reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-305 - Terms of revenue bonds

(a)
The revenue bonds may be sold in one (1) or more series, may bear such date or dates, shall mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at a zero (0) rate or at such other rate or rates (which may vary from time to time), may be payable at such time or times, may be in such denomination or denominations, may be in such form, either coupon or registered, 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, stolen, or lost bonds, all as may be provided by resolution of the governing body of the local government. The term of the revenue bonds shall not exceed the reasonably expected economic life of the project being financed with such bonds, as stated in the resolution authorizing the revenue bonds. An erroneous estimate of the reasonably expected economic life of the project shall in no way affect the validity of such bonds.
(b)
A revenue bond issue may be delivered as an installment bond payable as to principal and interest in equal or approximately equal installments for the term of the bond issue in accordance with the resolution authorizing the bond issue. The authorizing resolution shall stipulate the annual principal and interest requirements during the full term of the installment bond issue.
(c)
With respect to all or any portion of any issue of revenue bonds issued or anticipated to be issued hereunder, at any time during the term of the revenue bonds, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized herein are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in §
9-21-130
, a local government by resolution may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements under such terms and conditions as the governing body of the local government may determine, including, without limitation, provisions permitting the local government to pay to or receive from any person or entity any loss of benefits under such agreement upon early termination thereof or default under such agreement.
Acts 1986, ch. 770, § 3-5; 1999, ch. 432, § 5.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-307 - Revenue bonds of the same issue shall be equally and ratably secured

All revenue bonds of the same issue shall be equally and ratably secured, without priority by reason of number, date of bonds, date of sale, date of execution, or of delivery, by a lien upon the revenues of the public works project or projects, the revenues of which are pledged to the payment of such bonds, in accordance with this part and the resolution authorizing the issuance of the revenue bonds.
Acts 1986, ch. 770, § 3-7.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-309 - Recourse restricted to revenues

(a)
No recourse shall be had for the payment of the revenue bonds, or interest thereon, or any part thereof, against the general funds of any local government, nor shall the full faith and credit or taxing power of any local government be deemed to be pledged to the payment of the revenue bonds.
(b)
The revenue bonds, and interest thereon, shall not be a debt of the local government, nor a charge, lien or encumbrance, legal or equitable, upon any property of the local government or upon any income, receipts or revenues of the local government other than the revenues that shall have been pledged to the payment of the revenue bonds. Every revenue bond shall recite in substance that the bond, including interest thereon, is payable solely from the revenues pledged to the payment thereof and that the local government is under no obligation to pay the same, except from those revenues.
Acts 1986, ch. 770, § 3-9.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-310 - Remedies of revenue bondholders

Subject to any contractual limitations binding upon the holders of any issue of revenue bonds, or trustee therefor, including, but not limited to, the restriction of the exercise of any remedy to a specified proportion or percentage of such holders, any holder of revenue bonds, or trustee therefor, shall have the right and power, for the equal benefit and protection of all holders of revenue bonds similarly situated and, in addition to all other rights:
(1)
By mandamus or other suit, action or proceeding at law or in equity, to enforce such rights against the local government and its governing body and any of its officers, agents and employees and to require and compel the local government or the governing body or its officers, agents or employees to perform and carry out its and their duties and obligations under this part and part 1 of this chapter and its and their covenants and agreements with revenue bondholders;
(2)
By action or suit in equity, to require the local government and the governing body thereof to account as if they were the trustee of an express trust;
(3)
By action or by suit in equity, to enjoin any acts or things which may be unlawful or in violation of the rights of the revenue bondholders; and
(4)
To bring suit upon the revenue bonds.
Acts 1986, ch. 770, § 3-10.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-311 - Appointment of receiver on default

