Ala. Code § 41-10-751

Current through the 2024 Regular Session.

Section 41-10-751 - Definitions

When used in this article, the following terms shall have the following meanings, unless the context clearly indicates otherwise:

(1) ALABAMA TRUST FUND. The trust fund of the state created under Amendment 450 to the Constitution of Alabama of 1901, and appearing as §219.02 of the Official Recompilation of the Constitution of Alabama 1901, as amended.

(2) APPROPRIATED FUNDS. The BP settlement revenues deposited in the special fund to the extent such revenues are appropriated to the authority pursuant to Section 41-10-759.

(3) AUTHORITY. The Alabama Economic Settlement Authority authorized to be established pursuant to Section 41-10-752.

(4) BONDS. Those bonds, including refunding bonds, issued pursuant to this article.

(5) BP SETTLEMENT REVENUES. Revenues received by the state in settlement of economic damages claims of the state against BP Exploration and Production, Inc. and any of its corporate affiliates arising out of the Deepwater Horizon oil spill in the Gulf of Mexico. BP settlement revenues do not include amounts received by the state from or through natural resource damage assessment claims, the federal RESTORE Act, or claims otherwise restricted by federal law or court order.

(6) GOVERNMENT SECURITIES. Any bonds or other obligations, the principal of and interest on which constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency to the extent such obligations are unconditionally guaranteed by the United States of America and any certificates or any other evidences of an ownership interest in such obligations of, or unconditionally guaranteed by, the United States of America or in specified portions thereof, which may consist of the principal thereof or the interest thereon.

(7) PERMITTED INVESTMENTS.

a. Government Securities;

b. bonds, debentures, notes, or other evidences of indebtedness issued by any of the following agencies: Bank for Cooperatives; federal intermediate credit banks; Federal Financing Bank; federal home loan banks; Federal Farm Credit Bank; Export-Import Bank of the United States; federal land banks; or Farmers Home Administration or any other agency or corporation which has been or may hereafter be created by or pursuant to an act of the Congress of the United States as an agency or instrumentality thereof;

c. bonds, notes, pass through securities, or other evidences of indebtedness of the Government National Mortgage Association and participation certificates of the Federal Home Loan Mortgage Corporation;

d.) full faith and credit obligations of any state, provided that at the time of purchase such obligations are rated at least "AA" by Standard & Poor's Ratings Group and at least "Aa" by Moody's Investors Service;

e. public housing bonds issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by contracts with the United States of America, or temporary notes, preliminary notes, or project notes issued by public agencies or municipalities, in each case fully secured as to the payment of both principal and interest by contracts with the United States of America, or temporary notes, preliminary notes, or project notes issued by public agencies or municipalities, in each case fully secured as to the payment of both principal and interest by a requisition or payment agreement with the United States of America;

f. time deposits evidenced by certificates of deposit issued by banks or savings and loan associations which are members of the Federal Deposit Insurance Corporation, provided that, to the extent such time deposits are not covered by federal deposit insurance, such time deposits, including interest thereon, are fully secured by a pledge of obligations described in paragraphs a., b., c., and e. above, which at all times have a market value not less than the amount of such bank time deposits required to be so secured and which meet the greater of 100 percent collateralization or the "AA" collateral levels established by Standard & Poor's Ratings Group for structured financings;

g. repurchase agreements for obligations of the type specified in paragraphs a., b., c., and e. above, provided such repurchase agreements are fully collateralized and secured by such obligations which have a market value at least equal to the purchase price of such repurchase agreements which are held by a depository satisfactory to the State Treasurer in such manner as may be required to provide a perfected security interest in such obligations, and which meet the greater of 100 percent collateralization or the "AA" collateral levels established by Standard & Poor's Ratings Group for structured financings; and

h. uncollateralized investment agreements with, or certificates of deposit issued by, banks or bank holding companies, the senior long-term securities of which are rated at least "AA" by Standard & Poor's Ratings Group and at least "Aa" by Moody's Investors Service.

(8) RAINY DAY ACCOUNT. The General Fund Rainy Day Account of the Alabama Trust Fund created by Amendment 803 to the Constitution of Alabama 1901, and appearing as §260.02 of the Official Recompilation of the Constitution of Alabama 1901, as amended.

(9) REFUNDING BONDS. Those refunding bonds issued pursuant to this article.

(10) SPECIAL FUND. The BP Settlement Fund established pursuant to Section 41-10-758.

(11) STATE. The State of Alabama.

(12) TRANSPORTATION PROJECTS. Any undertaking to construction a particular portion of a highway located in the Alabama Department of Transportation Districts 91 and 92 of the Southwest Region, including without limitation, any bridges necessary for the highway.

Ala. Code § 41-10-751 (1975)

Added by Act 2016SP1-469,§ 2, eff. 9/8/2016.