Code of Alabama
Article 6 - Alabama Highway Authority.
Section 23-1-157 - Bonds - Generally.

(a) The bonds of the corporation shall be signed by its president or vice president and attested by its secretary; provided, that a facsimile of the signature of the officers may be imprinted or otherwise reproduced on any such bonds in lieu of his or her signing the same. The seal of the corporation shall be affixed to such bonds; provided, that a facsimile of the seal may be imprinted or otherwise reproduced on any such bonds in lieu of being manually affixed thereon.
(b) Any bonds of the corporation may be executed and delivered at any time and from time to time, shall be in such form and denominations and of such tenor and maturities, shall bear such rate or rates of interest payable and evidenced in such manner, may contain provisions for redemption prior to maturity and may contain other provisions not inconsistent with this article, all as may be provided by the resolution of the board of directors whereunder such bonds are authorized to be issued; provided, that no bond of the corporation shall have a specified maturity date later than 30 years after its date.
(c) Bonds of the corporation may be sold from time to time as the board of directors may deem advantageous without limit as to principal amount.
Bonds of the corporation may be sold at public or private sale. If at public sale, the bonds may be sold only to the bidder whose bid reflects the lowest net interest cost to the corporation for the bonds being sold, computed to their respective maturities, in such a manner and at such price or prices and at such time or times as may be determined by the board of directors to be most advantageous; provided, that if no bid acceptable to the corporation is received, it may reject all bids. The board of directors may fix the terms and conditions under which each such sale may be held; provided, that such terms and conditions shall not conflict with any of the requirements of this article.
(d) Subject to the provisions and limitations contained in this article, the corporation may, from time to time, sell and issue refunding bonds for the purpose of refunding any matured or unmatured bonds of the corporation issued under this article and then outstanding.
(e) Approval by the Governor of Alabama of the terms and conditions under which any bonds of the corporation may be issued shall be requisite to their validity.
(f) The corporation may pay out of the proceeds from the sale of its bonds all expenses, including fees of fiscal agents and attorneys, the fees of financial advisors, and other charges, which the board of directors may deem necessary and advantageous in connection with the issuance of such bonds. Bonds issued by the corporation under this article shall not be general obligations of the corporation, but shall be payable solely out of the funds appropriated and pledged therefor, out of funds received by the corporation under any agreement or agreements with one or more municipalities, counties, or public corporations in the state, or out of such other funds or revenues as the corporation is permitted to use for such purpose.
(g) As security for the payment of the principal of and interest on any bonds issued by it under this article the corporation is hereby authorized and empowered to pledge for payment of the principal and interest the funds that are appropriated and pledged for payment of the principal and interest, and any amounts received by the corporation under any agreement or agreements with one or more municipalities, counties, or public corporations in the state. All such pledges made by the corporation shall take precedence in the order specified in the resolutions containing such pledges. All contracts made and all bonds issued by the corporation pursuant to the provisions of this article shall be solely and exclusively obligations of the corporation and shall not be an obligation or debt of the State of Alabama. Bonds issued by the corporation under this article shall be construed to be negotiable instruments although payable solely from a specified source as provided in this article.
(h) All bonds issued by the corporation and the income therefrom shall be exempt from all taxation in the State of Alabama. Any bonds issued by the corporation may be used by the holder thereof as security for any funds belonging to the state or to any instrumentality or agency of the state in any instance where security for such deposits may be required by law.
(i) Unless otherwise directed by the court having jurisdiction thereof or by the document that is the source of authority, a trustee, executor, administrator, guardian or one acting in any other fiduciary capacity may, in addition to any other investment powers conferred by law and with the exercise of reasonable business prudence, invest trust funds in bonds of the corporation.
(j) Neither a public hearing nor consent by the state Department of Finance or any other department or agency shall be a prerequisite to the issuance of bonds of the corporation.
(k) Each municipality, county, and public corporation in the state may enter an agreement or agreements with the corporation to provide security for payment of principal of and interest on those bonds issued by the corporation and described in the agreement or agreements as the same shall respectively come due, and under which agreement or agreements the municipality, county, or public corporation may undertake the obligation to pay amounts to the corporation sufficient to provide for payment of such principal and interest, and agree to pledge for payment of such amounts those sources of revenue or funds of the municipality, county, or public corporation that may be lawfully pledged thereby for such purpose.

Structure Code of Alabama