(a) Whenever, and as often as, a municipal corporation or county having taxing power enters into a contract with a solid waste authority or other contracting party under this part, the governing body of such municipal corporation or county shall provide by resolution for the levy and collection of a tax sufficient to pay when due the annual amount payable under such contract as and when it becomes due and payable, and to pay any expenses of maintaining and operating the project required to be paid by the municipal corporation or county under the terms of such contract or by instrument collateral thereto and, furthermore, to pledge such tax and the full faith and credit of the municipal corporation or county to such payments. Such tax shall be assessed, levied, collected and paid in like manner as other taxes of the municipal corporation or county. Such tax shall not be included within any statutory or other limitation of rate or amount for such municipal corporation or county, but shall be excluded therefrom and be in addition thereto and in excess thereof, notwithstanding and without regard to the prohibitions, restrictions or requirements of any other law, whether public or private. There shall be set aside from such tax levy into a special fund an amount sufficient for the payment of the annual amount due under any such contract, and the money in such fund shall be used exclusively for such purpose and shall not be used for any other purpose until such annual amount has been paid in full. The foregoing shall not be construed to limit the power of the authority or other contracting party to enter into contracts with a municipal corporation not having the power of taxation.
Terms Used In Tennessee Code 68-211-920
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.
Governing body: means the body in which the general legislative powers of a municipal corporation are vested and, in the case of counties, means the legislative body of the respective counties. See Tennessee Code 68-211-902
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
other contracting party: means any party to a sale contract or loan agreement except the authority. See Tennessee Code 68-211-902
Project: means any solid waste disposal facility or resource recovery facility, or any combination thereof. See Tennessee Code 68-211-902
solid waste authority: means any public instrumentality organized pursuant to this part. See Tennessee Code 68-211-902
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) The governing body of any municipal corporation not having the power of taxation and the state of Tennessee shall, upon entering into a lease, loan agreement or sales contract with a public building authority or other contracting party, make adequate provision for the payment of the annual amount payable under the lease, loan agreement or sales contract.
