RESOLUTION OF THE CITY OF NORRIS, TENNESSEE, AUTHORIZING
THE ISSUANCE OF INTEREST BEARING GENERAL OBLIGATION CAPITAL OUTLAY NOTES, SERIES 2014, IN AN AMOUNT NOT TO EXCEED $60,000,
AND PROVIDING FOR THE PAYMENT OF SAID NOTES
WHEREAS, the City Council (the "Council"), of the City of Norris, Tennessee (the "Municipality"),
has determined that it is necessary and desirable to authorize, issue, sell, and provide for the payment of its interest bearing
capital outlay notes to finance certain public works projects, consisting of the acquisition of equipment for use by the Municipality,
including a leaf machine/trailer, public safety fire equipment, a vehicle for general government use, and a floor scrubber,
the acquisition of all other property real and personal appurtenant thereto and connected with such work, and to pay all legal,
fiscal, administrative, and engineering costs, incident thereto (collectively, the "Project");
WHEREAS, the Municipality estimates that the economic life of the Project is at least seven (7) years;
WHEREAS, the Municipality finds and determines that the Project will promote or provide
a traditional governmental activity or otherwise fulfill a public purpose;
WHEREAS, in order to proceed as expeditiously as possible with such an essential Project, it is necessary
that interest bearing capital outlay notes be issued for the purpose of providing funds to finance the Project; and,
WHEREAS, the Municipality
is authorized by the provisions of Title 9, Chapter 21, Tennessee Code Annotated, as amended, to issue such notes for
said purposes upon the approval of the Director of State and Local Finance (the "Director of State and Local Finance"):
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Norris, Tennessee, as
Authority. The Notes herein authorized shall be issued pursuant to Title 9, Chapter 21, Tennessee Code Annotated,
as amended, and other applicable provisions of law.
Section 2. Authorization. For the purpose
of providing funds to finance the costs of the Project and to pay costs incident to the financing thereof, there shall be
issued pursuant to, and in accordance with, the provisions of Title 9, Chapter 21, Tennessee Code Annotated, as amended,
and other applicable provisions of law, the interest bearing capital outlay notes of the Municipality, in the aggregate
principal amount of not to exceed $60,000, or such lesser amount as may be determined by the Mayor of the Municipality (the
"Mayor") at the time of sale (collectively, the "Notes", individually, the "Note").
Terms of the Notes. The Notes shall be designated "General Obligation Capital Outlay Notes, Series
2014". The Notes shall be issued in registered form, without coupons, in minimum denominations of $5,000.
The Notes shall be numbered from 1 upwards, shall be dated the date of issuance and delivery, shall be sold at not less than
the par amount thereof, shall bear interest at a rate or rates not to exceed 4% per annum, such interest being payable at
such times as agreed upon with the purchaser of such Notes, but in no event less than semiannually each year commencing six
months from the dated date or such date as shall be designated by the Mayor (the "Interest Payment Date"), and shall
mature not later than the end of the seventh fiscal year following the fiscal year in which the notes are issued. Each
year the Notes are outstanding the Municipality shall retire principal on the Notes in an amount that is estimated to be at
least equal to an amortization which reflects level debt service on the Notes. The Notes shall contain such terms, conditions,
and provisions other than as expressly provided or limited herein as may be agreed upon by the Mayor of the Municipality and
the purchaser of the Notes.
on the Notes shall be payable by check or other form of draft of the "Note Registrar," as such term is hereinafter
defined, deposited by the Note Registrar in the United States mail, first class postage prepaid, in sealed envelopes, addressed
to the owner of such Notes, as of the applicable Interest Payment Date, at their respective addresses as shown on the registration
books of the Municipality maintained by the Note Registrar as of the close of business fifteen (15) calendar days preceding
the next Interest Payment Date. The principal of all Notes shall be payable upon presentation and surrender of such
Notes at the principal office of the Note Registrar. All payments of the principal of and interest on the Notes shall
be made in any coin or currency of the United States of America which, on the date of payment thereof, shall be legal tender
for the payment of public and private debts.
Redemption. The Notes shall be subject to redemption, , in whole or in part, at the option of the Municipality,
at any time, at a price of par plus accrued interest to the date of redemption, upon not less than fifteen (15) calendar days
written notice to the registered owner.
