Section 11-66A-7 - Financial obligations of a research and development corridor(a) Each corridor shall have, and may exercise as provided in Section 6(12), the authority and power to assume, incur, or issue, at any time and from time to time, any financial obligation or financial obligations, without limitation as to aggregate principal amount, as the board determines to be necessary or desirable for any lawful purpose of the corridor, including, but limited to: (1) Payment of the costs of a project;(2) Payment, in whole or in part, in advance or at stated maturity, of any financial obligation of the corridor;(3) Provision for such reserves as may be required in connection with the financial obligations;(4) Payment of any extraordinary, nonrecurring obligations, including, but not limited to, casualty losses, legal judgments, and contractual termination payments;(5) Payment of administration and operation of projects; and(6) Provision of funds to accomplish or effect any purpose of this act.(b) Each financial obligation of a research and development corridor may be in such form and denomination and of such tenor and maturity or maturities, shall be payable in lawful currency of the United States in such installments as serial or term obligations or a combination thereof, and at such time or times, not exceeding 45 years from the date thereof, may be payable at such place or places whether within or without the state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be subject to prepayment or redemption in advance of maturity at such price or prices and upon such notice, terms, and conditions, and may contain such provisions which are not in violation of this act, all as provided in the applicable agreement, indenture, or resolution of the corridor that has authorized the incurrence or issuance thereof.(c) A research and development corridor may provide that any financial obligation shall bear interest at a rate or rates fixed to maturity at the time of issuance or at a rate or rates which may be changed from time to time during the term of the financial obligation in accordance with an objective procedure determined by the board at the time of issuance of the financial obligation or in connection with published interest rates or indices that reflect an objective response to market changes in interest rates by financial institutions, governmental agencies, or other generally recognized public or private sources of information concerning interest rates.(d) A research and development corridor shall have the authority and power to deliver and perform all agreements and contracts for the services of paying agents and trustees with respect to financial obligations incurred or issued under this act, for the purchase of any financial obligations issued under this act, and for the guarantee or insurance, pursuant to municipal bond insurance policies, letters of credit, standby purchase agreements, and other credit or liquidity facilities, of the payment, when due, of the principal of, and premium and interest on, any financial obligations so assumed, incurred, or issued by the corridor pursuant to this act.(e) A research and development corridor shall cause all financial obligations assumed, incurred, or issued by the corridor to be executed by manual or electronic signature of an officer or officers as authorized and provided in the agreement, indenture, or resolution of the corridor which authorized the financial obligation. A statement upon the signature page of a financial obligation of a research and development corridor that the financial obligation was issued under the seal of the corridor shall be conclusive for all purposes of state law. A financial obligation that has been executed by an officer or officers in office on the date of the execution shall be valid and enforceable, notwithstanding that before delivery of the financial obligation, any such officer whose signature appears thereon has ceased to hold such office.(f) All financial obligations incurred or issued pursuant to this act by a research and development corridor may be sold at private or public sale at such price or prices and in such manner as the board shall determine.(g) Each financial obligation of a research and development corridor is hereby made a negotiable instrument for all purposes; anything in state law, including, but not limited to, the Alabama Uniform Commercial Code, to the contrary notwithstanding and without regard to whether the financial obligation is of such form and character as to be a negotiable instrument under state law; provided, however, the corridor, in its discretion, may provide that any particular financial obligation shall not be negotiable or may be negotiable only upon such terms as the corridor shall proscribe.(h)(1) The corridor shall apply the proceeds of any financial obligation solely for the purposes for which the financial obligation has been incurred or issued, including, but not limited to, payment of the costs of incurrence or issuance of the financial obligations, including, but not limited to: (i) fees and expenses of attorneys, accountants, financial advisors, consultants, trustees and paying agents, and underwriters; and (ii) the costs of municipal bond insurance policies, letters of credit, and such other credit or liquidity facilities which provide for payment when due of all or part of the principal of, and premium and interest on, the financial obligations.(2) The corridor may deposit in trust the proceeds of any financial obligation incurred or issued for payment of another financial obligation of the corridor, on such terms as the board approves, with a financial institution having trust powers within or without the state. The proceeds, to the extent required by the terms of and purpose of such trust, may be invested as provided for public funds of a municipality.(i) The financial obligations of any corridor shall be legal investments in which the state and its agencies and instrumentalities, all subdivisions and public corporations organized under the laws of the state, all insurance companies and associations and other persons carrying on an insurance business, all banks, savings banks, savings and loan associations, trust companies, credit unions, and investment companies of any kind, all administrators, guardians, executors, trustees, and other fiduciaries, and all other persons whosoever are now or may hereafter be authorized to invest in financial obligations or other obligations of the state, may properly and legally invest funds in their control or belonging to them.(j) The validity of any financial obligation that states therein that it is issued pursuant to this act, in any action or proceeding involving the validity thereof, shall be incontestable, and the financial obligation shall be conclusively deemed to be the valid financial obligation of the applicable corridor enforceable by all rights and remedies available at law or in equity under state law.Ala. Code § 11-66A-7 (1975)
Added by Act 2024-308,§ 7, eff. 5/9/2024.