reglab/statecodes huggingface dataset:
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-525 - Board of Directors.

Section 11-50-525
Board of directors.
The government of the corporation shall be vested in the board, which may by resolution exercise or provide for the exercise of all the powers of the corporation. The board shall be composed of one director from each municipality located in the power district having a population of 1,000 or more inhabitants according to the last or any future federal census, whose election shall be certified to the corporation by the clerk of such municipality as hereinafter provided. The governing body of each such municipality having such population may elect a director from such municipality. The election of each such director shall be certified to the corporation by the clerk of the municipality whose governing body shall make such election, as and when any such election shall be so made. The directors so certified shall constitute the board, and a majority thereof at any time existing shall constitute a quorum of the board for the transaction of business. The directors shall elect a chairman from their number. The board may adopt all bylaws it may deem advisable respecting its organization and meetings and the management of the affairs of the corporation. Each director shall hold office for one year from the date of his election and thereafter until his successor shall be elected, and he may succeed himself, but he may be removed at any time without cause by the governing body by whom he was elected. Should any director die while serving as such, or should his term of office expire or should he resign or be removed therefrom, he shall be succeeded for his unexpired term by a successor elected by the governing body of the same municipality. Each director must be a resident of and an elector and property owner in the municipality by whose governing body he was elected, but no director shall be an elective officer of such municipality. Each director of the corporation shall receive compensation from the corporation for his services as director at the rate of $10.00 for each day he shall attend meetings of the board or for each day he shall be engaged upon business of the corporation, not to exceed in the aggregate the sum of $500.00 in any one year, and he shall also be entitled to be reimbursed for actual and necessary expenses incurred by him in the performance of his duties. All proceedings had and done by the board shall be transcribed by the secretary of the corporation and retained in a substantially bound book. Copies of such proceedings, when certified by the secretary of the corporation under the seal of the corporation, shall be received in all courts as prima facie evidence of the matters and things therein certified.
(Acts 1943, No. 158, p. 142, §5.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-526 - Bonds - Sale or Issuance Generally.

Section 11-50-526
Bonds - Sale or issuance generally.
The corporation may issue bonds at any time and from time to time as the board may determine to be most advantageous for the purpose of paying the purchase price of and all expenses incurred in connection with the acquisition of any properties or other assets of the corporation and for the purpose of furnishing adequate working capital for the corporation. Such bonds shall be revenue bonds payable solely out of the revenues derived from the operation of all or any part of any utility owned by the corporation as may be provided at the time of the authorization of such bonds. All bonds shall be signed by such officer or officers as the board may direct, but the facsimile of any signature may be impressed on any interest coupons in lieu of the original signature. The bonds shall be in such form, whether registered or bearer, shall be in such denominations, shall bear such dates and have such maturities not exceeding 40 years from their respective dates, may be in one or more series, shall contain such provisions not inconsistent herewith, shall bear such rate or rates of interest payable and evidenced in such manner, shall be payable at such place or places and shall be subject to such terms of redemption with or without premium, all as may be provided by resolution of the board. The bonds shall be sold at public sale in such manner and at such price or prices and at such time or times and after such notice or notices as may be determined by the board to be most advantageous, provided that the interest cost to maturity of the money received for any issue of bonds so sold shall not exceed six percent per annum compounded semiannually; provided further, that the provisions of this sentence shall not apply to bonds payable within less than one year and limited to an aggregate principal amount not exceeding $5,000.00, which may be sold at private sale at such times and in such manner as may be determined by the board to be most advantageous. Any bonds issued and any obligations incurred by the corporation may be refunded either by sale of refunding bonds or by exchange of such refunding bonds for a like principal amount of the bonds and obligations proposed to be refunded thereby. Any such refunding may be effected either before or after the maturity of the bonds or obligations proposed to be refunded thereby. Pending the preparation or execution of definitive bonds, interim receipts or temporary bonds may be delivered to the purchaser thereof.
(Acts 1943, No. 158, p. 142, §6.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-527 - Bonds - Consent of Department of Finance.

