68-11-610 - Pledges of full faith and credit and taxing power as additional security Enforcement of bondholders' rights. - Tennessee Statutes

68-11-610. Pledges of full faith and credit and taxing power as additional security Enforcement of bondholders' rights.

(a)  (1)  If desired by the governing body in order to further secure the payment of any of the bonds issued pursuant to this part, and interest on the bonds, any municipality shall have the power as to the bonds to pledge in addition to all other revenues and funds provided for in this part, the full faith and credit and unlimited taxing power of the county or municipality to the punctual payment of the principal of and interest on the bonds.

     (2)  In the event the pledge of full faith and credit and unlimited taxing power of the county or municipality is given, any holder or holders of the bonds, including a trustee or trustees for holders of such bonds, shall have the right, in addition to all other rights, by mandamus or other suit, action or proceedings in any court of competent jurisdiction, to enforce the holder's or holders', or any such trustee's or trustees' rights against the municipality, and the governing body of the county or municipality and any officer, agent or employee of the county or municipality, including, but not limited to, the right to require the county or municipality and governing body and any proper officer, agent or employee of the county or municipality, to assess, levy and collect taxes and other revenues and charges adequate to carry out any agreement as to, or pledge of, such taxes, revenues and charges.

(b)  The taxes authorized to be pledged in this part shall be levied without limit as to rate or amount upon all taxable property within the county or municipality, and all such taxes to be levied are declared to have been levied for county and corporation purposes, respectively, within the meaning of article II, § 29 of the Constitution of Tennessee.

[Acts 1974, ch. 601, § 10; T.C.A., § 53-5910.]