In any budget year, in anticipation of the collection of the propertytax for that year, whether levied or to be levied in that year, the council mayby resolution authorize the borrowing of money by the issuance of negotiablenotes of the city, each of which shall be designated 'tax anticipation notefor the year 2___' (statingthe budget year).The notes may be issuedfor periods not exceeding oneyear and may be renewed from time to time for periods not exceeding one year,but together with renewals shall mature and be paid not later than the end of the fiscal year after the budget year in which the original notes shall have been issued. The amount of the tax anticipation notes originally issuedin any budget year shallnot exceed 50 percent of the amount of the property tax levied in thatyear for general city purposes. Onrenewal of tax anticipation notes of any given fiscal year, the amount renewedin the next succeeding fiscal year shall not exceed 20 percent of the amountoriginally issued, and the amountrenewed in the second fiscalyear succeeding the year of levy shall not exceed four percent of the amount originally scal year shall not exceed 20 percent of the amountoriginally issued, and the amountrenewed in the second fiscalyear succeeding the year of levy shall not exceed four percent of the amount originally issued.
Alabama Legal Code