# Ala. Code § 11-20-7: Section 11-20-7 Bonds - Disposition of Proceeds from Sale

> Alabama · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-7

## Section

- **Citation:** Ala. Code § 11-20-7
- **Heading:** Section 11-20-7 Bonds - Disposition of Proceeds from Sale
- **Jurisdiction:** Alabama
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Alabama Code / Title 1 / Chapter 20 / Section 11-20-7

## Text

The proceeds from the sale of any bonds issued under authority of this article shall be applied only for the purpose for which the bonds were issued; provided, however, that any accrued interest and premium received in any such sale shall be applied to the payment of the principal of or the interest on the bonds sold; and provided further, that if for any reason any portion of such proceeds shall not be needed for the purpose for which the bonds were issued, then such unneeded portion of said proceeds shall be applied to the payment of the principal of or the interest on said bonds. The cost of acquiring any project shall be deemed to include the following: the actual cost of the construction of any part of a project which may be constructed, including architect’s and engineer’s fees; the purchase price of any part of a project that may be acquired by purchase; all expenses in connection with the authorization, sale and issuance of the bonds to finance such acquisition; and the interest on such bonds for a reasonable time prior to construction, during construction and for a period not exceeding six months after completion of construction.

## Nearby sections

- [Ala. Code § 11-20-1 Section 11-20-1 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-1.md)
- [Ala. Code § 11-20-2 Section 11-20-2 Legislative Intent; Construction of Article Generally](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-2.md)
- [Ala. Code § 11-20-3 Section 11-20-3 Powers of Counties as to Acquisition, Leasing, Etc., of Projects Generally](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-3.md)
- [Ala. Code § 11-20-4 Section 11-20-4 Requirements as to Leasing of Projects](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-4.md)
- [Ala. Code § 11-20-5 Section 11-20-5 Bonds - Form, Terms, Denominations, Etc.; Execution, Sale, Delivery, Redemption, Etc.; Applicability of Usury, Etc., Laws](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-5.md)
- [Ala. Code § 11-20-6 Section 11-20-6 Bonds - Security for Payment of Principal and Interest; Remedies Upon Default](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-6.md)
- [Ala. Code § 11-20-7 Section 11-20-7 Bonds - Disposition of Proceeds from Sale](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-7.md)
- [Ala. Code § 11-20-8 Section 11-20-8 Refunding Bonds](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-8.md)
- [Ala. Code § 11-20-9 Section 11-20-9 Notice, Consent, or Approval of Governmental Body, Etc., Not to Be Required for Issuance or Sale of Bonds or Execution of Mortgages](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-9.md)
- [Ala. Code § 11-20-10 Section 11-20-10 Investment in Bonds by Savings Banks and Insurance Companies](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-10.md)
- [Ala. Code § 11-20-11 Section 11-20-11 Counties Not to Contribute Costs of Acquisition of Projects or County Lands Therefor](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-11.md)
- [Ala. Code § 11-20-12 Section 11-20-12 Exemption from Taxation of Projects, Bonds, Etc](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-12.md)
- [Ala. Code § 11-20-13 Section 11-20-13 Construction of Article](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-13.md)
- [Ala. Code § 11-20-30 Section 11-20-30 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-30.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AL_T1_C20_S11-20-7. Check the current official text before relying on it. Not legal advice.