Section 5. Execution. The Notes shall
be executed in the name of the Municipality; shall bear the manual signature of the Mayor; shall be countersigned by the City
Recorder of the Municipality (the "City Recorder"), with his or her manual signature; and, shall have printed or
impressed thereon the official seal of the Municipality. In the event any officer whose signature appears on the Notes
shall cease to be such officer, such signature shall nevertheless be valid and sufficient for all purposes. The Notes
shall be issued in typed, printed, or photocopied form, or any combination thereof, substantially in the form attached hereto
as Exhibit "A", with such minor changes therein or such variations thereof as the Mayor may deem necessary or desirable,
the blanks to be appropriately completed by the Mayor prior to the issuance of the Notes.
Section 6. Registration, Negotiability, and Payment.
(a) The City Recorder of the Municipality is hereby appointed the note registrar and paying agent (the "Note Registrar"),
and as such shall establish and maintain suitable books (the "Registration Books"), for recording the registration,
conversion, and payment of the Notes, and shall also perform such other duties as may be required in connection with any of
the foregoing. The Note Registrar is hereby authorized to authenticate and deliver the Notes to the original purchaser
thereof, or as he or she may designate, upon receipt by the Municipality of the proceeds of the sale thereof and to authenticate
and deliver Notes in exchange for Notes of the same principal amount delivered for transfer upon receipt of the Notes to be
transferred in proper form with proper documentation as herein described. The Notes shall not be valid for any purpose
unless authenticated by the Note Registrar by the manual signature of the Note Registrar on the certificate set forth in Exhibit
"A" hereto. The Notes shall be fully registered as to both principal and interest and shall be fully negotiable
upon proper endorsement by the registered owner thereof. No transfer of any Notes shall be valid unless such transfer
is noted upon the Registration Books and until such Note is surrendered, cancelled, and exchanged for a new Note which shall
be issued to the transferee, subject to all the conditions contained herein. Principal of the Notes shall be paid at
maturity upon presentation or surrender of the Notes at the principal office of the Note Registrar, and payment in such manner
shall forever discharge and release the obligation of the Municipality to the extent of the principal and interest so paid.
The Municipality may from time to time at its discretion remove the Note Registrar and appoint a successor Note Registrar
to whom all records, documents, and instruments relating to its duties as Note Registrar shall be delivered. Any successor
Note Registrar shall be appointed by resolution of the Municipality, and shall be a trust company or bank having the powers
of a trust company, having, at the time of such appointment, a combined capital, surplus, and undivided profits aggregating
at least Ten Million Dollars ($10,000,000), and be willing and able to accept the office of Note Registrar on reasonable and
customary terms, and authorized by law to perform all duties imposed upon it by this Resolution.
(c) In the event that any amount payable on any Note as
interest shall at any time exceed the rate of interest lawfully chargeable thereon under applicable law, then any such excess
shall, to the extent of such excess, be applied against the principal of such Note as a prepayment thereof without penalty,
and such excess shall not be considered to be interest. All rates of interest specified herein shall be computed on
the basis of a three hundred sixty (360) day year composed of twelve (12) months of thirty (30) days each.
Transfer of Notes. Each Note shall be transferable only on the registration books maintained by the Note Registrar
at the principal office of the Note Registrar, upon the surrender for cancellation thereof at the principal office of the
Note Registrar, together with an assignment of such Note duly executed by the owner thereof or his, her or its attorney or
legal representative, and upon payment of the charges hereinafter provided, and subject to such other limitations and conditions
as may be provided therein or herein. Upon the cancellation of any such Note, the Note Registrar shall, in exchange
for the surrendered Note or Notes, deliver in the name of the transferee or transferees a new Note or Notes of authorized
denominations, of the same aggregate principal amount, maturity, and rate of interest as such surrendered Note or Notes, and
the transferee or transferees shall take such new Note or Notes subject to all of the conditions herein contained.
Regulations with Respect to Transfers. In all cases in which the privilege of transferring Notes is exercised,
the Municipality shall execute, and the Note Registrar shall deliver, Notes in accordance with the provisions of this Resolution.
