Tennessee Code 9-13-205 – Security for loans – Pledges – Disposition of proceeds – Withholding of state-shared taxes
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Terms Used In Tennessee Code 9-13-205
- Loan guarantee: means the guarantee by the state, acting through the state funding board under this part, of a loan to a local government from a lender other than the state. See Tennessee Code 9-13-203
- Local government: means any incorporated city or town, metropolitan government, or county, including enterprise funds of such government entity, or utility district for purposes of §. See Tennessee Code 9-13-203
- 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
The state funding board shall establish the terms and conditions of loan guarantees to local governments and may require such guarantees or security as it deems necessary to adequately secure the loans. The local government shall pledge the full faith and credit of the local government as security for any loan or loan guarantee. The local government shall also agree to pledge a sufficient amount of state-shared taxes to make principal and interest payments on the loan guaranteed by the state. The commissioner of finance and administration is authorized to withhold such sum or part of such sum from any state-shared taxes which are otherwise apportioned to the local government.