48-101-301 - Part definitions. - Tennessee Statutes

48-101-301. Part definitions.

As used in this part, unless the context otherwise requires:

     (1)  “Bonds” means bonds, notes, interim certificates, or other obligations of a corporation issued pursuant to this part;

     (2)  “Contracting party” or “other contracting party” means any party to a sale contract or loan agreement except the corporation;

     (3)  “Corporation” means any corporation organized pursuant to the provisions of this part;

     (4)  “Educational institutions for physically and mentally retarded individuals” means any institution organized for-profit or not for profit authorized by law to provide a program for educating and training physically and/or mentally retarded individuals;

     (5)  “Enterprise” means the health, educational or housing operations to be carried on with the facilities of a project;

     (6)  “Governing body” means the legislative body of a county or the board or other body in which the general legislative powers of a city or town are vested;

     (7)  “Hospital institution” means any city, county, metropolitan government, or other local governmental entity, or any institution organized for-profit or not for profit authorized by law to provide congregate elderly facilities or extended care, hospital, or nursing home facilities in this state, or any finance subsidiary of such hospital institution;

     (8)  “Housing” means any multi-family housing facilities to be occupied by persons of low and/or moderate income, and/or elderly, and/or handicapped persons as may be determined by the board of directors, which determination shall be conclusive;

     (9)  “Institution for higher education” means any institution organized for-profit or not for profit authorized by law to provide a program of education at the primary level, secondary level or beyond the secondary level in this state;

     (10)  “Lease” includes a lease containing an option to purchase the project for a nominal sum upon payment in full, or provision therefor, of all bonds issued in connection with the project and all interest thereon and all other expenses in connection with the project, and a lease containing an option to purchase the project at any time, as provided therein, upon payment of the purchase price which shall be sufficient to pay all bonds issued in connection with the project and all interest thereon and all other expenses incurred in connection with the project, but which payment may be made in the form of one (1) or more notes, debentures, bonds, or other secured or unsecured debt obligations of the lessee providing for timely payments, including, but not limited to, interest thereon sufficient for such purposes and delivered to the corporation or to the trustee under the indenture pursuant to which the bonds were issued;

     (11)  “Loan agreement” means an agreement providing for a corporation to loan the proceeds derived from the issuance of bonds pursuant to this part to one (1) or more contracting parties to be used to pay the cost of one (1) or more projects and providing for the repayment of such loan by the other contracting party or parties, and which may provide for such loans to be secured or evidenced by one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of the contracting party or parties, delivered to the corporation or to the trustee under the indenture pursuant to which the bonds were issued;

     (12)  “Multi-family housing facilities” or “Multi-family residential units” for a project in the case of a housing facility may include or consist of single family structures, on contiguous or non contiguous sites for such a project located in counties having a population in excess of eight hundred thousand (800,000) according to the 1990 federal census or any subsequent federal census;

     (13)  “Municipality” means any county or incorporated city or town in this state with respect to which a corporation may be organized;

     (14)  (A)  “Project,” in the case of an institution for higher education, means a structure, facility, machinery, equipment or other property suitable for use by an institution for higher education in connection with its operations or proposed operations, including, but not limited to, a site therefor, an academic facility, administrative facility, agricultural facility, assembly hall, athletic facility, auditorium, campus, communication facility, computer facility, continuing education facility, classroom, dining hall, dormitory, exhibition hall, firefighting facility, fire prevention facility, food service and preparation facility, gymnasium, health care facility, hospital, housing, laboratory, laundry, maintenance facility, medical facility, museum, offices, parking area, physical education facility, recreational facility, research facility, storage facility, student union, study facility, theatre, utility or any combination of the foregoing;

          (B)  “Project,” in the case of a private institution for higher education, also means, if such institution is organized not for profit, costs and expenses incurred by such institution in connection with the operation thereof, including, but not necessarily limited to, maintenance costs, heating and lighting expenditures, repair and replacement expenses, faculty salaries and administrative costs and expenses; provided, that any agreements entered into between the corporation and the institution as security for the payment of principal and interest on bonds issued to finance such a project must require that a borrowing institution shall repay all amounts received by it for such projects within two (2) years from the date such funds are received by it; provided, that the foregoing two-year limitation shall not apply in the case of bonds issued for the purpose of refinancing, or reimbursing, costs and expenses incurred by a private institution for higher education in connection with the operation by it of hospital and related facilities for the training of students enrolled in its medical education program; and provided further, that bonds for such refinancing or reimbursement purpose are not to be issued after July 1, 1994, but bonds, if any, issued for such purpose before such date shall, if issued in compliance with the other provisions hereof, be and remain valid, from and after such issuance termination date and shall not in any manner be limited or affected by such termination of issuance authority; provided, that the foregoing two-year limitation shall not apply in the case of bonds issued for the purpose of refinancing, or reimbursing, costs and expenses incurred by a private institution for higher education in connection with the operation by it of hospital and related facilities for the training of students enrolled in its medical education program; and provided further, that bonds for such refinancing or reimbursement purpose shall not be issued after July 1, 1995, but bonds, if any, issued for each purpose before such date shall, if issued in compliance with the other provisions hereof, be and remain valid, from and after such issuance termination date and shall not in any manner be limited or affected by such termination of issuance authority;