Section 11-50-527
Bonds - Consent of Department of Finance.
No bonds of the corporation shall be issued until consent of such issuance shall have been given by the Department of Finance of the State of Alabama. Such consent shall be granted only after a public hearing and after a petition requesting such consent has been duly filed by the corporation with the director of said department more than five days prior to such public hearing. Such petition shall specify the plan or program of the corporation and the use to which it proposes to put the proceeds from such bonds, if they are to be sold, and shall specify the plan under which such bonds are to be issued if they are to be issued in exchange for outstanding bonds. Such petition shall furnish such other information as may be necessary fully to advise said department as to the purpose and description of and security for the bonds and as may be required by the rules of said department. Said department shall grant such consent only after it finds that the issuance of the bonds so proposed would serve some public need and would be in the public interest. It shall be unlawful for the corporation to use the proceeds of sale of any of the bonds contrary to the plans and purposes presented to said department in obtaining such consent. The corporation applying for such consent is authorized to pay such fees as shall be lawfully assessed against it by said department in connection with the granting of such petition.
(Acts 1943, No. 158, p. 142, §7.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-528 - Bonds - Nature of Obligations.

Section 11-50-528
Bonds - Nature of obligations.
All bonds issued by the corporation and all interest coupons appertaining thereto shall possess all the qualities of negotiable instruments. All bonds issued by the corporation shall be issued in anticipation of its revenues and shall be payable solely out of such of its revenues as may be designated by the board and shall not create a debt of the corporation. None of the municipalities located in the power district shall at any time or in any manner be liable for any obligations or bonds of the corporation, nor shall the same be construed to be an indebtedness of or against any such municipality.
(Acts 1943, No. 158, p. 142, §8.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-529 - Bonds - Rights and Remedies of Bondholders.

Section 11-50-529
Bonds - Rights and remedies of bondholders.
In addition to all other remedies available under this chapter or by law, any holder of any bonds issued by the corporation, including the trustee under any mortgage or deed of trust executed as security therefor, shall have the right, subject to any contractual limitations and to the prior or superior rights of others:
(1) By mandamus or other suit, action or proceeding to enforce his rights against the corporation and the board and its officers, including the right to require the fixing and collection of uniform schedules of rates and charges adequate to carry out any agreement made by the corporation as to, or pledge of, the revenues of the corporation, and to require the corporation and the board and its officers to carry out any other agreements with the holders of such bonds and the trustee;
(2) By civil action to enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the bonds or of such trustee;
(3) By civil action to obtain the appointment of a receiver of the corporation and of any utility owned or operated by it or any part or parts thereof, which receiver shall have all the powers of a receiver, including the right to enter upon and take possession of all or any part of the property of the corporation, including all franchise and other rights in connection with any thereof, and to operate and maintain the same and, under the jurisdiction of such court, to fix and collect revenues arising therefrom in such manner as the corporation might itself do.
All moneys coming into the hands of the receiver shall be deposited in a separate account or accounts and applied in accordance with the orders of such court. No such mortgage shall be subject to foreclosure to the extent that the physical properties covered thereby shall be sold thereunder.
(Acts 1943, No. 158, p. 142, §9.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-530 - Rates and Charges for Services Rendered.

Section 11-50-530
Rates and charges for services rendered.
The rates and charges for the services rendered by or from any utility owned or operated by the corporation shall at all times be reasonable for the services so rendered and as low as consistent with good service and prudent management, but shall be sufficient to pay all expenses necessary for the operation of its properties and the maintenance thereof in good operating condition, the payment of the principal of and interest on all bonds issued by it and the creation and maintenance of such reserves for improvements, new construction, depreciation, and contingencies as the board may from time to time prescribe in the exercise of sound judgment and prudent management. In the event the revenues of the corporation shall be in excess of those necessary for said purposes, the corporation shall reduce its said rates and charges as the board may prescribe. All schedules of such rates and charges shall be uniform throughout the power district.
(Acts 1943, No. 158, p. 142, §10.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-531 - Exemption From Taxation.

