Article 42.  

BE IT FURTHER ENACTED, That The Metropolitan Government of Nashville and Davidson County, in its corporate capacity is hereby authorized and empowered to:

1.

To purchase, construct, lease, or otherwise acquire, and to maintain, improve, operate and regulate, either within or without the corporate limits of said metropolitan government, an electric light and power plant and/or an electric system, including distribution system and substations, together with all necessary or appropriate equipment, appliances and appurtenances, for the proper operation thereof, for the purpose of lighting public buildings, streets, parks and other municipal property, and for any and all other purposes, including the production of electricity for resale at wholesale to the United States, the state, or any municipality, or to any private person, firm or corporation, and for the sale of electric service or current at retail to the United States, the state, or any municipality, or to any person, firm, public or private corporation, for light, heat, power, or any other purpose whatsoever, or to any other users or consumers of electric power and energy and to any person, firm, public or private corporation, or to any other users or consumers of electric power and energy.

2.

To acquire, improve, or use jointly with any other municipality, a transmission line or lines, together with all necessary and appropriate facilities, equipment and appurtenances, for the purpose of transmitting power and energy and/or connecting their respective electric plants with a wholesale source of supply, and to this end the metropolitan government may provide by contract for the method of holding title, for the allocation of responsibility for operating and maintenance, and for the allocation of expenses and revenues.

3.

To accept grants, loans or other financial assistance from the United States of America, or the Federal Emergency Administrator of Public Works, the Tennessee Valley Authority, or any other similar agency, instrumentality or corporation of the Untied States of America which has heretofore been, or may hereafter be, created by or pursuant to any Act or Acts of Congress of the United States of America.

4.

To contract debts for the acquisition or improvement of any electric plant and/or distribution system; to borrow money; to issue its bonds to finance such acquisition or improvements; to provide for the rights of the holders of the bonds and to secure the bonds as hereinafter provided, and to pledge all or any part of the revenues derived from electric service to the payment of such debts or repayment of money borrowed.

5.

To acquire, hold, and subject to the applicable provisions of any bonds or contracts, to dispose of any property, real or personal, tangible or intangible, or any right or interest in any such property in connection with any electric plant, and whether or not subject to mortgages, liens, charges, or other encumbrances but disposition of all, or substantially all, of its electric plant and/or distribution system may not be made except as herein provided.

6.

To make contracts and execute instruments containing such covenants, terms and conditions, as in the discretion of the metropolitan government may be necessary, proper or advisable for the purpose of obtaining loans from any source, or grants, loans, or other financial assistance from any federal agency; to make all other contracts and execute all other instruments, which in its discretion, may be necessary, proper, or advisable, in or for the furtherance of the acquisition, improvement, operation and maintenance, of any electric plant and/or distribution system, and the furnishing of electric service; and to carry out and perform the covenants, terms and conditions of all such contracts or instruments.

7.

To enter on any lands, waters and premises for the purpose of making surveys, soundings and examinations in connection with the acquisition, improvement, operation or maintenance of any electric plant and/or distribution system, and the furnishing of electric service.

8.

To do all acts and things necessary or convenient to carry out the powers expressly given in this article

9.

That the metropolitan government, directly or through the electric power board hereinafter created, may use any right-of-way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of an electric or power plant and/or distribution system, held by the state, any county or other municipality, provided that the state, or such other municipality shall consent to such use.

10.

There is hereby created the Electric Power Board of The Metropolitan Government of Nashville and Davidson County, composed of five members. The members of the Electric Power Board of the City of Nashville in office at the effective date of this Charter, either as appointed members or as holdover members until successors are appointed and qualified, shall be the first members of the electric power board of the metropolitan government.

