SB364 Alabama 2018 Session

Updated Apr 26, 2021

Senate Bill

In Second Chamber

Current Status

Regular Session 2018

Session

Sponsor

Summary

Primary Sponsor: Arthur Orr Senator
Republican
Session: Regular Session 2018
Title: Local governments, bond financing review forms, bond financing agreement documents to include a schedule of all of the debt obligations of the county under certain conditions, signed acknowledgement required, municipalities and local school boards required to follow the same procedures required of a county before entering into a bond financing agreement and required to complete a government bond financing review form developed by the Department of Examiners of Public Accounts, Secs. 11-8A-3 & 11-8A-4 am'd.
Description: Existing law requires a county to complete a county government bond financing review form that is prepared by the Department of Examiners of Public Accounts when executing a bond financing agreement that acknowledges that the county has considered the relevant factors important to the decision of entering into bonded indebtedness. The form must be submitted to the Department of Examiners of Public Accounts and made available for public inspection.
This bill would require the bond financing agreement documents to include a schedule of all of the debt obligations of the county for the time span of the maturity of the debt obligation at issue and would require the chair of the county commission and the authorized signatory for the bond underwriter to sign an acknowledgment that the total amount of debt obligations and a schedule of the total debt payments has been presented and explained to all members of the county commission prior to the sale of bonds.
This bill would add to the county government bond financing review form a statement acknowledging that the county commission has received from the bond underwriter a potential debt service schedule for all county debt for the time span of the maturity of the debt obligation at issue and has been advised of the ability of the county to pay all of the debt obligations.
This bill would require a municipality or a local school board to follow the same procedures required of a county before entering into a bond financing agreement and would require the municipality or local school board to complete a government bond financing review form developed by the Department of Examiners of Public Accounts when executing a bond financing agreement acknowledging that the municipality or local school board has considered the relevant factors important to the decision of entering into bonded indebtedness. This bill would also require that the form be submitted to the Department of Examiners of Public Accounts and made available for public inspection.
Subjects: Bond Financing