If any person to whom the work, or any portion of the work, in an improvement district has been let fails to perform the work according to the terms specified in the contract, then the cash deposited by the person shall be forfeited for the benefit of such district and be paid into its fund; or if bond has been given by the contracting party so failing, then recovery of the damages sustained may be had by suit in the name of the payee in such bond for the use of the district, and the damage on judgment for the damages collected and paid into the fund of the district.Acts 1909, ch. 185, § 37; Shan., § 3871a145; Code 1932, § 4380; T.C.A. (orig. ed.), § 70-1212; T.C.A. § 69-6-706.
Tennessee Legal Code