Alabama § 41-10-45.3 - Loans; Maximum Amount of Project Obligations; Refinancing; Investment of Funds.

§ 41-10-45.3. Loans; Maximum Amount of Project Obligations; Refinancing; Investment of Funds.

(a) The authority may provide loans to an eligible borrower to pay for all or part of the eligible expenses of a qualifying project pursuant to a targeted county financing agreement. A loan may have a maturity or maturities not exceeding 20 years from its date, may bear interest or be interest free, may not exceed the maximum loan amount, and may contain terms not in conflict with the provisions of this article, all as the governing body of the authority may provide in the proceedings pursuant to which the loan is authorized to be issued. The authority may provide, in its discretion, that the loan shall bear interest at a rate or rates fixed at the time of the issuance thereof, or at fixed rates which may be changed from time to time during the term of the loan in accordance with an objective procedure determined by the authority at the time of the issuance of the loan, or at a floating rate or rates, and the authority may also provide, in its discretion, that interest on the loan may be payable in cash or in kind at fixed intervals, through one or more payments which reflect compound interest computed at specified intervals on accrued but unpaid interest, through a discount in the sales price for the loan equivalent to compound interest on the loan for all or part of the term thereof, or through any combination of the foregoing methods. The proceeds derived from the loan shall be used solely for the purpose specified in the targeted county financing agreement.

(b) The authority shall determine the form and content of loan applications, targeted county financing agreements, and loan obligations, including the term and rate or rates of interest. The loan application must include a description of the eligible project, the estimated cost of the project for which assistance is requested, and any other information required by the authority.

(c) The authority may not issue project obligations to provide money for the fund in excess of $20,000,000.

(d) The authority may:

(1) Require a qualifying borrower with an outstanding loan to submit to the authority information relevant to the loan; and

(2) Require a qualifying borrower with an outstanding loan to submit financial reports.

(e) The authority may refinance any loan previously made to a qualifying borrower.

(f) The Treasurer of the state may invest the money in the fund not currently needed to meet the obligations of the fund under this article. The Treasurer of the state may contract with investment management professionals, investment advisors, and legal counsel to assist in the management of the fund and may pay from the fund the state expenses incurred under those contracts.