(a) In the event any local government unit having entered into a loan agreement shall fail to remit funds in accordance with a loan agreement, the authority shall notify the commissioner of education who shall instruct the commissioner of finance and administration to deliver within five (5) days notice of such failure to the local government unit.
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Terms Used In Tennessee Code 4-31-1007

  • Authority: means the Tennessee local development authority. See Tennessee Code 4-31-1003
  • 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
(b) In the event the local government unit fails to remit the amount set forth in the notice within thirty (30) days of the receipt of the notice, the commissioner of finance and administration shall, without further authorization, withhold such sum or part of such sum from the amount pledged pursuant to § 4-31-1005(g), for the benefit of the authority issuing bonds or notes for the purposes referred to in this part.
(c) In the event there are not sufficient funds pledged pursuant to § 4-31-1005(g) still held by the commissioner of finance and administration for the local education agency to cure the deficiency in repayments to the authority, the commissioner shall transfer to the authority funds equal to the amount of the remaining payment deficiency from the general shortfall reserve subaccount of the lottery for education account as established by § 4-51-111, subject to any limitations on the use of the subaccount established pursuant to § 4-31-1004(a). The commissioner of education shall instruct the commissioner of finance and administration to withhold from any funds allocated to such local education agency in the future that are eligible to be pledged pursuant to § 4-31-1005(g) an amount to replenish the general shortfall reserve subaccount of the lottery for education account equal to the amount transferred to the authority.
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