Article 1 State Depositaries 41-14-1 – 41-14-16
Article 2 Deposit of State Funds 41-14-30 – 41-14-38
Article 3 Linked Deposit Program of 2007 41-14-50 – 41-14-56

Terms Used In Alabama Code > Title 41 > Chapter 14

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Arrest: Taking physical custody of a person by lawful authority.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • association: Any legal association of individuals, corporations, limited liability companies, partnerships, associations, or other entities whereby either of the following exists:

    a. See Alabama Code 45-47-230

  • ASSOCIATION CAPTIVE INSURANCE COMPANY: Any company that insures risks of the member organizations of the association, and that also may insure the risks of affiliated companies of the member organizations and the risks of the association itself and their affiliated companies. See Alabama Code 45-47-230
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • BRANCH BUSINESS: Any insurance business transacted by a branch captive insurance company in this state. See Alabama Code 45-47-230
  • BRANCH CAPTIVE INSURANCE COMPANY: Any alien captive insurance company licensed by the commissioner to transact the business of insurance in this state through a business unit with a principal place of business in this state. See Alabama Code 45-47-230
  • BRANCH OPERATIONS: Any business operations of a branch captive insurance company in this state. See Alabama Code 45-47-230
  • CAPTIVE INSURANCE COMPANY: Any pure captive insurance company, association captive insurance company, risk retention group, protected cell captive insurance company, incorporated cell captive insurance company, or industrial insured captive insurance company formed or licensed under this chapter. See Alabama Code 45-47-230
  • circuit: means judicial circuit. See Alabama Code 30-3D-608
  • commissioner: The Alabama Commissioner of Insurance or the commissioner's designee. See Alabama Code 45-47-230
  • Contract: A legal written agreement that becomes binding when signed.
  • Conviction: A judgement of guilt against a criminal defendant.
  • 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.
  • Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
  • ELIGIBLE BORROWER: An agricultural, emergency, or small business borrower that meets the definition and criteria to participate in the program. See Alabama Code 41-14-51
  • ELIGIBLE LENDING INSTITUTION: Any bank or financial institution designated as a state depositary, as provided under Section 41-14-3, and amendments thereto, that agrees to participate in the program and completes a linked deposit participation agreement. See Alabama Code 41-14-51
  • Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
    • You are late making a payment or commit some other default, triggering an increase to a penalty rate
    • The bank changes the terms of your account and you do not reject the change.
    • The rate expires (if the rate was fixed for only a certain period of time).
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • INDUSTRIAL INSURED: As defined in subdivision (2) of Section 27-10-20. See Alabama Code 45-47-230
  • INDUSTRIAL INSURED CAPTIVE INSURANCE COMPANY: Any company that insures risks of the industrial insureds that comprise the industrial insured group, and that may insure the risks of the affiliated companies of the industrial insureds and the risks of the controlled unaffiliated business of an industrial insured or its affiliated companies. See Alabama Code 45-47-230
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Judgement: The official decision of a court finally determining the respective rights and claims of the parties to a suit.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • LINKED DEPOSIT: Deposit of state funds made by the Treasurer in support of loans made by eligible lending institutions to eligible borrowers. See Alabama Code 41-14-51
  • LINKED DEPOSIT LOAN: Reduced rate loan made to an eligible borrower by an eligible lending institution that received a below market rate linked deposit for the same term. See Alabama Code 41-14-51
  • LINKED DEPOSIT PARTICIPATION AGREEMENT: The written agreement between the Treasurer and the eligible lending institution that specifies duties and responsibilities of each party consistent with this article and the program. See Alabama Code 41-14-51
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • preceding: means next before. See Alabama Code 30-3D-608
  • program: The linked deposit program, created in Section 41-14-52, and administered by the Treasurer whereby an investment of state funds is placed with an eligible lending institution which in turn funds a loan in the full amount of the deposit to an eligible borrower. See Alabama Code 41-14-51
  • property: includes both real and personal property. See Alabama Code 30-3D-608
  • PROTECTED CELL: A separate account established by a protected cell captive insurance company formed or licensed under this chapter, in which an identified pool of assets and liabilities is segregated and insulated by means of this chapter from the remainder of the protected cell captive insurance company's assets and liabilities in accordance with the terms of one or more participant contracts to fund the liability of the protected cell captive insurance company, with respect to the participants as set forth in the participant contracts. See Alabama Code 45-47-230
  • PROTECTED CELL CAPTIVE INSURANCE COMPANY: Any captive insurance company meeting all of the following:

    a. See Alabama Code 45-47-230

  • PURE CAPTIVE INSURANCE COMPANY: Any company that insures risks of its parent and affiliated companies or controlled unaffiliated business or businesses. See Alabama Code 45-47-230
  • treasurer: The Treasurer of the State of Alabama, or the designee of the Treasurer. See Alabama Code 41-14-51
  • Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
  • United States: includes the territories thereof and the District of Columbia. See Alabama Code 30-3D-608