Alabama Governmental Leasing Act

The act authorizes governmental entities to finance the acquisition or use of property through alternative financing contracts, such as leases and similar arrangements, in addition to conventional borrowing. It specifies what provisions those contracts may contain, permits an entity to distinguish between general and limited obligations, and identifies the revenue sources that may be pledged to make the required payments. It also allows parties contracting with a governmental entity to rely on that entity's legal authority to enter the arrangement, and establishes the status of the resulting contracts as investments.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.