The terms of office of the members of the electric power board of the metropolitan government shall be for five years, except that the first terms of office of such members shall relate back to the beginning of the terms of office of the members of the Electric Power Board of the City of Nashville who are holding such offices under appointments, and to the end of the terms of office of the members of the Electric Power Board of Nashville where the terms of office for which they were appointed have expired and such members are holding such offices until their successors are appointed and qualified, so that the first terms of office of the members of the electric power board of the metropolitan government will relate back to July 1, 1954, July 1, 1955, July 1, 1956, July 1, 1957 and July 1, 1958, respectively, and will expire on July 1, 1959, July 1, 1960, July 1, 1961, July 1, 1962 and July 1, 1963, respectively; and thereafter each successive terms of office shall each be for a period of five years from the date of expiration of the preceding term of office.

Any of the first members of the electric power board of the metropolitan government who, at the effective date of this Charter shall have been holding office as a member of the Electric Power Board of the City of Nashville after the expiration of their term of office until their successors were appointed and qualified, shall continue to be members of such electric power board of the metropolitan government until the appointment of a member by the mayor and confirmation of such appointment by the metropolitan council as provided herein to succeed such holdover member for the unexpired term of the term of office in which such holdover member is serving as a member.

All members of the electric power board of the metropolitan government who are appointed by the mayor and whose appointment is confirmed by the metropolitan council as herein provided shall serve as such members for the term of office to which they are appointed, and until their successors are appointed and qualified.

A chairman and vice-chairman shall be elected by and from the members of the board, by a majority vote, and a new chairman and vice-chairman shall thereafter be selected in like manner by the board each year. The members of said board shall serve without compensation.

No person shall be eligible for election or appointment to membership on the board unless he shall have been a bona fide freeholder or householder or taxpayer in Davidson County for at least three years next preceding the date of his appointment or election; at least thirty years of age and a citizen of the United States. If any member of the board shall cease to possess any of the qualifications for his office, as above enumerated or hereinafter prescribed, a vacancy shall thereupon immediately occur and his office shall be filled as hereinafter provided.

When the term of office of any member or members of said board shall have expired, or when any vacancy in the board occurs by reason of death, resignation, removal or other cause, the vacancy or vacancies shall be filled by appointment by the mayor, subject to confirmation by the metropolitan council. Terms of office of members of the board shall be for five years, except members appointed to fill vacancies in unexpired terms or members holding office after the expiration of their terms of office until their successors are appointed and qualified.

11.

That the members of said board first appointed and qualified hereunder, and all other members thereof, before entering upon the discharge of the duties of their office shall take and subscribe to an oath before some person authorized to administer an oath in Davidson County, as follows:

"I do solemnly swear that I am a citizen of the United States of America, that I am not an officer, director, employee or agent of any company producing, selling or furnishing electric light, power, current or services; that I do not now hold any public office, nor am I an applicant or candidate therefor; that I will faithfully and honestly discharge the duties of my office."

12.

That at all meetings three members of the board shall constitute a quorum, and the board shall act by vote of a majority present at any meeting attended by a quorum.

In addition to a chairman and a vice-chairman, there shall be a secretary, a treasurer, a general manager, a general counsel and such other officers, agents, heads of departments, or other employees as may be necessary for the operation of the board, and for the effective operation of the electric plant and/or distribution system, whose compensation, wages, or salaries shall be payable out of the revenues derived from the operation of the board, and said board shall fix and prescribe their several duties, subject to the limitations and provisions of this Charter.

The board shall fix the amount of bonds to be required of the secretary-treasurer and all others who are to handle or to be responsible for the funds and/or property of the board, or the metropolitan government, hereunder, and all such bonds shall have as surety thereon some approved bonding or surety company.

The board shall hold public meetings, at least once each month, at such time and place as it may determined. Changes in the time and place of such meeting shall be made known to the public in some suitable manner to be prescribed by the board. The board is also authorized and empowered to prescribe a set of by-laws and reasonable rules for its government and procedure, and shall also provide rules not inconsistent with the provisions of this Charter for carrying into execution the powers and authority conferred by this Charter.