(a)
In the event that the local government shall default in the payment of the principal of or interest on any of the revenue bonds after the same shall become due, whether at maturity or upon call for redemption, and the default shall continue for a period of thirty (30) days, or in the event that the local government or the governing body or its officers, agents or employees shall fail or refuse to comply with this chapter or shall default in any agreement made with the holders of the revenue bonds, then any holder of revenue bonds, or trustee therefor, shall have the right to file a petition in the nature of a general creditor's bill in the chancery court of the county in which the public works project is situated, or if the public works project is situated in more than one (1) county, in the chancery court of any county in which any portion of the public works project is situated, or in any court of competent jurisdiction, for the appointment of a receiver of the public works project. The petition may be filed whether or not all the revenue bonds have been declared due and payable and whether or not the holder or holders or trustee therefor is seeking or has sought to enforce any other right, or exercise any remedy in connection with the revenue bonds.
(b)
Upon application, the chancery court may appoint a receiver of the public works project. The chancery court shall appoint a receiver of the public works project if the application is made by the holders of twenty-five percent (25%) in principal amount of the revenue bonds then outstanding or by any trustee for holders of the revenue bonds in that principal amount.
Acts 1986, ch. 770, § 3-11.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-312 - Judicial supervision of receiver

The receiver shall, in the performance of the powers conferred upon such receiver, act under the direction and supervision of the court making the appointment, and shall at all times be subject to the orders and decrees of the court, and may be removed by the court. Nothing contained in this chapter shall limit or restrict the jurisdiction of the court to enter such other and further orders and decrees as the court may deem necessary or appropriate for the exercise by the receiver of any functions specifically set forth in this part.
Acts 1986, ch. 770, § 3-12.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-313 - Duties of receiver

It is the duty of a receiver to:
(1)
Immediately, either directly or through agents and attorneys, enter and take possession of each and every part of the public works project;
(2)
Have, hold, use, operate, manage and control the public works project in the name of the local government or otherwise, as the receiver may deem best;
(3)
Exercise all the rights and powers of the local government with respect to the public works project which the local government itself might exercise;
(4)
Maintain, restore, insure and keep insured the public works project and from time to time shall make all necessary or proper repairs as the receiver may deem expedient;
(5)
Establish, levy, maintain and collect such fees, tolls, rentals, and other charges in connection with the public works project as the receiver may, subject to approval of the court, deem necessary or proper and reasonable; and
(6)
Deposit the revenues in a separate account and apply the revenues so collected and received in such manner as the court shall direct.
Acts 1986, ch. 770, § 3-13.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-314 - Sale of assets by receiver prohibited

Notwithstanding §
9-21-313
, the receiver shall have no power to sell, assign, mortgage or otherwise dispose of any assets of whatever kind or character belonging to the local government or any local government instrumentality and useful for the public works project. The authority of any receiver shall be limited to the operation and maintenance of the public works project, and no court shall have jurisdiction to enter any order or decree requiring or permitting the receiver to sell, mortgage, or otherwise dispose of any such assets.
Acts 1986, ch. 770, § 3-14.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-315 - Surrender of possession by receiver

Whenever all that is due upon the revenue bonds, and interest thereon, and upon any other obligations, and interest thereon, having a charge, lien, or encumbrance on the revenues of the public works project and under any of the terms of any covenants or agreements with bondholders shall have been paid or deposited as provided herein, and all defaults shall have been cured and made good, the court may in its discretion, and after such notice and hearing as it deems reasonable and proper, direct the receiver to surrender possession of the public works project to the local government. Upon any subsequent default, the holders of the revenue bonds shall have the same right to secure the appointment of a receiver as provided in this part.
Acts 1986, ch. 770, § 3-15.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 3 - REVENUE BONDS (§§ 9-21-301 — 9-21-316) › Section 9-21-316 - Remedies cumulative - Effect of abandonment or nonexercise of right or remedy

No remedy conferred by this part upon any holder of revenue bonds, or any trustee therefor, is intended to be exclusive of any other remedy, but each remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by this chapter or by any other law. No waiver of any default or breach of duty or contract, whether by any holder of bonds, or any trustee therefor, shall extend to or shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any revenue bondholder or any trustee therefor to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default. Every substantive right and every remedy, conferred upon the holders of revenue bonds, may be enforced and exercised from time to time and as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, or shall be determined adversely to the holder of the revenue bonds, or any trustee therefor, then and in every such case the local government and such holder, or such trustee, shall be restored to their former positions and rights and remedies as if no such suit, action or proceeding had been brought or taken. Nothing herein shall be construed as denying to any such suit or decree rendered therein such force as it would otherwise have by virtue of the legal doctrine of res judicata.
Acts 1986, ch. 770, § 3-16.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 4 - GENERAL PROVISIONS GOVERNING THE ISSUANCE OF ALL NOTES BY LOCAL GOVERNMENTS (§§ 9-21-401 — 9-21-408) › Section 9-21-401 - Applicability