For every transfer of Notes, whether temporary or definitive, the Municipality and the Note Registrar may make a charge, unless
otherwise herein to the contrary expressly provided, sufficient to pay for any tax, fee, or other governmental charge required
to be paid with respect to such transfer, all of which taxes, fees, and other governmental charges shall be paid to the Municipality
by the person or entity requesting such transfer as a condition precedent to the exercise of the privilege of making such
Mutilated, Lost, Stolen, or Destroyed Notes. In the event any Note issued hereunder shall become mutilated, or
be lost, stolen, or destroyed, such note shall, at the written request of the registered owner, be cancelled on the Registration
Books and a new Note shall be authenticated and delivered, corresponding in all aspects but number to the mutilated, lost,
stolen, or destroyed Note. Thereafter, should such mutilated, lost, stolen, or destroyed Note or Notes come into possession
of the registered owner, such Notes shall be returned to the Note Registrar for destruction by the Note Registrar. If
the principal on said mutilated, lost, stolen, or destroyed Note shall be due within fifteen (15) calendar days of receipt
of the written request of the registered owner for authentication and delivery of a new Note, payment therefor shall be made
as scheduled in lieu of issuing a new Note. In every case the registered owner shall certify in writing as to the destruction,
theft, or loss of such Note, and shall provide indemnification satisfactory to the Municipality and to the Note Registrar,
if required by the Municipality and the Note Registrar.
Any notice to the contrary notwithstanding, the Municipality and all of the officials, employees, and agents thereof, including
the Note Registrar, may deem and treat the registered owner of the Notes as the absolute owner thereof for all purposes, including,
but not limited to, payment of the principal thereof, and the interest thereon, regardless of whether such payment shall then
Authentication. Only such of the Notes as shall have endorsed thereon a certificate of authentication, substantially
in the form set forth in Exhibit "A" hereto duly executed by the Note Registrar shall be entitled to the rights,
benefits, and security of this Resolution. No Note shall be valid or obligatory for any purpose unless, and until, such
certificate of authentication shall have been duly executed by the Note Registrar. Such executed certificate of authentication
by the Note Registrar upon any such Note shall be conclusive evidence that such Note has been duly authenticated and delivered
under the Resolution as of the date of authentication.
Section 11. Source of Payment and Security. The Notes, as to
both principal and interest, shall be payable from funds of the Municipality legally available therefor and to the extent
necessary from ad valorem taxes to be levied on all taxable property within the corporate limits of the Municipality
without limitation as to time, rate, or amount. Said Notes shall be a direct general obligation of the Municipality,
for which the punctual payment of the principal of and interest on the Notes, the full faith and credit of the Municipality
is irrevocably pledged.
12. Levy of Taxes. For the purpose of providing for the payment
of the principal of and interest on the Notes, to the extent required, there shall be levied in each year in which such Notes
shall be outstanding a direct tax on all taxable property in the Municipality, fully sufficient to pay all such principal
and interest falling due prior to the time of collection of the next succeeding tax levy. Said tax shall be assessed,
collected, and paid at the time, and in the same manner, as the other taxes of said Municipality, shall be in addition to
all other taxes, and shall be without limitation as to time, rate, or amount, and for that purpose there is hereby levied
a direct annual tax in such amount as may be found necessary each year to pay said principal of and interest on the Notes
maturing in said year. Principal or interest falling due at any time when there shall be insufficient funds on hand
from such tax levy for the payment thereof shall be paid from the general fund or other available funds of the Municipality,
but reimbursement therefor may be made from the taxes herein provided when the same shall have been collected. Such
taxes levied and collected therefor shall be deposited in the debt service fund of the Municipality and used solely for the
payment of principal of and interest on the Notes as the same shall become due.
Section 13. Approval of Director of State and
Local Finance. Anything herein contained to the contrary notwithstanding, no Notes authorized under this Resolution
shall be issued, sold, or delivered, unless and until such Notes shall first have been duly approved by the Director of State
and Local Finance of the State of Tennessee as provided by Section 9-21-601 et. seq., Tennessee Code Annotated, as
amended. The Mayor, City Recorder, City Attorney, and Bond Counsel are hereby authorized to take or cause to be taken
such steps as are necessary to obtain such approval. After the issuance and sale of the Notes, and for each year that
any of the Notes are outstanding, the Municipality shall submit its annual budget to the Director of State and Local Finance
for approval immediately upon the Municipality's adoption of the budget.
Section 14. Sale of Notes. The Notes herein authorized are authorized
to be sold by the Mayor by the informal bid process at a price of not less than par and accrued interest.
Disposition of Note Proceeds. The proceeds from the sale of the Notes shall be paid to the official of the Municipality
designated by law as the custodian of the funds thereof to be deposited in a special fund known as the "General Obligation
Capital Outlay Notes, Series 2014 Project Fund" (the "Project Fund"), which is hereby authorized to be created,
to be kept separate and apart from all other funds of the Municipality. The monies in the Project Fund shall be disbursed
solely to finance the Project, and to pay other necessary miscellaneous expenses incurred in connection with the issuance
and sale of the Notes. Monies in the Project Fund may be invested and shall be secured in the manner prescribed by applicable
statutes relative to the investment and securing of public or trust funds. Any monies remaining in the Project Fund
after completion of the Project shall be used to pay principal of and interest on the Notes.
