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Utility Bond Law

Reference Number: MTAS-560
Reviewed Date: 10/29/2020

The Revenue Bond Law of 1935 allows issuing bonds secured by revenues to acquire, construct, reconstruct, improve, or extend parking facilities, water, sewer, gas, or electric systems within or without a city’s corporate limits. No referendum is required, only approval by "a majority of all members [of the governing body] then in office." The maximum term is 40 years or life of project whichever is shortest, and there is no interest rate ceiling. Revenue anticipation notes with terms of up to five years and refunding bonds also are authorized. T.C.A. §§ 7-34-101–118.