Code of Alabama
Chapter 7 - Improvement Authorities.
Section 39-7-21 - Obligations of Contracts of Municipality Not to Be Impaired; Payment of Notes, Bonds or Other Obligations Issued by Municipality; Assumption of Municipal Contracts as to Plant or System by Authority.

The obligations of contracts of the municipality shall not be impaired by this chapter.
Moneys to provide for the payment of notes, bonds or other obligations issued by the municipality in relation to any plant or system, the management, supervision, possession and control of which shall devolve upon such authority, shall be raised, collected and paid for by such municipality as though this chapter had not been enacted; except, that in the event such notes, bonds or other obligations constitute a charge, lien or other encumbrance upon the revenue of such plant or system, the duty to raise, collect and apply such revenues to the payment of such notes, bonds or other obligations shall rest upon such authority rather than upon the municipality and such notes, bonds or other obligations shall remain a charge, lien or other encumbrance upon such revenues.
All contracts of such municipality in relation to any such plant or system shall be assumed by such authority and the terms and conditions to be performed on the part of such municipality shall be complied with and performed by the board of trustees of such authority and the benefits of such contracts shall inure to the benefit of such authority.

Structure Code of Alabama

Code of Alabama

Title 39 - Public Works.

Chapter 7 - Improvement Authorities.

Section 39-7-1 - Definitions.

Section 39-7-2 - Authorization for Incorporation Generally.

Section 39-7-3 - Filing of Petition for Election as to Incorporation.

Section 39-7-4 - Form and Verification of Petition.

Section 39-7-5 - Summary Proceedings for Review, etc., of Sufficiency of Petition.

Section 39-7-6 - Publication of Notice of Filing of Petition and of Question to Be Submitted to Voters at Election.

Section 39-7-7 - Submission of Question Proposed by Petition to Voters at General Election.

Section 39-7-8 - Holding of Special Election for Submission of Question to Voters; Provisions of Law Governing Conduct of Such Elections; Payment of Expenses of Elections.

Section 39-7-9 - Contents and Form of Election Ballot.

Section 39-7-10 - Adoption of Resolution Setting Forth Question Submitted and Votes Cast; Declaration of Incorporation of Improvement Authority.

Section 39-7-11 - When Authority Deemed Incorporated; Transmission of Certified Copy of Resolution, etc., to Secretary of State; Secretary of State to Furnish Statement of Names, etc., of Authorities Incorporated to Department of Finance; Publication...

Section 39-7-12 - Authority to Be Public Corporation; Exercise of Powers of Authority.

Section 39-7-13 - Purpose and Powers of Authority Generally; Sale, Transfer and Conveyance of Entire Water System to Public Corporation Authorized to Conduct Business of Water Distribution System.

Section 39-7-14 - Board of Trustees of Authority - Composition; Appointment, Removal and Terms of Office of Members; Vacancies.

Section 39-7-15 - Board of Trustees of Authority - Members Not to Hold Public Office Under Municipality.

Section 39-7-16 - Board of Trustees of Authority - Organization Meeting; Selection of Officers.

Section 39-7-17 - Board of Trustees of Authority - Compensation; Delegation of Powers and Duties to Employees, Etc.

Section 39-7-18 - Board of Trustees of Authority - Powers Generally.

Section 39-7-19 - Transfer of Supervision, Possession, Control, etc., of Property, Rights, Books, Papers, etc., of Plant or System Owned by Municipality to Authority Generally; Continuation in Effect of Provisions of Law as to Powers and Duties of Mu...

Section 39-7-20 - Transfer of Municipal Officers and Employees to Authority.

Section 39-7-21 - Obligations of Contracts of Municipality Not to Be Impaired; Payment of Notes, Bonds or Other Obligations Issued by Municipality; Assumption of Municipal Contracts as to Plant or System by Authority.

Section 39-7-22 - Powers Generally; Consent of Department of Finance Required for Issuance or Sale of Bonds or Other Evidence of Indebtedness by Authority.

Section 39-7-23 - Authorization for Issuance of Bonds by Authority; Terms, Denominations, Sale, Redemption, etc., of Bonds; Issuance of Interim Receipts, Certificates, Etc.

Section 39-7-24 - Liability on Bonds and Other Obligations of Authority.

Section 39-7-25 - Rights and Remedies of Bondholders.

Section 39-7-26 - Pledge as to Alteration, Impairment, etc., of Certain Rights and Powers of Authorities and Rights and Remedies of Bondholders by State.

Section 39-7-27 - Disposition of Moneys of Authority.

Section 39-7-28 - Examinations of Accounts and Books of Authority; Copy of Examination to Be Furnished to Board of Trustees; Publication of Statement and Analysis of Financial Standing of Authority; Special Audit and Examination of Books and Accounts...

Section 39-7-29 - Authorization and Procedure for Enlarging of Services Furnished by Authority.

Section 39-7-30 - Authorization and Procedure for Diminishing of Services Furnished by Authority.

Section 39-7-31 - Limitation as to Number of Special Elections for Incorporating Authority or Enlarging or Diminishing Services Furnished by Authority.

Section 39-7-32 - Furnishing of Services Outside Boundaries of Municipality by Authority.

Section 39-7-33 - Purpose of Chapter; Chapter Exclusive as to Franchises, Licenses, Permits, etc., for Authorities.

Section 39-7-34 - Provisions of Chapter Exclusive as to Matters Covered by Chapter.