(a) An authority is hereby authorized and empowered to irrevocably pledge to the payment of principal of and interest on any bonds, loans or other indebtedness incurred by the authority to finance or refinance, in whole or in part, the project facilities authorized under subsection (c), that portion of taxes which pursuant to § 13-20-205(a)(2) is to be paid into the special fund of the authority. Such portion of taxes shall be considered “revenues” within the meaning of § 13-20-601.
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Terms Used In Tennessee Code 13-20-614

  • Bonds: means any bonds, interim certificates, notes, debentures, or other obligations of the authority issued pursuant to this chapter. See Tennessee Code 13-20-102
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: includes deeds of trust, mortgages, building and loan contracts or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof. See Tennessee Code 13-20-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Trustee: A person or institution holding and administering property in trust.
(b) The authority shall create a special fund or funds for the sole purpose of paying the principal of and interest on such bonds, loans or other indebtedness and into which taxes allocated to the authority pursuant to § 13-20-205(a)(2) will be, from time to time, deposited. The authority shall be obligated and bound to set aside from such taxes an amount sufficient to pay such indebtedness as the same shall become due, and, as provided in the proceedings authorizing the incurrence of any indebtedness of the authority, to maintain adequate reserves for the payment of such indebtedness.
(c) The special fund shall be used solely for the payment of principal of and interest, and redemption premiums, on bonds, loans and other indebtedness incurred by the authority in connection with the redevelopment project financed from the proceeds of such bonds, loans or other indebtedness.
(d) Notwithstanding any other provision of this chapter to the contrary, in order to secure any bonds, notes or other indebtedness incurred by the authority, the authority shall have the power to mortgage all or any part of its property, real or personal, then owned or thereafter acquired, and thereby to vest in a trustee or trustees the right, upon the happening of an event of default, as defined in such mortgage, to foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings.
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