Congress of the United States of America to reduce and relieve unemployment or to provide for the construction of public works. (i) The term "Federal agency" shall include the United States of America, the President of the United States of America, the Federal Emergency Administrator of Public Works, Reconstruction Finance Corporation, or any agency, instrumentality or corporation of the United States of America, which has heretofore been or may hereafter be designated, created or authorized by or pursuant to any act or acts of The Congress of the United States of America, to make loans or grants. (j) The term "contract" or "agreement" between a Federal agency and a municipality shall include contracts and agreements in the customary form and shall also be deemed to include an allotment of funds, resolution, unilateral promise or other commitment by a Federal agency by which it shall undertake to make a loan or grant or both upon performance of specified conditions or compliance with rules and regulations theretofore or thereafter promulgated, prescribed or published by a Federal agency. In the case of such an allotment of funds, resolution, unilateral promise or other commitment by a Federal agency, the terms, conditions and restrictions therein set forth and the rules and regulations theretofore or thereafter promulgated, prescribed or published shall, for the purpose of this Act, be deemed to constitute covenants of such a contract that are to be performed by the municipality, if the municipality accepts any money from such Federal agency. (Priv. Acts 1935, ch. 108, § 1, 1st Spec. Sess.)

Memphis Charter, art. 78, § 869 Powers of City generally.

Sec. 869. - Powers of City generally. The City of Memphis shall have power and is hereby authorized: (a) To construct any public works project, within or without the municipality, or partially within and partially without the municipality. (b) To operate and maintain any public works project for its own purposes or for the benefit and use of its inhabitants and also to operate and maintain such public works project for the benefit and use of the municipality and persons, firms and corporations therein and persons, firms and corporations, including municipal corporations, which are situated or whose residence or places of business are situated outside of the territorial boundaries of such municipality but within the State and within a radius of twenty miles from the territorial boundaries of such municipality. (c) To accept from any Federal agency grants for or in aid of the construction of any public works project. (d) To contract debts for the construction of any public works project, to borrow money, and to issue its bonds to finance such construction, and to provide for the rights of the holders of the bonds and to secure the bonds as hereinafter provided. (e) To assess, levy and collect unlimited ad valorem taxes on all property subject to taxation to pay bonds, and the interest thereon, issued to finance any public works project. (f) To fix, levy, and collect fees, rents, tolls, or other charges for the use of or in connection with any public works project, and, in the event any agreements with holders of bonds shall be made as hereinafter provided, to fix, levy, and collect such fees, rents, tolls, and other charges in accordance with such agreements and subject thereto. (g) To acquire by purchase, gift or the exercise of the right of eminent domain and to hold and dispose of any property, real or personal, tangible or intangible, or any right or interest in any such property, in connection with any public works project, whether or not subject to mortgages, liens, charges or other encumbrances, and to construct any public works project subject thereto, and whether within or without the municipality, or partially within and partially without the municipality. (h) To exercise the power of eminent domain, which is hereby expressly granted, for the purpose of acquiring any property, real, personal, or mixed, or any right, title or interest therein, necessary to carry out any public works project, as defined in section 1(e) of this Act (section 868), such right to be exercised in accordance with the general law now in force, or hereafter to be enacted, governing the acquisition of private property for public use. Said power of eminent domain may be exercised by the City of Memphis as to any such property within, or without the municipality in furtherance of any public works project as herein defined. (i) To make contracts and execute instruments containing such terms, provisions and conditions as in the discretion of the governing body of the municipality may be necessary, proper or advisable for the purpose of obtaining a grant, loan or other financial assistance from any Federal agency pursuant to or by virtue of the Recovery Act; to make all other contracts and execute all other instruments necessary, proper or advisable in or for the furtherance of any public works project; and to carry out and perform the terms and conditions of all such contracts or instruments. (j) To enter on any lands, waters and premises for the purpose of making surveys, soundings and examinations in or for the furtherance of any public works project. (k) To subscribe to and comply with the Recovery Act and any rules and regulations made by any Federal agency with regard to any grants or loans, or both, from any Federal agency. (l) To perform any acts authorized under this Act through, or by means of its own officers, agents and employees, or by contracts with private corporations, firms or individuals. (m) To exercise, for the purpose of obtaining a grant, loan or other financial assistance from any Federal agency pursuant to or by virtue of the Recovery Act, any power conferred by this Act independently or in conjunction with any other power or powers conferred by this Act or heretofore or hereafter conferred by any other law. (n) To delegate to any board, commission or department of the City of Memphis already created, or hereafter to be created, subject to such limitations as may be prescribed by any existing law or ordinance, or any law or ordinance to be passed, all the rights, powers and privileges herein granted to the municipality with reference to the acquisition, construction, operation and maintenance of any public works project as herein defined, subject to such conditions as the governing body may elect to impose, and, to that end, to pass any ordinance in furtherance of such public works project not inconsistent with the Constitution of the United States, or of the State of Tennessee. (o) To lease grounds, buildings, structures, facilities and/or equipment to carry out any public works project; and to contract with the United States Government, or any agency thereof, the State of Tennessee, or any political subdivision or agency, or any of them, or with any person, firm or corporation for the acquisition, building, leasing and letting of such facilities, or any of them, and/or for the equipment, operation and maintenance thereof as may be determined upon by the governing body, and to that end, shall have, and may exercise, all rights and powers with reference to the acquisition, operation and maintenance of public works as fully as if it were a natural person. (p) To mortgage or convey in trust any public works acquired under the provisions of this Act, including land, buildings, equipment, franchises, tolls, revenues, or facilities incidental to the operation of such public works, as security, for money borrowed to carry out the purposes of this Act to pay the principal and interest of any bonds, certificates of indebtedness, or other evidences of indebtedness issued to carry out the purposes of this act, on such terms and conditions as may be determined by the governing body. (q) To do all acts and things necessary or convenient to carry out the powers given in this Act. (Priv. Acts 1935, ch. 108, § 2, 1st Spec. Sess.)