Section 16. Non-Arbitrage Certification. The Municipality certifies
and covenants with the owner of the Notes that so long as the principal of any Note remains unpaid, monies on deposit in any
fund or account in connection with the Notes, whether or not such monies were derived from the proceeds of the sale of the
Notes or from any other source, will not be used in a manner which will cause the Notes to be "arbitrage bonds"
within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), and any lawful
regulations promulgated thereunder, as the same presently exist, or may from time to time hereafter be amended, supplemented,
or revised. The Municipality reserves the right, however, to make any investment of such monies permitted by Tennessee
law and this Resolution if, when and to the extent that said Section 148 or regulations promulgated thereunder shall be repealed
or relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by
virtue of such repeal, relaxation, or decision would not, in the opinion of counsel of recognized competence in such matters,
result in making the interest on the Notes subject to inclusion in gross income of the owner thereof for federal income tax
The Municipality covenants that
it shall comply with Section 148(f) of the Code, unless legally exempted therefrom and it represents that in the event it
shall be required by Section 148(f) of the Code to pay "Rebatable Arbitrage," as defined in the regulations promulgated
under the Code, to the United States Government, it will make such payments as and when required by said Section 148(f) and
will take such other actions as shall be necessary or permitted to prevent the interest on the Notes from becoming subject
to inclusion in federal gross income of the owner of the Notes for purposes of federal income taxation.
Section 17. Designation of Notes as Qualified
Tax-Exempt Obligations. The Municipality hereby designates the Notes as "qualified tax-exempt obligations"
within the meaning and for the purpose of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
Reimbursement Provisions. The Municipality is in the process of causing certain capital expenditures to be made
with respect to the Project, including, but not necessarily limited to, planning, design, and architectural expenses, and
the Municipality desires to establish its official intent that certain of the expenditures related to the Project and certain
other related expenditures be reimbursed from the proceeds of the Notes. Therefore, the Board of the Municipality finds
and determines, as follows:
that it is in the best interest of the Municipality to proceed immediately with the Project, thereby incurring certain capital
that the Municipality has certain funds available which may be used temporarily for this purpose, pending the issuance of
that pursuant to the provisions of this Resolution, the Board anticipates that the Municipality will issue the Notes for the
purpose of financing the Project;
(d) that the Board reasonably expects to reimburse such
amounts to such fund or source from which such expenditures may be made on a temporary basis as soon as proceeds from the
issuance of such Notes are available; and,
(e) that this declaration of official intent is consistent
with the budgetary and financial circumstances of the Municipality.
The Board of the Municipality by this Resolution hereby establishes its official intent to issue the Notes to finance the
costs of the Project and other related expenditures in an amount not to exceed $60,000. Pending the issuance of such
Notes, funds necessary to finance such costs shall be advanced from such source of funds on hand and available for such purpose,
and any amounts so advanced shall be reimbursed from the proceeds of the Notes.
Section 19. Resolution a Contract. The
provisions of this Resolution shall constitute a contract between the Municipality and the owner of the Notes, and after the
issuance of the Notes, no change, variation, or alteration of any kind in the provisions of this Resolution shall be made
in any manner, until such time as all installments of the principal of and interest on the Notes shall have been paid in full
or the consent of the registered owner of the Notes has been obtained; provided, however, that the Municipality is hereby
authorized to make such amendments to this Resolution as will not impair the rights or security of the owner of the Notes.
No Action to be Taken Affecting Validity of the Notes. The Municipality hereby covenants and agrees that it will
not take any action, that would in any manner affect the validity of the Notes or limit the rights and remedies of the owner
from time to time of such Notes. The Municipality further covenants that it will not take any action that will cause
the interest on the Notes to be subject to inclusion in gross income of the owner thereof for purposes of federal income taxation.
Miscellaneous Acts. The Mayor, the City Recorder, the City Manager, the City Attorney, and all other appropriate
officials of the Municipality are hereby authorized, empowered, and directed to do any and all such acts and things, and to
execute, acknowledge, and deliver all such documents, instruments, and certifications, specifically including but not limited
to, making arbitrage certifications and executing a note purchase agreement in connection with the purchase of the Notes,
in addition to those acts, things, documents, instruments, and certifications hereinbefore authorized and approved, as may
in their discretion, be necessary or desirable to implement or comply with the intent of this Resolution; or any of the documents
herein authorized and approved; or for the authorization, issuance, and delivery of the Notes.