          (C)  “Project” shall also include loans to a nonprofit corporation by any corporation receiving from the Tennessee state school bond authority pursuant to § 49-3-1210 allocation for the issuance of Qualified Zone Academy Bonds within the meaning of § 1397(E) of the Internal Revenue Code of 1986, as amended, when the proceeds of which are granted to or spent on behalf of one or more public institutions for higher education to pay costs of developing course materials for education and to train teachers and other school personnel. Such nonprofit corporation shall be deemed an institution for higher education for purposes of this part;

          (D)  “Project,” in the case of a hospital institution, means a structure, facility, machinery, equipment or other property suitable for use by a hospital institution in connection with its operations or proposed operations, including, without limitation, a site therefor, a communication facility, clinic, computer facility, congregate elderly facilities, dining hall, elderly housing, extended care facilities, firefighting facility, fire prevention facility, food service and preparation facility, health care facility, hospital, interns' residence, laboratory, laundry, maintenance facility, nurses' residence, nursing home, nonprofit home for the aged, nursing school, offices, parking area, pharmacy, recreational facility, research facility, storage facility, utility, x-ray facility, or any combination of the foregoing; and, also, funds to be used by any hospital institution organized not for profit in connection with the operation thereof, including, but not limited to, maintenance and supply costs, heating, lighting and other utility expenditures, repair and replacement expenses, employee compensation and administrative costs and expenses; furthermore, in the case of a hospital institution, “project” means the purchase of the accounts receivable of any hospital institution;

          (E)  “Project,” in the case of an educational facility for physically and mentally retarded individuals, means a structure, facility, machinery, equipment or other property suitable for use by an educational facility for physically and mentally retarded individuals in connection with its operation or proposed operations, including, without limitation, a site therefor, an academic facility, administrative facility, assembly halls, athletic facility, auditorium, campus, communications facility, continuing education facility, classrooms, dining halls, dormitory, exhibition halls, firefighting and fire prevention facility, food service and preparation facility, gymnasium, health care facility, hospital, housing, laboratory, laundry, maintenance facility, medical facilities, museum, offices, parking area, physical education facility, recreation facility, research facilities, storage, student union, study facility, theatre, utility, residence halls, or any combination of the foregoing;

          (F)  “Project” also means a structure, facility, machinery, equipment or other property suitable for use by a not for profit blood bank or blood center in connection with its operations or proposed operations;

          (G)  “Project,” in the case of a housing facility, means a structure, facility, machinery, equipment or other property suitable for use by a housing facility in connection with its operation or proposed operations, including, but not limited to, a site therefor, multi-family residential units, administrative facility, assembly halls, athletic facility, communications facility, dining and food service and preparation facility, gymnasium, health care facility, laundry, maintenance facility, parking area, recreation facility, storage, theatre, utility, or any combination of the foregoing; and

          (H)  “Project,” in the case of a housing facility, also means single family residential units for purchase where such units are financed by a for-profit, not-for-profit or governmental entity or any combination of such entities where payments to affected tax jurisdictions are made in lieu of property taxes in amounts equal to the property taxes which would be due if the property were fully taxable, and the bonds or notes for such financing shall:

                (i)  Be purchased, guaranteed, or otherwise supported by a government sponsored mortgage entity participating in the residential mortgages market that are formed under a federal charter, whether owned by the federal government or by stockholders; and

                (ii)  Not be exempt from taxation under the Internal Revenue Code of 1986;

     (15)  “Revenues” of a project, or derived from a project, include payments under a lease or sale contract and repayments under a loan agreement, or under notes, debentures, bonds and other secured or unsecured debt obligations of a lessee or contracting party delivered as herein provided; and

     (16)  “Sale contract” means a contract providing for the sale of one (1) or more projects to one (1) or more contracting parties and includes a contract providing for payment of the purchase price in one (1) or more installments. If the sale contract permits title to the project to pass to the other contracting party or parties prior to payment in full of the entire purchase price, it shall also provide for the other contracting party or parties to deliver to the corporation or to the trustee under the indenture pursuant to which the bonds were issued one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of such contracting party or parties providing for timely payments, including, without limitation, interest thereon for the balance of the purchase price at or prior to the passage of such title.

[Acts 1969, ch. 333, § 1; 1971, ch. 413, §§ 1-4; 1975, ch. 16, § 1; 1975, ch. 29, §§ 1, 2; 1975, ch. 262, § 1; 1976, ch. 514, § 1; impl. am. Acts 1978, ch. 934, §§ 7, 36; 1982, ch. 629, § 1; 1982, ch. 947, § 2; 1983, ch. 76, § 1; 1983, ch. 187, § 1; T.C.A., § 48-1901; Acts 1985, ch. 243, § 1; 1985, ch. 307, § 1; 1988, ch. 1014, §§ 1, 2; 1990, ch. 1086, §§ 1, 2; 1993, ch. 427, § 1; 1994, ch. 912, § 1; T.C.A., § 48-3-301; Acts 1999, ch. 41, § 1; 2000, ch. 979, § 1; 2000, ch. 986, §§ 1-3; 2001, ch. 373, § 1.]