Section 11-50-531
Exemption from taxation.
All bonds and the income therefrom issued by the corporation and all mortgages and deeds of trust executed as security therefor and all properties of the corporation of every kind and character shall be exempt from all taxation in the State of Alabama. Any such mortgage or deed of trust shall be admitted to record in the office of the judge of probate of any county in this state without the payment of any tax upon the debt secured thereby or any other fee or charge except the costs of recording the instrument at the rate fixed by law.
(Acts 1943, No. 158, p. 142, §11.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-532 - Dissolution.

Section 11-50-532
Dissolution.
When all obligations incurred by the corporation and all bonds issued by it shall have been paid in full or provision for payment thereof shall have been made by appropriate, segregation and deposit of funds sufficient for such purposes, then and in such event the corporation may be dissolved by resolution adopted by vote of a majority of the board, which resolution shall set out the plan of dissolution and shall designate three directors who shall act as trustees in dissolution of the corporation. A copy of such resolution, duly certified by the secretary of the corporation under its seal, shall be filed with the Secretary of State, and, if it shows compliance with the foregoing requirements, it shall be recorded by the Secretary of State with the certificate of incorporation. Upon such filing and recording the corporation shall thereupon stand dissolved, and the trustees in dissolution named in such resolution shall thereupon proceed to wind up the business and affairs of the corporation, including the carrying out of the plan of dissolution as specified in such resolution and the conveyance or distribution to the municipalities specified in such plan of the properties and assets of the corporation. Such plan shall provide that the local distribution system (not including transmission lines or generating facilities or like facilities) owned by the corporation and located within the corporate limits of a municipality and within the police jurisdiction of any such municipality shall be conveyed to such municipality and shall provide for sale of the assets of the corporation then remaining and the distribution of the proceeds of such sale among the municipalities in the power district in direct proportion to the net operating income of the corporation derived from the unit of any utility located in such municipalities.
(Acts 1943, No. 158, p. 142, §12.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50 - Public Utilities. › Article 16 - District Electric Corporations. › Section 11-50-533 - Municipal Aid.

Section 11-50-533
Municipal aid.
Any municipality incorporated under the laws of Alabama which is situated within the territorial limits of any power district proposed to be served by any public nonprofit corporation now or hereafter organized under the laws of Alabama for the purpose of acquiring and operating facilities for the production, transmission, and distribution of electricity and related service within a power district composed of all or parts of any three or more connecting counties shall have the power to advance funds to such corporation for the purpose of paying the preliminary organization and administration expenses of such corporation. Any funds so advanced shall be repayable within such time, not exceeding one year from the date of such advancement, and on such terms as may be provided by the governing body of such municipality and agreed to by such corporation.
(Acts 1943, No. 159, p. 152.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-2 - Legislative Intent.

Section 11-50A-2
Legislative intent.
The municipalities are now empowered to own and operate electric distribution systems to serve their citizens, inhabitants, and customers by providing them electricity for all purposes. To assure that the municipalities may have alternative sources of bulk electric power and energy, in addition to those presently available, to operate their electric distribution systems in a dependable, efficient, and economical manner, it is desirable that the municipalities acting through the authority be empowered to engage in joint action for the generation, transmission, and distribution of bulk electric power and energy for sale to the municipalities for resale and for the sale, purchase, exchange and transmission of bulk electric power and energy with other electric suppliers. The Legislature finds and declares that the provision of alternative sources of bulk electric power and energy to the municipalities through joint action in the fields of generation, transmission, and distribution is in the public interest; that the creation of the authority as a non-profit public corporation is desirable to aid in the continued viability of the electric distribution systems operated by the municipalities and to provide for a means by which the municipalities may act jointly in all ways possible for the purpose of coordinated bulk electric power and energy supply programs; and that the necessity in the public interest for the provisions herein enacted is declared as a matter of legislative determination.
(Acts 1981, No. 81-681, p. 1114, §2.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-3 - Purpose of Authority.

