MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Ways and Means
By: Representative Sanders
AN ACT TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS TO ASSIST THE CITY OF CLEVELAND, MISSISSIPPI, IN PAYING THE COSTS ASSOCIATED WITH THE EXTENSION OF AIRPORT TERMINAL ROAD AT THE CITY OF CLEVELAND MUNICIPAL AIRPORT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1.
(21) As used in this act, the following words shall have the
meanings ascribed herein unless the context clearly requires otherwise:
(a) "State" means the State of Mississippi.
(b) "Commission" means the State Bond Commission.
(2) The principal of and interest on the bonds
authorized under this act shall be payable in the manner provided in this
subsection. Such bonds shall bear such date or dates, be in such denomination
or denominations, bear interest at such rate or rates (not to exceed the limits
set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such
place or places within or without the State of Mississippi, shall mature
absolutely at such time or times not to exceed twenty-five (25) years from date
of issue, be redeemable before maturity at such time or times and upon such
terms, with or without premium, shall bear such registration privileges, and
shall be substantially in such form, all as shall be determined by resolution
of the commission.
(3) The bonds authorized by this act shall be
signed by the chairman of the commission, or by his facsimile signature, and
the official seal of the commission shall be affixed thereto, attested by the
secretary of the commission. The interest coupons, if any, to be attached to
such bonds may be executed by the facsimile signatures of such officers.
Whenever any such bonds shall have been signed by the officials designated to
sign the bonds who were in office at the time of such signing but who may have
ceased to be such officers before the sale and delivery of such bonds, or who
may not have been in office on the date such bonds may bear, the signatures of
such officers upon such bonds and coupons shall nevertheless be valid and
sufficient for all purposes and have the same effect as if the person so
officially signing such bonds had remained in office until their delivery to
the purchaser, or had been in office on the date such bonds may bear. However,
notwithstanding anything herein to the contrary, such bonds may be issued as
provided in the Registered Bond Act of the State of Mississippi.
(4) All bonds and interest coupons issued
under the provisions of this act have all the qualities and incidents of
negotiable instruments under the provisions of the Uniform Commercial Code, and
in exercising the powers granted by this act, the commission shall not be
required to and need not comply with the provisions of the Uniform Commercial
Code.
(5) The commission shall act as issuing agent
for the bonds authorized under this act, prescribe the form of the bonds,
determine the appropriate method for sale of the bonds, advertise for and
accept bids or negotiate the sale of the bonds, issue and sell the bonds so
authorized to be sold, pay all fees and costs incurred in such issuance and sale,
and do any and all other things necessary and advisable in connection with the
issuance and sale of such bonds. The commission is authorized and empowered to
pay the costs that are incident to the sale, issuance and delivery of the bonds
authorized under this act from the proceeds derived from the sale of such
bonds. The commission may sell such bonds on sealed bids at public sale or may
negotiate the sale of the bonds for such price as it may determine to be for
the best interest of the State of Mississippi. All interest accruing on such
bonds so issued shall be payable semiannually or annually.
If such bonds are sold by sealed bids at public sale, notice of the sale shall be published at least one time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, selected by the commission.
The commission, when issuing any bonds under the authority of this act, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.
(6) The bonds issued under the provisions of
this act are general obligations of the State of Mississippi, and for the
payment thereof the full faith and credit of the State of Mississippi is
irrevocably pledged. If the funds appropriated by the Legislature are
insufficient to pay the principal of and the interest on such bonds as they
become due, then the deficiency shall be paid by the State Treasurer from any
funds in the State Treasury not otherwise appropriated. All such bonds shall
contain recitals on their faces substantially covering the provisions of this
subsection.
(7) Upon the issuance and sale of bonds under
the provisions of this act, the commission shall transfer the proceeds of any
such sale or sales to the special fund created in Section 2(1) of this act.
The proceeds of such bonds shall be disbursed from the special fund under such
restrictions, if any, as may be contained in the resolution providing for the
issuance of the bonds.
(8) The bonds authorized under this act may be
issued without any other proceedings or the happening of any other conditions
or things other than those proceedings, conditions and things which are
specified or required by this act. Any resolution providing for the issuance
of bonds under the provisions of this act shall become effective immediately
upon its adoption by the commission, and any such resolution may be adopted at
any regular or special meeting of the commission by a majority of its members.
