Private Acts of 2008 Chapter 96

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, is
hereby authorized and empowered to issue and sell, by resolution of the Board of Education of
the District, bonds and/or notes in the collective aggregate principal amount of not to exceed five
million five hundred thousand dollars ($5,500,000) 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 and notes as the Board of Education of the District shall determine, (iii) for
the payment of interest on the bonds and notes 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 and notes.
SECTION 2. The bonds and notes may be sold at public or private sale in one (1) 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 with respect to any series of bonds and
twelve (12) years with respect to any series of notes, 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 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 bonds and notes, all as may be provided by resolution of the District’s Board of
Education. The bonds and notes shall be sold as a whole or in part from time to time in such
manner as shall be provided by resolution of the District’s Board of Education, but in no event
shall the bonds and notes be sold for less than ninety-eight percent (98%) of par plus accrued
interest (or, if all or any part of such bonds and notes is to be sold at a zero (0) rate of interest or
at an original issue discount, such bonds and notes may be sold at not less than ninety-eight
percent (98%) of the original reoffering price of such bonds and notes, plus accrued interest).
The Board of Education of the District 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 notes and to delegate the power to consummate all such acts
and execute and implement all such agreements on its behalf as the Board of Education shall
deem necessary or desirable.
SECTION 3. The bonds, notes, refunding bonds and bond anticipation 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 District’s Board of Education
authorizing the bonds, notes, refunding bonds or bond anticipation notes.
SECTION 4. For the purpose of paying principal of and interest and redemption
premiums on the bonds, notes, refunding bonds, and bond anticipation notes herein authorized
and any other indebtedness of the District, 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 property tax to take effect for the tax year in which such bonds or notes are issued and
each year thereafter, of three cents (3¢) per one hundred dollars ($100) of taxable value of
taxable property located within the District. The rate hereinabove established may be adjusted
from time to time in accordance with the procedure set forth in Tennessee Code Annotated,
Section 67-5-1704, relating to county-wide reappraisal. In addition, in the event the total
assessed value of all property subject to the tax hereinabove described declines by more than ten
percent (10%) from January 1 of any year to January 1 of the next succeeding year or declines by
more than fifteen percent (15%) from January 1 of any year to January 1 of the second
succeeding year thereafter, at the request of the Board of Education, the county assessor of
property shall certify to the county trustee and the Board of Education the total assessed value of
taxable property within the District and furnish the county trustee and the Board of Education 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 said information and certifications, the county trustee shall adjust the tax rate
established herein to an adjusted rate which is estimated to provide to the District the same tax
revenue as was provided by said tax in the base year, exclusive of such new construction,
improvements and deletions, in accordance with policies established by the state board of
equalization pursuant to Tennessee Code Annotated, Section 67-5-1701(b), or any successor
thereto. Said taxes shall be used to pay principal and interest and any redemption premium on
the bonds authorized herein and any other indebtedness of the District as it becomes due and to
maintain debt service fund balances. The Board of Education is herein authorized to pledge such
tax to pay the principal of and interest and any redemption premiums on the bonds and any other
indebtedness of the District. The taxes shall be annually extended and collected by the county
trustee of Williamson County 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. In the event the property taxes and such other
funds as shall be pledged to the payment of the indebtedness of 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 shall first be used to fund any debt service
reserve fund established by the Board of Education, and may thereafter be used, at the discretion
of the Board of Education of the District, 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 said work, and the purchase of school buses and
school transportation equipment, and all other operations and maintenance of schools in the
District.
SECTION 5. The Board of Education is authorized, but not required, to pledge to the
payment of the bonds and notes 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 and hereafter levied and collected in Williamson
County, Tennessee, pursuant to Tennessee Code Annotated, Section 67-6-712, and (iii)
any other funds received from the State of Tennessee, or any of its authorities, agencies or
instrumentalities, for school purposes and available to be used for capital outlay expenditures.
SECTION 6. The bonds, notes, refunding bonds, and bond anticipation notes, and all
income therefrom, shall be exempt from all state, county and municipal taxation in the State of
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 of Education,
to borrow money and issue its bonds and notes 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 and
notes authorized herein and the refunding bonds and refunding notes authorized herein, in an
amount not exceeding the outstanding principal amount of the outstanding bonds and notes being
refunded, premium thereon, interest on such refunded bonds or refunded notes to maturity or
earlier redemption and costs of issuance, including discount, if any. The Board of Education
shall have the power to provide for the custody, application and investment of the proceeds of
the refunding bonds and refunding notes pending retirement of the refunded bonds and refunded
notes.
SECTION 8. The District is further authorized, by resolution of the Board of Education,
to issue and sell bond anticipation notes of the District in anticipation of the issuance of the
bonds authorized herein. The bond anticipation 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 dated dates and may be extended or renewed for not more than one (1) 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 bond anticipation notes, all as may be provided by
resolution of the Board of Education. The bond anticipation 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 of Education but in no event shall the bond anticipation 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 sale of
the bonds in anticipation of which the bond anticipation 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 of Education of the District 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 bond anticipation notes and delegate the power to
consummate all such acts and execute and implement all such agreements on its behalf as the
Board of Education shall deem necessary and desirable.
SECTION 9. No election shall be necessary for the authorization of the of the
obligations authorized hereunder, and the provisions of Section 9 of Chapter 563 of the Private
Acts of 1949, as amended, shall not be applicable to the bonds, notes, refunding bonds, and bond
anticipation notes issued hereunder.
SECTION 10. In the event that the laws creating the District are repealed or the District
is abolished, that portion of such laws levying a tax, the proceeds of which are pledged to the
payment of outstanding bonds and indebtedness of the District, shall remain in full force and
effect with respect to the real and personal property within the District to the extent necessary to
satisfy the District’s debt service requirements with respect to said bonds and indebtedness, and
the outstanding bonds and indebtedness of the District shall remain binding and valid obligations
of the District the same to be paid out of funds collected in respect of the tax hereby required to
be continued to be levied. In such event, the said remaining tax shall continue to be collected by
the Williamson County trustee and funds collected in respect thereof shall be paid in respect of
the District’s outstanding bonds and indebtedness by the Williamson County Board of Education
until such bonds and indebtedness have been paid in full.
SECTION 11. If any provision of this act or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions or applications of
the act which can be given effect without the invalid provision or application, and to that end the
provisions of this act are declared to be severable.
SECTION 12. This act shall take effect upon becoming a law, the public welfare
requiring it.
Passed: May 13, 2008.