Subject: 19518/Bonds/Refunding Gen. Obl. Bonds
Date: Thu, 2 Jul 1992 13:59:00 -0500


                              AUTHORIZING RESOLUTION
                  
                               RESOLUTION NO. 19518
                  
                  
                   A RESOLUTION AUTHORIZING THE REFUNDING OF
                   CERTAIN OUTSTANDING GENERAL OBLIGATION
                   BONDS; AUTHORIZING THE DELEGATION OF THE
                   AUTHORITY TO APPOINT AN ESCROW AGENT AND AN
                   ESCROW VERIFICATION AGENT IN CONNECTION WITH
                   SUCH REFUNDING TO THE MAYOR AND/OR THE CITY
                   FINANCE OFFICER; AUTHORIZING AN UNDERWRITING
                   FEE IN CONNECTION WITH SUCH REFUNDING; AND
                   AUTHORIZING THE UNDERWRITERS WHO WILL
                   PARTICIPATE IN SUCH REFUNDING.
                  
                  
                                                    
                  
                  
       	    	 WHEREAS, A79-21-101 to A79-21-1017, both inclusive,
       Tennessee Code Annotated, authorizes municipalities in the State
       of Tennessee to issue bonds for public works projects; and
       	    	 WHEREAS, A79-21-901 to A79-21-916, both inclusive,
       Tennessee Code Annotated, authorizes municipalities in the State
       of Tennessee to issue general obligation refunding bonds to 
refund
       outstanding general obligations; and
       	    	 WHEREAS, the City Council of the City of Chattanooga,
       Tennessee, hereby determines that a refunding of outstanding
       general obligation bonds would be advantageous to the City and
       would produce a financial benefit for the City;
       	    	 NOW, THEREFORE,
       	    	 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
       CHATTANOOGA, TENNESSEE:
       	    	 SECTION 1.  That the refunding of the City's outstanding
       General Obligation Bonds, Municipal Public Improvement Bonds and
       Sewer and Sewage Bonds, 1988, and outstanding General Obligation
       Bonds, Municipal Public Improvement Bonds and Sewer and Sewage
       Facilities Bonds, 1986 by the issuance of general obligation
       refunding bonds, provided that a present value debt service
       savings equal to at least three percent (3%) of the bonds to be
       refunded would be realized by such a refunding, is hereby
       authorized, and that the Mayor and/or the City Finance Officer 
are
       hereby authorized to proceed therewith.
       	    	 SECTION 2.  That the authority to appoint an Escrow
       Agent and an Escrow Verification Agent in connection with any 
such
       refunding is hereby delegated to the Mayor and/or the City 
Finance
       Officer.
       	    	 SECTION 3.  That an underwriting fee to be paid in
       connection with any such refunding is hereby authorized, which
       underwriting fee shall not exceed Ten Dollars per One Thousand
       Dollars of such refunding bonds.
       	    	 SECTION 4.  That the following underwriters are hereby
       authorized to participate in the refunding:
       	    	      	   Merrill Lynch
       	    	      	   A.G. Edwards & Sons, Inc.
       	    	      	   J.C. Bradford & Co.
       	    	      	   Cumberland Securities/Morgan Keegan
       	    	      	   First Tennessee Bank
       	    	      	   Trust Company Bank/Sun Trust
       	    	      	   Artemis Capital Group
       	    	      	   Raymond James & Associates
       	    	      	   Pryor McClendon, Counts
      
       and Merrill Lynch shall act as senior manager of the underwriting 

       group.
       	    	 SECTION 5.  That this Resolution shall take effect from
       and after its passage, the public welfare requiring it.
      
       ADOPTED:	 July 7, 1992
      
       RLN:cjc