Section 11-50A-3
Purpose of authority.
The purpose of the authority shall be to acquire, construct, operate, and maintain or cause to be acquired, constructed, operated, and maintained projects, and to take all other necessary or desirable action, in order to provide or make available an adequate, dependable, and economical alternative supply of bulk electric power and energy and related services for wholesale sales to those municipalities which may desire such supply, and incidentally and so as to take advantage of economies of scale in the provision of economical and reliable wholesale power supply to the municipalities, to enter into interconnection arrangements with other electric suppliers having generation and transmission capabilities, which arrangements provide for sale, purchase, exchange, or transmission of bulk electric power and energy. The authority shall only be authorized, through acquisition or construction of projects, or through interconnection arrangements with others, to provide for the generation, transmission, or distribution of power as provided in this chapter. Nothing in this chapter shall be construed to permit or to cause the authority to acquire or construct, or to maintain and operate any project, or to engage in interconnection arrangements with persons, for any purpose other than those necessary or desirable to provide bulk electric power and energy to municipalities or to effect the sale, purchase, exchange, and transmission of bulk electric power and energy with other electric suppliers pursuant to those arrangements provided in Section 11-50A-8(8). Sales of bulk electric power and energy to municipalities shall only be effected as "wholesale sales" as the term "wholesale sales" is defined in Section 40-21-80(a)(9), as amended, or any subsequent statute of similar import. Nothing in this chapter shall be construed to enable the authority to effect "retail sales" as the term "retail sales" is defined in Section 40-21-80(a)(5), as amended, or any subsequent statute of similar import. The authority shall not, except in the case of dissolution of the authority, disburse any moneys to any municipality participating in the authority, except to reimburse a municipality for amounts advanced to or for the benefit of the authority (with interest) or with respect to overcharges or refunds relating to the authority's costs of and charges for bulk electric power and energy; provided, however, that nothing in this chapter shall prohibit disbursements or payments with respect to the purchase, lease, or other use by the authority of any electric transmission facility or rights-of-way of any participating municipality.
(Acts 1981, No. 81-681, p. 1114, §3.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-4 - Application for Incorporation.

Section 11-50A-4
Application for incorporation.
(a) To become a public corporation, the individuals designated as the first members of the election committee described in Section 11-50A-6(b)(1) shall, immediately before the first meeting of the election committee provided in Section 11-50A-6, present to the Secretary of State of the state an application signed by them as applicants which shall set forth:
(1) The name, official designation, if any, and residence of each of the applicants;
(2) The date on which each applicant was designated a member of the election committee;
(3) The name of the proposed corporation, which shall be the Alabama Municipal Electric Authority;
(4) The location of the principal office of the proposed corporation, which shall be in the City of Montgomery, Montgomery County; and
(5) Any other matter relating to the incorporation of the authority which the applicants may choose to insert and which is not inconsistent with this chapter or the laws of the state.
(b) The application shall be signed and sworn to by each of the applicants before an officer authorized by the laws of this state to take acknowledgments to deeds.
(c) The Secretary of State shall examine the application; and, if he finds that it substantially complies with the requirements of this section, he shall receive and file it and record it in an appropriate book of records in his office.
(Acts 1981, No. 81-681, p. 1114, §4.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-5 - Issuance and Recording of Certificate of Incorporation; No Fees to Be Paid.

Section 11-50A-5
Issuance and recording of certificate of incorporation; no fees to be paid.
When the application has been made, filed, and recorded as herein provided, the applicants shall constitute a public corporation under the name proposed in the application, and the Secretary of State shall make and issue to the applicants a certificate of incorporation pursuant to this chapter, under the Great Seal of the State, and shall record the certificate with the application. There shall be no fees paid to the Secretary of State for any work done in connection with the incorporation of the authority.
(Acts 1981, No. 81-681, p. 1114, §5.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-11 - Validation of Contracts.

Section 11-50A-11
Validation of contracts.
When payments required by the provisions of Section 11-50A-17 to be made by any municipality authorized to contract with the authority pursuant to Section 11-50A-17 are pledged as security for the payment of bonds sought to be validated, the petition for validation shall make parties defendant to that action every municipality which has contracted with the authority for the output, capacity, use or service of the project for which bonds are sought to be validated. Notice to the taxpayers and citizens of such municipality shall be made as provided in Section 11-81-222(d). Every other party, public or private, contracting with the authority in any manner with relation to the construction, ownership or operation of the project for which bonds are sought to be validated may also be made parties defendant to that action.
(Acts 1981, No. 81-681, p. 1114, §11.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-13 - Immunity From Liability; Credit Not Pledged.