Memphis Charter, art. 78, § 870 Disposition of moneys; separate accounts to be kept.

Sec. 870. - Disposition of moneys; separate accounts to be kept. All proceeds received from the sale of bonds issued under this Act and all fees, rents, tolls, or other charges, received by the municipality from any public works project, and all moneys received from any Federal agency shall be paid to the financial officer or officers, board or commission, of the municipality designated for such purposes. Such financial officer or officers, board or commission, shall not commingle any money received from any Federal agency with any other moneys, but the moneys received from any Federal agency shall be deposited in a separate bank account or accounts in the name of the municipality. (Priv. Acts 1935, ch. 108, § 3, 1st Spec. Sess.)

Memphis Charter, art. 78, § 871 Requirements of ordinance for issuance of bonds; items to be included in determining cost of project.

Sec. 871. - Requirements of ordinance for issuance of bonds; items to be included in determining cost of project. Before any bonds are issued under this Act, the governing body of the municipality shall adopt an ordinance determining to issue the bonds which ordinance shall state in substance (a) the amount or maximum amount of bonds to be issued; (b) the purpose or purposes for which such bonds are to be issued; (c) the rate or maximum rate of interest which such bond are to bear; (d) a brief concise statement of the fact whether such bonds will be payable (1) exclusively from revenues, or (2) exclusively from taxes, or (3) from revenues and in the event of a deficiency in such revenues from taxes, or (4) from taxes and additionally secured by a pledge of revenues, or (5) from revenues additionally secured by a mortgage or deed of trust of the physical properties. In determining the cost of any public works project, the following items may be included as a part of the cost of such public works project and finances by the issuance of the bonds: (a) engineering, inspection, accounting, fiscal and legal expenses; (b) the cost of issuance of the bonds, including engraving, printing, advertising, and other similar expenses; (c) any interest costs during the period of construction of such public works project and for six months thereafter on money borrowed or estimated to be borrowed. Such ordinance shall be passed and published in accordance with the provisions of the Charter of the City of Memphis providing for the passage and publication of ordinances. (Priv. Acts 1935, ch. 108, § 4, 1st Spec. Sess.)

