Tennessee § 4-31-506 - Loan agreements.

§ 4-31-506. Loan agreements.

Subject to § 4-31-505 and subject to any existing contractual obligations of the county, the authority may enter into loan agreements with any county, and any county may enter into loan agreements with the authority for loans for equipment for the use of county or volunteer fire departments serving the unincorporated area of the county. Any loan agreement may include such provisions as may be agreed upon by the authority and the county, subject to § 4-31-505 and shall additionally include, in substance, the following: The amount of the loan, not to exceed the estimated reasonable cost of the equipment to be purchased, as determined by the authority; and An agreement by the local government unit to: Proceed expeditiously with the purchase in accordance with the loan agreement approved pursuant to this part; Not dispose of the equipment without the prior approval of the authority; Pledge any available sources of revenue to make payment according to the repayment schedule established by the authority, including state-shared taxes, and to make such payments; and Establish and maintain adequate financial records for the equipment, including maintaining an inventory, and cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of such audits to the comptroller of the treasury. Failure of a county to file the audit required by subdivision (b)(2)(D) with the comptroller of the treasury each year, until the loan, together with interest is totally repaid, constitutes a Class A misdemeanor and anyone violating this provision, upon conviction, shall be liable for a fine of not less than ten dollars ($10.00) nor more than one hundred dollars ($100) for each violation, within the discretion of the court, and each day of continued violation constitutes a separate offense. Acts 1986, ch. 846, § 14. Cross-References. Penalty for Class A misdemeanor, 40-35-111.