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.
Structure 2021 Tennessee Code
Chapter 13 - Loans to Local Subdivisions in Emergencies
Part 2 - Emergency Financial Aid to Local Governments
§ 9-13-202. Legislative Intent
§ 9-13-204. Loan Guarantees — Cutoff Date for Guarantee
§ 9-13-208. Notice of Director's Approval for Purchases or Payments
§ 9-13-210. Reports to Legislative Committees
§ 9-13-211. Penalty for Nonperformance
§ 9-13-212. Issuance of Notes — Guidelines — Use for Operational Expenses