Subject: 21715/BondReso/$27,120,000 Date: Tue, 17 Mar 1998 10:01:04 -0500 RESOLUTION NO. 21715 A SUPPLEMENTAL RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF TWENTY SEVEN MILLION, ONE HUNDRED TWENTY THOUSAND DOLLARS ($27,120,000) PRINCIPAL AMOUNT OF THE CITY OF CHATTANOOGA, GENERAL OBLIGATION REFUNDING BONDS, SERIES 1998. ____________________________ WHEREAS, pursuant to the provisions of Sections 9-21-101 et seq., of the Tennessee Code Annotated (the "Act"), the City Council of the City of Chattanooga, Tennessee (the "Council") duly adopted Resolution No. 21685 on February 24, 1998 (the "Resolution") authorizing the refunding of the City of Chattanooga, Tennessee General Obligation Improvement Bonds, 1992 maturing in the years 2006 to 2017, inclusive, the City of Chattanooga, Tennessee General Obligation Sewer And Sewage Facilities Bonds, Series 1992, maturing in the years 2006 to 2017, inclusive, and the City of Chattanooga General Obligation Public Improvement Bonds, Series 1995, maturing in the years 2008 to 2010, inclusive, (the "Refunded Bonds") and authorizing the issuance and sale of an amount not to exceed $50,000,000 principal amount of General Obligation Refunding Bonds, Series 1998 (the "Series 1998 Bonds"), which Resolution sets forth the terms and conditions of the Series 1998 Bonds; WHEREAS, the provision of the Resolution required the adoption of a supplemental resolution by the Council to set the maturity dates and principal amount of the Series 1998 Bonds; WHEREAS, the Council desires at this time to issue and sell $27,120,000 principal amount of Series 1998 Bonds in order to refund the Refunded Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHATTANOOGA, TENNESSEE: SECTION 1. That the City hereby approves, ratifies and confirms the sale of the Series 1998 Bonds to Paine Webber Incorporated at an aggregate purchase price of $28,365,347.85 pursuant to the provisions of the Bond Purchase Agreement, dated March 17, 1998. The sale of the Series 1998 Bonds shall be subject to the terms and provisions set forth in said Bond Purchase Agreement, and the Mayor and City Finance Officer are hereby authorized and directed on behalf of the City to carry out or cause to be carried out all the obligations of the City under said Bond Purchase Agreement, and to take all actions contemplated to be taken by the City pursuant to the terms of said Bond Purchase Agreement. SECTION 2. That there be issued and sold Series 1998 Bonds in the amount of $27,120,000, which Series 1998 Bonds shall be subject to all the terms and conditions set forth in the Resolution. The Series 1998 Bonds shall bear interest as set forth below, and shall mature on September 1 in the years and amounts as follows: Intere st Intere st Year Amount Rate Year Amount Rate 1999 50,000 4.000 2008 4,220,0 00 5.500 2000 55,000 4.000 2009 4,480,0 00 5.500 2001 55,000 4.000 2010 4,755,0 00 5.500 2002 60,000 4.000 2011 1,335,0 00 5.250 2003 60,000 4.125 2012 1,415,0 00 5.250 2004 65,000 4.250 2013 1,495,0 00 5.250 2005 65,000 4.300 2014 1,580,0 00 5.250 2006 1,025,0 00 5.000 2015 1,675,0 00 5.250 2007 1,080,0 00 5.000 2017 3,650,0 00 5.250 The Bonds maturing in 2017 are subject to mandatory redemption on September 1, 2016 in the following principal amount without premium $1,775,000. SECTION 3. That the City hereby authorizes and empowers the Mayor and the City Finance Officer to carry out or cause to be carried out all the obligations of the City under the Resolution, and to take all action contemplated to be taken by the Resolution. SECTION 4. That this Resolution take effect from and after its passage, the public welfare requiring it. ADOPTED: March 17, 1998 CS:cjc