IF, after July 1, 1998, a locality is deemed by the state to be a municipality for purposes of distributing grants or state-shared taxes; AND
IF, thereafter the locality, acting in good faith and under color of law and for municipal purposes, receives and expends or obligates grants or state-shared taxes; AND
IF, thereafter it is judicially determined that the locality was not incorporated in accordance with the requirements of law and, therefore, is not a municipality; THEN
Neither the locality nor any person who acted on behalf of the locality is required to return or repay such grants or state-shared taxes; however, subject to § 67-5-104(c), any portion of such grants or state-shared taxes, that remains unexpended and unobligated, shall become assets of the county.
Structure 2021 Tennessee Code
Chapter 4 - State Funds, State Budget and Appropriations
§ 9-4-5301. Statutes Providing Base Apportionment for Determining Additional State Revenues
§ 9-4-5304. Procedure for Meeting Requirement That State Share Increased Expenditures
§ 9-4-5305. Construction of This Part
§ 9-4-5306. Locality Does Not Meet Municipality Requirements