T.C.A. § 9-21-102. Intent. “It is the intent and purpose of this chapter to provide a uniform and comprehensive statutory framework authorizing any local government to issue general obligation bonds and revenue bonds for public works projects, general obligation bonds for certain unfunded pension obligation, general obligation refunding bonds, revenue refunding bonds, bond anticipation notes, capital outlay notes, grant anticipation notes, and tax anticipation notes, and to authorize the destruction of bonds, notes and coupons.” This T.C.A. chapter describes in detail issues of all debt obligation and related purposes of debt.
T.C.A. §9-21-103. No indebtedness limit. “Bonds or notes may be issued under this chapter, notwithstanding and without regard to any limit on indebtedness provided by law.” The law allows unlimited indebtedness; however, a county’s debt ratios would gauge the amount of risk indebtedness the county may have, and thus would be a factor in determining the interest rates.
Money can be borrowed for the capital projects, as well as for anticipated borrowing purposes such as, tax, grant and revenue anticipation notes. These instruments are not covered in detail since their purpose is short term in nature (generally less than one year) and repaid upon revenue being received or permanent debt being issued. The following describes the issuance of debt instruments which are considered longer term in nature.