(a) The proceeds of all bonds, other than refunding bonds, issued by the corporation, remaining after paying the expenses of their issuance, shall be turned into the treasury, shall be carried in a special industrial access road and bridge construction account, and shall be available to be drawn upon by the corporation, upon the approval of the State Department of Transportation and the Governor, but solely for the purpose of constructing, reconstructing, and relocating industrial access roads and bridges, incidental or related work, and the acquisition of necessary property . Monies on deposit in the industrial access road and bridge construction account shall be invested by the State Treasurer at the direction of the corporation in permitted investments which mature at such time or times as the corporation shall direct. Net interest income earned from the investment of bond proceeds deposited into the industrial access road and bridge construction account shall be deposited as received by the State Treasurer into the state Public Road and Bridge Fund to be used for state highway purposes.

Terms Used In Alabama Code 23-6-9

  • Contract: A legal written agreement that becomes binding when signed.
  • 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.
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • 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
  • writing: includes typewriting and printing on paper. See Alabama Code 1-1-1
(b)

(1) The proceeds from the sale of any refunding bonds of the corporation remaining after paying the expenses of their issuance shall be used only for the purpose of refunding outstanding bonds of the corporation and of paying any premium that may be necessary to be paid in order to redeem or retire the bonds to be refunded.
(2) Bonds refunded prior to their maturity with the proceeds of refunding bonds shall be defeased if the corporation, in its proceedings regarding issuance of the refunding bonds provides for and establishes a trust or escrow fund comprised of monies or government securities, or both, sufficient to pay, when due, the entire principal of, premium, if any, and interest on the refunded bonds; provided, that such government securities shall not be subject to redemption prior to their maturities other than at the option of the holder thereof.
(3) Upon the establishment of the trust or escrow fund, the refunded bonds shall:

a. No longer be deemed to be outstanding;
b. No longer be secured by the funds pledged therefor in Section 23-6-10 of this chapter;
c. No longer be obligations of the corporation; and
d. Be secured solely by and payable from monies and government securities deposited in such trust or escrow fund.
(c)

(1) All contracts of the corporation for the construction, reconstruction, relocation of industrial access roads and bridges, incidental or related work, and the acquisition of necessary property shall be as follows:

a. In writing.
b. Subject to the rules and regulations of the State Department of Transportation.
c. Subject to approval by the Governor and by the State Department of Transportation.
(2) All work provided for in any such contract shall be supervised by the State Department of Transportation.
(d) All individuals engaged in the supervision or performance of any work of construction, reconstruction, or relocation that is undertaken by the corporation without the award of a contract shall be employees of the State Department of Transportation.
(e) Any property acquired by the corporation by purchase, condemnation, or otherwise shall be acquired in the name of the state or shall be forthwith conveyed to the state.
(f) All roads and bridges constructed by the corporation shall constitute part of the public highway and street system of the state. However, a private facility may establish reasonable security controls on a constructed access roadway, in cooperation with local law enforcement agencies, for the protection of its facility and employees, including but not limited to an access gate, turn around lane, or enclosed structure. These security controls shall not be considered a privatization of the public roadway.
(g) Notwithstanding any other provision of law to the contrary, a road constructed by or for a business entity pursuant to an executed project agreement with the state in accordance with Section 40-18-374 shall be considered an industrial access road and bridge for purposes of this chapter and may be owned by the business entity.
(h) There is appropriated so much of the bond proceeds as may be necessary for the construction of industrial access roads and bridges in the state.
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