Tenn. Code Ann. § 41-8-109: Grants or loans to counties by state funding board - Restrictions

(a) The state funding board is authorized to make grants or loans, as funds are available, to any approved applicant county to assist that county in the construction or renovation of a correctional facility.

(b) No county shall award any construction contract in reliance on a grant or loan until such time as the state funding board and the county have executed a contract pursuant to § 41-8-110 or § 41-8-111 , and until the state building commission has acted pursuant to § 4-15-102 , when an application for a grant has been approved.