Memphis Charter, art. 78, § 872 When no election required for issuance of bonds.

Sec. 872. - When no election required for issuance of bonds. No vote of the qualified electors upon the proposition of the issuance of bonds by the City of Memphis under the provisions of this Act shall be necessary, unless the full faith and credit of the City is pledged for the payment of the principal and interest of said bonds, and they shall become general liabilities of the City. (Priv. Acts 1935, ch. 108, § 5, 1st Spec. Sess.)

Memphis Charter, art. 78, § 873 When election required for issuance of bonds.

Sec. 873. - When election required for issuance of bonds. Where such bonds are general liabilities of the City of Memphis, and the full faith and credit of the City is pledged for the payment of the principal and interest on such bonds, no vote of the qualified electors upon the proposition for the issuance of such bonds shall be necessary, if the ordinance is adopted by at least three-fourths of the members of the governing body, unless within ten days from the date of publication of such proposed ordinance, as now required by the Charter, a petition, signed by at least ten percent of the qualified electors of the City of Memphis, shall have been filed with the Comptroller protesting the issuance of such bonds. If (1) at least three-fourths of the members of the governing body shall fail to concur in the adoption of such ordinance, or (2) if a petition protesting the issuance of such bonds signed by at least ten percent of the qualified electors of the municipality shall have been filed with the Comptroller within ten days from the publication of such proposed ordinance, then no bonds shall be issued under this Act without the assent of a majority of those voting upon a proposition for the issuance of such bonds in the manner provided by section 7 of this Act [section 874]. For the purpose of filing a petition protesting the issuance of bonds, a qualified elector shall be any resident citizen of the City of Memphis who is, on the date of the filing of said petition, qualified under the laws of the State of Tennessee and the Charter of the City of Memphis, qualified to vote for members of the Board of Commissioners, if such election were then to be held. No qualified elector shall be permitted to withdraw his signature from such a petition after signing it. (Priv. Acts 1935, ch. 108, § 6, 1st Spec. Sess.; Priv. Acts 1937, ch. 123, § 18)

Memphis Charter, art. 78, § 874 Bond elections and procedure thereof.

Sec. 874. - Bond elections and procedure thereof. If it is necessary to hold an election on the proposition to issue the bonds for either of the reasons set forth in section 6 of this Act [Section 873], such election shall be called by the governing body of the municipality, and the commissioners of election of Shelby County shall hold an election of the people to determine whether said bonds shall be issued, and such election is hereby ordered and provided for by this Act, and such commissioners of election are required to hold said election as hereinafter provided. Such election shall be held in the manner that other municipal elections are held, in the City of Memphis, and the voters at said election, save as otherwise herein provided, shall possess all of the qualifications required of voters in municipal elections in the City of Memphis. Said election shall be held under all of the restrictions now surrounding municipal elections in the City of Memphis, except that the commissioners of registration shall not be required to hold any supplemental registration prior to said election, but all persons who are registered in the City shall be eligible to vote, and those who have moved their place of residence since the last supplemental registration shall be permitted to vote in the ward in which they formerly registered, upon making affidavit to the officers of election that they have moved their residence since the last registration, and shall deliver to said officers of election their registration certificates, said registration certificates to be delivered up by the officers of said election to the commissioners of registration for cancellation. The date for the election provided for herein shall be fixed by the Board of Commissioners of the City of Memphis, and, if other elections are held on the same day, the elections herein provided for shall be held jointly or concurrently therewith, and the ballots hereinafter provided for may be printed so as to include all propositions voted for at the same election on the same ballot. (Priv. Acts 1935, ch. 108, § 7, 1st Spec. Sess.)

Memphis Charter, art. 78, § 875 Requirements as to ballots in bond elections.

