(a)Payment of project costs may be made by any of the following methods or any combination thereof:
(1)Payment from the tax increment fund of the tax increment district if the purpose of the payment is one provided for in Section 11-99-6.
(2)Payment out of the general funds of the public entity creating a tax increment district, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(3)Payment out of the proceeds of the sale of warrants, bonds, or notes (whether public improvement bonds, warrants, or notes; mortgage bonds, warrants, or notes; or certificates, revenue bonds, warrants, or notes; or otherwise) issued by the public entit
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(a) Payment of project costs may be made by any of the following methods or any combination thereof:
(1) Payment from the tax increment fund of the tax increment district if the purpose of the payment is one provided for in Section 11-99-6.
(2) Payment out of the general funds of the public entity creating a tax increment district, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(3) Payment out of the proceeds of the sale of warrants, bonds, or notes (whether public improvement bonds, warrants, or notes; mortgage bonds, warrants, or notes; or certificates, revenue bonds, warrants, or notes; or otherwise) issued by the public entity creating a tax increment district, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(4) Payment out of the proceeds of the sale of tax increment obligations issued by the public entity creating a tax increment district under this chapter, the payments being used either directly by the public entity to pay the project costs or used by a third party recipient of the funds to pay the project costs if within a Major 21st Century Manufacturing Zone.
(5) Payment as otherwise provided by law.
(b) For the purposes of paying project costs or of refunding obligations issued pursuant to the authority of this chapter or other applicable law, the local governing body may issue tax increment obligations payable out of positive tax increments. The tax increment obligations shall not be included in the computation of the constitutional debt limitation of the public entity unless they are also secured by a pledge of the full faith and credit of the public entity.
(c) Tax increment obligations may be authorized by resolution of the local governing body without the necessity of a referendum or any approval by the electorate. The resolution shall state the name of the tax increment district, the amount of obligations authorized, and the interest rate or rates to be borne thereby or the method of computing the same. The resolution may prescribe the terms, form, and content of the obligations and such other matters as the local governing body deems useful.
(d) Tax increment obligations may not be issued in an amount exceeding the aggregate project costs of a project or projects specified in a project plan, as such plan may be amended. The tax increment obligations shall mature not more than 30 years from the date thereof. The tax increment obligations may: (i) Contain provisions authorizing the redemption thereof, in whole or in part, at stipulated prices, at the option of the public entity creating the district, on any dates named therein and provide the method of selecting the obligations to be redeemed, (ii) be payable at any time or times and at any place, (iii) be payable to bearer or registered as to principal or principal and interest, (iv) be in any denominations, and (v) be sold at public or private sale.
(e) Tax increment obligations shall be payable only out of a stipulated tax increment fund created pursuant to Section 11-99-6, except as provided in subsection (f). The public entity creating the district shall irrevocably pledge all or a part of the tax increment fund to the payment of the tax increment obligations. The amounts in the tax increment fund may thereafter be used only for the payment of the principal of and interest on the tax increment obligations payable therefrom until the principal and interest have been fully paid, provided the amounts, if any, in the tax increment fund in excess of the amount required to pay the principal of and interest on the tax increment obligations becoming due and payable in any fiscal year of the local governing body may be used for the payment of project costs.
(f) To increase the security and marketability of tax increment obligations, the public entity may do any of the following:
(1) To the extent permitted by the Constitution of Alabama of 1901, as amended, create a non-foreclosable lien for the benefit of the security holders upon any public improvements or public works financed thereby.
(2) Pledge the full faith and credit of the public entity to the payment thereof.
(3) Make covenants and do any and all acts as may be necessary, convenient, or desirable in the judgment of the local governing body in order additionally to secure the obligations or make the obligations more marketable.
(g) For the purpose of paying project costs, the public entity creating the tax increment district may also allow payments to be made in full at the time the project costs accrue, thus allowing a project to be all or partially funded on a pay-as-you-go basis.