With reference to the properties, rights, and interests of the metropolitan government, to be acquired by or operated under the provisions of this article, as is herein otherwise provided, all agreements, contracts, transfers and conveyances in connection therewith, shall be made and executed, and all such properties shall be acquired, held, owned and transferred and conveyed in the name of the Metropolitan Government of Nashville and Davidson County, and all such contracts, agreements, transfers and conveyances shall be signed by the chairman or vice-chairman of the board and attested by the secretary or assistant secretary. Provided, however, that the board may, by-law or regulation, delegate to the chairman or the general manager or other employee of said board the right to make, let, sign, and otherwise execute all such contracts, agreements, deeds, transfers or other conveyances, where not in excess of ten thousand ($10,000) dollars is involved, which the board is so authorized to make, and subject to such conditions and requirements as the board may, by regulation or by-laws, prescribe; and provided further that, in the absence of any by-law or rule of the board, the general manager shall have authority to make and execute such contracts and agreements which involve less than five thousand ($5,000) dollars in amount.

13.

The general manager shall have charge of all the equipment and properties of the board; all construction, and the immediate management and operation of the electric light and power plant and distribution system, under the direction and supervision of the board as may be provided from time to time by by-laws or regulations, and shall be chargeable with the enforcement and execution of all rules, regulations, programs, plans, and decisions made or adopted by the board. He shall make and keep full and complete books and records, which shall at all times be subject to the supervision, direction, and control of the board.

14.

The general counsel, whose salary shall be fixed by the power board, shall have general charge and supervision of the legal work in connection with the operations and conduct of the board's affairs, and shall do and perform all such other acts and services of a legal nature as may from time to time be required of him by the board.

15.

That said electric power board of the metropolitan government be, and it is, hereby authorized to purchase, construct, erect or otherwise acquire, and to maintain and operate the electric power plant, distribution system, substation, etc., hereinbefore provided for; and said board shall have full power and authority to purchase, rent, lease or otherwise acquire any and all kinds of property, real or personal, for the said metropolitan government, in order to carry out the powers herein granted, and also to enter into any and all contracts with the Tennessee Valley Authority, or other entities, persons, firms, or corporations, public or private, for the furnishing of electric current to the metropolitan government, for use or resale as provided herein, and to enter into any other contracts with any other persons, partnerships, associations, or public or private corporations which may be by said board deemed necessary or expedient in exercising said powers; and said board shall have full control over the erection, construction, maintenance and operation of said plants and properties, with full power to make rules for the control and maintenance of said plants and properties, the manner of operation, and the employment of officials and employees of every kind. Said board may acquire by purchase an existing electric power plant and/or distribution system with substation appurtenances, equipment, etc., and it is authorized to carry on all necessary or proper negotiations therefor; and it is authorized to make the necessary surveys and enter into contracts for the construction of such power plant and/or distribution system, substations, etc., and the equipment and appliances necessary or appropriate thereto. The board is expressly authorized and empowered to make and enter into all necessary or proper contracts with the Tennessee Valley Authority, or other agencies, for the furnishing of electric current to the metropolitan government, to be used either by said metropolitan government for its own purposes, or to be sold for light, power, heat or any other purpose whatsoever, and in this connection may agree on rates for the sale of such current.

For the purpose of constructing, equipping, maintaining, and operating the electric power plant and/or distribution system mentioned in this article, the board is expressly authorized and empowered to issue and sell short term notes, made payable out of the revenues from the electric power plant and/or distribution system mentioned herein. The amount of said short term notes outstanding at any time shall not exceed three million ($3,000,000) dollars and said notes shall mature not more than three years from the date of said notes.

16.

That disposition of all, or substantially all, of the electric plant and/or distribution system acquired by means of the bonds issued hereunder, may only be made upon recommendation of the board, with the approval of the mayor and metropolitan council, and a majority of those voting in an election to be held as in this Article provided. In the event it is desired to so dispose of all, or substantially all, of such property, the board shall make recommendations to that effect to the mayor, such recommendations to contain the information required to be included in a resolution for submission to the voters in an election to be held as hereinafter provided, and thereupon, if the same is approved by the mayor, he shall prepare and submit to the metropolitan council, and the metropolitan council shall adopt, a resolution which shall state in substance:

(a)

That the electric power board has recommended, and the mayor and metropolitan council have approved, the proposed disposition.

(b)

A full description of the property of which disposition is proposed to be made.

