§ 11-99B-9 — Contracts to Secure Payment of Principal and Interest

Alabama § 11-99B-9

• Jurisdiction: Alabama
• Title 11: Counties and Municipal Corporations
• Ch. 99B: Capital Improvement Cooperative Districts

Text

(a) As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the district may enter into a contract or contracts binding itself for the proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any project owned by it 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 such project, for the disposition and application of its 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 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.
(b) Any contract pursuant to this section 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 district under this chapter.

Legislative History

(Act 2000-781, p. 1825, §9; Act 2024-452, §1.)