The terms of this part and part 1 of this chapter shall be applicable to the authorization and issuance by any local government of debt under this chapter.
Amended by 2014 Tenn. Acts, ch. 766,s 2, eff. 7/1/2014.
Acts 1986, ch. 770, § 4-1.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 4 - GENERAL PROVISIONS GOVERNING THE ISSUANCE OF ALL NOTES BY LOCAL GOVERNMENTS (§§ 9-21-401 — 9-21-408) › Section 9-21-402 - Notes issued to finance industrial parks

(a)
A local government which intends to issue bond anticipation notes, capital outlay notes or grant anticipation notes to finance an industrial park shall first comply with title 13, chapter 16.
(b)
A local government which intends to issue bond anticipation notes, capital outlay notes or grant anticipation notes to finance a business park shall first comply with the requirements outlined in §
9-21-105(21)(B)(i)
.
(c)
Notwithstanding subsections (a) and (b), a certificate of public purpose and necessity shall not be required to finance an industrial park or a business park in any local government with a population of not less than three hundred thousand (300,000), according to the 2000 federal census or any subsequent federal census. The total pledge of full faith and credit of any such local government related to the project shall not exceed ten percent (10%) of the total assessed valuation of any property in the local government, ascertained by the last completed assessment at the time of issuance of the obligations. In any resolution pledging the full faith and credit and unlimited taxing power of any such local government to secure any obligations related to the project, the governing body of the local government shall state that the project being considered is well conceived, has a reasonable prospect for success, will provide proper economic development and employment, and will not likely become a burden on the taxpayers of the local government.
Acts 1986, ch. 770, § 4-2; 1998, ch. 728, § 2; 2006, ch. 770, § 2.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 4 - GENERAL PROVISIONS GOVERNING THE ISSUANCE OF ALL NOTES BY LOCAL GOVERNMENTS (§§ 9-21-401 — 9-21-408) › Section 9-21-404 - Requirement of budget approval - Waiver

If a budget is either not approved by the comptroller of the treasury or the comptroller's designee or not submitted to the comptroller of the treasury or the comptroller's designee when required under this part within two (2) months of the beginning of the fiscal year, then debt or financing obligations shall not be issued by the public entity until the comptroller of the treasury or the comptroller's designee has approved the budget, or as otherwise provided for in a manner approved by the comptroller of the treasury or the comptroller's designee. In the case of an emergency, the comptroller of the treasury or the comptroller's designee, may waive the requirement of budget approval in order to allow the public entity to enter into emergency financial transactions.
Amended by 2021 Tenn. Acts, ch. 256, s 7, eff. 4/28/2021.
Acts 1986, ch. 770, § 4-4; 2010 , ch. 868, § 49.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 4 - GENERAL PROVISIONS GOVERNING THE ISSUANCE OF ALL NOTES BY LOCAL GOVERNMENTS (§§ 9-21-401 — 9-21-408) › Section 9-21-405 - Definition of "period."

"Period," as used in this part and parts 5-8 of this chapter, includes in each instance any number of portions of time not exceeding in the aggregate the length of time included in such period.
Acts 1986, ch. 770, § 4-5.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 4 - GENERAL PROVISIONS GOVERNING THE ISSUANCE OF ALL NOTES BY LOCAL GOVERNMENTS (§§ 9-21-401 — 9-21-408) › Section 9-21-407 - Remedies of noteholders

Any holder of notes issued pursuant to this chapter has the right, in addition to all other rights:
(1)
By mandamus or other suit, action or proceeding in any court of competent jurisdiction to enforce such holder's rights against the local government, the governing body of the local government and any officer, agent, or employee of the local government, including, but not limited to, the right to require the local government, the governing body and any proper officer, agent or employee of the local government to assess, levy and collect taxes, and to fix and collect fees, rents, tolls, or other charges adequate to carry out any agreement as to, or pledge of, such taxes, fees, rents, tolls, or other charges, and to require the local government, the governing body of the local government and any officer, agent or employee of the local government to carry out any other covenants and agreements, and to perform its and their duties under this chapter. No holder or holders of notes payable exclusively from the revenues of a public works project shall ever have the right to compel the levying and collection of taxes to pay such notes and the interest thereon; and
(2)
By action or suit in equity to enjoin any acts or things which may be unlawful or a violation of the rights of such holder or holders of notes.
Acts 1986, ch. 770, § 4-7.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 4 - GENERAL PROVISIONS GOVERNING THE ISSUANCE OF ALL NOTES BY LOCAL GOVERNMENTS (§§ 9-21-401 — 9-21-408) › Section 9-21-408 - Internal loans

