(a) If there are any outstanding debts in the form of bonds or otherwise owed by the municipal corporation at the time of forfeiture of the charter, the county legislative body of the county in which the municipal corporation is located is authorized to levy a special tax within the territory embraced within the corporate limit of the former corporation for the purposes set forth in § 6-52-101. The collection and disposition of such a tax shall be pursuant to § 6-52-102.(b) If a municipal corporation that has forfeited its charter pursuant to this part retains any property or assets, or both, that property or assets, or both shall first be applied to any indebtedness owed by the municipal corporation. If any such property or assets, or both remain after the payment of any indebtedness, then such property or assets, or both shall become the property or assets, or both of the county in which the municipal corporation is located.Acts 1983, ch. 116, § 4.
Tennessee Legal Code