(a) The authority may enter into loan agreements with any local government unit and any local government unit may enter into loan agreements with the authority for loans for acquisitions and improvement of facilities previously financed under part 7 of this chapter.
Terms Used In Tennessee Code 4-31-118
Authority: means the Tennessee local development authority, a public agency and instrumentality of the state, created by this chapter, or if such authority shall be abolished, the board, body, commission or agency succeeding to the principal functions thereof or to which the powers and duties granted or imposed upon the authority shall be given by law. See Tennessee Code 4-31-102
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Local government unit: means any county, metropolitan government, incorporated town or city, or special district of the state, water/wastewater authority or any energy authority created by an act of the general assembly. See Tennessee Code 4-31-102
Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
(b) Any loan agreement may include such provisions as may be agreed upon by the authority and the local government and shall additionally include, in substance, the following:
(1) The amount of the loan as determined by the authority;(2) An agreement by the authority to pay part of the amount of the loan to the local government unit during the progress of the acquisition or improvement, or to pay the amount of the loan following completion of the acquisition or improvement, as may be agreed upon by the parties; and(3) An agreement by the local government unit:
(A) To proceed expeditiously with and complete the project;(B) To commence operation of the project on its completion, and not to discontinue operations or dispose of the project without the approval of the authority;(C) To operate and maintain the project in accordance with applicable provisions of this part and in compliance with rules and regulations of the authority;(D) Not to contract with any corporation for profit, private person or firm for that operation of the same notwithstanding any law authorizing such contracts, except upon approval by the authority of an application to the authority;(E) To pledge any available sources of revenue to make payment according to a schedule established by the authority, and to make such payments; and(F) To establish and maintain adequate financial records for the project, and to cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of such audits to the comptroller.(c) The authority may promulgate any additional rules or regulations concerning the contract and charges in operations of a capital project.
