(a) An authority from time to time may borrow money or incur indebtedness and issue bonds, notes, or other evidence of indebtedness in such principal amounts as the board determines by resolution to be necessary, desirable, and in the best interests of the authority in order to provide funds to carry out its corporate powers. Indebtedness may be incurred for any lawful purpose of the authority, including, without limitation, any of the following:
Terms Used In Alabama Code 16-17A-10
- Contract: A legal written agreement that becomes binding when signed.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- following: means next after. See Alabama Code 30-3D-608
- 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.
(1) Indebtedness to finance the acquisition or construction of health care facilities.
(2) Indebtedness to provide working capital or funds for operating expenses.
(3) Indebtedness to refund, extend, refinance, or restructure any indebtedness of the authority or any indebtedness assumed or guaranteed by the authority.
(b) Indebtedness may be any of the following or any combination thereof:
(1) A general obligation of the authority to the payment of which its full faith and credit is pledged.
(2) Payable solely out of specific revenues of the authority or any of its facilities.
(3) Secured by a pledge of any tax levied by a governmental entity that has been made available to an authority or any of its facilities.
(c) Indebtedness may provide for any of the following or any combination thereof:
(1) Provide for no interest.
(2) Provide for current interest.
(3) Provide for capitalized interest.
(4) Provide for accretion or other increase in principal amount in lieu of interest.
(d) Any resolution authorizing the issuance of any indebtedness shall create a contract with the holders of the indebtedness issued thereby.
(e) Evidence of indebtedness shall be executed and delivered as provided in the resolution of the board authorizing the same.
(f) Indebtedness may be sold at public or private sale or in exchange for indebtedness of the authority at such price or on such terms as the board shall determine.
(g) All indebtedness of an authority shall be subject to redemption or prepayment on such terms as the board shall determine.
(h) No indebtedness of an authority shall mature more than 40 years from the date of issuance, without regard to whether the indebtedness is refunding, extending, refinancing, or restructuring existing indebtedness.
(i) The authority may, subject to security documents or other agreements with holders as may then exist, purchase its indebtedness in the open market, through intermediaries or directly from the holder of an obligation, with any funds available therefor. Any obligation so purchased may be cancelled by the authority or may be resold, as authorized by the board.