What does T.C.A. §§ 9-21-701 regulate?

The relevant statute, T.C.A. §§ 9-21-701, specifically regulates the issuance of grant anticipation notes. These notes are a type of short-term debt instrument that municipalities and other governmental entities can issue in anticipation of receiving anticipated grants. This law is crucial for local governments as it allows them to bridge funding gaps and manage cash flow while awaiting disbursements from grant funds.

Grant anticipation notes differ significantly from other types of notes, such as bond anticipation notes or tax anticipation notes, which are regulated by different sections of the law. The ability to issue grant anticipation notes enhances a municipality's financial flexibility, as it allows immediate access to funds to initiate projects or cover expenses related to the anticipated grant without delay. Understanding this specific regulation helps municipal finance officers effectively manage funding strategies and ensure compliance with applicable laws when dealing with grant finance.