64-1-1210 - Security for bonds, refunding bonds and notes [Enactment contingent on county approval; see the Compiler's notes]. - Tennessee Statutes

64-1-1210. Security for bonds, refunding bonds and notes [Enactment contingent on county approval; see the Compiler's notes].

(a)  The principal and premium, if any, and interest on any bonds, refunding bonds and notes may be secured by a pledge of revenues and receipts of a system. The proceedings under which the bonds, refunding bonds, or notes are authorized to be issued may contain any agreements, provisions and covenants respecting the maintenance of such system or other facilities covered thereby, the fixing and collection of rents, fees or payments with respect to any system or portions thereof covered by such proceedings, the creation and maintenance of special funds from such revenues and from the proceeds of such bonds, refunding bonds and notes and the rights and remedies available in the event of default, all as the board shall deem advisable and not in conflict with the provisions of this part. To the extent provided in the proceedings authorizing any bonds, refunding bonds or notes, each pledge and agreement made for the benefit of security of any of the bonds, refunding bonds or notes shall continue in effect until the principal of and interest on the bonds, refunding bonds or notes for the benefit of which the same were made shall have been fully paid or adequate provision for the payment thereof shall have been made by the authority. In the event of a default in such payment or in any agreements of the authority made as part of the proceedings under which the bonds, refunding bonds or notes were issued, such payment or agreement may be enforced by suit, mandamus, or the appointment of a receiver in equity, or the proceedings under which the bonds, refunding bonds or notes are issued.

(b)  The board may designate the appropriate officials to execute all documents necessary to guarantee or in any other manner to secure the payment of the bonds or notes of the authority; provided, however, the approval of the governing body of the county or district to such guarantee or security shall have been obtained before the execution of such documents; provided, further prior to any meeting where such authorization will be considered by the governing body of the county or district, the governing body shall cause reasonable public notice to be published describing the matter to be considered and containing an estimate of the dollar amount of any contingent liability of the county or district, if such authorization is given.

(c)  Bonds, notes or refunding bonds may constitute a joint obligation of the authority and the county or district. Any such bond, note or refunding bond upon which the county is jointly obligated with the authority may be secured by the full faith and credit and unlimited ad valorem taxing power of the county. Bonds, notes or refunding bonds issued as a joint obligation of the authority and the county shall be issued in the form and manner of title 9, chapter 21, parts 1, 2, and 9, where applicable, and in the event of a conflict between this part and title 9, chapter 21, parts 1, 2, and 9, then the provisions of title 9, chapter 21, parts 1, 2, and 9 shall prevail. Notes issued as a joint obligation of the authority and the county shall be issued in the form and manner of title 9, chapter 21, parts 1, 4, and 5, where applicable, and in the event of a conflict between this part and the provisions of title 9, chapter 21, parts 1, 4, and 5, then the provisions of title 9, chapter 21, parts 1, 4, and 5 shall prevail.

(d)  Any bond, note or refunding bond issued under this part may be secured by a mortgage or deed of trust covering any or all part of the property, real or personal, of the authority. Any pledge, or lien, on revenues, fees, rents, toll or other charges received or receivable by any local government to secure the payment of any bonds, notes or refunding bonds issued pursuant to this part and the interest thereon, shall be valid and binding from the time that the pledge or lien is created and granted and shall inure to the benefit of the holder or holders of any such bonds, notes or refunding bonds until payment in full of the principal and premium and interest thereon. Neither the resolution nor any other instrument granting, creating or giving notice of the pledge of a lien, or other such security interest, need be filed or recorded to preserve or protect the validity or priority of such pledge or lien.

[Acts 2001, ch. 223, § 11.]