Code of Alabama
Chapter 2 - Alabama Corrections Institution Finance Authority.
Section 14-2-19 - Bonds - Disposition of Proceeds.

THIS SECTION WAS AMENDED BY ACT 2021-546 IN THE 2021 1ST SPECIAL SESSION, EFFECTIVE OCTOBER 1, 2021. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
(a) All proceeds derived from the sale of any bonds, except refunding bonds, sold by the authority, remaining after payment of the expenses of issuance thereof, shall be turned over to the State Treasurer, shall be carried in a special account to the credit of the authority, and shall be subject to be drawn on by the authority solely for the purposes of:
(1) Acquiring land for and constructing, reconstructing, and equipping thereon one or more facilities;
(2) Constructing additional improvements on property currently owned by the Department of Corrections or the authority in order to provide for additional or replacement bedspace;
(3) Paying all reasonable and necessary expenses incidental thereto, including filing, recording, surveying, legal and engineering fees, and expenses;
(4) Paying the interest which will accrue on the bonds during the period required for the construction and equipping of the facilities and for a period not exceeding six months after the completion thereof;
(5) Paying the principal of and interest on all then outstanding notes theretofore issued by the authority pursuant to the provisions of Section 14-2-10;
(6) Paying for the cost of constructing the specialized men's prison facility and the Escambia men's prison facility; and
(7) Paying for the cost of renovation and improvement of existing state-owned prison facilities in Jefferson and Limestone Counties and an additional men's prison facility selected by the authority and to be located in Barbour or Bullock County, and the construction of a women's prison facility.
The balance of the proceeds thereafter remaining, unless required for the construction of other facilities by the authority as shall be determined by resolution within six months after completion of the facilities for which the bonds were issued, shall be set aside as additional security for the bonds or shall be used to pay, purchase, or redeem bonds as may be provided in the proceedings authorizing their issuance. The reasonable and necessary expenses incident to the construction of any facility shall, if deemed advisable by the authority, include all or any part of the expense of providing temporary facilities, during the construction of a new facility, for any penal or correctional institution facility which is demolished or unserviceable as such.
(b) All proceeds from the sale of refunding bonds issued by the authority that remain after paying the expenses of their issuance may be used only for the purpose of refunding the principal of and any unpaid and accrued interest on the outstanding bonds of the authority for the refunding of which the refunding bonds are authorized to be issued, together with any premium that may be necessary to be paid in order to redeem or retire such outstanding bonds.

Structure Code of Alabama