(a)
Local governments may make internal loans in accordance with procedures for issuance of notes or bonds in part 5, 6, 7, or 8 of this chapter.
(b)
Local governments may make internal loans in accordance with the procedures of §
9-21-604(b)
of all funds derived from the sale of any Tennessee private act hospital established pursuant to private acts of the state and the Private Act Hospital Authority Act of 1996, compiled in title 7, chapter 57, part 6. This section does not authorize the expenditure of funds derived from the sale of a private act hospital for any purpose contrary to law or applicable court order.
(c)
Guidelines for internal loans for the purposes of this section must be provided by the comptroller of the treasury or the comptroller's designee as authorized in §
4-3-305
.
(d)
Local governments that internally lend restricted monies shall ensure interest is paid for the use of internal monies. At a minimum, the interest rate must be the highest rate currently being earned on other investments, excluding pension investments. If there are no applicable investments, the interest rate must be the amount that could be earned for deposits in the local government investment pool administered by the state department of treasury.
Amended by 2021 Tenn. Acts, ch. 128, s 10, eff. 4/13/2021.
Amended by 2016 Tenn. Acts, ch. 832, s 1, eff. 7/1/2016.
Acts 1994, ch. 806, § 9.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 5 - BOND ANTICIPATION NOTES (§§ 9-21-501 — 9-21-505) › Section 9-21-501 - Authorization for the issuance of bond anticipation notes

The governing body of the local government acting by resolution is hereby authorized to issue and sell interest-bearing bond anticipation notes for all purposes for which bonds can be legally authorized and issued by a local government for public works projects as defined by this chapter, and for purposes authorized by chapter 11 of this title and by title 49, chapter 3, part 10. Such resolution shall not be effective until the initial resolution authorizing the issuance of the bonds, if required, shall have been adopted, published and no petition protesting the issuance of such bonds shall have been filed as permitted by law.
Acts 1986, ch. 770, § 5-1; 1987, ch. 77, § 6.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 5 - BOND ANTICIPATION NOTES (§§ 9-21-501 — 9-21-505) › Section 9-21-502 - Purchase and terms of bond anticipation notes

Bond anticipation notes shall be sold for not less than ninety-nine percent (99%) of the par value thereof and accrued interest as the governing body of the local government may direct. Bond anticipation notes may be sold in one (1) or more series, may bear such date or dates, may bear interest at such rate or rates (which may vary from time to time), may be payable at such time or times, may be in such denomination or denominations, may be in such form, either coupon or registered, may be payable at such place or places, may be executed in such manner, may be payable in such medium of payment, may be subject to such terms of redemption, without a premium or, for notes sold for not less than the par value thereof and accrued interest, without or with a premium of not exceeding one percent (1%) of the principal amount thereof, all as may be provided by resolution of the governing body of the local government.
Acts 1986, ch. 770, § 5-2.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 5 - BOND ANTICIPATION NOTES (§§ 9-21-501 — 9-21-505) › Section 9-21-503 - Method of sale of bond anticipation notes

Bond anticipation notes may be sold in such manner either at a competitive public sale or at a private negotiated sale as the governing body of the local government may direct.
Acts 1986, ch. 770, § 5-3.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 5 - BOND ANTICIPATION NOTES (§§ 9-21-501 — 9-21-505) › Section 9-21-504 - Security for bond anticipation notes