(c)

The proposed purchaser or purchasers thereof.

(d)

The purchase price.

(e)

The terms or conditions of sale, if such disposition is not to be for cash payable in full at the time of the proposed disposition.

(f)

The date on which an election will be held to consider such disposition.

(g)

The place or places where votes in such election may be cast.

(h)

The hours between which such voting places shall be open.

If said resolution is adopted, an election will be called in conformity with the resolution, and said resolution shall be published in full at least once, not less than fifteen (15) days prior to the date fixed for the election, in a newspaper published and having general circulation in the entire area of the metropolitan government. At such election the ballots shall contain the words, "For the disposition of the Electric Plant and/or Distribution System", and "Against the disposition of the Electric Plant and/or Distribution System", as the case may be.

The election herein provided for shall be conducted and ballots shall be prepared, in the same manner as is now, or then may be, provided by law for the holding and conducting of general elections for the metropolitan government under its Charter and the provisions of the general election laws of the State of Tennessee. The results of such elections shall be canvassed, declared and certified, and the records of such results and returns shall be kept in the same manner as is now so provided by law, and when any such election is so held and the results so canvassed and certified in conformity with these provisions, it shall, after the delivery of, and payment for, said property, disposition of which was so voted upon at such election, be conclusive evidence of the result of such election.

17.

That said board is expressly authorized to exercise the power of eminent domain on behalf and in the name of the Metropolitan Government of Nashville and Davidson County, in order to acquire any property, real or personal, necessary or useful in exercising the power and authority conferred by this article, and any property so acquired shall be paid for out of the earnings of the power plant and/or distribution system herein provided for, or from the proceeds of the bonds authorized by this article. The title to all property taken for the purpose of exercising the powers conferred by this Charter, whether acquired by contract or by exercise of the power of eminent domain, shall be taken in the name of the Metropolitan Government of Nashville and Davidson County; and such condemnation proceedings as may be deemed necessary or proper shall be pursuant to, and in accordance with, the provisions of sections 29-16-101 to 29-16-124, inclusive, Tennessee Code Annotated.

18.

That said electric power board of the metropolitan government shall have exclusive management and control of the operation of said electric power plant and/or distribution system. Except as otherwise provided in this article, said board shall have the authority, subject to the applicable civil service provisions, to determine the number of positions and employ persons to fill vacancies in said positions, and to fix the salaries or compensation within the limits of the pay plan applicable to this article, and prescribe the duties of all of its officers, agents, representatives, and employees; provided, said Board may, in its discretion, delegate to the general manager to be selected by it, such power and authority in addition to that conferred herein, as it may deem necessary and proper. All revenues collected from the operation of the said power plant and/or distribution system, or any promotional activity conducted or operated in connection therewith, shall be deposited in the name of the metropolitan government, and kept in a separate fund or funds, and shall only be disbursed upon checks or vouchers of the said board drawn against said fund or funds, and which checks or vouchers shall be signed by the secretary or an assistant secretary, of the board, and approved or countersigned by the general manager, or in such other manner as the board may, from time to time, prescribe. As of the first days of January and July of each year, said board shall make and file, in triplicate, with the mayor of the metropolitan government, a statement showing the financial condition of the board, and the system operated by it, together with such other information as the mayor shall from time to time require, and which shall cover the whole of the operations during the preceding six (6) months. Said reports shall be filed on or before the first days of February and August, respectively, of each year. A copy of said financial statement shall also be filed with the clerk of the metropolitan government at the time it is filed with the mayor, and a further copy, or certified abstract thereof, shall be published once in a newspaper of general circulation in the entire area of the metropolitan government. The board shall provide a proper and sufficient accounting system.

19.

That the board shall fix the rates to be charged for current, power, light and heat, or other services furnished, and which rates shall be fair, reasonable and uniform for all customers in the same class, but different rate schedules may be applied to different classes of customers as may be determined by the board. Rates within the urban services district of the metropolitan government may be less, but shall in no event be greater than rates for the same class of service outside the urban services district. Rates for electric service shall be fixed in conformity with the resale rates which the metropolitan government may be required to charge under or by reason of the metropolitan government's contractual obligations with the Tennessee Valley Authority, and in all other respects in conformity with the then existing contract executed by the former city of Nashville and/or the Metropolitan Government of Nashville and Davidson County with the Tennessee Valley Authority.

