In connection with any project financed in whole or in part or otherwise aided by a government, whether through a donation of money or property, a loan, the insurance or guarantee of a loan, or otherwise, the authority also has the power to mortgage all or any part of its property, real or personal, then owned or thereafter acquired and thereby to:(1) Vest in a government the right, upon the happening of an event of default, as defined in such mortgage, foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings, so long as a government shall be the holder of any of the bonds secured by such mortgage;(2) Vest in a trustee or trustees the right, upon the happening of an event of default, as defined in such mortgage, foreclose such mortgage through judicial proceedings or through the exercise of a power of sale without judicial proceedings;(3) Vest in other obligees the right to foreclose such mortgage by judicial proceedings; and(4) Vest in any obligee, including a government, the right, in foreclosing any mortgage as aforementioned, foreclose such mortgage as to all or such part or parts of the property covered ceedings; and(4) Vest in any obligee, including a government, the right, in foreclosing any mortgage as aforementioned, foreclose such mortgage as to all or such part or parts of the property covered thereby as such obligee, in its absolute discretion, shall elect; the institution, prosecution and conclusion of any such foreclosure proceedings and/or sale of any such parts of the mortgaged property shall not affect in any manner or to any extent the lien of the mortgage on the parts of the mortgaged property not included in such proceedings or not sold as aforementioned.Acts 1935 (Ex. Sess.), ch. 20, § 17; C. Supp. 1950, § 3647.16 (Williams, § 3647.17); T.C.A. (orig. ed.), § 13-1104.
Tennessee Legal Code