1998 Regular Session
By: Senator(s) Bryan
Senate Bill 2771
AN ACT TO AMEND SECTION 57-1-303, MISSISSIPPI CODE OF 1972, TO REVISE THE INTEREST RATE ON LOANS MADE UNDER THE LOCAL GOVERNMENTS CAPITAL IMPROVEMENTS REVOLVING LOAN PROGRAM TO PROVIDE THAT THE INTEREST RATE ON SUCH LOANS SHALL NOT EXCEED ONE PERCENT LESS THAN THE FEDERAL RESERVE DISCOUNT RATE; TO DECREASE THE PERIOD OF TIME WITHIN WHICH LOANS MADE UNDER THE LOCAL GOVERNMENTS CAPITAL IMPROVEMENTS REVOLVING LOAN PROGRAM MUST BE REPAID; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-1-303, Mississippi Code of 1972, is amended as follows:
57-1-303. (1) * * * There is created a special fund in the State Treasury to be designated as the "Local Governments Capital Improvements Revolving Loan Fund," which fund shall consist of such monies as provided in Sections 57-1-307 through 57-1-335. The fund shall be maintained in perpetuity for the purposes established in Sections 57-1-301 through 57-1-335. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund may not be used or expended for any purpose
except as authorized under Sections 57-1-301 through 57-1-335.
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(2) A county or an incorporated municipality may apply to the Department of Economic and Community Development for a loan under the local governments capital improvements revolving loan program established under Sections 57-1-301 through 57-1-335.
(3) * * * The Department of Economic and Community Development shall establish a loan program by which loans, at a rate of interest not to exceed one percent (1%) less than the federal reserve discount rate, may be made available to counties and incorporated municipalities to assist counties and incorporated municipalities in making capital improvements. Loans from the revolving fund may be made to counties and municipalities as set forth in a loan agreement in amounts not to exceed one hundred percent (100%) of eligible project costs as established by the Department of Economic and Community Development. The Department of Economic and Community Development may require county or municipal participation or funding from other sources, or otherwise limit the percentage of costs covered by loans from the revolving fund. The Department of Economic and Community Development may establish a maximum amount for any loan in order to provide for broad and equitable participation in the program.
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(4) A county that receives a loan from the revolving fund shall pledge for repayment of the loan any part of the homestead exemption annual tax loss reimbursement to which it may be entitled under Section 27-33-77. An incorporated municipality that receives a loan from the revolving fund shall pledge for repayment of the loan any part of the sales tax revenue distribution to which it may be entitled under Section 27-65-75. Each loan agreement shall provide for (i) monthly payments, (ii) semiannual payments, or (iii) other periodic payments, the annual total of which shall not exceed the annual total for any other year of the loan by more than fifteen percent (15%). The loan agreement shall provide for the repayment of all funds received within not more than fifteen (15) years from the date of project completion.
(5) The State Auditor, upon request of the Department of Economic and Community Development, shall audit the receipts and expenditures of a county or an incorporated municipality whose loan payments appear to be in arrears, and if he finds that the county or municipality is in arrears in such payments, he shall immediately notify the Executive Director of the Department of Finance and Administration who shall withhold all future payments to the county of homestead exemption reimbursements under Section 27-33-77 and all sums allocated to the county or the municipality under Section 27-65-75 until such time as the county or the municipality is again current in its loan payments as certified by the Department of Economic and Community Development.
(6) Evidences of indebtedness which are issued pursuant to this chapter shall not be deemed indebtedness within the meaning specified in Section 21-33-303 with regard to cities or incorporated towns, and in Section 19-9-5 with regard to counties.
SECTION 2. This act shall take effect and be in force from and after its passage.