(a) The authority may establish in the state treasury a separate special trust fund of the authority for each separate issuance of bonds or notes that is similarly secured for state-appropriated funds, to be known as a “public safety protection fund,” and to bear such additional designation as the authority deems appropriate to properly identify each fund.
State-shared taxes: means taxes imposed and collected by the state pursuant to law and allocated by law to local government units, whether allocated for a particular purpose or for the general use of such local government units. See Tennessee Code 4-31-102
(b) The state covenants and agrees that from and after the issuance of bonds or notes under this part or through the loaning of state-appropriated funds, moneys derived by this state from payments made pursuant to loan agreements with such counties and moneys withheld from state-shared taxes apportioned to such counties as permitted under the terms of the loan agreements that are pledged to the payment of such bonds, notes, or loans, must be paid into the particular fund established for the issuance of bonds or notes or the loaning of appropriated funds to which such moneys are pledged.(c) Such moneys must be accounted for separately from all other moneys in the state treasury and must be applied by the authority solely for the purpose of:
(1) Paying the principal of and interest and premium, if any, on such issue of bonds, notes, and loans issued pursuant to this section;(2) Refunding moneys due to participating counties where appropriate; and(3) Paying all other costs incidental to the administration of the authority in connection with the loan agreements and the issuance of such bonds and notes.
