(a) If a government unit fails to collect and remit in full all amounts due to the bank on the date these amounts are due under the terms of any note or other obligation of the government unit, the bank shall notify the State Finance Director who shall direct the withholding of all or a portion of the funds of the state and all funds administered by the state, its agencies, boards, and instrumentalities allotted or appropriated to the government unit and apply an amount necessary to the payment of the amount due.
Terms Used In Alabama Code 23-7-11
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.
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) Nothing contained in this section mandates the withholding of funds allocated to a government unit the withholding of which would violate contracts to which the state is a party, the requirements of federal law imposed on the state, or judgments of a court binding on the state.