20.

That the board shall charge the metropolitan government for any electric service furnished it, at the rates applicable to other customers of the same class served under similar conditions and the revenue derived from such service shall be treated as all other revenues of said board.

21.

That a copy of the schedule of the current rates and charges in effect from time to time, and a copy of all resolutions and regulations of the board relating to electric service shall be kept on public file at the main and all branch offices of any plant or plants operated by it, and also in the office of the clerk of the metropolitan government.

The officers, agents and employees of the board are prohibited from appropriating or using any of the moneys, revenues, assets or property of the board, or of the metropolitan government, or its credit either directly or indirectly by way of donations for festivities, exhibits, shows, lectures, pageants, excursions, decorations or parades, and shall not give or grant to any person or persons any reduction or other benefit of any kind in rates or service by the board, nor shall they make or allow any discrimination in favor of any purchaser of power, light, current or other service not enjoyed by others of the same class and taking power under like conditions; provided, nothing in this article shall prevent participation in normal electric promotion activities.

22.

That said board shall set up a sufficient fund as an insurance fund, and which shall be kept in a separate account and invested in securities now authorized for the sinking fund of the metropolitan government, and which, together with any income thereon or additions thereto, shall be used to pay and discharge any liabilities of said board and of the metropolitan government by reason of the acquisition, creation, owning, operation, maintenance or other use of said power plant and/or distribution system, or in lieu of such fund, the board, in its discretion, may take out and carry such insurance policies as may be necessary or proper, or may set up necessary contingency reserves to protect against such liabilities.

The board in its judgment and discretion is further authorized and empowered to avail itself of the benefits of any existing or future laws of the United States, or of the State of Tennessee, with reference to Social Security, old age benefits, or pensions on behalf of its employees, at any time, when, under the terms of such acts or laws, it may be authorized or permitted so to do, and in connection therewith may make such payments and do such other acts and things as may be by said laws or acts authorized or provided. Said board in its judgment and discretion shall likewise be authorized and empowered to take out, purchase, or otherwise provide for such employee retirement insurance, survivor insurance and other insurance as it may be determined to be to the best interest of the employees, and as is justified by the revenues and earnings of the board.

23.

That when any contract is made by the board with any independent contractor for new construction, improvements, or extensions, such contract shall contain a provision that wages to be paid by said contractor on such work shall conform to the prevailing wage scale, as approved by the United States Department of Labor for Nashville and vicinity.

24.

That neither the mayor, the metropolitan council, nor any other officer, department, board or commission of the metropolitan government, shall have or exercise any authority whatsoever over the electric power board created under the terms and provisions of this Charter, other and except to the extent herein expressly provided, and the provisions of this article shall prevail over any conflicting provisions appearing in any other article in this Charter.

25.

That the revenues derived from the operations of the board shall be applied and used only as follows:

(a)

Revenues shall first be used in payment of all current operating expenses, including, without limitation, salaries, wages, costs of materials and supplies, insurance, current and/or power at wholesale, necessary cost of repairs, and all other costs and expenses of maintenance, operation and upkeep.

(b)

From remaining revenues the board shall next currently provide for payment of interest accrued on all bonds issued pursuant to the provisions of this Act, and for amortization charges on all such bonds of other indebtedness, and for sinking fund payments thereon, and for which purpose there will be paid monthly or semiannually to the treasurer of the metropolitan government a sum sufficient to pay such interest as the same comes due, and to pay and discharge the principal of said bonds promptly at maturity, and all of which shall be kept by the treasurer of the metropolitan government in a separate sinking fund.

(c)

After making provisions for items (a) and (b), the remaining revenues shall be used currently to set up reasonable reserves, but not more than is sufficient for replacements, depreciation, extensions or new construction, for contingencies, and to provide a reasonable amount of cash working capital.

