9-9-104 - Covenant against charging special revenues.
9-9-104. Covenant against charging special revenues.
The state of Tennessee hereby covenants that no bonds or other obligations will be made a charge upon the special revenues consisting of the proceeds of the gasoline tax, franchise tax, the special tax on petroleum products provided for by § 67-3-203 and motor vehicle registration fees pledged under the provisions of this chapter, in addition to the obligations and charges authorized by this chapter, unless the revenues pledged by § 9-9-103 or the aggregate of the pledged gasoline tax, the special tax on petroleum products provided for by § 67-3-203, motor vehicle registration fees and one third (1/3) of the entire annual proceeds of franchise and excise taxes imposed by the franchise and excise tax laws, compiled in title 67, chapter 4, parts 21 and 20, whichever sum is lower, for the last preceding fiscal year shall have aggregated not less than one hundred fifty percent (150%) of the amount necessary to pay the annual interest upon all outstanding obligations and charges, for the payment of which such revenues are pledged, and the annual interest upon the obligations then proposed to be issued, together with the annual amount necessary for the amortization of the outstanding obligations and charges and the obligations then proposed to be issued; provided, that in determining the outstanding obligations and charges, there shall be excluded any outstanding bonds with respect to which refunding bonds have been issued and sold and the proceeds of which are to be applied to retire the outstanding bonds. Bonds or other obligations, in addition to those authorized by this chapter, which may be issued within the limitations above prescribed, shall rank on a parity with all obligations issued under this chapter and Acts 1937, ch. 165, with respect to the payment thereof out of the aforementioned special revenues.
[Acts 1937, ch. 165, § 13 (Williams, § 1811.24); impl. am. Acts 1949, ch. 52, § 1; modified; Acts 1977, ch. 3, § 1; T.C.A. (orig. ed.), § 9-905; Acts 1998, ch. 582, §§ 1, 8.]