68-221-612 - Powers to incur debt in anticipation of federal or state aid Sale of bonds to federal agency Issuance of temporary obligations.
68-221-612. Powers to incur debt in anticipation of federal or state aid Sale of bonds to federal agency Issuance of temporary obligations.
(a) (1) Notwithstanding any other provisions of the laws of this state or any of its political subdivisions, any authority which has contracted for and accepted an offer or a grant of federal or state aid, or both, for a particular project for which the authority may raise or expend money, may, upon resolution of its board, incur indebtedness in anticipation of the receipt of such aid for the particular project by issuing its general obligation notes payable in not more than one (1) year, which notes may be renewed from time to time by the issue of other notes; provided, that no notes shall be issued or renewed in an amount which at the time of such issuance or renewal exceeds the unpaid amount of the federal or state aid or both in anticipation of which such notes are issued or renewed.
(2) To any extent that the federal or state aid in anticipation of which the notes were issued when received exceeds the amount of such aid remaining to be paid under contract or accepted offer, plus the amount of any outstanding notes issued in anticipation thereof, it shall be kept in a separate account and used solely for the payment of such outstanding notes.
(b) Every authority has the power and is authorized to:
(1) Sell bonds at private sale to any federal agency without any public advertisement;
(2) Issue interim receipts, certificates or other temporary obligations, in such form and containing such terms, conditions and provisions as the authority issuing the same may determine, pending the preparation or execution of definite bonds for the purpose of financing the construction of a public works project; and
(3) (A) Issue bond anticipation notes in anticipation of the sale of bonds which have been duly authorized, but all such bond anticipation notes, including any renewals thereof, shall finally mature not later than three (3) years from the date of the original notes.
(B) All such bond anticipation notes shall have the same security as the bonds in anticipation of which such notes are issued.
[Acts 1974, ch. 605, § 12; T.C.A., §§ 53-6012, 68-13-612.]