(d)

Thereafter, and from remaining revenues, the board shall pay into the general fund of the metropolitan government a return on its investment as authorized and permitted by the then existing contract of the former City of Nashville and/or the metropolitan government with the Tennessee Valley Authority, and also a tax equivalent, in amount to be determined by application of the prevailing municipal tax rate to the value of the property used by the metropolitan government and said board in electric operations, and which tax equivalent may be increased by the board in its discretion, so as to provide a similar tax return for the state or any county, as may be permitted, provided or required by the then existing contract of former City of Nashville and/or the metropolitan government with the Tennessee Valley Authority. All remaining revenues shall be considered surplus and shall serve as a basis for reduction or elimination of surcharges and/or reduction of rates.

26.

That the Metropolitan Government of Nashville and Davidson County be, and it is hereby authorized, in its corporate capacity, to issue and sell its bonds, to be signed by the mayor and countersigned by the treasurer of said metropolitan government, and the seal of the metropolitan government to be affixed, impressed, imprinted or reproduced thereon, and attested by the clerk of said metropolitan government, for the purpose of acquiring any existing electric power plant and/or distribution system, or for the purpose of constructing, equipping, maintaining and operating any electric power plant and/or distribution system, or to reconstruct, extend or improve any electric power plant and/or distribution system or systems. The signatures on said bonds of the mayor, treasurer of the metropolitan government and clerk of the metropolitan government may be either manual or facsimile signatures; provided, however, that the signature of at least one of said officials on said bonds shall get a manual signature. Said bonds shall be revenue bonds, and said revenue bonds may be issued only when the electric power board of the metropolitan government shall determine by resolution duly adopted that the revenues derived from the electric system will be sufficient to pay the principal of and interest on all bonds issued hereunder then outstanding and the bonds to be issued, and to comply with all covenants made with the holders of said bonds then outstanding or to be issued; and provided further, that the rank and priority as between different issues of said bonds shall be as provided in the resolutions or ordinances authorizing such issues of bonds.

27.

That the bonds herein authorized shall be payable in lawful money of the United States of America, and shall be executed in denominations of one thousand ($1,000) dollars. Said bonds shall be issued as serial bonds, maturing in such amounts and at such times not more than forty (40) years from the date of the issuance thereof as the board may determine, and shall bear interest at the rate of not more than six (6%) percent per annum, payable semiannually, said interest installments to be evidenced by coupons attached to the bonds, which coupons shall bear the printed or lithographed facsimile of the signatures of the mayor and treasurer and clerk of said metropolitan government; and said bonds and coupons shall be payable to bearer and the bonds shall be sold at the best price obtainable, and shall in no case be sold for less than par and accrued interest. Said bonds shall be issued from time to time in such amounts, and shall bear dates as the board shall direct; and it shall be the duty of the mayor and the metropolitan council of the metropolitan government to provide by resolution or ordinance for the issuance of said bonds as directed by said board. Said bonds shall be known as Electric Power Bonds of the Metropolitan Government of Nashville and Davidson County, and said bonds, or any part thereof which the metropolitan government may determine or decide to issue for the purposes, and under the provisions of this article, shall be issued as revenue bonds, payable only out of said revenues of the electric plant and/or distribution system. The mayor of said metropolitan government, with the approval of the metropolitan council, shall have power and authority to sell the bonds issued under the provisions of this article to the Public Works Administration, Tennessee Valley Authority, or any federal agency, at private sale, without any public advertisement. Unless the bonds are sold to a federal agency, said bonds shall be sold at public sale, after being first advertised at least once in a newspaper of general circulation in the entire area of the metropolitan government, and once in some financial journal in New York City, and which advertisement shall be published at least five (5) days before the sale of said bonds, and the board shall have power and authority to hypothecate any or all of the bonds issued under the provisions of this article, and to borrow thereon funds from the Tennessee Valley Authority, the Public Works Administration, or any other similar government agency or board, or from the bank. Said bonds shall contain a recital that they are issued pursuant to, and in accordance with this Charter, and such recital shall be conclusive evidence of their legality.