Section 22. Failure to Present Notes. Subject to the provisions
of Section 3 hereof, in the event any Note shall not be presented for payment when the principal becomes due at maturity and
in the event monies sufficient to pay such Note shall be held by the Note Registrar for the benefit of the owner thereof,
all liability of the Municipality to such owner for the payment of such Note shall forthwith cease, terminate, and be completely
discharged. Thereupon, the Note Registrar shall hold such monies, without liability for interest thereon, for the benefit
of the owner of such Note who shall thereafter be restricted exclusively to such monies for any claim under this Resolution
or on, or with respect to, said Note, subject to escheat or other similar law, and any applicable statute of limitation.
Payments Due on Saturdays, Sundays, and Holidays. Whenever the interest on or principal of any Note is due on
a Saturday or Sunday or, at the place designated for payment, a legal holiday or a day on which banking institutions are authorized
by law to close, then the payment of the interest on, or the principal of, such Note need not be made on such date but must
be made on the next succeeding day not a Saturday, Sunday, or a legal holiday or a day upon which banking institutions are
authorized by law to close, with the same force and effect as if made on the date of maturity; and no interest shall accrue
for the period after such date.
Section 24. No Recourse Under Resolution or on Notes. All stipulations,
promises, agreements, and obligations of the Municipality contained in this Resolution shall be deemed to be the stipulations,
promises, agreements, and obligations of the Municipality and not of any officer, director, or employee of the Municipality
in his or her individual capacity, and no recourse shall be had for the payment of the principal of or interest on the Notes
or for any claim based thereon or under this Resolution against any officer, director, or employee of the Municipality or
against any official or individual executing the Notes.
Section 25. Severability. If any section,
paragraph, or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph, or provision shall not affect any of the remaining provisions hereof.
Repeal of Conflicting Resolutions and Effective Date. All resolutions and orders, or parts thereof, in conflict
with the provisions of this Resolution, are, to the extent of such conflict, hereby repealed, and this Resolution shall be
in effect as of the date of its adoption the welfare of the Municipality requiring it.
Approved and adopted this 8th day of September, 2014.
STATE OF TENNESSEE)
COUNTY OF ANDERSON)
I, Janet Parks, hereby certify that I am the duly qualified and acting City Recorder of the City of Norris, 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 September 8, 2014; (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 authorization of the issuance of not to exceed $60,000 General Obligation Capital
Outlay Notes, Series 2014, 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 September, 2014.
EXHIBIT A - FORM OF NOTE
UNITED STATES OF AMERICA
STATE OF TENNESSEE
CITY OF NORRIS
GENERAL OBLIGATION CAPITAL OUTLAY NOTE,
THE CITY OF NORRIS, TENNESSEE (the
"Municipality"), a lawfully organized and existing municipal corporation, for value received, hereby acknowledges
itself indebted and promises to pay, as hereinafter set forth, in the manner hereinafter provided, to the Registered Owner
identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, upon the presentation
and surrender hereof at the office of the City Recorder, Norris, Tennessee, or its successor as registrar and paying agent
(the "Note Registrar"), the Principal Amount identified above, and to pay interest on said Principal Amount from
the date hereof, or such later date as to which interest has been paid, to the Maturity Date, semi-annually on _________ and
____________ of each year, commencing ___________, 2015, at the Interest Rate per annum set forth above, by check, draft,
or warrant to the Registered Owner hereof at the address shown on the registration books of the Note Registrar on the fifteenth
(15th) calendar day next preceding an interest payment date, in any coin or currency of the United States of America which
on the date of payment thereof is legal tender for the payment of public and private debts.
In the event that any amount payable hereunder as interest shall at any time exceed the rate of interest lawfully chargeable
on this note under applicable law, any such excess shall, to the extent of such excess, be applied against the principal hereof
as a prepayment thereof without penalty, and such excess shall not be considered to be interest. All rates of interest
specified herein shall be computed on the basis of a three hundred sixty (360) day year composed of twelve (12) months of
thirty (30) days each.
hereof and interest hereon shall bear interest from and after their respective due dates (whether by acceleration, demand,
or otherwise) at the same rate of interest payable on the principal hereof.
Section 9-21-117, Tennessee Code Annotated, as amended, provides that this note and the income therefrom is exempt
from all state, county, and municipal taxation in the State of Tennessee, except inheritance, estate, and transfer taxes and
except as otherwise provided in said Code.
