Section 11-20-74 - Borrowing of money; security(a) Subject to the conditions, qualifications, and restrictions set forth in subsection (b), an agriculture authority may borrow money from any person or governmental entity. As security for any money borrowed, together with interest thereon, and any obligations incurred or assumed, an agriculture authority may mortgage, pledge, or otherwise transfer and convey its real, personal, and mixed property, or any part or parts thereof, whether then owned or thereafter acquired, including any franchises then owed or thereafter adopted and all or any part of any funds of the authority. In a resolution authorizing the mortgage given to secure the payment thereof, an agriculture authority, in addition to its other powers, shall have the power to agree with the several holders of the mortgage to make, enter, and perform covenants and agreements as to all of the following: (1) The conduct, management, and maintenance of the properties held by the authority or of the activities, operations, and enterprises then or thereafter conducted by the authority.(2) Insurance of the properties of the authority.(3) Restrictions on the exercise of the powers of the authority to dispose or to limit or regulate the use of all or any part of the properties of the authority.(4) The use and disposition of any moneys of the authority, including taxes payable to the authority under any act of the Legislature heretofore or hereafter adopted and revenues derived or to be derived from the activities, operations, and enterprises of all or any part of the properties of the authority, including any part or parts theretofore constructed or acquired and any parts, extensions, replacements, or improvements thereafter constructed or acquired.(5) The setting aside of the taxes payable to the authority under any act of the Legislature heretofore or hereafter adopted or use of the revenues or the moneys of the authority or reserves and sinking funds, and the source, custody, security, regulation, application, and disposition thereof.(6) The assumption or payment or discharge of any indebtedness, liens, or other claims relating to any part of the properties of the authority or any obligations constituting, or which may constitute, a lien on the properties or any part thereof.(7) Limitations or other evidences of indebtedness or upon the incurrence of indebtedness of the authority.(b) The power vested in an agriculture authority to pledge taxes to be paid to the authority or to pledge revenue of the authority shall not be construed as undertaking or purporting to empower the authority to pledge any tax or any revenue if the pledge is prohibited by the Constitution of Alabama of 1901. It is expressly provided that the authority shall have the power to pledge any tax paid to the authority or revenue of the authority, the pledge of which is authorized by the Constitution of Alabama of 1901.(c) The powers and authority set forth in this section shall only be exercised if necessary in order for the authority to receive federal funding or grants for any projects or activities of the authority.Ala. Code § 11-20-74 (1975)
Added by Act 2017-246,§ 5, eff. 5/9/2017.