Section 9-14B-7

Authorization to issue bonds. THIS SECTION WAS ASSIGNED BY THE CODE COMMISSIONER. THIS SECTION HAS NOT BEEN CODIFIED BY THE LEGISLATURE.

(a) General. Subject to prior approval of the project by the Joint Legislative Committee on State Parks established by Section 9-14A-21, the authority from time to time may sell and issue the bonds in one or more series in an aggregate principal amount of up to seventy million dollars ($70,000,000) in order to provide the funds to pay project costs. Prior to approval of the long-range capital plan for restoration of state park facilities by the Joint Legislative Committee on State Parks as authorized by Section 9-14A-21, of which the project authorized by this chapter will be a part, the committee shall hold at least four public hearings statewide prior to the bonds being sold to gather input from the citizens of this state. The committee shall take into consideration the per capita income and average family income of Alabamians in planning and approving the design and costs of lodging facilities in Gulf State Park and in any and all other parks in the system which have lodging facilities and overnight facilities.

Notwithstanding any other provisions of this chapter, bonds shall not be issued pursuant to this chapter until after a master plan for the expenditure of funds for state parks authorized pursuant to Amendment No. 617 of the Constitution of Alabama of 1901, has been approved by the Joint Legislative Committee on State Parks.

(b) Source of Payment. Bonds issued by the authority shall be solely and exclusively an obligation of the authority and shall not create an obligation or debt of the state. The bonds shall not be general obligations of the authority, but shall be payable solely from the pledged revenues.

(c) Security for the bonds. The principal of and interest on the bonds shall be secured by a pledge of the pledged revenues and, if necessary and desirable in the authority's sole discretion, a pledge of the authority's right, title, and interest in any funding agreements on any part of the project. The resolution under which the bonds are authorized by the authority to be issued and any trust indenture may contain any agreements and provisions respecting the rights, duties, and remedies of the parties to the instrument and the parties for the benefit for whom the instrument is made and the rights and remedies available in the event of default as the authority shall deem advisable.

(d) General provisions respecting form, sale, and execution of the bonds. The bonds shall be signed by the president of the authority and attested by its secretary and the seal of the authority shall be affixed. A facsimile of the signature of one or both of the officers may be printed or otherwise reproduced on the bonds in lieu of being manually subscribed thereon and a facsimile of the seal of the authority may be printed or otherwise reproduced on any of the bonds in lieu of being manually affixed thereto. The bonds may be executed and delivered by it at any time and from time to time, and shall be in the form and denominations and of the tenor and maturities, shall bear the rate or rates of interest, shall be payable at the times and evidenced in the manner, may be made subject to redemption at the option of the authority at the times and after the notice and on the conditions and at the redemption price or prices, and may contain any other provisions not inconsistent herewith, all as may be provided by the resolution of the directors of the authority under which the bonds are authorized to be issued. The bonds shall be sold only at public sale or sales, based on sealed bids received either electronically or on paper, after advertisement as may be prescribed by the authority, to the bidder whose bid reflects the lowest true interest cost to the state computed to the respective maturities of the bonds sold; provided, however, that if no bid deemed acceptable by the authority is received, all bids may be rejected and the bonds offered again for public sale in accordance with the terms herein prescribed. The bonds may be issued in the form of current interest bonds or capital appreciation bonds and may be issued as serial bonds or term bonds, all as may be directed by the authority.

(e) State Treasurer as registrar, transfer agent, and paying agent. The State Treasurer shall be registrar, transfer agent, and paying agent for the bonds. The State Treasurer may designate named individuals who are employees of the state and who are assigned to the State Treasurer's office to authenticate the bonds.

(f) Other matters. The bonds may be used by the holder as security for any funds belonging to the state, or to any political subdivision, instrumentality, or agency of the state, in any instance where security for the deposits may be required by law. Unless otherwise directed by the court having jurisdiction, or the document that is the source of authority, a trustee, executor, administrator, guardian, or one acting in any other fiduciary capacity, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, may invest trust funds in the bonds. Neither a public hearing nor consent of the Department of Finance or any other department or agency shall be a prerequisite to the issuance of the bonds. The bonds shall be legal investments for funds of the Teachers' Retirement System of Alabama, the Employees' Retirement System of Alabama, and the State Insurance Fund.

(Act 2001-972, 2001 3rd Sp. Sess., p. 884, §7.)