Section 11-50A-13
Immunity from liability; credit not pledged.
(a) Neither the members of the election committee, the members of the board nor any individual executing bonds, bond anticipation notes or notes on behalf of the authority shall be personally liable thereon by reason of the issuance thereof.
(b) Neither the bonds, bond anticipation notes nor notes issued under provisions of this chapter nor the instruments evidencing the obligations which constitute the security therefor shall constitute a debt or a loan or pledge of the full faith and credit of the state or of any municipality, but all bonds, bond anticipation notes and notes shall be payable solely from the sources described in Section 11-50A-19 as provided in the resolutions or trust agreements or indentures authorizing or securing the issuance and payment of the bonds, bond anticipation notes or notes, as the case may be. The issuance of bonds, bond anticipation notes or notes shall not obligate the state or any municipality to levy or pledge any form of taxation whatever for the payment thereof. No owner of any bond, bond anticipation note or note or receiver or trustee in connection therewith shall have the right to enforce the payment thereof against any property of the state or of any municipality, nor shall any bond, bond anticipation note or note constitute a charge, lien, or encumbrance, legal or equitable, upon any such property. Bonds issued by the authority shall not be general obligations of the authority but shall be payable solely out of the revenues and other funds subject to pledge pursuant to Section 11-50A-19.
(Acts 1981, No. 81-681, p. 1114, §13.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-15 - Negotiability of Bonds.

Section 11-50A-15
Negotiability of bonds.
Bonds, bond anticipation notes and notes issued by the authority shall be construed to be, and shall have all the rights and incidents of negotiable instruments, subject to the provision of the bonds, bond anticipation notes or notes pertaining to registration, although payable solely from a specified source as provided herein.
(Acts 1981, No. 81-681, p. 1114, §15.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-16 - Bonds as Legal Investments.

Section 11-50A-16
Bonds as legal investments.
The bonds, bond anticipation notes and notes authorized in this chapter shall be securities in which all public officers and bodies of this state and all political subdivisions, all insurance companies and associations, and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks, and savings associations, including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business, all administrators, guardians, executors, trustees, and other fiduciaries and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds. The bonds, bond anticipation notes and notes shall also be securities which may be deposited with and shall be received by all public officers and bodies of this state and all political subdivisions for any purpose for which deposit of the bonds or other obligations of this state is now or may hereafter be authorized.
(Acts 1981, No. 81-681, p. 1114, §16.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-19 - Pledge of Revenues.

Section 11-50A-19
Pledge of revenues.
All or any part of the gross or net revenues derived from any particular project or projects, whether or not such revenues were produced by a particular project for which bonds have been issued, and any income and earnings otherwise received by the authority from whatever source, and any other funds of the authority, may be pledged by the authority to the payment of the principal of and interest on bonds as may be provided in any resolution authorizing the issuance of any bonds or in any trust agreement or indenture pertaining to those bonds. The funds so pledged may include funds received from one or more or all sources and may be set aside at regular intervals into sinking funds for which provision may be made in any resolution, trust agreement or indenture pertaining to the bonds. These sinking funds may be pledged to and charged with the payment of (i) the interest on the bonds as it shall become due, (ii) the principal of the bonds as they shall mature, or as they are required to be redeemed, (iii) the necessary charges of any trustee or paying agent or registrar for the bonds, and (iv) any premium upon bonds retired upon call or purchase, and the use and disposition of any sinking fund may be subject to regulations for which provision may be made in the resolution, trust agreement or indenture pertaining to the bonds.
(Acts 1981, No. 81-681, p. 1114, §19.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-20 - Trust Agreement.

