As used in this chapter, unless the context otherwise requires:(1) 'Exempt lease financing':(A) Means a lease financing with a principal amount not exceeding one hundred thousand dollars ($100,000); and(B) Does not include a lease financing if the principal amount of that lease financing together with the principal amount of all exempt lease financings issued by the public entity previously in the same fiscal year exceeds one hundred thousand dollars ($100,000);(2) 'Governing body' means the body in which the general legislative powers of a public entity are vested;(3) 'Interest rate' means an interest rate determined using the true interest cost method and taking into account estimated financing costs and charges in determining such rate;(4) 'Lease' means an agreement for the use of property under which a public entity is the lessee;(5) 'Lease financing' means any lease under which:(A) The rental payments payable thereunder by the public entity include an identifiable interest component; or(B) The lessee has the right to purchase the property that is subject to the lease at a price that is not based upon the fair market value of the property at the time of the purchase;(6) component; or(B) The lessee has the right to purchase the property that is subject to the lease at a price that is not based upon the fair market value of the property at the time of the purchase;(6) 'Non-appropriation clause' means a provision in a lease financing that, in effect, allows a governing body to terminate a lease financing by not appropriating funds to make payments under the lease financing in any fiscal year;(7) 'Public entity': (A) Has the same meaning as defined in § 9-21-134; and(B) Does not include the state; and(8) 'State' means the state of Tennessee and any agency, authority, branch, bureau, commission, corporation, department, or instrumentality of the state.Added by 2021 Tenn. Acts, ch. 196, s 1, eff. 4/22/2021.
Tennessee Legal Code