Subject: 21237/Indebted/ClarksvillePubBldgAuth/LoanAgmt
Date: Fri, 25 Oct 1996 08:25:12 -0500


                              RESOLUTION NO. 21237
                
                
                 AN INITIAL RESOLUTION AUTHORIZING THE
                 INCURRENCE OF INDEBTEDNESS BY THE CITY OF
                 CHATTANOOGA, TENNESSEE, OF NOT TO EXCEED SEVEN
                 MILLION, NINE HUNDRED EIGHT THOUSAND DOLLARS
                 ($7,908,000.00), BY THE EXECUTION WITH THE
                 PUBLIC BUILDING AUTHORITY OF THE CITY OF
                 CLARKSVILLE, TENNESSEE, OF A LOAN AGREEMENT OR
                 OTHER INSTRUMENT EVIDENCING SUCH INDEBTEDNESS,
                 TO PROVIDE FUNDING FOR CERTAIN PUBLIC WORKS
                 PROJECTS, AND TO FUND THE INCIDENTAL AND
                 NECESSARY EXPENSES RELATED THERETO.
                
                
                                                    
                
                
       	    	 WHEREAS, it is necessary and in the public interest of
       the City of Chattanooga, Tennessee (the "Municipality") to incur
       indebtedness (the "Indebtedness"), through the execution with The 

       Public Building Authority of the City of Clarksville, Tennessee
       (the "Authority"), of a loan agreement or other instrument
       evidencing such Indebtedness (a "Loan Agreement"), for the 
purpose
       of financing certain public works projects, as hereinafter more
       fully described, and to pay legal, fiscal, administrative, and
       engineering costs, and costs incident to the financing thereof;
       	    	 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
       THE CITY OF CHATTANOOGA, TENNESSEE:
       	    	 SECTION 1.  For the purpose of financing all or a
       portion of the costs of certain public works projects, consisting 

       of the acquisition and installation of a communication system for 

       the Municipality, the acquisition and renovation of a building 
for
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       use by the Municipality, improvements to parks and recreational
       facilities of the Municipality, street and road improvements,
       bridge improvements, and the acquisition of fire equipment, the
       acquisition of all property real and personal appurtenant thereto 

       and connected with such work, and to pay all legal, fiscal,
       administrative, and engineering costs incident thereto, and costs 

       incident to incurring the Indebtedness (collectively, the
       "Project"), the Municipality is hereby authorized to incur
       Indebtedness in the amount of not to exceed Seven Million Nine
       Hundred Eight Thousand Dollars ($7,908,000), for the financing of 

       the Project through the execution of a Loan Agreement with the
       Authority.  The rate of interest payable pursuant to the
       provisions of a Loan Agreement shall be a variable rate which 
rate
       shall not exceed the maximum rate of interest permitted under the 

       laws of the State of Tennessee.
       	    	 SECTION 2.  Principal of, premium, if any, and interest
       on, the Loan Agreement shall be payable from ad valorem taxes to
       be levied for such purpose on all taxable property within the
       corporate limits of the Municipality, without limitation as to
       time, rate, and amount and for the punctual payment of said
       principal of, premium, if any, and interest on, the Loan
       Agreement, the full faith and credit of the Municipality will be
       irrevocably pledged.
       	    	 SECTION 3.  The Loan Agreement shall be executed
       pursuant to the provisions of Title 9, Chapter 21, Tennessee Code 

       Annotated, as amended (the "Act"), and Title 12, Chapter 10,
       Tennessee Code Annotated, as amended.
       	    	 SECTION 4.  After the adoption of this Resolution, the
       Clerk is directed to cause this Resolution, with the notice
       prescribed by the Act, to be published in full once in a 
newspaper
       published and having general circulation in the Municipality.
       	    	 SECTION 5.  This Resolution shall take effect from and
       after its adoption, the welfare of the Municipality requiring it.
      
       ADOPTED:	 January 7, 1997
      
       :cjc
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                                     NOTICE
      
       The foregoing Resolution has been adopted.  Unless within twenty
       (20) days from the date of publication hereof a petition, signed
       by at least ten percent (10%) of the registered voters of the 
City
       of Chattanooga, Tennessee, shall have been filed with the Clerk 
of
       the City of Chattanooga, Tennessee, protesting the incurrence of
       the Indebtedness by the execution of the Loan Agreement, such 
Loan
       Agreement will be executed, as proposed.
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       STATE OF TENNESSEE  )
       COUNTY OF HAMILTON  )
      
       	    I, Carol K. O'Neal, hereby certify that I am the duly
       qualified and acting Clerk of the City Council of the City of
       Chattanooga, Tennessee (the "Municipality"), and, as such
       official, I further certify as follows:  (1) that attached hereto 

       is a copy of a resolution excerpted from the minutes of the
       meeting of the City Council (the "Council") of said Municipality
       held on January 7, 1997; (2) that I have compared said copy with
       the original minute record of said meeting in my official 
custody;
       (3) that said copy is a true, correct, and complete transcript
       from said original record insofar as said original record relates 

       to, among other matters, the incurring of indebtedness in the
       amount of not to exceed $7,908,000 by said Municipality; (4) that 

       the actions by said Council including the aforementioned, at said 

       meeting were promptly and duly recorded by me in a book kept for
       such purpose; and, (5) that a quorum of the members of said
       Council was present and acting throughout said meeting.
      
       	    WITNESS, my official signature and the seal of said
       Municipality this 8th day of January, 1997.
      
      
      
       	    	      	   	     s/_________________________________
       	    	      	   	     CAROL K. O'NEAL, Clerk
       	    	      	   	     City Council of the City of
       	    	      	   	       Chattanooga, Tennessee
       (SEAL)