Code of Alabama - Title 23: Highways, Roads, Bridges and Ferries - Section 23-1-311 - Bonds and notes - Source of funds; pledge of funds for payment of principal and interest thereon; negotiability

Section 23-1-311 - Bonds and notes - Source of funds; pledge of funds for payment of principal and interest thereon; negotiability.

(a) The obligations authorized by this article shall not be general obligations of the authority, but shall be payable solely out of the funds appropriated and pledged in or permitted to be pledged pursuant to Sections 23-1-314 and 23-1-315.

(b) As security for the payment of the principal of and interest on the obligations issued by it under this article, the authority is hereby authorized and empowered to pledge for payment of the principal and interest the funds that are appropriated and pledged in or permitted to be pledged pursuant to Sections 23-1-314 and 23-1-315 for payment of principal and interest, and to pledge all of such funds or only certain of such funds for payment of principal and interest, all within the discretion of the authority.

(c) Any notes or temporary bonds issued under this article shall also be payable from the proceeds of any bonds in the anticipation of which such notes or temporary bonds are issued.

(d) All contracts made and all obligations issued by the authority pursuant to the provisions of this article shall be solely and exclusively the obligation of the authority and shall not be an obligation or debt of the state.

(e) Any obligation issued under this article, except bonds or temporary bonds registered as to principal or as to both principal and interest, and any interest coupons applicable thereto, shall be construed to be negotiable instruments although payable solely from a specified source as provided in this article.

(Acts 1976, No. 565, p. 764, §12; Acts 1981, No. 81-387, p. 574, §8; Act 2014-105, p. 169, §1.)

Last modified: May 3, 2021