Sec. 875. - Requirements as to ballots in bond elections. At such election herein directed to be held the ballot shall contain, in addition, to the official designation of the ward and precinct in which the election is to be held, the question: "Shall the City of Memphis issue $ ____________ (naming the amount) of bonds for ____________ (briefly stating the purpose or purposes for which to be issued)." And beneath or beside that question shall be: "Yes" and "No," so situated that the voters may conveniently mark beside said words with a cross mark, and the voter shall indicate his preference by marking opposite one of the two words. (Priv. Acts 1935, ch. 108, § 8, 1st Spec. Sess.)

Memphis Charter, art. 78, § 876 Canvass of ballots; conclusiveness of election.

Sec. 876. - Canvass of ballots; conclusiveness of election. The commissioners of election shall certify to the Board of Commissioners, after a canvass of the ballots in the manner now required by law in municipal elections, the result of said election, and if a majority of the valid votes cast in said election shall be in favor of the bond issue provided for in this Act, then the Board of Commissioners shall have the power to take all necessary steps and pass all necessary and proper ordinances for the issuance of said bonds. The bonds shall be salable immediately upon proper advertisement directly after the ordinance providing for their issuance, subsequent to the election hereinabove provided for, and no citizen or number of citizens shall have a right to demand another election upon the question of the issuance of said bonds; but the determination of the election herein provided for shall be conclusive and final, and the said bonds may be issued at any time after the final passage of the ordinance authorizing their issue. (Priv. Acts 1935, ch. 108, § 9, 1st Spec. Sess.)

Memphis Charter, art. 78, § 877 Contest of election; when election returns to be canvassed.

Sec. 877. - Contest of election; when election returns to be canvassed. There shall be no contest of the election hereinabove directed to be held, unless proceedings to contest any such election are taken prior to the canvass of the returns by the commissioners of election. The said election returns shall be canvassed upon Monday of the week following any election provided for in this Act. (Priv. Acts 1935, ch. 108, § 10, 1st Spec. Sess.)

Memphis Charter, art. 78, § 878 Method of calling election; when bonds to be issued.

Sec. 878. - Method of calling election; when bonds to be issued. If it is necessary to hold an election as hereinbefore provided, the call for such election may be made by the governing body by resolution and delivery of a copy thereof, certified by the Comptroller, delivered to the Chairman of the commissioners of election, and shall require the holding of such election at the time fixed in said resolution. Should a petition for election be filed before final passage of the ordinance authorizing the issuance of such bonds, the passage of such ordinance shall not be stayed, but same may proceed to final passage; provided, however, that no bonds shall be issued until the determination of such election and the receipt by the governing body of the City of Memphis of the certificate of the commissioners of election after a canvass of the ballots, if the results of such election is favorable to the issuance of such bonds. (Priv. Acts 1935, ch. 108, § 11, 1st Spec. Sess.; Priv. Acts 1937, ch. 123, § 18)

Memphis Charter, art. 78, § 879 Bond provisions.

Sec. 879. - Bond provisions. The bonds may be issued in one or more series, may bear such date or dates, shall mature serially, commencing not later than five years from the date thereof, at such time or times, not exceeding forty years from their respective dates, may bear interest at such rate or rates, not exceeding six percent per annum, payable semiannually, may be in such denomination, may be in such form, either coupon or registered, may be payable at such place or places, may carry such registration and conversion privileges, may be executed in such manner, may be payable in such medium of payment at such place or places, may be subject to such terms of redemption, with or without premium, and may be declared to become due before the maturity date thereof, as may be provided by ordinance of the governing body of the municipality. Said bonds may be sold at public or private sale by order of said Board of Commissioners or other governing body at such times and places in such lots and manner as said Board of Commissioners or governing authorities may deem best. No bonds shall be sold at less than par and accrued interest. The bonds shall be fully negotiable for all purposes. The validity of the authorization and issuance of the bonds authorized under this Act shall not be dependent on or affected in any way by proceedings taken for the construction of any public works project or contracts made in connection with the construction of any public works project. Bonds issued under this Act bearing the signature of officers in office on the date of signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof any or all of the persons whose signatures appear thereon shall have ceased to be officers of the municipality issuing the same. Pending the preparation or delivery of the definitive bonds for the purpose of financing the construction of a public works project, interim certificates or other temporary obligations may be issued by the municipality to the purchaser of such bonds. Such interim certificates or other temporary obligations shall be in such form and contain such terms, conditions and provisions as the governing body of the municipality issuing the same may determine. At any time after the bonds have been delivered to the purchaser thereof such bonds may be repurchased by the municipality at a price not more than the principal amount thereof plus the accrued interest, and all bonds so purchased shall be cancelled. The passage of the ordinance of said City directing the issuance of said bonds and their sale shall be conclusive evidence in favor of any purchaser thereof of the necessity of such bond issue, and the receipt of the City Treasurer for the proceeds of said bonds shall be a full acquittance to the purchaser, who shall be under no obligation to see to the actual application of said proceeds. (Priv. Acts 1935, ch. 108, § 12, 1st Spec. Sess.)

