Cline v. Red Bank Utility Dist.

The Red Bank Utility District was erected in Hamilton County, Tennessee, pursuant to the provisions of Chapter 248 of the Public Acts of 1937. The District issued *257revenue bonds as provided in said act for the purpose'of providing a water and sewer system for the Community of Red Bank.

It is conceded that the District was a non profit municipality, and that all revenue derived from users of the sewer system was applied to the payment of the bonds as well as accrued interest thereon. Section Eleven (11) of the Act expressly provides for a “statutory” lien upon the system, including ‘ ‘ all…