Tennessee Code 9-21-609 – Sale of capital outlay notes by informal bid process
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Tennessee Code 9-21-609
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Local government: means any county, municipality or metropolitan government in this state. See Tennessee Code 9-21-105
- Notes: means notes or interim certificates issued pending preparation or delivery of definitive notes of a local government issued pursuant to this chapter. See Tennessee Code 9-21-105
If capital outlay notes are authorized to be sold by an informal bid process, the local government or its designee shall contact at least three (3) financial institutions by telephone or letter to request such financial institutions to provide a rate or rates of interest for the term or terms of such notes. If the informal bid process is used, the local government or its designee shall provide the comptroller of the treasury or the comptroller’s designee a summary of the rate quotes received from financial institutions with its request for approval of the sale of the capital outlay notes. Any recurring fees that will be included as part of the interest rate over and above the bank rate must be identified.