Section 11-50A-20
Trust agreement.
In the discretion of the authority, any issue of bonds may be secured by a trust agreement or indenture made by the authority with a corporate trustee, which may be any trust company or bank within or without the state having the powers of a trust company. The trust agreement or indenture may pledge or assign any revenues to be received by the authority and any proceeds which may be derived from the disposition of any real or personal property of the authority or proceeds of insurance carried thereon. The resolution providing for the issuance of bonds and the trust agreement or indenture may contain any provisions the authority deems necessary or appropriate for protecting and enforcing the rights and remedies of the bondholders, including the right of appointment of a receiver upon default in the payment of any principal or interest obligation and the right of any receiver or trustee to enforce collection of any rates, fees, tolls, charges, or revenues for the output, capacity, use, or service of the project necessary to pay all costs of operation and all reserves provided for, the principal of and interest on all bonds of the issue, all costs of collection, and all other costs reasonably necessary to accomplish the collection of such sums in the event of any default of the authority. The resolution, trust agreement or indenture may include covenants setting forth the duties of the authority in relation to the acquisition of property for and construction of the project and to the custody, safeguarding, and application of all funds of the authority, including any proceeds derived from the disposition of any real or personal property of the authority or proceeds of insurance carried thereon, and covenants providing for the operation, maintenance, repair, and insurance of the project, and may contain provisions concerning the conditions, if any, upon which additional bonds may be issued. The resolution, trust agreement or indenture may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action of any bondholder as is customary in securing bonds and debentures of corporations and may contain any other provisions that the authority may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the trust agreement or indenture may be treated as a part of the cost of maintenance, operation, and repair of the project affected by the trust agreement or indenture; provided, however, any such treatment shall not result in a charge against the interest of any joint owner of the electric generation, transmission or distribution facilities, a portion of which facilities constitutes the project.
(Acts 1981, No. 81-681, p. 1114, §20.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-21 - Proceeds of Bonds.

Section 11-50A-21
Proceeds of bonds.
Proceeds of the bonds issued under authority of this chapter shall be used solely for the payment of the costs of a project or combined projects, and any other corporate purposes of the authority, and shall be disbursed upon requisition or order of the persons and under such restrictions as the resolution authorizing the issuance of the bonds or the trust agreement or indenture may provide. If the proceeds of the bonds of any issue shall exceed the amount required for the purpose for which the bonds are issued, the surplus shall be paid into the fund provided for the payment of principal of and interest on the bonds. In the discretion of the authority, bonds of a single issue or series of any issue may be issued for the purpose of paying the costs of any one or more projects, including a combination of projects.
(Acts 1981, No. 81-681, p. 1114, §21.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-22 - Issuance of Bond Anticipation Notes and Notes.

Section 11-50A-22
Issuance of bond anticipation notes and notes.
The authority shall have the power and is authorized to issue, from time to time, bond anticipation notes in anticipation of the issuance of bonds and to renew from time to time any bond anticipation notes by the issuance of new bond anticipation notes, whether the bond anticipation notes to be renewed have or have not matured. The authority may issue bond anticipation notes only to provide funds which would otherwise be provided by the issuance of the bonds in anticipation of which the bond anticipation notes are to be issued. The bond anticipation notes may be authorized, sold, executed, and delivered in the same manner as bonds. Any resolution or resolutions authorizing bond anticipation notes or any issue thereof may contain any provisions which the authority is authorized to include in any bonds. All bond anticipation notes shall be special obligations of the authority payable out of any revenues pledged to the payment of, or the proceeds to be derived from the issuance of, the bonds in anticipation of the issuance of which the bond anticipation notes shall have been issued. Validation of the bonds shall not be a condition precedent to the issuance of any bond anticipation notes, and it shall not be required that those bond anticipation notes be judicially validated. Bond anticipation notes shall not be issued in an amount exceeding the principal amount of the bonds in anticipation of which they are to be issued. The authority shall also have the power and is also authorized to issue, from time to time, its notes, which notes shall not be conditioned upon, and need not be related to, the anticipated issuance of bonds, for the purpose of providing funds for any of its corporate purposes. Notes may be authorized, secured, sold, executed and delivered in the same manner as bonds and shall be issued in such principal amounts as the authority shall determine. In the discretion of the authority, bond anticipation notes and notes may be validated in the same manner as bonds.
(Acts 1981, No. 81-681, p. 1114, §22.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-23 - Trust Funds.

