7-56-210 - Application of revenues and proceeds. - Tennessee Statutes

7-56-210. Application of revenues and proceeds.

(a)  The revenues derived from the operation of the properties and facilities authorized, and the proceeds derived from the sale, transfer, lease or other disposition of any land or other facilities, shall be applied and used as provided in this section. All revenues shall be received, deposited and accounted for and all financial transactions shall be handled consistent with the requirements of statutes, regulations and procedures affecting county government.

(b)  Revenues and proceeds shall be applied as follows:

     (1)  The payment of all operating and maintenance expenses of the authority, except that the proceeds derived from the sale, transfer, or other disposition of any land or other facilities shall not be used for operations of the authority;

     (2)  Payment when due of all bonds, notes, loan agreements, lease-purchase agreements and related contracts to the bonds, notes, loan agreements, lease-purchase agreements for the payment of which such revenue is or shall have been pledged, charged, or otherwise encumbered, including reasonable reserves for the payment of the bonds, notes, loan agreements, lease-purchase agreements;

     (3)  Payment of all other contracts and agreements of the authority; and

     (4)  Any revenue or proceeds remaining after all the items in subdivisions (b)(1)-(b)(3) have been provided for shall be held and used for the further development of and for additions to the authority's facilities and for the acquisition or construction of new facilities that may become necessary or desirable to further the purposes of this part. None of such revenue shall go into the general funds of the participating counties, except as may be directed by the directors of the authority.

[Acts 1983, ch. 221, § 10; 2004, ch. 672, § 7.]