This note is one of a series of notes known as "General Obligation Capital Outlay Notes, Series 2014" (the "Notes"),
issued by the Municipality in the aggregate principal amount of $60,000. The Notes which are issued for the purpose
of financing certain public works projects, consisting of the acquisition equipment for use by the Municipality, including
a leaf machine/trailer, public safety fire equipment, a vehicle for general government use, and a floor scrubber, the acquisition
of all other property real and personal appurtenant thereto and connected with such work, and to pay all legal, fiscal, administrative,
and engineering costs, incident, are authorized by an appropriate resolution of the City Council and particularly that certain
Resolution of the City Council adopted on September 8, 2014, as such resolution may be from time to time amended or
supplemented in accordance with its terms (such resolution, as so amended or supplemented, being herein called, the "Resolution"),
and are issued pursuant to, and in full compliance with, the Constitution and the statutes of the State of Tennessee, including,
but not limited to, Title 9, Chapter 21, Tennessee Code Annotated, as amended (the "Act"). Copies of
the Resolution are on file at the office of the City Recorder of the Municipality, and reference is hereby made to the Resolution
and the Act, for a more complete statement of the terms and conditions upon which the Notes are issued thereunder, the rights,
duties, immunities, and obligations of the Municipality, and the rights of the Registered Owner hereof.
This note and interest hereon is payable from funds
of the Municipality legally available therefor and to the extent necessary from ad valorem taxes to be levied
on all taxable property in the Municipality without limitation as to time, rate, or amount. For the prompt payment of
this note, both principal and interest, as the same shall become due, the full faith and credit of the Municipality are hereby
has designated the Notes as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
is transferable by the Registered Owner hereof in person or by his, her, or its attorney or legal representative at the office
of the Note Registrar, but only in the manner and subject to the limitations and conditions provided in the Resolution and
upon surrender and cancellation of this note. Upon any such transfer, the Municipality shall execute, and the Note Registrar
shall authenticate and deliver in exchange for this note, a new fully registered note or notes, registered in the name of
the transferee, in authorized denominations, in an aggregate principal amount equal to the principal amount of this note,
of the same maturity and bearing interest at the same rate. For every transfer of notes, whether temporary or definitive,
the Municipality and the Note Registrar may make a charge, unless otherwise herein to the contrary expressly provided, sufficient
to pay for any tax, fee, or other governmental charge required to be paid with respect to such transfer, all of which taxes,
fees, or other governmental charges shall be paid to the Municipality by the person or entity requesting such transfer as
a condition precedent to the exercise of the privilege of making such transfer.
The Municipality and the Note Registrar may deem and treat the person or entity in whose name this note is registered as the
absolute owner hereof, whether such note shall be overdue or not, for the purpose of making payment of the principal of and
interest on this note and for all other purposes. All such payments so made shall be valid and effectual to satisfy
and discharge the liability upon this note to the extent of the sum or sums so paid, and neither the Municipality nor the
Note Registrar shall be affected by any notice to the contrary.
The Notes are issuable only as fully
registered Notes, without coupons, in minimum denominations of $5,000. At the office of the Note Registrar, in the manner
and subject to the limitations, conditions, and charges provided in the Resolution, fully registered Notes may be exchanged
for an equal aggregate principal amount of fully registered Notes of the same maturity, of authorized denominations, and bearing
interest at the same rate.
shall be subject to redemption, , in whole or in part, at the option of the Municipality, at any time, at a price of par plus
accrued interest to the date of redemption, upon not less than fifteen (15) calendar days written notice to the registered
This note shall have all
the qualities and incidents of, and shall be, a negotiable instrument under, the Uniform Commercial Code of the State of Tennessee,
subject only to provisions respecting registration of such note. This note is issued with the intent that the laws of
the State of Tennessee shall govern its construction.
It is hereby certified, recited, and declared that all acts and conditions required to be done and to exist precedent to the
issuance of, this note in order to make this note a legal, valid, and binding obligation of the Municipality, have been done,
and did exist in due time and form as required by the Constitution and statutes of the State of Tennessee; and that this note
and the issue of which it is a part, together with all other indebtedness of such Municipality, does not exceed any limitation
prescribed by the Constitution or statutes of the State of Tennessee.
IN WITNESS WHEREOF, THE CITY COUNCIL OF THE CITY OF NORRIS, TENNESSEE, has caused this note to be signed by the manual signatures
of the Mayor and the City Recorder and its official seal to be impressed or imprinted hereon, all as of _______________, 2014.