(a) In payment for the purchase, construction, acquisition, extension, or maintenance of the television cable system, the municipal corporation may issue its bonds in the manner provided by law.
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Terms Used In Alabama Code 45-40A-10.04

  • 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.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • property: includes both real and personal property. See Alabama Code 1-1-1
(b) The municipal corporation, in order to secure the prompt and faithful payment of the principal and interest of all debts, bonds, or other evidences of indebtedness incurred or issued by it for the construction, acquisition, extension, or maintenance of a television cable system, may execute a mortgage or deed of trust upon any or all of the system and all property used in connection therewith, including the franchise or any part thereof.
(c) The mortgage or deed of trust may contain the terms, conditions, covenants, and warranties for the protection of the municipal corporation and holders of the bonds or securities issued by the municipal corporation as may be determined and agreed upon by the governing body of the municipal corporation and persons, firms, or corporations owning the debts, bonds, or securities.
(d) The mortgages may provide that in the event of the foreclosure of the mortgage or deed of trust, the purchaser at the foreclosure sale may acquire the right, privilege, and franchise of operating the system as may be so sold or conveyed, and the purchaser or his or her vendee may have the right, authority, and privilege to carry on and operate the system in the same manner on the same terms and to the same extent as the municipal corporation is authorized to operate until the municipal corporation may redeem the system from the mortgage sale.
(e) The mortgage or deed of trust may provide that during the ownership of the system by the municipal corporation, its control of the service of the system shall not be diminished or interfered with by the grant of any other franchise for the operation of any other plant or system for similar purposes; and that the rates and charges shall be established and maintained as are sufficient to meet the costs of operation and maintenance; and the municipal corporation may pledge all of the receipts, earnings, and revenues from the operation of the system for the payment of the debts, bonds, or other evidences of indebtedness secured by the mortgages or deeds of trust.
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