Certificates of indebtedness.

Memphis Charter, art. 53, § 513

in effect

Sec. 513. - Certificates of indebtedness. After the construction of any improvement shall have been finally ordered and [the] entire cost thereof estimated, the legislative body shall have the power and authority, for the purpose of providing means to pay the expense of said improvement, to order the issue of and issue and sell, at not less than par, certificates of indebtedness at an amount not to exceed three-fourths of the estimated cost of said improvement. Said certificates shall be negotiable, payable to bearers, and shall have attached thereto coupons for the interest thereon, and shall be payable in lawful money of the United States and be in such form as may be provided in the ordinance directing such issue. The certificates shall run for one, two, three, four and five years, and bear interest at the rate of six percent per annum, payable semiannually, at such place or places as may be named therein, and shall be in such denominations as said legislative body may direct. Any certificates of indebtedness issued hereunder shall be payable at the option of the municipality at any interest-paying period. In the event such municipality should elect to pay off any such certificate in full at any interest period, 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 said legislative body shall give public notice before such interest period by publication three times, once a week for three consecutive weeks, in a daily paper published in such municipality, the first publication to be not less than thirty days prior to the interest period of said certificates proposed to be redeemed, stating its intention to redeem the same and describing the same by number and series. They shall state on their face the caption and number of the ordinances under which said improvement is constructed, and said ordinance shall state the general character of the improvement, to pay for which they shall be issued, and the terminal points thereof, and the streets, highways or alleys or parts thereof along which the improvement is to be constructed as hereinbefore provided. They shall be issued under the corporate seal of such municipality, and the certificate shall be signed by the Comptroller of said municipality; and the coupon shall bear the facsimile signature of said Comptroller; provided, however, that the validity of said certificates shall be in no wise affected by reason of any defect in the form thereof or any omission therefrom. The proceeds arising from the sale of said certificates or so much thereof as may be necessary shall be applied exclusively to the payment of the cost of the improvement to pay for which said certificates were issued; but if there should remain any surplus after paying such cost, the same shall be and become a part of the fund pledged for the payment of said certificates; provided, however, that the legislative body of such municipality may borrow money and advance the same for the construction of such work and improvement; and after the completion of such work and assessment of the cost hereof shall have been made final, the said legislative body may then issue and sell certificates, as hereinbefore provided in such amounts as may be necessary to pay two-thirds of the cost of said improvements, including such amounts as may be borrowed for that purpose, and all interest and other expenses so incurred for the construction of said improvements as hereinbefore provided shall be charged and assessed as a part of the cost of such improvements upon the property assessed for the same. But said legislative body may provide in the ordinance ordering the improvements to be constructed or in the agreement with the contractor by whom it is done for the issue of all or a part of such certificates directly to the contractor at not less than par value in part or in full payment of the contract price, in which case the certificates shall be delivered to the contractor upon completion and acceptance of the work and allowance of the final estimate. (Acts 1907, ch. 341, §9; Priv. Acts 1937, ch. 123, § 18)

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_S513CEINFetched: 10/28/2026