Section 11-50A-23
Trust funds.
All funds received by the authority pursuant to this chapter, whether as proceeds from the sale of bonds, bond anticipation notes or notes or as revenues, fees, tolls, or other charges, or as gifts, grants, or other contributions, shall be deemed to be trust funds to be held and applied solely as provided in this chapter or in any bond resolution, trust agreement or indenture authorized herein.
(Acts 1981, No. 81-681, p. 1114, §23.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-24 - Jurisdiction of Actions.

Section 11-50A-24
Jurisdiction of actions.
Any action to protect or enforce any rights under the provisions of this chapter shall be brought in the circuit court of Montgomery County, Alabama, which shall have exclusive original jurisdiction of all such actions.
(Acts 1981, No. 81-681, p. 1114, §24.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-25 - Public Service Commission Review and Regulation.

Section 11-50A-25
Public Service Commission review and regulation.
The authority shall be subject to the provisions of Title 37 to the extent set out herein. The public service commission shall review all bond resolutions, power sales contracts and other agreements entered into by the authority and and municipality and any investor-owned utility presently regulated by the public service commission that may affect the rates of the authority in order to determine if the rates to be charged by the authority pursuant to such resolutions, contracts and other agreements are reasonable and in the public interest; such bond resolutions and contracts shall not be effective if the rates to be charged by the authority as provided therein are disapproved by the public service commission within 30 days after submission of such resolutions, contracts and other agreements by the authority to the commission. In determining whether to approve any rates to be charged by the authority pursuant to such bond resolutions, contracts, or other agreements, the public service commission shall consider the purpose for which the authority is established, the provisions of Section 11-50A-18 and the need to: (i) encourage conservation of energy supplied by the authority, (ii) encourage the optimization of the efficiency of use of facilities and resources; and (iii) promote equitable rates to electric consumers. The public service commission shall approve accounting regulations for the authority, which regulations shall be consistent with the accounting regulations established generally in other states for entities similar to the authority, taking into account the provisions of this chapter with respect to the payment of all costs associated with the production of electricity by the authority and the payment of any securities issued by it to finance facilities to be owned by the authority.
The public service commission shall prescribe minimum standards regarding the placement and construction of transmission lines, substations and related facilities used in the transmission of electricity that are owned and operated by the authority.
No plant, property or facility for the production, transmission, delivery or furnishing of electricity shall be constructed by the authority if such facility is to be owned exclusively by the authority until the issuance by the public service commission of a certificate of convenience and necessity pursuant to Section 37-4-28.
(Acts 1981, No. 81-681, p. 1114, §25.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-26 - Provisions of Resolution, Agreement, Chapter, etc., as Irrevocable Contract With Holders of Bonds, Notes, Etc.

Section 11-50A-26
Provisions of resolution, agreement, chapter, etc., as irrevocable contract with holders of bonds, notes, etc.
The provisions of any bond resolution, trust agreement or indenture authorized in this chapter shall be a contract with every holder of the bonds, bond anticipation notes or notes; and the duties of the authority under this chapter and under any bond resolution, indenture, or trust agreement shall be enforceable by any bondholder or noteholder by mandamus or other appropriate action. While any of the bonds, bond anticipation notes or notes issued by the authority shall remain outstanding, the powers, duties, or existence of the authority or of its officers, employees, or agents shall not be diminished, impaired, or affected in any manner which will affect adversely the interest and rights of the holders of those bonds, bond anticipation notes or notes. Any change in name or composition of the authority shall in no way affect the vested rights of any person under the provisions of this chapter or impair the obligations of any contracts existing under this chapter. The provisions of this chapter shall be for the benefit of the state, the authority and every owner of the authority's bonds, bond anticipation notes and notes and, upon and after the issuance of bonds, bond anticipation notes or notes under the provisions of this chapter, shall constitute an irrevocable contract by the state with the owners of such bonds, bond anticipation notes and notes.
(Acts 1981, No. 81-681, p. 1114, §26.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-27 - Dissolution of Authority.

