Tennessee Code Title 54. Highways, Bridges and Ferries § 54-8-104

(a)(1) The authority may issue bonds, without limitation as to amount, for the purpose of financing or refinancing costs associated with the development of transportation facilities.

(2) The bonds must be authorized by resolution of the authority and must be issued in such principal amounts;  must be dated;  must bear interest at such rate or rates payable at such time or times and at such place or places;  must mature at such time or times;  must be payable in such medium of payment;  and are subject to such terms and conditions, as may be determined by the authority.

(3) The bonds may be made redeemable before maturity at the option of the authority at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds.

(4) The authority shall determine the form of the bonds, and may provide for interest coupons and the form thereof at such time or in the future, and the manner of execution or authentication of the bonds and coupons, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the state.

(5) The authority may issue refunding bonds for the purpose of refunding any bonds then outstanding that were issued under this chapter, including the payment of principal, redemption premium, and accrued interest on the bonds to be refunded, expenses related to the issuance of the refunding bonds, including discount and costs of issuance, and expenses related to the payment of the refunded bonds.

(1) Pledge all or any part of the revenues, or other moneys on deposit in funds established pursuant to § 54-8-103, or any rights to receive the revenues, to the punctual payment of the principal of and interest on the bonds and obligations under any such agreements, and covenant against thereafter pledging any such revenues or other monies to any other bonds or obligations;

(2) Covenant as to establishment and maintenance and collection of revenues;

(3) Provide for the terms, form, payment, registration, exchange, execution, and authentication of the bonds in a manner not inconsistent with this chapter, which may include the appointment of trustees, paying agents, registrars, and authenticating agents within or outside the state;

(4) Secure the bonds and payment obligations by a trust indenture or agreement by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or outside the state, which agreement also may take the form of a resolution of authority accepted by the trustee;

(5) Covenant as to limitations on the issuance of additional bonds to finance transportation facilities projects and on the lien on revenues or other moneys for the payment and security of the additional bonds;

(6) Covenant as to the amount and kind of insurance to be maintained on transportation facilities projects, and the use and disposition of insurance moneys;

(7) Covenant as to the operation of transportation facilities projects;

(8) Covenant to set aside or pay over reserves and sinking funds for the bonds and as to the disposition of the reserves and sinking funds;

(9) Covenant as to the use and disposition of the proceeds from the sale of the bonds in a manner not inconsistent with this chapter;

(10) Redeem the bonds, and covenant for their redemption and to provide the terms and conditions of the redemption;

(11) Covenant as to books of account, as to the inspection and audit of the books of account, and as to the accounting methods;

(12) Covenant as to the investment of moneys on deposit in any funds or accounts held under the resolutions or indentures securing the bonds;

(13) Covenant and prescribe as to what occurrences constitute events of default and the terms and conditions upon which any or all of the bonds become, or may be declared, due before maturity and as to the terms and conditions upon which the declaration and its consequences may be waived or rescinded;

(14) Covenant as to the rights, remedies, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation;

(15) Provide with respect to the enforcement of obligations of the authority, which may include limitations on bondholders' rights in favor of trustee enforcement;

(16) Make such covenants and do any acts and things as may be necessary, convenient, or desirable in order to secure the bonds and payment obligations, or in the discretion of the authority, to make the bonds more marketable, notwithstanding that the covenants, acts, or things may not be enumerated in this section, it being the purpose of this section to give the authority power to do all things in the issuance of the bonds and incurrence of related payment obligations and for their security that may be consistent with this chapter and the Constitution of Tennessee;

(17) Vest in a trustee or trustees, which may be located within or without the state, powers and duties, including the right to enforce any covenants made to secure, or to pay, the bonds, limitations on liabilities, and the terms and conditions upon which the holders of the bonds or any portion or percentage of them may enforce any covenants under the bonds or duties imposed by the bonds;

(18) Prescribe a procedure by which the terms of any resolution authorizing bonds, or any other contract with bondholders, including, but not limited to, an indenture of trust or similar instrument, may be amended or abrogated and as to the amount of bonds the holders of which must consent to the amendment or abrogation, and the manner in which the consent must be given;

(19) Covenant and provide for the discharge and satisfaction and defeasance of all or any part of bonds and the indebtedness evidenced by the bonds;  and

(20) Execute all instruments and perform such other acts as are necessary, convenient, or desirable in the exercise of the powers granted in this chapter, or in the performance of the covenants or duties of the authority.