(a) The state or any political subdivision shall not in any event be liable for the payment of the principal of or interest on any bonds of the corporation or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the state or any political subdivision within the meaning of any constitutional or statutory provision whatsoever.
Terms Used In Alabama Code 11-74-5
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
property: includes both real and personal property. See Alabama Code 1-1-1
state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
(b) The corporation and the property and income of the corporation, whether used by it or leased to others; all bonds issued by the corporation, whether used by it or leased to others; all bonds issued by the corporation; the income from those bonds or from any other sources; the interest and other profits from such bonds enuring to and received by the holders thereof; conveyances by and to the corporation; and leases, mortgages, and deeds of trust by and to the corporation shall be exempt from all taxation in the state. (c) The corporation shall be exempt from all laws of the state requiring competitive bids for contracts to be entered into by municipalities or public corporations.
