TCA § 68-221-1312 — Powers to incur debt in anticipation of federal or state aid — Sale of bonds to federal agency — Issuance of temporary obligations

Notwithstanding any other laws of this state or any of this state's political subdivisions, any authority that has contracted for and accepted an offer or a grant of federal or state aid, or both, for a particular project for which the authority may raise or expend money, may, upon resolution of its board, incur indebtedness in anticipation of the receipt of the aid for the particular project by issuing the authority's general obligation notes payable in not more than one (1) year, which notes may be renewed from time to time by the issue of other notes; provided, that no notes shall be issued or renewed in an amount that at the time of issuance or renewal exceeds the unpaid amount of the federal or state aid, or both, in anticipation of which the notes are issued or renewed. To any extent that the federal or state aid in anticipation of which the notes were issued when received exceeds the amount of aid remaining to be paid under contract or accepted offer, plus the amount of any outstanding notes issued in anticipation of the state or federal aid, the excess shall be kept in a separate account and used solely for the payment of the outstanding notes. Every authority has the power and is authorized to: Sell bonds at private sale to any federal agency without any public advertisement; Issue interim receipts, certificates or other temporary obligations, in such form and containing such terms, conditions and provisions as the authority issuing the interim receipts, certificates or other temporary obligations may determine, pending the preparation or execution of definite bonds for the purpose of financing the construction of a public works project; and Issue bond anticipation notes in anticipation of the sale of bonds that have been duly authorized, but all those bond anticipation notes, including any renewals of the bond anticipation notes, shall finally mature not later than three (3) years from the date of the original notes. All such bond anticipation notes shall have the same security as the bonds in anticipation of which the notes are issued.