(a) All expenses actually incurred by the governing body of any municipality in the making of surveys, estimates of cost and of revenues, employment of engineers, attorneys or other employees, the giving of notices, taking of options, selling of bonds, and all other preliminary expenses of whatever nature, that such governing body deems necessary in connection with or precedent to the acquisition or improvement of any electric plant and that it deems necessary to be paid prior to the issuance and delivery of the bonds issued pursuant to this part, may be met and paid out of the general fund of the municipality not otherwise appropriated, or from any other available fund.

Terms Used In Tennessee Code 7-52-106

  • Electric plant: means generating, transmission, or distribution systems, together with all other facilities, equipment and appurtenances necessary or appropriate to any such systems for the furnishing of electric power and energy for lighting, heating, power or any other purpose for which electric power and energy can be used. See Tennessee Code 7-52-102
  • Governing body: means the county legislative body, board, body or commission having general charge of the municipality. See Tennessee Code 7-52-102
  • Improvement: means any improvement, extension, betterment, or addition to any electric plant. See Tennessee Code 7-52-102
  • Municipality: means any county, metropolitan government, incorporated city or town in the state of Tennessee. See Tennessee Code 7-52-102
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
(b) All such payments from the general or other funds shall be considered as temporary loans and shall be repaid immediately upon sale and delivery of the bonds, and claim for such repayment shall have priority over all other claims against the proceeds derived from the sale of such bonds.
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