(a) Local governments may make internal loans in accordance with procedures for issuance of notes or bonds in part 5, 6, 7, or 8 of this chapter.(b) Local governments may make internal loans in accordance with the procedures of § 9-21-604(b) of all funds derived from the sale of any Tennessee private act hospital established pursuant to private acts of the state and the Private Act Hospital Authority Act of 1996, compiled in title 7, chapter 57, part 6. This section does not authorize the expenditure of funds derived from the sale of a private act hospital for any purpose contrary to law or applicable court order.(c) Guidelines for internal loans for the purposes of this section must be provided by the comptroller of the treasury or the comptroller's designee as authorized in § 4-3-305.(d) Local governments that internally lend restricted monies shall ensure interest is paid for the use of internal monies. At a minimum, the interest rate must be the highest rate currently being earned on other investments, excluding pension investments. If there are no applicable investments, the interest rate must be the amount that could be earned for deposits in the local government investment on other investments, excluding pension investments. If there are no applicable investments, the interest rate must be the amount that could be earned for deposits in the local government investment pool administered by the state department of treasury.Amended by 2021 Tenn. Acts, ch. 128, s 10, eff. 4/13/2021.Amended by 2016 Tenn. Acts, ch. 832, s 1, eff. 7/1/2016.Acts 1994, ch. 806, § 9.
Tennessee Legal Code