Private Acts of 1999 Chapter 11

SECTION 1. The Franklin Special School District, located in Williamson County,
Tennessee (“the District”), created by Chapter 563 of the Private Acts of 1949, as amended
(collectively with all amendatory acts, the “Act of Incorporation”) is hereby authorized and
empowered to issue and sell, by resolution of the board of education of the district (the “board”),
bonds in the aggregate principal amount of not to exceed thirty-two million five hundred
thousand dollars ($32,500,000) (the “bonds”) for the purpose of providing funds (i) for the
construction, improvement, renovation, expansion, furnishing, fixturing and equipping of school
buildings and facilities, and additions thereto, in and for the district, including the purchase of
all property, real and personal, or interests therein, necessary in connection with such work, (ii)
for the funding of all accounts and funds necessary and proper in connection with the issuance
and sale of the bonds as the board shall determine, (iii) for the payment of interest on the bonds
during the period of construction and for six (6) months thereafter and (iv) for the payment of all
legal, fiscal, administrative, architectural, engineering, accounting and similar professional and
other costs incident thereto and to the issuance and sale of the bonds.
SECTION 2. The bonds may be sold at public or private sale in one or more series, may
bear such date or dates, shall mature at such time or times, not exceeding twenty-five (25) years
from their respective dated dates, may bear interest at a zero (0) rate or at such other rate or rates
not to exceed six and one-half percent (6.5%) per annum (which may vary from time to time),
may be payable in such medium of payment at such place or places, may be subject to such
terms of redemption, with or without premium and may provide for the replacement of mutilated,
destroyed or lost bonds, all as may be provided by resolution of the board. The bonds shall be
sold as a whole or in part from time to time in such manner as shall be provided by resolution of
the board, but in no event shall the bonds be sold for less than ninety-eight percent (98%) of par
plus accrued interest (or, if all or any part of such bonds is to be sold at a zero (0) rate of interest
or at an original issue discount, such bonds may be sold at not less than ninety-eight percent
(98%) of the original reoffering price of such bonds, plus accrued interest). The board is
authorized and empowered to do and perform all acts and enter into all agreements which may be
necessary or desirable in connection with the issuance and sale of the bonds and to delegate the
power to consummate all such acts and execute and implement all such agreements on its behalf
as the board shall deem necessary or desirable.
SECTION 3. The bonds, refunding bonds and notes shall be issued in fully registered
form and shall be signed and sealed as provided in the Tennessee Public Obligations Registration
Act and in the resolution adopted by the board authorizing the bonds, refunding bonds or notes.
SECTION 4. For the purpose of paying principal of and interest and redemption
premiums on the bonds, refunding bonds and notes herein authorized, there is hereby levied, in
addition to any tax currently being levied within the boundaries of the district for the benefit of
the district, a continuing annual tax equal to a rate per one hundred dollars ($100) of assessed
value of real and personal property located within the district which provides the district one
hundred percent (100%) of the amount of outstanding principal and interest coming due on the
bonds, refunding bonds or notes in the next succeeding year. At the request of the board, the
county assessor of property shall certify to the county trustee and the board the total assessed
value of taxable property within the district and furnish the county trustee and the board an
estimate of the total assessed value of all new construction and improvements not included on
the assessment roll of the base year and all deletions from the assessment roll of the base year.
Upon receipt of the information and certifications, the district shall by resolution of the board on
or before September 1 of any year certify to the county trustee the special school district tax rate.
