(a) As security for payment of the principal of and the interest on bonds issued or obligations assumed by it, the authority may enter into one or more contracts binding itself for the following:
(1) The proper application of the proceeds of bonds and other funds, for the continued operation and maintenance of any transit system owned by it, or any part or parts of a transit system.
(2) The imposition and collection of reasonable rates for and the promulgation of reasonable regulations respecting any service furnished from a transit system.
(3) The disposition and application of its gross revenues or any part of a transit system.
(4) For any other act or series of acts not inconsistent with this chapter for the protection of the bonds and other obligations being secured and the assurance that the revenues from the transit system, when added to all other moneys of the authority available for the transit system, will be sufficient to operate the system, maintain the system in good repair and in good operating condition, pay the principal of and the interest on any bonds payable from the revenues, and maintain the reserve deemed appropriate for the protection of the bonds, the efficient operation of the system, and the making of replacements for the system and capital improvements of the system.
(b) Any contract entered into pursuant to this section may be set forth in any resolution of the board authorizing the issuance of bonds or the assumption of obligations or in any mortgage and deed of trust, or trust indenture made by the authority.
Structure Code of Alabama
Title 11 - Counties and Municipal Corporations.
Title 1 - Provisions Applicable to Counties Only.
Chapter 32 - Public Transportation in Counties Having Population of 600,000 or More.
Section 11-32-1 - Legislative Findings.
Section 11-32-2 - Definitions.
Section 11-32-3 - Incorporation as a Public Corporation; Applications.
Section 11-32-4 - Certificate of Incorporation - Filing; Contents; Execution.
Section 11-32-5 - Certificate of Incorporation - Amendment.
Section 11-32-6 - Board of Directors.
Section 11-32-7 - Powers of Authority.
Section 11-32-8 - Rates and Charges.
Section 11-32-9 - Bonds - Form and Execution; Sale; Obligations; Notice.
Section 11-32-10 - Bonds - Contracts as Security for Payment.
Section 11-32-11 - Statutory Mortgage Lien.
Section 11-32-12 - Use of Bond Proceeds.
Section 11-32-13 - Powers of Localities, Agencies, Etc.
Section 11-32-14 - Exemption From Taxes, Fees, and Costs.
Section 11-32-15 - Incorporation of Subsequent Authority.
Section 11-32-16 - Exemption From Other State Supervision and Control.
Section 11-32-17 - Use of Public Roads.
Section 11-32-18 - Annual Audit.
Section 11-32-19 - Labor Unions.
Section 11-32-20 - Dissolution of Transit Authority.
Section 11-32-21 - Employee Protective Provisions.
Section 11-32-22 - Applicability to Birmingham-Jefferson County Transit Authority.
Section 11-32-23 - Funding - Annual Payments.
Section 11-32-24 - Funding - Amount Paid by Authorizing County.
Section 11-32-25 - Funding - Amount Paid by Principal Municipality.
Section 11-32-26 - Request for Service.
Section 11-32-27 - Budget Requirements.
Section 11-32-28 - Certification of Routes.
Section 11-32-29 - Costs of Operation.
Section 11-32-30 - Certification of Amounts to Be Paid to Authority.
Section 11-32-31 - Payment Schedule; Sufficiency of Funds.
Section 11-32-32 - Payments Made According to Schedule.
Section 11-32-33 - Examination and Audits of Books and Records.