28.

The metropolitan council may in its discretion call a referendum or election for the purpose of obtaining the approval of the voters of the acquisition or construction by the metropolitan government of any new electric power plants and/or distribution systems but shall not be required to call such election. If such election is called by the metropolitan council, it shall be held and conducted, and ballots shall be prepared in the same manner as is then, provided by law for the holding of general elections under the provisions of the general election laws of the State of Tennessee. The provisions of this section shall be deemed permissive only and no referendum or election shall be required for the acquisition or construction of any new electric power plants and/or distribution system or the issuance of revenue bonds to finance the cost thereof, except in the absolute discretion of the metropolitan council. No referendum or election shall ever be required for the acquisition or construction of additions, extensions or improvements to any existing electric power plants and/or distribution systems or for the issuance of revenue bonds to finance the cost thereof.

29.

That in case any of the officers whose signatures or countersignatures appear on such bonds shall cease to be such officers before the delivery of the bonds, such signatures and countersignatures shall nevertheless be valid and sufficient for all purposes the same as though such officers had remained in office until the bonds had been delivered.

30.

That all funds received from sale of the bonds provided for in this article shall be deposited with the treasurer of the metropolitan government and shall be kept in a separate fund, and said board shall have control and supervision of the expenditure thereof. Disbursements shall be made only upon warrants of the board, signed by the secretary, and approved by its chairman, and said fund shall be used solely for the purpose of defraying the cost of acquiring or constructing an electric power plant and/or distribution system, and extension thereof, and the equipment, appliances and appurtenances necessary or appropriate thereto; provided, however, that such money may also be used to pay interest maturing on said bonds during negotiation for the acquiring of any existing electric power plant and/or distribution system, or during the construction of any power plant and/or distribution system, and until the system has been put into operation. The board is authorized to incur expenses for the making of surveys and estimates of cost and of revenues, and to certify the expense thereof to the mayor of said metropolitan government, who shall pay the same from the general funds of the metropolitan government; and such payments from the general funds shall be considered as temporary loans, and shall be repaid, upon sale and delivery of said bonds, out of said bond fund.

31.

That the cost of any electric power plant and/or distribution system, or the improvements thereof, shall be deemed to include all necessary expenses of preliminary surveys, estimates of costs and of revenues, and all the cost of acquiring such power plant and/or distribution system or improvements, or of the construction thereof; also the cost of all necessary or suitable property, rights-of-way, easements, and franchises; and also to include interest on bonds issued under this article maturing prior to and during the construction or acquisition of the plant or system, or improvements, together with engineering and legal expenses, expenses for plans, specifications and surveys, administrative expenses and all such other expenses as may be necessary or incidental to the financing of, acquiring or constructing and equipping an electric power plant and/or distribution system or improvements, and the placing of such power plant and/or distribution system or improvements in operation.

32.

That no statute, general or special, fixing the maximum indebtedness of the said metropolitan government, or prohibiting the issuance of bonds, notes or other indebtedness, shall apply to or limit the amount of bonds that may be issued or the amount of money that may be borrowed under this article.

33.

There is hereby created a statutory mortgage lien upon all the electric system of the electric power board of the metropolitan government, including all power plants and/or distribution systems thereof, and any additions, extensions or improvements thereto, to and in favor of the holders of all revenue bonds issued by the metropolitan government to finance the cost of all or any part thereof. Any holder of any of said revenue bonds may at law or in equity by suit, action, mandamus or other proceedings protect and enforce the statutory mortgage lien hereby conferred, and may by suit, action, mandamus or other proceedings enforce and compel the performance of all of the duties required by this Charter.

34.

That in order to secure the payment of revenue bonds issued pursuant to this Article and interest thereon, the metropolitan government shall have the power as to such bonds, to the extent not inconsistent with the mandatory provisions hereof:

(a)

After the payment of operating expenses from the gross revenue to pledge all or any part of the remaining revenue derived from the operation of the electric power plant and/or distribution system to secure the payment of the bonds and interest thereon.

