Subject: 21716/Amd21685/Bond($50,000,000)
Date: Sun, 22 Mar 1998 14:00:53 -0500


                              RESOLUTION NO. 21716
                
                
                 A RESOLUTION AMENDING RESOLUTION NO. 21685,
                 ENCAPTIONED "A RESOLUTION AUTHORIZING THE
                 ISSUANCE AND SALE OF AN AMOUNT NOT TO EXCEED
                 $50,000,000 PRINCIPAL AMOUNT OF THE CITY OF
                 CHATTANOOGA, GENERAL OBLIGATION REFUNDING
                 BONDS, SERIES 1998."
                
                
                           ___________________________
                
                
       	    	 WHEREAS, pursuant to the provisions of Sections 9-21-101
       to 9-21-1017, inclusive, Tennessee Code Annotated (the "Act"), 
the
       City Council of the City of Chattanooga, Tennessee (the "City
       Council") duly adopted RESOLUTION NO. 21685 on February 24, 1998
       (the "Resolution") authorizing the issuance and sale of the City
       of Chattanooga, Tennessee General Obligation Refunding Bonds,
       1998;
       	    	 WHEREAS, the City Council has authorized the negotiated
       sale of the Bonds to PaineWebber, Incorporated (the 
"Underwriter")
       pursuant to Resolution No. 21715, adopted March 17, 1998;
       	    	 WHEREAS, such Underwriter requests that the Bonds not be
       subject to optional redemption terms as set forth in Resolution
       No. 21685, adopted February 24, 1998;
       	    	 WHEREAS, the City Council desires at this time to amend
       a section of the Resolution in connection with the negotiated 
sale
       of such Bonds;
                                NOW, THEREFORE,
       	    	 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
       CHATTANOOGA, TENNESSEE:
0C
       	    	 SECTION  1.  That Resolution No. 21685 be amended so as
       to substitute the following paragraph for the second and third
       paragraphs of Section 5:
            	 The Bonds maturing on September 1, 2017 are subject
            to redemption at their principal amount, without any
            premium plus accrued interest thereon to such redemption
            date on September 1 in the years and amounts as set
            forth below, or, if less than such amount is then
            outstanding, an amount equal to the aggregate principal
            amount of such bonds then outstanding.
           
       	    Redemption Dates	     	       	       Amount
      
       	    September 1, 2016	     	       	    $1,775,000
       	    September 1, 2017 (final maturity) 	     1,875,000
       	    	      	   	     	       	    $3,650,000
      
      
      
       ADOPTED:	 March 24, 1998
0C
      
       	    I, Carol O'Neal, Clerk to the City Council, City Council of
       the City of Chattanooga, Tennessee, do hereby certify that the
       foregoing is a true, compared and correct copy of Resolution No.
       21716, adopted by the City Council of the City of Chattanooga,
       Tennessee on March 24, 1998.
       	    WITNESS my hand and the Seal of the City of Chattanooga,
       Tennessee, this 24th day of March, 1998.
      
      
       	    	      	   	     s/_________________________________
       	    	      	   	       Clerk to the City Council of the
       	    	      	   	        City of Chattanooga, Tennessee