(a)
Bond anticipation notes issued in anticipation of bonds secured by the full faith and credit of the local government shall be secured by a pledge of the taxing power of the local government, as to all taxable property in the local government or a portion of the local government, if applicable, which shall be subject to taxation for the payment of the bonds, the issuance of which is anticipated by such notes, and may, at the option of the local government, be additionally secured by the same revenues which will secure the bonds, the issuance of which is anticipated by such notes and identified in the initial resolution authorizing such bonds. When the bond anticipation notes are so issued and sold, they shall be direct obligations of the local government, the payment of which shall be made according to the tenor and effect thereof. The governing body of the local government is hereby authorized to levy and provide for the collection of a special tax over and above all other taxes authorized or limited by law to be imposed and levied on all the taxable property in the local government or a portion of the local government, if applicable, to create a sinking fund to retire the notes with interest as they fall due.
(b)
Bond anticipation notes issued in anticipation of the issuance of bonds secured by and payable solely from revenues of a public works project may be secured by the revenues from the public works project.
(c)
When bonds shall have been issued and sold for a public works project, a sufficient amount of the proceeds shall be applied to the payment at their maturity or redemption of any bond anticipation notes issued for such public works project then outstanding. Nothing in this chapter shall prohibit the retirement of bond anticipation notes from other local government funds available and authorized for such purpose.
Acts 1986, ch. 770, § 5-4.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 5 - BOND ANTICIPATION NOTES (§§ 9-21-501 — 9-21-505) › Section 9-21-505 - Approval of bond anticipation notes and application for their extension or renewal

The sale of bond anticipation notes shall first be approved by the comptroller of the treasury or the comptroller's designee, and the notes shall be issued for the express purpose of providing funds in anticipation of the sale of bonds. All such notes shall be issued for a period not to exceed two (2) years from the date of issue; provided, that with the approval of the comptroller of the treasury or the comptroller's designee the notes may be extended or renewed for not more than two (2) additional periods not exceeding two (2) years each. Each year that extension or renewal notes are outstanding, the local government shall retire a portion thereof equal to not less than one-twentieth (
1
/
20
) of the original principal amount of the notes, and to that end, the resolution authorizing any such issue of extension or renewal notes shall provide for the notes to mature serially, and may provide that the notes shall be subject to redemption prior to maturity at the option of the local government. In approving any issue of extension or renewal notes, the comptroller of the treasury or the comptroller's designee may waive the requirement of periodic retirement. Application to the comptroller of the treasury or the comptroller's designee for the extension or renewal of any such notes shall be by resolution of the governing body. Notwithstanding this section, the comptroller of the treasury or the comptroller's designee shall not be required to approve the issuance or extension of any bond anticipation note issued in anticipation of the issuance of a bond or other debt obligation to a state or federal agency.
Acts 1986, ch. 770, § 5-5; 1987, ch. 77, § 7; 2005, ch. 393, § 2; 2010 , ch. 868, § 51.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-602 - Purchase price and terms of capital outlay notes - Weighted average maturity of capital outlay notes

(a)
Capital outlay notes must be sold for not less than ninety-nine percent (99%) of the par value thereof and accrued interest as the governing body of the local government may direct. Capital outlay notes may be sold in one (1) or more series; may bear such date or dates; may bear interest at such rate or rates, which may vary from time to time; may be payable at such time or times; may be in such denomination or denominations; may be in such form, either coupon or registered; may be payable at such place or places; may be executed in such manner; may be payable in such medium of payment; may be subject to such terms of redemption, without a premium or, for notes sold for not less than the par value thereof and accrued interest, without or with a premium of not exceeding one percent (1%) of the principal amount thereof, all as may be provided by resolution of the governing body of the local government.
(b)
The weighted average maturity of capital outlay notes issued pursuant to this part and parts 1 and 4 of this chapter must not exceed the reasonably expected weighted average life of the project being financed as stated in the resolution authorizing the capital outlay notes. An erroneous estimate of the reasonably expected weighted average life of the project must in no way affect the validity of such notes.
Amended by 2021 Tenn. Acts, ch. 128, s 12, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-2; 1999, ch. 432, § 6; 2001, ch. 253, § 9.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-603 - Security for capital outlay notes

When the capital outlay notes are issued and sold, they shall be direct obligations of the local government, the payments of which shall be made according to the tenor and effect thereof, to which shall be pledged the taxing power of the local government as to all taxable property in the local government. The governing body is hereby authorized to levy and provide for the collection of a special tax over and above all other taxes authorized or limited by law to be imposed and levied on all the taxable property in the local government to create a sinking fund to retire such notes with interest as they fall due. Capital outlay notes issued for an income producing public works project may be additionally secured by and payable from revenues of such public works project.
Acts 1986, ch. 770, § 6-3.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-604 - Period of capital outlay notes - Repayment