(b)

To covenant as to the rates and charges to be imposed and the amounts to be raised in each year by such rates and charges and the use and disposition thereof, and the board shall carry out the provisions of this covenant.

(c)

To set aside a reserve or sinking fund and the relation and disposition thereof, and to provide for the redemption of revenue bonds and to provide the terms and conditions thereof.

(d)

To covenant and prescribe as to what happenings or occurrences shall constitute "default" and the terms and conditions upon which any or all such bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.

(e)

To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation.

(f)

To vest in a trustee or trustees the right to receive all or any part of the income assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply and dispose of the same, and, the right to enforce any covenant made to secure, pay, or otherwise in relation to the bonds; to execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees, and limiting the liabilities thereof, and describing what occurrences shall constitute default, and prescribing the terms and conditions upon which such trustee or trustees, or the holder or holders of bonds of any specified amount or percentage of such bonds, may exercise such rights and enforce any and all such covenants, and resort to such remedies as may be appropriate.

(g)

To make covenants other than, and in addition to, the covenant herein authorized, of like or different character, necessary or advisable to effectuate the purpose of this article.

(h)

To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties.

(i)

To provide for the replacement of lost, destroyed or mutilated bonds.

(j)

The board shall carry out the agreements and covenants made by the metropolitan government with the holder or holders of revenue bonds as herein provided.

35.

That any holder or holders of revenue bonds, including a trustee or trustees for holders of such bonds, shall have the right, in addition to all other rights:

(a)

By mandamus or other suit, action or proceedings in any court of competent jurisdiction to enforce his or their rights against the metropolitan government, the mayor thereof, and the electric power board of said metropolitan government, and any other proper officer, agent or employee of any of them, including, but without limitation, the right to require the electric power board and any proper officer, agent or employee thereof to fix and collect rates and charges adequate to carry out any agreement as to electric power plant and/or distribution system revenues.

(b)

By action or suit in equity to enjoin any acts or things which may be unlawful or a violation of the rights of such holders of bonds.

36.

That the metropolitan government shall have power to confer upon any holder or holders of a specified amount or percentage of bonds the right in event of default as may be defined in any agreement with the holder or holders of such bonds or the trustee or trustees therefor:

(a)

By suit, action or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the electric power plan and/or distribution system or any part or parts thereof. If such receiver be appointed he may enter and take possession of such electric power plant and/or distribution system, or any part or parts thereof and operate and maintain the same, and collect the revenue thereafter arising therefrom in the same manner as the electric power board or the metropolitan government might do, and shall deposit such moneys in a separate account or accounts and apply the same in accordance with the obligations of the metropolitan government as the court shall direct.

(b)

By suit, action or proceedings in any court of competent jurisdiction to require the metropolitan government and the electric power board of same metropolitan government to account as if they were the trustee on an express trust.

37.

That all revenue bonds issued hereunder, and all interest thereon, and all revenues and other income derived from said electric system and all properties, real or personal, tangible or intangible, moneys and other assets of said electric system or of said electric power board of the metropolitan government shall be exempt from all taxation by the State of Tennessee, or any county, municipality or political subdivision or other taxing agency thereof, and all revenue bonds issued hereunder shall be and constitute eligible securities for the deposit of all state and other public funds, and shall be and constitute legal investments for banks, savings banks, executors, guardians, administrators and other fiduciaries, and for any state, county, municipality or other public funds.

38.

That the powers conferred by this article shall be in addition and supplemental to the powers conferred by any other article in this Charter or any other law, and that bonds may be issued hereunder for the acquisition or improvement of an electric plant and/or distribution system, notwithstanding that any other law may provide for the issuance of bonds for like purposes, and without regard to the requirements, restrictions or procedural provisions contained in any other law.

39.

Should any of the terms or provisions of this article for any reason be held invalid, then in that event, to the extent of such invalidity, the exact terms and provisions of article 42 of the Charter of the City of Nashville as it existed at the effective date of this Metropolitan Charter shall be deemed to have been incorporated verbatim in this Metropolitan Charter in lieu of such terms and provisions contained in this article so held invalid.