Memphis Charter, art. 78, § 880 Authority as to issuance and sale of bonds; incontestability of bonds.

Sec. 880. - Authority as to issuance and sale of bonds; incontestability of bonds. This Act shall, without reference to any other Act of the general assembly of the State of Tennessee, be full authority to the City of Memphis to issue and sell bonds as in this Act authorized, which shall have all the qualities of negotiable paper under the law merchant, and shall not be invalid for any irregularity or defect in the proceedings for the issue and sale thereof, and shall be incontestable in the hands of bona fide purchasers for value. No proceedings on the part of said City in respect to the issuance of any such bonds shall be necessary except such as are required by this Act. (Priv. Acts 1935, ch. 108, § 13, 1st Spec. Sess.)

Memphis Charter, art. 78, § 881 Tax exemption for principal and interest on bonds.

Sec. 881. - Tax exemption for principal and interest on bonds. In the event the faith and credit of the City of Memphis are pledged to payment of the principal and interest of said bonds, neither the principal of nor the interest on the bonds issued shall be taxed by the State of Tennessee, or by any County or municipality thereof; and it shall be so stated on the face of the bonds in conformity to the provisions of section 1088 of the Code of Tennessee of 1932.* If by the provisions of the Public Works Acts of 1935 or any other law passed by this or any later general assembly the incorporated cities and towns of the State are empowered to issue bonds to finance public works projects made non-taxable by the State of Tennessee, or any County or municipality thereof, whether the faith and credit of such municipality be pledged to the payment of principal and/or interest thereof or not, then neither the principal of, nor the interest on, the bonds issued under the provisions of this Act shall be taxed by the State of Tennessee, or by any County or municipality thereof; and it shall be so stated on the face of the bonds. (Priv. Acts 1935, ch. 108, § 14, 1st Spec. Sess.)

Memphis Charter, art. 78, § 882 Power of holders to enforce payment by taxation.

Sec. 882. - Power of holders to enforce payment by taxation. Unless the ordinance authorizing the issuance of said bonds pledges the full faith and credit of the City of Memphis to payment of principal and interest thereof no holder or holders of any such bond shall ever have the right to compel any exercise of taxing power of the municipality to pay such bonds or the interest thereon. If the full faith and credit of the City is pledged to payment of principal and interest, such fact shall be recited in the face of the bonds. If issued without the pledge of such faith and credit each such bond issued under the provisions of this Act shall recite in substance that said bond including interest thereon is payable from the revenue pledged to the payment thereof, and/or is secured by mortgage, deed of trust or other security to be briefly described therein, and that the holder of said bond shall have no recourse to the power of taxation. (Priv. Acts 1935, ch. 108, § 15, 1st Spec. Sess.)

Memphis Charter, art. 78, § 883 Projects to be self-supporting.

