HB743 Alabama 2010 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2010

Title

Public School and College Authority, bonds, issuance for public education and to pay swap agreements, sale of bonds by negotiated sale under certain conditions, revenue appropriated and pledged from Public School Fund, refunding bonds authorized, use of proceeds for school bus fleet renewal and to repay the Education Trust Fund for appropriations made in Act 2009-339 to the local boards of education for school bus fleet renewal

Description

This bill requires the Alabama Public School and College Authority to sell and issue $66,500,000 in aggregate principal amount of additional bonds for the support of public education. This bill authorizes the Authority to reimburse the Department of Finance and the State Treasurer's office for costs incurred in providing services for the Authority; it authorizes the Authority to provide for the details of the bonds and the sale and issuance thereof; it makes an appropriation and pledge for payment of the principal and interest on the bonds from specific funds necessary to pay the principal and interest at their respective maturities and authorizes the Authority to pledge for payment of the principal and interest on the bonds the funds that are appropriated and pledged; it provides for the investment of funds by the State Treasurer; it provides that the bonds shall not constitute a debt of the state but shall be limited obligations payable out of the funds appropriated and pledged therefor; it provides that the bonds and income therefrom shall be exempt from all taxation in this state and that the bonds may be used to secure deposits of funds of this state and its political subdivisions, instrumentalities and agencies and for investment of fiduciary funds; it authorizes the Authority to establish procedures and requirements to ensure compliance with the tax covenants with which the Authority must comply; it exempts the bonds from the usury laws of the state; it authorizes the Authority to issue refunding bonds and gives the details of such refunding; it provides for the employment of attorneys, fiscal advisors, trustees, paying agents, investment bankers, banks, and underwriters and for the payment of all expenses incurred in the issuance of the bonds; it provides that after payment of the expenses of the issuance of the bonds the proceeds from the sale thereof shall be disbursed on order or warrants issued by or under the direction of the Authority for the purposes for which the bonds are authorized to be issued; it provides that the bonds may not be issued if certain conditions are met; and it provides that if any portion of this act should be held invalid such holding shall not affect the validity of any other portion thereof.

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Subjects

Public School and College Authority