AL Code § 11-92C-9 (2021)
2021 Code of Alabama|Title 11 - Counties and Municipal Corporations.|Title 3 - Provisions Applicable to Counties and Municipal Corporations.|Chapter 92C|Section 11-92C-9 - Bonds of Authority.

Section 11-92C-9Bonds of authority.  (a) Source of payment. All bonds issued by an authority shall be payable solely out of the revenues and receipts derived from the leasing or sale by the board of its projects, or from any other source as may be designated in the proceedings of the board under which the bonds are authorized to be issued. (b) Pledge of revenues, receipts, and other security. The principal and interest on any bonds issued by an authority shall be secured by a pledge of the revenues and receipts out of which the principal and interest may be payable and may be secured by a mortgage and deed of trust or trust indenture conveying as security for the bonds all or any part of the property of the authority from which the revenues or receipts so pledged may be derived. (c) Resolutions. The resolution under which the bonds of an authority are authorized to be issued and any mortgage and deed of trust or trust indenture may contain any agreements and provisions respecting the operation, maintenance, and insurance of the property covered by the mortgage and deed of trust or trust indenture, the use of the revenues and receipts subject to the mortgage and deed of trust or trust indenture, the creation and maintenance of special funds from the revenues and receipts, the rights, duties, and remedies of the parties to any instrument and the parties for the benefit of whom the instrument is made and the rights and remedies available in the event of default as the board shall deem advisable and which are not in conflict with this chapter. Each pledge, agreement, mortgage, and deed of trust or trust indenture made for the benefit or security of any of the bonds of an authority shall continue until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid. (d) Defaults. In the event of default in payment or in any agreements of an authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust or trust indenture executed as security therefor, the rights of any holder of the bonds may be enforced by mandamus, the appointment of a receiver, or either of the remedies, and, if provided in the instrument, the mortgage, and the deed of trust, or trust indenture, may be foreclosed. (e) Execution. All bonds issued by an authority shall be signed by the chair of the board and attested by the secretary, and the seal of the authority shall be affixed thereto, and any interest coupons applicable to the bonds of the authority shall be signed by the chair of the board; provided, that as long as the registrar of the bonds has manually signed an authentication certificate for the bonds, facsimile signatures of both of the officers may be printed or otherwise reproduced on any bonds in lieu of each manually signing the bonds, a facsimile of the seal of the authority may be printed or otherwise reproduced on any bonds in lieu of being manually affixed thereto, and a facsimile of the signature of the chair of the board may be printed or otherwise reproduced on any interest coupons in lieu of manually signing the coupons. (f) General provisions respecting form, interest rate, maturities, sale, and negotiability. Any bonds may be executed and delivered by an authority at any time and from time to time, shall be in the form and denominations and of the tenor and maturities, shall contain provisions not inconsistent with the provisions of this chapter, and shall bear the rate or rates of interest, payable and evidenced in the manner, as may be provided by resolution of the board. Bonds of an authority may be sold at either public or private sale in the manner and at the price or prices and at the time or times as may be determined by the board to be most advantageous. An authority may pay all expenses, premiums, and commissions in connection with any financing performed by the board. All bonds, except bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto issued by an authority shall be construed to be negotiable instruments although payable solely from a specified source. (g) Nature of obligation and source of payment.  (1) All obligations created or assumed and all bonds issued or assumed by an authority shall be solely an obligation of the authority and shall not create an obligation or debt of the state or of any county or of any city. This subdivision shall not be construed to release the original obligor from liability on any bond or other obligation assumed by the authority.  (2) Any bonds issued by an authority shall be limited or special obligations of the authority payable solely out of its revenues and receipts of the authority specified in the proceedings authorizing those bonds. (h) Eligibility for investment. Bonds of an authority are legal investments for executors, administrators, trustees, and other fiduciaries, unless otherwise directed by the court having jurisdiction of the fiduciary relation or by the document that is the source of the fiduciary's authority, and for savings banks and insurance companies organized under the laws of the state. (i) Contracts to secure payment of principal and interest. As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the authority may enter into a contract or contracts binding the authority for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any project owned by the authority or any part or parts thereof, for the imposition and collection of reasonable rates, licenses, rentals, fees, and charges for and the adoption of reasonable regulations respecting any project, for the disposition and application of the authority’s gross revenues or any part thereof, and for any other act or series of acts not inconsistent with this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from the project will be sufficient to operate the project, maintain the same in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from the revenues and maintain the reserves as may be deemed appropriate for the protection of the bonds, the efficient operation of the project, and the making of replacements thereof and capital improvements thereto. Any contract pursuant to this subsection may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any trust indenture made by the authority under this chapter. (Act 2020-72, §9.)