(a)
(1)
Capital outlay notes issued pursuant to this section may be issued for a period not to exceed the end of the twelfth fiscal year following the fiscal year in which the notes were issued. The repayment must be in a manner that:
(A)
An equal amount of principal is paid in each fiscal year that the capital outlay notes are outstanding after the first fiscal year in which the notes are issued;
(B)
Level debt service, as described in subdivision (a)(2), is paid in each fiscal year that the capital outlay notes are outstanding after the first fiscal year in which the notes are issued; or
(C)
The debt service is paid on the capital outlay notes as approved by the comptroller or the comptroller's designee.
(2)
The resolution authorizing any such issue of notes must provide for the principal of the notes to be paid consistent with the requirements of subdivision (a)(1), either by maturity or by mandatory redemption. The resolution authorizing such notes may provide that the notes must be subject to redemption prior to maturity at the option of the local government. Debt service payable with respect to capital outlay notes is level as long as the debt service payable in any fiscal year other than the fiscal year in which the notes are issued does not exceed the average debt service payable in each fiscal year other than the fiscal year in which the notes are issued by more than five percent (5%).
(b)
Capital outlay notes issued from funds derived from the sale of any Tennessee private act hospital may be issued for a period not to exceed the end of the twentieth fiscal year following the fiscal year in which the notes were issued, with the approval of the comptroller of the treasury or the comptroller's designee. Each fiscal year that any such notes are outstanding following the fiscal year in which notes are issued, the local government must retire a portion thereof equal to not less than one-twentieth (
1
/
20
) of the original principal amount of the notes. The resolution authorizing any such issue of notes must provide for the principal of the notes to be payable annually, either by maturity or by mandatory redemption. The resolution authorizing such notes may provide that the notes must be subject to redemption prior to maturity at the option of the local government. The comptroller of the treasury or the comptroller's designee, in approving any such notes, may waive the requirement of periodic retirement.
Amended by 2021 Tenn. Acts, ch. 128, s 13, eff. 4/13/2021.
Amended by 2016 Tenn. Acts, ch. 832, s 2, eff. 7/1/2016.
Acts 1986, ch. 770, § 6-4; 1987, ch. 77, § 8; 1993, ch. 514, §§ 3, 4; 1994, ch. 806, § 4; 2005, ch. 393, § 4; 2010 , ch. 868, § 53.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-605 - [Repealed]

Repealed by 2021 Tenn. Acts, ch. 128,s 14, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-5; 1987, ch. 77, § 9; 2005, ch. 393, § 5; 2010, ch. 868, § 54.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-606 - Refunding of capital outlay notes with general obligation refunding bonds or public building authority loans

Capital outlay notes may be refunded with general obligation refunding bonds as provided in part 9 of this chapter or with public building authority loans as provided in title 12, chapter 10; provided, however, that if the final maturity of the refunding bonds or public building authority loans exceeds the final maturity of the capital outlay notes being refunded, then an initial resolution authorizing general obligation refunding bonds or public building authority loans must be adopted in conformance with §
9-21-205
or §
12-10-116
, and must conform to §
9-21-206
, requiring publication of the resolution and the notice required by that section, as applicable. Sections
9-21-207
and
9-21-209
- 9-21-212, governing election requirements and procedures, and §
9-21-215
, governing the adoption of a tax resolution by the governing body of the local government, also apply.
Amended by 2022 Tenn. Acts, ch. 822, s 3, eff. 4/14/2022.
Amended by 2021 Tenn. Acts, ch. 128, s 15, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-6; 2010 , ch. 868, § 55.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-607 - Methods of sale of capital outlay notes

