AI-assisted research summary: A county, city, or town that owes the subscription must issue coupon bonds for the amount due and deliver them to the railroad company, unless it chooses to pay cash at maturity.
When such subscription shall become due and payable, as provided in § 65-7-112 , the county or city or town making the subscription shall make and execute its coupon bonds for the amount of such subscription, payable not more than twenty (20) years after date, and bearing interest at such rate as may be agreed upon, payable semiannually, and deliver the same to the railroad company; provided, that such county, city, or town may pay such subscription in cash at maturity, if it shall so elect. Acts 1887, ch. 3, § 12; Shan., § 1570; Code 1932, § 2624; Acts 1980, ch. 601, § 21; T.C.A. (orig. ed.), § 65-713. Cross-References. Maximum effective rates of interest, § 47-14-103 . NOTES TO DECISIONS 1. Constitutionality. 2. Recitals in Bonds. 1. Constitutionality. Permitting the subscription to be paid in bonds to be issued without submitting the question of their issuance to the voters does not render the statute invalid or unconstitutional, for the payment of a valid subscription in bonds is not a lending of credit in the sense of Tenn. Const., art. II, § 29. Johnson City v. Railroad, 100 Tenn. 138, 44 S.W. 670, 1897 Tenn. LEXIS 97 (1897); Red River Furnace Co. v. Tennessee C. R. Co., 113 Tenn. 697, 87 S.W. 1016, 1904 Tenn. LEXIS 60 (1903). 2. Recitals in Bonds. Where the bonds recited their issuance under statute, and “in issuing the same all the provisions and requirements of each of said statutes have been strictly fulfilled and complied with,” the municipality was precluded by such recitals from denying that the company was a domestic corporation, in a suit by a bona fide holder of such bonds, where a domestic corporation of the same name existed, and its articles of incorporation were of record, in the county where the bonds were issued. Municipal Trust Co. v. Johnson City, 116 F. 458, 1902 U.S. App. LEXIS 4353 (6th Cir. Tenn. 1902), cert. denied, Johnson City v. Municipal Trust Co., 194 U.S. 636 , 24 S. Ct. 859 , 48 L. Ed. 1161 , 1904 U.S. LEXIS 805 (1903). But see Johnson City v. Railroad, 100 Tenn. 138, 44 S.W. 670, 1897 Tenn. LEXIS 97 (1897).