§ 68-221-501. Short Title
This part shall be known and may be cited as the “Waterworks Construction Loan Act of 1974.”
§ 68-221-502. Part Definitions
As used in this part, unless the context otherwise requires: “Authority” means the Tennessee local development authority, a public agency, created by title 4, chapter 31, or its successor; “Construction” means the erection, building, acquisition, alteration, reconstruction, improvement or extension of waterworks, preliminary planning to determine the economic and engineering feasibility of waterworks, the engineering, […]
§ 68-221-503. Authorization for Loans to Municipalities for Waterworks — Funding — Conditions of Approval and Repayment — Loan Eligibility of Municipalities Not Receiving State-Shared Taxes
The state is authorized to make loans to any municipality for the construction of waterworks. Such loans shall be made from the proceeds of bonds or notes issued by the authority for the purpose of making such loans. The authority shall establish the repayment schedule for the repayment of the loan, and the loan agreement, […]
§ 68-221-504. Rules and Regulations
The department may adopt rules and regulations necessary for the effective administration of this part, including, but not limited to, the submission of plans, the procedures to be followed in applying for loans, and for enforcing agreements entered into by municipalities with the department with respect to such loans. Such rules and regulations shall require […]
§ 68-221-505. Appropriation of Funds
There are authorized to be appropriated to the department such funds as the general assembly may appropriate to enable the department to carry out its functions under this part.
§ 68-221-506. Loan Agreements With Municipalities — Provisions of Agreement
The state may enter into agreements with municipalities, and any municipality may enter into an agreement with the state for loans herein provided, subject, however, to any existing contractual obligations of the municipality. Any loan agreement may include such provisions as may be agreed upon by the parties thereto, and shall include, in substance, the […]
§ 68-221-507. Additional Agreements or Securities Required for Issuance of Bonds
The authority has the right to enter into such further agreements with a municipality and require such further guarantees or securities as it may see fit prior to, or simultaneously with, the issuance of bonds, or to refuse to issue such bonds until such agreements or securities, in any form which the authority may elect, […]
§ 68-221-508. Approval of Loan Agreements — Payments
All loan agreements entered into pursuant to this part shall be subject to approval by the commissioner of finance and administration and, as to form, by the attorney general and reporter. All payments by the state pursuant to such agreements shall be made upon warrant by the commissioner of finance and administration on vouchers approved […]
§ 68-221-509. Allocation of Loan Funds — Criteria
In allocating loan funds to municipalities, the department shall give consideration to, and apply, the following standards and criteria: The need and desirability for water to be supplied by the proposed waterworks construction; The need for upgrading the quality of water of an existing waterworks; The ability of the municipality to secure borrowed money from […]
§ 68-221-510. Payments to State — Water Service Fee — Taxation
The authority shall establish the monthly payment due from the municipality to the state necessary for the municipality to fund the project. The municipality shall establish a water service fee and/or such ad valorem taxes as necessary to provide funds sufficient to pay the monthly payments established, plus the costs of operation and maintenance of […]
§ 68-221-511. Payments Made to Authority — Special Trust Funds
Each municipality having entered into a loan agreement shall remit to the authority such amounts and at such times as shown in the amortization schedule established by the authority. Such funds shall be placed in a special trust fund of the authority created to provide for the payment of principal of, and interest on, bonds […]
§ 68-221-512. Tax Levy to Meet Payments
In the event the revenues of a waterworks project are insufficient to meet the payments as established by the authority, any county, metropolitan government, incorporated town or city may levy a tax on property sufficient to make such payments, which shall be in addition to all other taxes authorized or limited by law.
§ 68-221-513. Failure of Municipality to Comply With Payment Schedule — Withholding of State Funds — Rate Increases
In the event any municipality, having entered into a loan agreement, shall fail to remit funds in accordance with the amortization schedule established by the authority, the commissioner of finance and administration shall deliver by certified mail a written notice of such failure to the municipality within five (5) days of the failure. In the […]
§ 68-221-514. Enforcement of Agreement by the State
The state, either through the authority or the department, shall have the right, in addition to all other rights, by mandamus or other suit, action or proceeding in any court of competent jurisdiction, to require the municipality and the governing body and any proper officer, agent or employee of the municipality to carry out any […]
§ 68-221-515. Limit on Indebtedness Not Applicable
Municipalities may enter into loan agreements under the provisions of this part, notwithstanding and without regard to any limit on indebtedness provided by law.
§ 68-221-516. Action of Municipality by Resolution
All action required or authorized to be taken under this part by the governing body of any municipality may be by resolution, which resolution may be adopted at the meeting of the governing body at which such resolution is introduced, and shall take effect immediately upon its adoption.
§ 68-221-517. Provisions Supplemental
This part is in addition and supplemental to any other law providing for the financing of waterworks of municipalities, and shall not be deemed to amend or repeal any other law. No proceedings by a municipality shall be required for loan agreements hereunder except such as are provided by this part, notwithstanding any provision of […]
§ 68-221-518. Powers of Tennessee Public Utility Commission Unaffected
Nothing in this part shall be construed as impairing the powers and duties of the Tennessee public utility commission with respect to special districts empowered to provide water services.
§ 68-221-519. Loans Made Retroactively
To the extent that a loan is made retroactively under this part for an eligible project that has been financed by other funds, such loan may be used by a municipality for any municipal water purpose.