7-84-305 - Borrowing in anticipation of bond proceeds authorized.
7-84-305. Borrowing in anticipation of bond proceeds authorized.
(a) The municipality is authorized to issue bonds and notes pursuant to title 9, chapter 21, for the purpose of making payments for the improvements contemplated by this chapter. Such municipality is further authorized to make such payments out of any funds as may be available for such purpose.
(b) (1) The municipality may issue revenue bonds in the manner provided in title 9, chapter 21, including part 3, to finance all costs and expenses incurred in connection with the acquisition or construction of improvements contemplated by this chapter and costs related to the issuance of bonds. In that case, all assessments received pursuant to this chapter by the municipality shall be deemed revenues for purposes of title 9, chapter 21. In such a case, the revenue bonds may be, but are not required to be, additionally secured by the full faith and credit of the municipality.
(2) Any municipality is also authorized to delegate to any industrial development corporation incorporated by the municipality or any other municipality in which the central business improvement district is located the authority to issue the revenue bonds, in which case the municipality shall enter into an agreement with the industrial development corporation pursuant to which the municipality shall agree to promptly pay to the industrial development corporation the assessments, including any interest on the assessments, as collected. The assessments shall be held in trust by the municipality for the benefit of the industrial development corporation when received. The municipality may direct any property owner that is required to pay assessments to make the payments directly to an industrial development corporation or its assignee. If an industrial development corporation issues the bonds, assessments imposed pursuant to this chapter, and any interest collected on the assessments, shall constitute revenues, as defined in § 7-53-101, and improvements and related expenses described in this chapter, whether acquired by the industrial development corporation on behalf of the municipality or by the municipality itself, shall constitute a project as defined in § 7-53-101. Any municipality is authorized to delegate to an industrial development corporation the authority to acquire an improvement described in the ordinance organizing the central business improvement district, or any amendment to the ordinance, on behalf of the municipality. All bonds issued by industrial development corporations pursuant to this section shall be issued in accordance with chapter 53 of this title.
(3) Any municipality is also authorized to delegate to any public building authority the authority to issue the revenue bonds, in which case the municipality shall enter into an agreement with the public building authority pursuant to which the municipality shall agree to promptly pay to the public building authority the assessments, including any interest on the assessments, as collected and the assessments shall be held in trust by the municipality for the benefit of the public building authority when received. The municipality may direct any property owner that is required to pay assessments to make the payments directly to a public building authority or its assignee. If a public building authority issues the bonds, assessments imposed pursuant to this chapter, and any interest collected on the assessments shall constitute revenues, as defined in § 12-10-103 and improvements and related expenses described in this chapter, whether acquired by the public building authority on behalf of the municipality or by the municipality itself, shall constitute a project, as defined in § 12-10-103. Any municipality is authorized to delegate to a public building authority the authority to acquire an improvement described in the ordinance organizing the central business improvement district or any amendment to the ordinance on behalf of the municipality. All bonds issued by public building authorities pursuant to this section shall be issued in accordance with title 12, chapter 10.
(c) At least thirty (30) days prior to the issuance of any bonds or other obligations by any public entity acting pursuant to this chapter, the public entity shall give notice of the proposed issuance of the bonds or other obligations to the state director of local finance and shall also provide the state director with a copy of the ordinance or resolution authorizing the bonds or other obligations.
[Acts 1971, ch. 268, § 36; T.C.A., § 6-3936; Acts 1988, ch. 750, § 38; 2007, ch. 494, § 8.]