54-2-209 - Loan repayment Withholding funds on failure of repayment. - Tennessee Statutes

54-2-209. Loan repayment Withholding funds on failure of repayment.

(a)  Payments on the loan shall be made in accordance with the amortization schedule set forth by the committee and shall be made to the state treasurer.

(b)  Upon receipt of amortization payments, the state treasurer shall deposit the payments to the general fund account of the state.

(c)  If any political subdivision that receives a loan in accordance with the terms of this part fails to meet the scheduled payment for amortization of the loan, the state treasurer shall withhold funds distributable to the political subdivision from collection of gasoline and motor vehicle fuel taxes as set forth in chapter 4, parts 1 and 2, of this title in an amount sufficient to meet the payments set forth in the amortization schedule. The funds withheld shall be paid to the general fund in lieu of payments due in accordance with the amortization schedule.

[Acts 1971, ch. 262, § 9; T.C.A., § 54-221.]