(a) For the purpose of providing moneys to fund loans authorized by this part, the authority, in addition to the powers otherwise created by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in an amount not to exceed ten million dollars ($10,000,000) in accordance with the terms set forth in §§ 4-31-105, 4-31-106 and 4-31-107(d).
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Terms Used In Tennessee Code 4-31-504

  • Authority: means the Tennessee local development authority. See Tennessee Code 4-31-503
  • Department: means the department of environment and conservation, or, if the department shall be abolished, the board, body, commission or agency succeeding to the principal functions thereof or to which the powers and duties granted or imposed upon the department shall be given by law. See Tennessee Code 4-31-102
  • Equipment: includes , but is not limited to:
    (A) For firefighters, uniforms, fire engines and other vehicles, ladders, hooks, hoses, and all other equipment necessary for containing and extinguishing fires. See Tennessee Code 4-31-503
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Loan agreement: means a contractual relationship by and between a county and the authority pursuant to and in accordance with this part. See Tennessee Code 4-31-503
  • Public safety officer: means a law enforcement officer, firefighter, emergency medical services personnel, or an emergency medical dispatcher. See Tennessee Code 4-31-503
  • State: means the state of Tennessee. See Tennessee Code 4-31-102
  • State-shared taxes: means taxes imposed and collected by the state pursuant to law and allocated by law to local government units, whether allocated for a particular purpose or for the general use of such local government units. See Tennessee Code 4-31-102
(b) Bonds or notes issued pursuant to this part shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provisions of this chapter or any other law; provided, that the foregoing shall not prohibit the issuance of separate issues of bonds or notes pursuant to this part.
(c) In addition to the powers otherwise granted by law, the authority may make loans to a county for the acquisition of equipment for a county’s public safety officers or a volunteer fire department‘s public safety officers pursuant to a loan agreement between the county and the authority. Such loans must be made from the proceeds of bonds or notes issued by the authority or from state appropriations for the purpose of making such loans.
(d)

(1) The authority shall establish a repayment schedule to be made by a county under a loan agreement.
(2) Such repayments must be in amounts at least sufficient, together with other funds available therefor, to pay the principal of, and interest on:

(A) Bonds and notes issued by the authority for the purpose of providing loans to counties for the purchase of public safety officer equipment, and as may be necessary for the authority to maintain a reserve for debt service; or
(B) State-appropriated funds for the purpose of providing loans to counties and nonprofit entities for the purchase of public safety officer equipment.
(3) The authority may collect an administrative fee in addition to such repayment schedule in an amount as may be set forth in the loan agreement.
(4) At the time of approval of a loan agreement, the annual repayment schedule applicable to all approved loans to a county under this part, when combined with the annual repayment schedules applicable to approved loans to counties under title 68, chapter 221, parts 2 and 5, or another loan agreement entered into between the county and the authority pursuant to this chapter must not exceed one hundred percent (100%) of the unobligated amount of annual state-shared taxes paid to the county as shown by the latest completed audit for the state’s fiscal year.
(5) This subsection (d) does not require a uniform test for all loans, it being the intent of the general assembly that the authority exercise discretion based on the facts and circumstances of each loan.
(6) In exercising its discretion, the authority shall take into consideration the general financial condition of the county receiving the loan.
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