(9) The bonds authorized under the authority
of this act may be validated in the Chancery Court of the First Judicial District
of Hinds County, Mississippi, in the manner and with the force and effect
provided by Title 31, Chapter 13, Mississippi Code of 1972, for the validation
of county, municipal, school district and other bonds. The notice to taxpayers
required by such statutes shall be published in a newspaper published or having
a general circulation in the City of Jackson, Mississippi.
(10) Any holder of bonds issued under the
provisions of this act or of any of the interest coupons pertaining thereto
may, either at law or in equity, by suit, action, mandamus or other proceeding,
protect and enforce any and all rights granted under this act, or under such
resolution, and may enforce and compel performance of all duties required by
this act to be performed, in order to provide for the payment of bonds and
interest thereon.
(11) All bonds issued under the provisions of
this act shall be legal investments for trustees and other fiduciaries, and for
savings banks, trust companies and insurance companies organized under the laws
of the State of Mississippi, and such bonds shall be legal securities which may
be deposited with and shall be received by all public officers and bodies of
this state and all municipalities and political subdivisions for the purpose of
securing the deposit of public funds.
(12) Bonds issued under the provisions of
this act and income therefrom shall be exempt from all taxation in the State of
Mississippi.
(13) The proceeds of the bonds issued under
this act shall be used solely for the purposes herein provided, including the
costs incident to the issuance and sale of such bonds.
(14) The State Treasurer is authorized,
without further process of law, to certify to the Department of Finance and
Administration the necessity for warrants, and the Department of Finance and
Administration is authorized and directed to issue such warrants, in such
amounts as may be necessary to pay when due the principal of, premium, if any,
and interest on, or the accreted value of, all bonds issued under this act; and
the State Treasurer shall forward the necessary amount to the designated place
or places of payment of such bonds in ample time to discharge such bonds, or
the interest thereon, on the due dates thereof. As used in this section, the
"accreted value" of any bond means, as of any date of computation, an
amount equal to the sum of (a) the stated initial value of such bond, plus (b)
the interest accrued thereon from the issue date to the date of computation at
the rate, compounded semiannually, that is necessary to produce the approximate
yield to maturity shown for bonds of the same maturity.
(15) This act shall be deemed to be full and
complete authority for the exercise of the powers granted in this act that
relate to the issuance of bonds, but this act shall not be deemed to repeal or
to be in derogation of any existing law of this state that relates to the
issuance of bonds.
SECTION 2. (1) (a)
(i) A special fund, to be designated as the "2025 Cleveland Airport
Terminal Road Extension Fund",
is created within the State Treasury. The fund shall be maintained by the
State Treasurer as a separate and special fund, separate and apart from the
General Fund of the state. 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 or investment earnings on amounts in the fund shall be deposited into
such fund.
(ii) Monies deposited into the fund shall be disbursed, in the discretion of the Department of Finance and Administration, to assist the City of Cleveland, Mississippi, in paying the costs associated with the extension of Airport Terminal Road at the City of Cleveland Municipal Airport.
(b) Amounts deposited into such special fund shall be disbursed to pay the costs of the projects described in paragraph (a) of this subsection. Promptly after the commission has certified, by resolution duly adopted, that the projects described in paragraph (a) of this subsection shall have been completed, abandoned, or cannot be completed in a timely fashion, any amounts remaining in such special fund shall be applied to pay debt service on the bonds issued under this section, in accordance with the proceedings authorizing the issuance of such bonds and as directed by the commission.
(2) (a) The
commission, at one time, or from time to time, may declare by resolution the
necessity for issuance of general obligation bonds of the State of Mississippi
to provide funds for all costs incurred or to be incurred for the purposes described
in subsection (1) of this section. Upon the adoption of a resolution by the
Department of Finance and Administration, declaring the necessity for the
issuance of any part or all of the general obligation bonds authorized by this
section, the department shall deliver a certified copy of its resolution or
resolutions to the commission. Upon receipt of such resolution, the commission
is authorized to proceed under the provisions of Section 1(5) of this act. The total amount of bonds
issued under this section shall not exceed One Million Dollars
($1,000,000.00). No bonds shall be issued under this section after July 1,
2029.
(b) Any investment earnings on amounts deposited into the special fund created in subsection (1) of this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.
(3) The provisions of Section 1 of this act shall apply to the issuance of bonds authorized under this section.
SECTION 3. This act shall take effect and be in force from and after July 1, 2025.