(a) Each municipality having entered into a contract with the state pursuant to this part shall remit to the authority such amounts and at such times as shown in the repayment schedule to be placed in a special trust fund created to provide for the payment of the principal of and interest on bonds and notes of the authority for the purpose of providing grants for sewage treatment works.

Terms Used In Tennessee Code 68-221-211

  • Authority: means the Tennessee local development authority, a public agency, created by title 4, chapter 31, or its successor. See Tennessee Code 68-221-201
  • Contract: A legal written agreement that becomes binding when signed.
  • Municipality: means any county, town or city, or special district empowered to provide municipal sewage collection and treatment services, or any combination of two (2) or more of the foregoing acting jointly, in connection with an eligible project. See Tennessee Code 68-221-201
  • 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.
  • Sewage treatment works: means any facility for the purpose of treating, neutralizing or stabilizing municipal sewage, including treatment or disposal plants, the necessary intercepting, outfall and outlet sewers, pumping stations integral to such plants or sewers, equipment and furnishings thereof and their appurtenances. See Tennessee Code 68-221-201
  • 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
  • User: means the owner, tenant or occupant of any lot or parcel of land connected to a sanitary sewer, or for which a sanitary sewer line is available if a municipality levies a sewer charge on the basis of such availability. See Tennessee Code 68-221-201
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) The authority shall have the right to enter into such contracts and require such guarantees or security as it may see fit prior to, or simultaneously with, the issuance of bonds or notes as authorized hereunder or to refuse to issue such bonds or notes until such contracts or security, in any form which the authority may elect, are agreed to or are obtained.
(c) In the event any municipality having entered into a contract pursuant to this part shall fail to remit funds in accordance with the monthly payments established by the authority, the commissioner of finance and administration shall deliver by certified mail a written notice of such failure to the municipality within five (5) days of the failure. In the event the municipality fails to remit the amount set forth in such notice within sixty (60) days of the receipt of the notice, the commissioner shall, without further authorization, withhold such sum or part of such sum from any state-shared taxes which are otherwise apportioned to the municipality for the benefit of the authority. Furthermore, in the event any municipality having entered into a contract pursuant to this part fails to remit funds in accordance with the monthly payments established by the authority as aforementioned, the municipality shall increase its sewer user‘s fee and/or pledge additional available sources of revenue as are necessary to meet the obligation of the municipality according to its contract with the state.
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