Capital outlay notes that mature not later than the third fiscal year after the fiscal year in which the notes are issued may be sold in such manner either at a competitive public sale or at a private negotiated sale as the governing body of the local government may direct. Capital outlay notes issued solely for the acquisition of a fee simple absolute interest in land to the seller of such land or such seller's designee and that are issued for a period not to exceed the end of the tenth fiscal year following the fiscal year in which the notes were issued may be sold by private negotiated sale. Capital outlay notes issued for a period greater than the end of the third fiscal year following the fiscal year in which the notes were issued, but not greater than the end of the twelfth fiscal year following the fiscal year in which the notes were issued with a principal amount not in excess of five million dollars ($5,000,000) must be sold at competitive public sale or by the informal bid process described in §
9-21-609
. Capital outlay notes issued for a period greater than the end of the third fiscal year following the fiscal year in which the notes were issued, but not greater than the end of the twelfth fiscal year following the fiscal year in which the notes were issued with a principal amount in excess of five million dollars ($5,000,000) must be sold at competitive public sale. For purposes of this part, a competitive public sale must be undertaken in the same manner as a competitive public sale is undertaken for general obligation bonds under part 2 of this chapter; provided, however, that if the principal amount of capital outlay notes to be sold is not greater than five million dollars ($5,000,000) then the notice of sale may be published solely in a newspaper having general circulation in the local government.
Amended by 2021 Tenn. Acts, ch. 128, s 16, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-7.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-608 - [Repealed]

Repealed by 2021 Tenn. Acts, ch. 128,s 17, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-8; 1987, ch. 77, § 10; 1993, ch. 514, § 5; 2005, ch. 393, § 6; 2010, ch. 868, § 56.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-609 - Sale of capital outlay notes by informal bid process

If capital outlay notes are authorized to be sold by an informal bid process, the local government or its designee shall contact at least three (3) financial institutions by telephone or letter to request such financial institutions to provide a rate or rates of interest for the term or terms of such notes. If the informal bid process is used, the local government or its designee shall provide the comptroller of the treasury or the comptroller's designee a summary of the rate quotes received from financial institutions with its request for approval of the sale of the capital outlay notes. Any recurring fees that will be included as part of the interest rate over and above the bank rate must be identified.
Amended by 2022 Tenn. Acts, ch. 822, Secs.s1, s2 eff. 4/14/2022.
Amended by 2021 Tenn. Acts, ch. 128, s 18, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-9; 1993, ch. 514, §§ 6-8, 10; 2005, ch. 393, § 7; 2010 , ch. 868, § 57.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-610 - [Repealed]

Repealed by 2021 Tenn. Acts, ch. 128,s 19, eff. 4/13/2021.
Acts 1986, ch. 770, § 6-10; 2005, ch. 393, § 8; 2010, ch. 868, § 58.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-611 - Capital outlay notes issued solely to the environmental protection agency

(a)
Capital outlay notes issued solely to the environmental protection agency of the United States (EPA) under the Asbestos in School Hazard Abatement Program (
20 U.S.C. § 4011
et seq.) may be issued for a period not to exceed twenty (20) years from the date of issue. The resolution authorizing any such issue of notes shall provide for the notes to mature serially and may provide that the notes shall be subject to redemption prior to maturity at the option of local government. The comptroller of the treasury or the comptroller's designee in approving any such notes may waive the requirement of periodic retirement.
(b)
All capital outlay notes issued prior to June 8, 1989, and all proceedings theretofore taken to authorize the issuance of such notes by any local government to the EPA for the asbestos in school hazard abatement program of the EPA are hereby ratified, validated and confirmed, and such notes are hereby declared to be valid and legally binding obligations payable in accordance with their terms, notwithstanding any lack of power of the governing body of the local government to authorize or issue such notes and to provide for the payment thereof in the manner stated in such notes and in the proceedings authorizing their issuance, and notwithstanding any defects or irregularities in any such proceedings or the failure of any such proceedings authorizing any such notes to comply with this chapter or any applicable general or special law.
Acts 1989, ch. 542, §§ 2, 3; 2010, ch. 868, § 59.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 6 - CAPITAL OUTLAY NOTES (§§ 9-21-601 — 9-21-612) › Section 9-21-612 - Refunding of capital outlay notes by issuing capital outlay notes

