MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Education; Ways and Means

By: Representative Brown

AN ACT TO AMEND SECTION 37-59-111, MISSISSIPPI CODE OF 1972, TO INCREASE THE TERM OF MATURITY OF NOTES OR CERTIFICATES OF INDEBTEDNESS ISSUED BY SCHOOL DISTRICTS FOR CAPITAL IMPROVEMENT AND TRANSPORTATION PURPOSES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 37-59-111, Mississippi Code of 1972, is amended as follows:

37-59-111. All indebtedness incurred under the provisions of this article shall be evidenced by the negotiable notes or certificates of indebtedness of the school district on whose behalf the money is borrowed. Said notes or certificates of indebtedness shall be signed by the president of the school board and superintendent of schools of such school district. Such notes or certificates of indebtedness shall not bear a greater overall maximum interest rate to maturity than the rates now or hereafter authorized under the provisions of Section 19-9-19. No such notes or certificates of indebtedness shall be issued and sold for less than par and accrued interest. All notes or certificates of indebtedness shall mature in approximately equal annual installments of principal and interest over a period not to exceed twenty (20) years from the dates of the issuance thereof. Provided, however, if negotiable notes are outstanding from not more than one (1) previous issue authorized under the provisions of this article, then the schedule of payments for a new or supplementary issue may be so adjusted that the schedule of maturities of all notes or series of notes hereunder shall, when combined, mature in approximately equal installments of principal and interest over a period of twenty (20) years from the date of the new or supplementary issue, or if a lower interest rate will thereby be secured on notes previously issued and outstanding, a portion of the proceeds of any issue authorized hereunder may be used to refund the balance of the indebtedness previously issued under the authority of this article. Such notes or certificates of indebtedness shall be issued in such form and in such denominations as may be determined by the school board, and same may be made payable at the office of any bank or trust company selected by the school board, and, in such case, funds for the payment of principal and interest due thereon shall be provided in the same manner provided by law for the payment of the principal and interest due on bonds issued by the taxing districts of this state.

SECTION 2. This act shall take effect and be in force from and after its passage.