All moneys derived from the sale of any bonds issued by any corporation organized under this article or the articles of incorporation of which are amended under this article shall be used solely for the purpose or purposes for which the same are authorized, including any engineering, legal, and other expenses incidental thereto and, in the case of bonds issued in whole or in part for construction of a system or any part thereof, interest on such bonds or, if a part only of the bonds are issued for the purpose of such construction, on the part of such bonds issued for that purpose, prior to and during such construction and for not exceeding one year after completion of such construction and, in the case of bonds issued by such corporation for the purpose of refunding outstanding bonds of such corporation, any premium which it may be necessary to pay in order to redeem or retire the bonds to be refunded.
Structure Code of Alabama
Title 11 - Counties and Municipal Corporations.
Title 2 - Provisions Applicable to Municipal Corporations Only.
Chapter 50 - Public Utilities.
Article 9 - Boards for Operation of Water, Sewer, Gas and Electric Systems.
Section 11-50-310 - Definitions.
Section 11-50-313 - Board of Directors.
Section 11-50-315 - Execution, etc., of Contracts as Security for Repayment of Moneys Borrowed.
Section 11-50-317 - Pledge of Revenues From and Mortgaging of Systems for Payment of Bonds.
Section 11-50-318 - Disposition of Proceeds From Sale of Bonds.
Section 11-50-319 - Exemption From Usury and Interest Statutes.