Capital outlay notes issued pursuant to this part may be refunded by issuing capital outlay notes under this part, in accordance with the requirements and procedures set forth in this part and in §§
9-21-903
,
9-21-904
,
9-21-910
,
9-21-912
,
9-21-913
and
9-21-914
. The final maturity date of the refunding notes must not be later than the final maturity date of the notes being refunded, unless otherwise approved by the comptroller of the treasury or the comptroller's designee.
Amended by 2021 Tenn. Acts, ch. 128, s 20, eff. 4/13/2021.
Acts 1994, ch. 806, § 5; T.C.A., § 9-21-917; Acts 1996, ch. 632, § 1; 2005, ch. 393, § 9; 2010 , ch. 868, § 60.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 7 - GRANT ANTICIPATION NOTES (§§ 9-21-701 — 9-21-705) › Section 9-21-701 - Authorization for the issuance of grant anticipation notes

The governing body of a local government, acting by resolution, is hereby authorized to issue and sell interest-bearing grant anticipation notes for public works projects secured solely by a pledge of moneys, which pledge shall not be less than the principal amount of such notes, to be received pursuant to a contract or agreement between a state or federal agency and the local government. The resolution shall not be effective until the contract or agreement between the state or federal agency and the local government has been executed by all parties to the contract or agreement. The sale of all interest-bearing grant anticipation notes shall first be approved by the comptroller of the treasury or the comptroller's designee.
Acts 1986, ch. 770, § 7-1; 2010, ch. 868, § 61.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 7 - GRANT ANTICIPATION NOTES (§§ 9-21-701 — 9-21-705) › Section 9-21-702 - Terms of grant anticipation notes

Grant anticipation notes shall be sold at not less than par value and accrued interest. Grant anticipation notes may be sold in one (1) or more series, may bear such date or dates, shall mature at such time or times, may bear interest at such rate or rates (which may vary from time to time), may be payable at such time or times, may be in such denomination or denominations, may be in such form, either coupon or registered, may be payable at such place or places, may be executed in such manner, may be payable in such medium of payment, may be subject to such terms of redemption, without premium, at the option of the local government as grant funds become available for such purpose, all as may be provided by resolution of the governing body of the local government.
Acts 1986, ch. 770, § 7-2.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 7 - GRANT ANTICIPATION NOTES (§§ 9-21-701 — 9-21-705) › Section 9-21-703 - Method of sale of grant anticipation notes

Grant anticipation notes may be sold in such manner either at a competitive public sale or at a private negotiated sale as the governing body of the local government may direct.
Acts 1986, ch. 770, § 7-3.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 7 - GRANT ANTICIPATION NOTES (§§ 9-21-701 — 9-21-705) › Section 9-21-704 - Security for grant anticipation notes

The principal of grant anticipation notes shall not be direct general obligations of the local government, and the local government shall have no authority to levy ad valorem taxes for the payment of the principal of such notes; provided, that interest on grant anticipation notes may be a general obligation of a local government, and the local government shall have the authority to levy ad valorem taxes for the payment of interest on such notes. When the grant anticipation notes are issued and sold, they shall be secured solely by a pledge of moneys, which pledge shall not be less than the principal amount of such notes, to be received pursuant to a contract or agreement between a state or federal agency and the local government. Nothing herein shall preclude a local government from issuing capital outlay notes or bond anticipation notes in conjunction with grant anticipation notes issued under this section; provided, that the proceeds from the sale of any such capital outlay notes or bond anticipation notes shall not be applied to the payment of such grant anticipation notes.
Acts 1986, ch. 770, § 7-4.
2023 Tennessee Code › Title 9 - PUBLIC FINANCES (§§ 9-1-101 — 9-24-106) › Chapter 21 - LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 (§§ 9-21-101 — 9-21-1104) › Part 7 - GRANT ANTICIPATION NOTES (§§ 9-21-701 — 9-21-705) › Section 9-21-705 - Duration - Extension or renewal

Grant anticipation notes shall be issued for a period not to exceed three (3) years from the date of issuance; provided, that the comptroller of the treasury or the comptroller's designee may initially approve, or subsequently approve, a maturity date of such notes of not more than seven (7) years from the date of issuance, and may additionally approve a further extension or renewal not to exceed ten (10) years from the date of issuance upon application from the local government, by resolution, certifying that at least ten percent (10%) of the moneys anticipated to be received under the contract or agreement between such state or federal agency and the local government is not expected to be received within seven (7) years following the date of issuance of the notes.
Acts 1986, ch. 770, § 7-5; 1987, ch. 77, § 11; 2010, ch. 868, § 62.