Sec. 883. - Projects to be self-supporting. The governing body of the municipality issuing bonds for the payment of principal and interest on which the full faith and credit of the City is not pledged, shall prescribe and collect reasonable rates, rents, fees or charges for the services, facilities and commodities of such public works project, and shall revise such rates, fees or charges from time to time whenever necessary so that such public works project shall be and always remain self-supporting. The rates, fees or charges prescribed shall be such as will produce revenue at least sufficient (a) to pay when due all bonds and interest thereon, for the payment of which such revenue is or shall have been pledged, charged or otherwise encumbered including the accumulation during the first five years of the operation of such public works project of a reserve equal to the average annual requirements for the payment of principal and interest on outstanding bonds issued pursuant to this Act for such public works project, which reserve shall be accumulated at the rate of twenty percent per annum, and (b) to provided for all expenses of operation and maintenance of such public works project, including reasonable reserves therefor. (Priv. Acts 1935, ch. 108, § 16, 1st Spec. Sess.)

Memphis Charter, art. 78, § 884 Authority to issue bonds regardless of debt limitation.

Sec. 884. - Authority to issue bonds regardless of debt limitation. Bonds may be issued under this Act notwithstanding and without regard to any limit on indebtedness provided by law. Said bonds are not to be taken into consideration in computing any limitation of indebtedness applicable to the City of Memphis. (Priv. Acts 1935, ch. 108, § 17, 1st Spec. Sess.)

Memphis Charter, art. 78, § 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.)

Memphis Charter, art. 78, § 886 Additional rights of holders of bonds.

Sec. 886. - Additional rights of holders of bonds. Any holder or holders of the bonds, including a trustee or trustees for holders of such bonds, shall have the right, in addition to all other rights: (a) By mandamus or other suit, action or proceeding in any court of competent jurisdiction to enforce his or their rights against the municipality, and the governing body of the municipality and any officer, board, commission, agent or employee of the municipality, including, but not limited to, the right to require the municipality and the governing body and any proper officer, board, commission, agent or employee of the municipality to assess, levy and collect taxes, and to fix and collect fees, rents, tolls, or other charges adequate to carry out any agreement as to, or pledge of, such taxes, fees, rents, tolls, or other charges, and to require the municipality and the governing body of the municipality and any officer, agent or employee of the municipality to carry out any other covenants and agreements and to perform its and their duties under this Act, provided, however, no holder or holders of bonds to the payment of which the faith and credit of the City has not been expressly pledged shall ever have the right to compel the levying and collection of taxes to pay such bonds or the interest thereon. (b) By action or suit in equity to enjoin any acts or things which may be unlawful or a violation of the rights of such holder or holders of bonds. (Priv. Acts 1935, ch. 108, § 19, 1st Spec. Sess.)

Memphis Charter, art. 78, § 887 Authority of City to confer additional rights to holders of bonds.

Sec. 887. - Authority of City to confer additional rights to holders of bonds. The municipality shall have power by ordinance of its governing body to confer upon any holder, or holders of a specified amount or percentage of bonds, payable in whole or in part from the revenue of a public works project including a trustee or trustees for such holders, the right should there occur or happen an "event or default" as defined in such ordinance or as may be defined in any agreement with the holder or holders of such bonds or the trustee or trustees therefor: (a) By suit, action or proceeding in the chancery court to obtain the appointment of a receiver of any public works project of the municipality or any part or parts thereof. If such receiver be appointed he may enter and take possession of such public works project or any part or parts thereof and operate and maintain same, and collect and receive all fees, rents, tolls, or other charges thereafter arising therefrom in the same manner as the municipality itself might do and shall dispose of such money in a separate account or accounts and apply the same in accordance with the obligations of the municipality as the court shall direct. (b) By suit, action or proceeding in the chancery court to require the governing body of the municipality to account as if it were the trustee of an express trust. (Priv. Acts 1935, ch. 108, § 20, 1st Spec. Sess.)

Memphis Charter, art. 78, § 888 Use and acquisition of property already in public use.

