2023 Code of Alabama › Title 14 - Criminal Correctional and Detention Facilities. › Chapter 2 - Alabama Corrections Institution Finance Authority. › Section 14-2-21 - Bonds - Security.

Section 14-2-21
Bonds - Security.
THIS SECTION WAS AMENDED BY ACT 2021-546 IN THE 2021 1ST SPECIAL SESSION, EFFECTIVE OCTOBER 1, 2021. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
(a) The principal of, premium, if any, and interest on the bonds of the authority shall be secured by any or all of the following, as the authority may determine:
(1) The rent and revenue for the use of one or more facilities of the authority;
(2) The net rent or sale proceeds from the Kilby property;
(3) Any bond proceeds remaining unexpended upon completion of all facilities to be constructed with such bond proceeds and the payment of the cost thereof;
(4) Any insurance proceeds which the authority may receive by reason of its ownership of any of the facilities; and
(5) Any mortgage upon or security interest in one or more facilities of the authority, granted in connection with the issuance of such bonds.
(b) The authority shall have authority to transfer and assign any lease agreement of any of the facilities and any lease or mortgage of the Kilby property as security for the payment of such principal, premium, if any, and interest. The bonds may be issued under, and secured by, a resolution which may, but need not, provide for an indenture of trust covering one or more facilities of the authority. Such resolution or such indenture of trust may contain any provision or agreement customarily contained in instruments securing evidences of indebtedness, including, without limiting the generality of the foregoing, provisions respecting the collection and application of any lease agreement revenues, or other receipts pledged to the payment of bonds, the terms to be incorporated in lease agreements respecting the facilities, the maintenance and insurance thereof, the creation and maintenance of reserve and other special funds from such receipts, and the rights and remedies available in the event of default to the holders of the bonds or to the trustee for the holders of the bonds or under any indenture of trust, all as the authority may deem advisable and as shall not be in conflict with the provisions of this chapter; provided, however, that in making such agreements or provisions the authority shall not have the power to obligate itself except with respect to its facilities, the Kilby property, and the application of the lease agreement revenues and other receipts which it is authorized in this chapter to pledge.
(c) The Department of Corrections - Correctional Capital Improvement Fund is created within the State Treasury, to be administered by the Department of Corrections. The Legislature shall make appropriations to this entity to be used exclusively for the construction, renovation, and improvement of the prison facilities as enumerated in Section 14-2-12(c).
(d) The Correctional Facilities Maintenance Fund is created within the State Treasury, to be administered by the Department of Corrections. The Legislature shall make appropriations to this fund to be used exclusively for maintenance of the prison facilities as enumerated in Section 14-2-12(c).
(Acts 1965, No. 678, p. 1226, §26; Acts 1985, 1st Ex. Sess., No. 85-125, p. 187, §9; Act 2010-729, p. 1834, §1; Act 2021-546, §2.)