(a) The revenues derived from the operation of the properties and facilities authorized and the proceeds derived from the sale, transfer, lease or other disposition of any land or other facilities shall be applied and used as follows:

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Terms Used In Tennessee Code 64-2-409

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(1) The payment of all operating expenses of the authority, except that the proceeds derived from the sale, transfer or other disposition of any land or other facilities shall not be used for this purpose;
(2) The establishment of necessary reserves for contingencies, depreciation, maintenance, replacement of properties and facilities, storage transfer facilities and any other facilities or other purposes as may be required under any bond indenture or as the authority directors may deem necessary or desirable. This subdivision (a)(2) shall not be construed to authorize the authority to exercise these provisions in a manner inconsistent with statutes, regulations or procedures governing such matters in county government; and
(3) Any revenue or proceeds remaining after all the above items have been provided for shall be held and used for the further development of and for additions to the authority facilities and for the acquisition or construction of new facilities that may become necessary or desirable to further the purposes of this part. None of such revenue shall go into the general funds of the participating counties, except as may be directed by the authority directors.
(b) Nothing in this section shall be construed to authorize the authority to administer these provisions in a manner inconsistent with statutes, regulations or procedures governing such transactions and activities carried out by county governments, and the authority shall assure that procedures and practices covered by this section conform with statutes, regulations and procedures to which county governments must adhere. All revenues shall be received, deposited and accounted for and all financial transactions shall be handled consistent with the requirements of statutes, regulations and procedures affecting county government.
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