Code of Alabama - Title 45: Local Laws - Section 45-9A-40 - Proceeds from sale of gas distribution system

Section 45-9A-40 - Proceeds from sale of gas distribution system.

(a) The City of LaFayette has received proceeds from the sale of its gas distribution system, and all one million nine hundred twenty thousand dollars ($1,920,000) of such proceeds shall be used to establish an investment fund named "City of LaFayette Gas System Sale Investment Funds." This fund may receive money from other sources in addition to that received from the sale of the gas system.

(b) The investment fund shall be invested only in United States securities, or in investments secured by an agency of the United States government and 90 percent of the annual interest therefrom shall be available to be spent or used for any lawful purpose. The remaining 10 percent of such interest together with the principal shall remain in the investment fund unless otherwise approved by a vote of two-thirds of the qualified electors in the City of LaFayette. If approved by such voters, any portion of the aforesaid investment fund (principal and interest) may be used or spent for lawful purposes.

(c) That resolution 95-46, which directs the city to invest $1.2 million of the proceeds be repealed.

(Act 97-924, p. 374, §§1, 2.)

Last modified: May 3, 2021