Sec. 888. - Use and acquisition of property already in public use. The municipality may use any right-of-way, easement, or other similar property right already devoted to a public use necessary or convenient in connection with the acquisition, improvement, operation or maintenance of a public works project held by the state, or any political subdivision or agency thereof, or by any person, firm or corporation enjoying the right of eminent domain, provided that the State or the political subdivision or agency thereof or the party holding or enjoying such right of public use shall consent to the use thereof. If the parties cannot agree to the use of said property for a public works project, then the municipality shall have the right to condemn the same under the general law now in force, or which may hereafter be enacted, providing for the taking of property for public use, provided, however, nothing herein contained shall be held to authorize the taking of property for a public works project which shall destroy or unnecessarily interfere with the prior use of such property by the owner or holder thereof for other public uses, for which such property has been acquired by purchase, condemnation or otherwise. (Priv. Acts 1935, ch. 108, § 21, 1st Spec. Sess.)

Memphis Charter, art. 78, § 889 When consent of another municipality required.

Sec. 889. - When consent of another municipality required. The municipality shall not construct a public works project wholly or partly within the corporate limits of another municipality except with the consent of the governing body of such other municipality. (Priv. Acts 1935, ch. 108, § 22, 1st Spec. Sess.)

Memphis Charter, art. 78, § 890 Allotment of funds by Federal agency required before delivery of bonds.

Sec. 890. - Allotment of funds by Federal agency required before delivery of bonds. No bonds shall be delivered under this Act unless a Federal agency has made an allotment of funds to aid by way of loan or grant or both (or has entered into an agreement to make such loan or grant or both) the construction of the public works project for which such bonds are to be issued. (Priv. Acts 1935, ch. 108, § 23, 1st Spec. Sess.)

Memphis Charter, art. 78, § 891 Supplemental nature of Act.

Sec. 891. - Supplemental nature of Act. The powers conferred by this Act shall be in addition and supplemental to, and the limitations contained in any provision of this Act shall not affect the powers conferred by any other law and not in substitution for the powers conferred by any other law. Bonds may be issued hereunder for any public works project notwithstanding that any other law may provided for the issuance of bonds for like purposes and without regard to the requirements, restrictions or procedural provisions contained in any other law. Any proceedings heretofore taken by any municipality relating to the subject matters of this Act, whether or not commenced under any other law, may be continued under this Act, or, at the option of the governing body, may be discontinued and new proceedings instituted under this Act. (Priv. Acts 1935, ch. 108, § 24, 1st Spec. Sess.)

Memphis Charter, art. 78, § 892 Separability of bond provisions from general grant of powers.

Sec. 892. - Separability of bond provisions from general grant of powers. The provisions of this Act relating to the issuance of bonds or other evidences of indebtedness for the purposes of raising money to carry out the purposes of this Act are hereby declared to be separable from all other provisions of this Act; and in the event that the municipality shall have initiated a project falling within the purview of a public works project as defined in this Act, and has power under any other law or referendum election to issue bonds for such projects, the power and authority to issue such bonds under the powers of such other Act, shall not be abridged nor impaired, and it shall not be necessary for the municipality to issue bonds under the provisions of this Act in order to take advantage of the provisions hereof with reference to the acquisition, ownership, management, maintenance or operation of a public works project; and the municipality shall have the right to contract with the United States Government, or any agency or corporation thereof, or with any other person, firm or corporation, with whom or which it is authorized to contract under the provisions of this Act with respect to any power granted to it under the provisions of this Act irrespective of the compliance by the municipality with the provisions hereof relating to the issuance of bonds, certificates of indebtedness, or other evidences of indebtedness. (Priv. Acts 1935, ch. 108, § 25, 1st Spec. Sess.)

Memphis Charter, art. 78, § 893 Purpose of Act; construction.

Sec. 893. - Purpose of Act; construction. It is the purpose of this Act to enable municipalities to secure the benefits of the Recovery Act, to encourage public works, to reduce unemployment and thereby to assist in the national recovery and promote the public welfare, and to these ends the municipality shall have power to do all things necessary or convenient to carry out said purpose in addition to the power conferred in this Act. This Act is remedial in nature and the powers hereby granted shall be liberally construed. (Priv. Acts 1935, ch. 108, § 26, 1st Spec. Sess)
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_ART78PUWOACFetched: 10/28/2026

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