The county trustee shall adjust the tax rate established herein to an adjusted rate which is
estimated to provide to the district one hundred percent (100%) of the amount of outstanding
principal and interest coming due on the bonds, refunding bonds or notes in the next succeeding
year plus the taxes levied pursuant to the act of incorporation securing other outstanding debt of
the district for the 1999 tax year and each tax year thereafter so long as the bonds, refunding
bonds or notes shall be outstanding. These taxes shall be used exclusively to pay principle of
and interest on the bonds, refunding bonds and notes authorized herein and any other
indebtedness of the district as they come due and to maintain debt service fund balances. The
board is hereby authorized to pledge such taxes to pay the principal of and interest and any
redemption premiums on the bonds, refunding bonds and notes and any other indebtedness of the
district. The taxes shall be annually extended and collected by the county trustee in the manner
provided by general law for the extension and collection of county taxes and shall constitute a
lien on the property against which they are levied with the like force and effect as do county
taxes. The proceeds of these taxes, as and when received by the district, shall be deposited to a
debt service fund to be established and maintained by the district. The debt service fund is
established for the specific purpose of receiving the taxes authorized herein and any other funds
which may from time to time be pledged to the payment of indebtedness of the district. The debt
service fund and the funds therein shall be maintained and accounted for until payment in full of
all outstanding obligations of the district and shall be used for the purpose of paying principal of
and premium, if any, and interest on the bonds, refunding bonds and notes and any other
indebtedness of the district. In the event property taxes and such other funds as shall be pledged
to the payment of the indebtedness of the district are not sufficient to pay principal thereof and
interest thereon when due, the district shall apply funds from operations or other available funds
of the district to the payment thereof. So much of the surplus arising from the tax hereinabove
described and not required for the payment of debt service on outstanding obligations of the
district may be used, at the discretion of the board, for the construction, improvement, renovation,
expansion, furnishing, fixturing and equipping of school buildings and facilities, and additions
thereto, in and for the district, including the purchase of all property, real and personal, or
interests therein, necessary in connection with such work.
SECTION 5. The board is authorized, but not required, to pledge to the payment of the
bonds all or a portion of (i) any funds received by the district under the Tennessee Basic
Education Program available to be used for capital outlay expenditures, as set forth in Tennessee
Code Annotated, Section 49-3-351 et seq., and related sections, (ii) its share of the local option
sales and use tax now or hereafter levied and collected in Williamson County, pursuant to
Tennessee Code Annotated, Section 677-6-712, and (iii) any other funds received from the state,
or any of its authorities, agencies or instrumentalities, for school purposes and available to be
used for capital outlay expenditures.
SECTION 6. The bonds, refunding bonds and notes, and all income therefrom, shall be
exempt from all state, county and municipal taxation in Tennessee, except inheritance, transfer
and estate taxes and except as otherwise provided by applicable law.
SECTION 7. The district is further authorized, by resolution of the board, to borrow
money and issue its bonds for the purpose of refunding at or prior to maturity, in whole or in part,
at any time, in accordance with the terms hereof, the bonds authorized herein and the refunding
bonds authorized herein. The board shall have the power to provide for the custody, application
and investment of the proceeds of the refunding bonds pending retirement of the refunded bonds.
SECTION 8. The district is further authorized, by resolution of the board, to issue and
sell notes of the district in anticipation of the issuance of the bonds authorized herein. The notes
may be sold in one (1) or more series, may bear such date or dates, shall mature at such time or
times, not exceeding three (3) years from their respective dates and may be extended or renewed
for not more than one additional period of three (3) years, may bear interest at such rate or rates
not to exceed six and one-half percent (6.5%) per annum (which may vary from time to time),
may be payable at such time or times, may be in such denominations, may carry such registration
and conversion privileges, may be executed in such manner, may be payable in such medium of
payment at such place or places, may be subject to such terms of redemption, with or without
premium, and may provide for the replacement of mutilated, destroyed or lost notes, all as may
be provided by resolution of the board. The notes shall be sold as a whole or in part from time to
time at public or private sale in such manner as shall be provided by resolution of the board but
in no event shall the notes be sold for less than ninety-nine percent (99%) of par plus accrued
interest. Unless paid for out of the funds identified in Section 4 and/or 5 hereof, when the district
receives the proceeds from the same of the bonds in anticipation of which the notes were issued,
a sufficient portion of proceeds shall be used to pay the principal of such bond anticipation notes
and may be used to pay the interest thereon. The board is authorized and empowered to do and
perform all acts and enter into all agreements which may be necessary or desirable in connection
with the issuance and sale of the notes and delegate the power to consummate all such acts and
execute and implement all such agreements on its behalf as the board shall deem necessary and
desirable.
SECTION 9. No election shall be necessary for the authorization of the bonds and the
provisions of Section 9 of Chapter 563 of the 1949 Private Acts of Tennessee, as amended, shall
not be applicable to the bonds, refunding bonds and notes issued hereunder.
SECTION 10. If any provision of this act or the application thereof shall be held by any
court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this
act and the application of such provisions shall not be affected thereby, shall be enforced to the
greatest extent permitted by law and are declared to be severable.
SECTION 11. This Act shall take effect upon becoming a law, the public welfare
requiring it.
Passed: February 25, 1999.