MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Business and Financial Institutions

By: Senator(s) Stogner

AN ACT TO PROVIDE THAT ALL MONIES OF A RURAL WATERWORKS CORPORATION SHALL BE DEPOSITED IN ONE OR MORE BANKS OR TRUST COMPANIES AND, IF THE CORPORATION SHALL SO REQUIRE, EACH ACCOUNT SHALL BE CONTINUOUSLY SECURED BY A PLEDGE OF DIRECT OBLIGATIONS OF THE UNITED STATES OF AMERICA OR OF THE STATE OF MISSISSIPPI; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. All monies, from whatever source derived, of a nonprofit, nonshare corporation chartered under Section 79-11-101 et seq. for the purpose of owning and operating rural waterworks shall be deposited in one or more banks or trust companies, and, if the corporation shall so require, each account shall be continuously secured by a pledge of direct obligations of the United States of America or of the State of Mississippi having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in the account or accounts.

Such securities shall either be deposited with the corporation or held by a trustee or agent satisfactory to the corporation. In lieu of any pledge of such securities, the deposits may be secured by a surety bond or bonds which shall be in form, sufficiency and substance satisfactory to the corporation.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.