Birmingham-Southern College's lawsuit against the State of Alabama for being denied a $30 million loan from a program passed by the Alabama Legislature this year by State Treasurer Young Boozer has at least one skeptic.
During an appearance on Huntsville radio WVNN's "The Dale Jackson Show," State Sen. Sam Givhan (R-Huntsville) acknowledged that the bill passed by the legislature gave the discretionary authority to the state treasurer. However, he said it was also not "mandatory" for the state to make the loan.
Givhan also suggested the lawsuit filed by Birmingham-Southern College may find the same fate as the one Baldwin County Bridge Company filed against the state and dismissed by the Alabama Supreme Court.
"[I] haven't talked to Young about that," he said. "I'm sure his phone is being lit up today. I didn't know about it until another senator sent me an article yesterday that it had been denied. It's just his discretion. I don't know what their financial status is. He was supposed to get good security, and there was supposed to be a plan for repayment. This was not a handout. It was a loan. Yeah, it was designed for Birmingham-Southern. It had enough hoops in there to where it really was for them. But there was not a mandatory provision."
"Is a lawsuit going to work?" host Dale Jackson asked.
"Ask Baldwin Bridge Company how that worked out when they sued John Cooper," Givhan declared.
Jeff Poor is the editor in chief of 1819 News and host of "The Jeff Poor Show," heard Monday-Friday, 9 a.m.-noon on Mobile's FM Talk 106.5. To connect or comment, email [email protected] or follow him on Twitter @jeff_poor.
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