Tennessee Code Title 49. Education § 49-7-905

(a) College savings bonds shall be sold at a discount to be determined by the issuer, shall bear no stated rate of interest and shall be payable in one (1) payment at maturity on a fixed date. The bonds shall mature no less than five (5) years nor more than twenty (20) years from the date of issuance, unless the issuer determines otherwise.

(b) College savings bonds may be sold either at a competitive or a negotiated sale, notwithstanding any law to the contrary. In the event college savings bonds shall be sold at a negotiated sale, the bonds shall be sold with yields no higher than the estimated yield that could be obtained at a competitive sale on the date the yields are established. The issuing agency shall document how the negotiated sales prices have been established and the documentation shall become a permanent record of the agency.

(c) For purposes of computing the aggregate principal of bonds issued or outstanding at any one time, college savings bonds shall be considered to be issued and outstanding in a principal amount equal to the price paid to the issuer for the bonds as of the date of their sale.

(d) All other provisions concerning the issuance of bonds prescribed in title 9, chapter 9, or in chapter 3, part 12 of this title, shall apply to college savings bonds issued by the state funding board or the Tennessee state school bond authority.