2023 Tennessee Code › Title 7 - CONSOLIDATED GOVERNMENTS AND LOCAL GOVERNMENTAL FUNCTIONS AND ENTITIES (§§ 7-1-101 — 7-91-104) › SPECIAL DISTRICTS (§§ 7-81-101 — 7-91-104) › Chapter 84 - CENTRAL BUSINESS IMPROVEMENT DISTRICT ACT OF 1971 (§§ 7-84-101 — 7-84-728) › Part 7 - RESIDENTIAL INFRASTRUCTURE DEVELOPMENT ACT OF 2024 (§§ 7-84-701 — 7-84-728) › Section 7-84-716 - Bonds, notes, and other obligations - Definitions

(a)
A host municipality has the authority and power to borrow money and issue bonds, notes, or other obligations for the purpose of paying infrastructure costs identified in the establishment resolution, reimbursing the developer for the prior payment of infrastructure costs, or refunding or refinancing such bonds, notes, or obligations, under and pursuant to all the procedures and requirements set forth in the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21.
(b)
A host municipality is further authorized to:
(1)
Pledge to the payment of the principal, premium, and interest on the bonds, notes, or other obligations, and use for the payment of the bonds, notes, or other obligations the special assessment revenues authorized to be collected by the host municipality pursuant to this part in the same manner as revenues may be pledged pursuant to the Local Government Public Obligations Act of 1986. For purposes of this subdivision (b)(1), "revenues" has the same meaning as defined in § 9-21-105, and includes the special assessment revenues described in this part;
(2)
Delegate to an industrial development corporation incorporated by the host municipality or another host municipality for the district the authority to issue the revenue bonds, in which case such host municipality must enter into an agreement with the industrial development corporation pursuant to which the host municipality agrees to promptly pay to the industrial development corporation the assessments, including any interest on the assessments, as collected. The assessments must be held in trust by the host municipality for the benefit of the industrial development corporation when received. The host municipality may direct any property owner that is required to pay assessments to make the payments directly to an industrial development corporation or its assignee. If an industrial development corporation issues such bonds, then the assessments, and any interest collected on the assessments, constitutes "revenues" as defined in § 7-53-101, and the infrastructure financed thereby, whether transferred to the industrial development corporation on behalf of the host municipality, to the host municipality itself, or to another governmental entity or provider of public utilities, constitutes a project, as that term is defined in § 7-53-101; and
(3)
Delegate to a public building authority the authority to issue the revenue bonds, in which case the host municipality must enter into an agreement with the public building authority pursuant to which the host municipality agrees to promptly pay to the public building authority the assessments, including any interest on the assessments, collected. The assessments must be held in trust by the host municipality for the benefit of the public building authority when received. The host municipality may direct a property owner that is required to pay an assessment to make the payment directly to a public building authority or its assignee. If a public building authority issues such bonds, then the assessments, and any interest collected on the assessments, constitutes "revenues" as defined in § 12-10-103, and public facilities and related expenses described in this part, whether transferred to the public building authority on behalf of the host municipality, to the host municipality itself, or to another governmental entity or provider of public utilities constitutes a project, as that term is defined in § 12-10-103.
(c)
A host municipality, industrial development corporation, or public building authority, as the case may be, is authorized to:
(1)
Refund or refinance or otherwise cause the refunding or refinancing of any bonds or other obligations issued pursuant to this section in the manner provided in the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21, the Public Building Authorities Act of 1971, compiled in title 12, chapter 10, or chapter 53 of this title, as applicable. Without limiting this subdivision (c)(1), a host municipality may refund or refinance any bonds or loan agreements secured by the full faith and credit of the municipality and revenues received from assessments with bonds or a loan agreement secured only by such revenues. Upon any such refunding, the amount of assessment payments may be adjusted pursuant to policies approved by the host municipality; provided, that the assessment rate must not exceed that set forth in the establishment resolution; and
(2)
Make the proceeds of bonds, except any bonds secured by the full faith and credit and taxing power of a municipality, issued pursuant to this section available to a developer pursuant to one (1) or more loan agreements, and to assign or pledge the host municipality's rights under the loan agreement to the holders of the bonds.
(d)
The maximum term of any bonds, notes, or other debt obligations issued pursuant to this section to fund the costs of infrastructure, including any refinancing bonds, must not exceed thirty (30) years from the first issuance of bonds, notes, or other debt obligations for the purpose of funding infrastructure.
Added by 2024 Tenn. Acts, ch. 860,s 1, eff. 5/1/2024.