7-54-108 - Bond issues and loan agreements Referendum. - Tennessee Statutes

7-54-108. Bond issues and loan agreements Referendum.

(a)  In the event that the issuance of any series of bonds or the entering into of any contract by a municipality, other than a power district, pursuant to the provisions of this chapter, would constitute the giving or loaning of the credit of such municipality to or in aid of any person, company, association or corporation, or would constitute such municipality becoming a stockholder with others in any company, association or corporation, then such bonds shall not be issued or such contract shall not be entered into unless the governing body of the municipality shall, by resolution spread upon its minutes, declare its intention of issuing such bonds or entering such contract and prior to the delivery and payment for any such bonds or entering into such contract, a three-fourths (¾) majority of the registered voters of such municipality voting at an election on the special question of issuing such bonds or entering into such contract shall approve of such bond issue or contract; provided, that no such election shall be necessary in connection with the authorization of refunding bonds.

(b)  The governing body shall, by resolution, direct the county election commission to hold an election on the question of issuing the bonds or entering into such contract.

(c)  It is not necessary to submit to the voters any questions other than the maximum amount of bonds to be issued and the purpose for the bonds or the nature of the contract and the purpose for the contract, as the case may be.

(d)  It is the duty of the governing body of such municipality to enter upon its minutes the results and returns of such election, and thereafter such entry upon its minutes shall be conclusive evidence of the result of such election, and no suit, action or other proceeding contesting the validity of such election shall thereafter be entertained in any of the courts of the state.

(e)  If such election results unfavorably to the proposition, then no second or other election shall be ordered or held until the governing body shall, by resolution, determine that such election may be held.

(f)  Nothing contained in this section or other laws of the state of Tennessee shall be construed to prohibit or restrict municipalities from contracting with one another according to such terms as such municipalities shall agree are reasonable, necessary and appropriate to implement the purposes and intent of this chapter and other laws of the state of Tennessee pertaining to the collection and disposal of solid waste and the construction, operation and maintenance of energy production facilities.

[Acts 1982, ch. 624, § 9; 1987, ch. 250, § 11.]