The following documents provide guidance for the needed actions after the issuance of certain debt. Please contact your LGF analyst for assistance.
State legislators passed the Anti-Kicking the Can Act (the "Act") in 2014 which is codified in Tenn. Code Ann. § 9-21-133. Pursuant to the Act, prior to the adoption of any action authorizing the issuance of balloon indebtedness, local governments shall submit a plan of balloon indebtedness to the Comptroller of the Treasury for approval. Tenn. Code Ann. § 9-21-133 authorizes the State Funding Board to establish guidelines with respect to approval by the Comptroller of the Treasury and may exempt certain classes of indebtedness from such approval. Local governments shall comply with the following prior to authorizing the issuance of balloon indebtedness.
Is This Balloon Indebtedness? A Flowchart Explanation of the Anti Kicking the Can Act
Pursuant to Tenn. Code Ann. § 9-21-130, the State Funding Board has adopted Guidelines for Interest Rate and Foward Purchase Agreements. Local governments planning to issue debt with an interest rate agreement, also referred to as a swap, or a forward purchase agreement, must comply with the following guidelines: