What does T.C.A. §§ 9-21-408 govern?

T.C.A. §§ 9-21-408 specifically governs the interest rates applicable to interfund borrowing. This section of the Tennessee Code Annotated outlines how municipalities can borrow funds between different funds within their own accounting systems. The law ensures that the interest rates charged for such borrowing are fair and in accordance with regulatory standards.

Understanding this is crucial for municipal finance officers, as interfund borrowing can be an important tool for managing cash flow and ensuring that funds are available where needed without having to approach external lenders. By clarifying the terms and interest rates for these transactions, the statute helps maintain transparency and fiscal responsibility in a municipality’s financial practices.