Subject: 21324/AmendPromNts/CNE
Date: Fri, 5 Apr 1991 11:30:00 -0500


                              RESOLUTION NO. 21324
                
                
                 A RESOLUTION TO AUTHORIZE THE MAYOR OF THE CITY
                 OF CHATTANOOGA, TENNESSEE, TO EXECUTE CERTAIN
                 AMENDED AND RESTATED PROMISSORY NOTES PAYABLE
                 TO THE CITY OF CHATTANOOGA BY CHATTANOOGA
                 NEIGHBORHOOD ENTERPRISE, INC., FOR THE PURPOSE
                 OF RESTRUCTURING THE PAYMENT TERMS OF SAID
                 PROMISSORY NOTES TO PROVIDE FOR THEIR PAYMENT
                 FROM THE NET CASH FLOW OF THE LOW INCOME
                 HOUSING TAX CREDIT PROJECT AS REFERENCED IN THE
                 AMENDED AND RESTATED PROMISSORY NOTES.
                
                
                                                    
                
                
       	    	 WHEREAS, Chattanooga Neighborhood Enterprise, Inc.
       ("CNE") and The City of Chattanooga, Tennessee (the "City") in
       1992 elected to structure certain funding arrangements between
       City and CNE as debt rather than the usual grant funding from 
City
       to CNE, in anticipation of the use of such funding for
       improvements to properties to be involved in a Low Income Housing 

       Tax Credit syndication project (the "Project"), allowing such 
debt
       to be included in basis thereby increasing the available tax
       credits for use in the Project; and
       	    	 WHEREAS, CNE, pursuant to such structure, executed three
       Promissory Notes payable to City as follows:
       	    	      April 7, 1992  	       $ 53,500
       	    	      May 7, 1992    	       $170,000
       	    	      September 4, 1992	       $133,028
      
       and
       	    	 WHEREAS, it is beneficial to the financial structuring
       of the Low Income Housing Tax Credit Project and to City in
0C
       attracting private investment in the Project for its low income
       citizens, to amend and restate the payment terms of each and all
       of said Promissory Notes to provide for payment only from the net 

       cash flow of the Project as defined in the Amended and Restated
       Promissory Notes (copies of which are attached hereto and
       incorporated herein by reference);
                                NOW, THEREFORE,
       	    	 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
       CHATTANOOGA, TENNESSEE, That the Mayor be and is hereby 
authorized
       to execute for and on behalf of City as Mayor, the Amended and
       Restated Promissory Notes (attached hereto and incorporated 
herein
       by reference) from CNE as Maker in favor of City as Payee, and to 

       execute such additional instruments and/or certificates as may be 

       necessary or appropriate to carry out the purpose of this
       Resolution.
      
       ADOPTED:	 March 25, 1997
      
       RLN/WSP:cjc