Approval of the Sports Authority Bonds. Pursuant to the requirements of Section 7-67-109(15) of the Tennessee Code Annotated, the City and the County hereby approve the issuance of the Sports Authority Bonds, subject to the requirements that the Sports Authority Bonds shall be issued in an amount not to exceed the stated principal amount of $65,000,000, at a true interest cost not to exceed 5.0% per annum, for a term not to the exceed the period from the date of issue through the conclusion of the thirtieth (30th) full Fiscal Year following the date on which the Stadium is placed in service. At the discretion of the Authority, the Bonds may be insured with municipal bond insurance or otherwise secured with credit enhancement. Subject to the limitations above, the City and the County hereby approve the issuance of the Sports Authority Bonds on such terms as are determined by the Sports Authority, including with such original issue premium or discount as is determined appropriate by the Sports Authority, and using such method of sale as is determined to be most prudent by the Sports Authority in consultation with its financial advisers. The proceeds (including any interest income thereon) of the Sports Authority Bonds are authorized to be applied (i) to pay costs of the Stadium (including related redevelopment costs), (ii) to fund any Debt Service Fund to be used for a debt service reserve, (ii) to the Capital Improvements Reserve Fund as is described above, (iv) to pay interest on the Sports Authority Bonds to the extent permitted by the Act and (v) to pay costs of issuance and related costs in connection with the issuance of the Sports Authority Bonds.