Section 11-50A-27
Dissolution of authority.
When all bonds, bond anticipation notes and notes issued by the authority under the provisions of this chapter shall have been paid in full or otherwise satisfied, or when its obligations cease under every contract described in this chapter, whichever is later, the then chairman of the authority may, upon authorization of two-thirds of the membership of the board, thereupon execute and deliver in the name of and in behalf of the authority an appropriate deed, or deeds, or other appropriate instruments of conveyance, to which the seal of the authority shall be affixed and attested by the secretary-treasurer of the authority, whereby there shall be conveyed to the municipalities at that time represented on the election committee, in the proportion that each municipality's then existing voting power on the election committee bears to the total then existing voting power of all municipalities represented on the election committee, all the projects, buildings, properties and other assets then owned by the authority. The then members of the board shall at that time file with the Secretary of State a written statement, subscribed and sworn to by each of them, reciting the payment in full of all bonds, bond anticipation notes and notes theretofore issued by the authority and the execution and delivery of any deed, deeds or other instruments of conveyance to the above-described municipalities, which statement shall be filed by the Secretary of State and recorded with the certificate of incorporation of the authority, whereupon the authority shall stand dissolved. There shall be no fees paid to the Secretary of State for any work done in connection with the dissolution of the authority.
(Acts 1981, No. 81-681, p. 1114, §27.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-28 - Exemption From Alabama Sunset Law.

Section 11-50A-28
Exemption from Alabama Sunset Law.
The authority shall not be governed by the provisions of Chapter 20 of Title 41 (originally enacted as Act No. 512 of the 1976 Regular Session of the Legislature of Alabama).
(Acts 1981, No. 81-681, p. 1114, §28.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-29 - Exemption From Competitive Bid Laws.

Section 11-50A-29
Exemption from competitive bid laws.
No contract made by or on behalf of the authority, and no contract made by a municipality pursuant to Section 11-50A-17, shall be governed by the provisions of Title 41, Chapter 16, as amended.
(Acts 1981, No. 81-681, p. 1114, §29.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-30 - Construction.

Section 11-50A-30
Construction.
This chapter, being for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.
(Acts 1981, No. 81-681, p. 1114, §30.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-31 - Effectiveness of Pledges and Security Interests.

Section 11-50A-31
Effectiveness of pledges and security interests.
Any pledge or security interest created or granted by the authority shall be valid and binding from the time when the same is made; moneys or property which are the subject of such pledge or security interest and then held or thereafter received by the authority shall immediately be subject to such pledge or security interest without any physical delivery thereof or further act; and such pledge or security interest shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether or not such parties have notice thereof. Neither the bond resolution, trust agreement or indenture nor any other instrument relating to bonds, bond anticipation notes or notes or otherwise creating or granting any such pledge or security interest need be filed or recorded in any office other than with the records of the authority.
(Acts 1981, No. 81-681, p. 1114, §31.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-32 - Powers Declared Supplementary.

Section 11-50A-32
Powers declared supplementary.
The provisions of this chapter shall be regarded as supplementary and additional to and cumulative of powers conferred by other laws and shall not be regarded as being in derogation of any powers now existing.
(Acts 1981, No. 81-681, p. 1114, §32.)
2023 Code of Alabama › Title 11 - Counties and Municipal Corporations. › Title 2 - Provisions Applicable to Municipal Corporations Only. › Chapter 50A - Municipal Electric Authority. › Section 11-50A-33 - Severability.

Section 11-50A-33
Severability.
In the event any portion of this chapter should be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the validity of any of the remaining portions of this chapter, which shall continue effective; provided, however, that if Section 11-50A-7 hereof or any portion of Section 11-50A-7 is held invalid or unconstitutional or if the payments in lieu of taxation provision set out in Section 11-50A-7 is for any reason determined to be unenforceable in a legal proceeding related to the initial issuance of bonds, bond anticipation notes or notes of the authority, then the entire chapter shall be invalid and ineffective and shall not be law.
(Acts 1981, No. 81-681, p. 1114, §34.)