USA - ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser and Katie Sinclair, Dentons
Controls Applicable to Design, Appearance and Method of Construction . The property owner/developer should research any applicable planning and zoning regulations to the property by ordering a zoning report and communicating directly with the appropriate municipality(ies). In addition, the Alabama business license fee can vary depending on the location of the property and the use. See 8.3 Municipal Taxes . 4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction Local municipal corporations (cities and towns) may enact zoning laws and regulations through the creation of a comprehensive zoning ordi - nance, which must be compatible with the ena - bling statute (Section 11-52-1 et seq). Zoning laws generally designate areas into business, industrial, and residential districts, and control the type, character, kind, and use of structures and improvements in such designated zones or districts (Section 11-52-70). County govern - ments may also enact zoning ordinances and building codes for flood-prone areas outside municipalities (Section 11-19-3). Private restrictive covenants in the property’s chain of title may also create similar controls on the development of property or refurbishment of an existing building. 4.3 Regulatory Authorities Local zoning laws are passed by the local municipal planning commission and must be consistent with the local comprehensive plan, in accordance with Section 11-52-3. Zoning laws typically control: • the permitted shape, proportion, and dimen - sions of lots and structures located thereon; • the use of such structures;
the rights granted to it under the relevant loan documents. Petitioning the Court Prior to taking many actions that would other - wise be allowed outside bankruptcy, a lender must petition the court for relief from the auto - matic stay. In addition, as to non-residential property that is not a borrower’s homestead, a lender’s secured lien can be “valued” – ie, bifur - cated into secured and unsecured portions after a valuation hearing with the bankruptcy court. Likewise, a wholly unsecured junior lien may be stripped off the property and treated as com - pletely unsecured in certain circumstances. Defaults A borrower’s insolvency will ordinarily lead to a default under the terms of the relevant loan documents and subsequent foreclosure of the secured collateral. In the commercial context, and depending on the commercial loan and property’s size and characteristics, a borrow - er’s insolvency might lead to a receiver being appointed under Alabama law; see Section 6-6- 620 to -628. 3.10 Taxes on Loans There are no taxes related to mezzanine loans besides taxes due on interest and income there - from. 4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning Alabama law (Title 11, Counties and Municipal Corporations) allows for regulations on property through zoning ordinances or subdivision regu - lation. See 4.2 Legislative and Governmental
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