Ala. Code § 9-14F-18

The authority, on behalf of the state, shall have the power to provide for payments to the United States of America as the directors deem necessary to cause the interest on any bonds to be and remain exempt from federal income taxation. The authority shall have the power to make agreements respecting the investment of the proceeds of the bonds or other funds of the authority necessary in order that the interest income on bonds of the authority be and remain exempt from federal income taxation.