HB609 Summary

• Amends Section 45-2-245.20 of the Code of Alabama 1975 to authorize Baldwin County to borrow from the Baldwin County Oil and Gas Severance Tax Trust Fund, and authorizes trustees to loan funds to the county in a single transaction only.

• Borrowed funds must be expended solely for encouraging, promoting, or assisting economic and industrial development in Baldwin County, including property acquisition, project financing, and construction or repair of roads and bridges directly related to development projects.

• Any loan from the trust fund becomes a general obligation of Baldwin County, with repayment required in equal semi-annual installments over a term not exceeding 15 years at a rate of interest equal to one percent more than the published market rate on 10-year U.S. Treasury Notes.

• Repaid principal funds may not be borrowed a second time under this provision, limiting the borrowing authority to a single transaction.

• The act becomes effective immediately upon passage and approval by the Governor.