(a) For the purpose of providing moneys to assist approved applicant counties in financing capital improvements of correctional facilities, the state funding board, in addition to the powers otherwise granted by law, has the power and is authorized to issue from time to time direct general obligation interest-bearing bonds and bond anticipation notes in such principal amounts as may from time to time be authorized by law.

Terms Used In Tennessee Code 41-8-110

  • Applicant county: means any county that applies to participate in the program. See Tennessee Code 41-8-103
  • Contract: A legal written agreement that becomes binding when signed.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • program: means the method of providing financial assistance and incentive to counties for the purposes provided in this chapter, through increased subsidies, grants or loans. See Tennessee Code 41-8-103
  • 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) Loans or grants authorized in accordance with § 41-8-109 shall be made from the proceeds of the bonds or notes to an approved applicant county in the county correctional incentive program. The board shall require the county to submit a financing agreement that includes provisions for the payment of the cost of constructing, acquiring, reconstructing, improving, equipping or furnishing any county correctional facility, including the payment of engineering, fiscal, architectural and legal expenses incurred in connection with the facility and the issuance of the bonds or notes, and shall require the county to execute a contract specifying, among other things, the repayment terms and the project to be funded.
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