(a) In payment for the purchase, lease, construction, acquisition, extension, or maintenance of the cable television system, the municipal corporation may issue its bonds in the manner provided by law.
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Terms Used In Alabama Code 45-48A-61.02

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • property: includes both real and personal property. See Alabama Code 1-1-1
(b) The municipal corporation, in order to secure the prompt and faithful payment of the principal and interest of all debts, bonds, or other evidences of indebtedness incurred or issued by it for the construction, acquisition, lease, extension, or maintenance of a television cable system may execute a mortgage or deed of trust upon any or all of the system and all property used in the operation, including the franchise in whole or in part.
(c) The mortgage or deed of trust may contain terms, conditions, covenants, and warranties for the protection of the bond holders or securities issued by the municipal corporation cable television system, as determined and agreed upon from time to time by the governing body of the municipal corporation and persons, firms, or corporations owning the debts, bonds, or securities.
(d) The mortgages may provide that in the event of the foreclosure of the mortgage or deed of trust, that the purchaser at the foreclosure sale may acquire the right, privilege, and franchise of operating the system as may be sold or conveyed, and the purchaser or vendee may have the right, authority, and privilege to carry on and operate the system in the same manner, or on the same terms, and to the same extent as the municipal corporation is authorized to operate, with the exception of eminent domain authority, until the municipal corporation may redeem the system from the mortgage sale.
(e) The mortgage or deed of trust may provide:

(1) That during the ownership of the system by the municipal corporation, the control of the service of the system shall not be diminished or interfered with by the granting any other franchise for the operation of any other plant or system for similar purposes.
(2) That the rates and charges shall be established and maintained to sufficiently meet the cost of operation and maintenance.
(3) That the municipal corporation may pledge all of the receipts, earnings, and revenues from the operation of the system for the payment of the debts, bonds, or other evidences of indebtedness secured by the mortgages or deeds of trust.
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