House Bill 1715

(As Passed the House)

AN ACT TO PROVIDE THAT THE BOARD OF SUPERVISORS OF SUNFLOWER COUNTY, MISSISSIPPI, MAY AUTHORIZE THE BOARD OF TRUSTEES OF THE NORTH SUNFLOWER COUNTY HOSPITAL TO EXECUTE A LONG-TERM MULTI-DRAFT LOAN AGREEMENT FOR THE PURPOSE OF PAYING OPERATIONAL AND OTHER INCIDENTAL EXPENSES OF THE HOSPITAL; TO PRESCRIBE CERTAIN TERMS AND CONDITIONS FOR SUCH LOAN; AND FOR RELATED PURPOSES.

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

SECTION 1. The Board of Supervisors of Sunflower County, Mississippi, is hereby empowered, in its discretion, to authorize the Board of Trustees of the North Sunflower County Hospital to execute a long-term multi-draft loan agreement for the purpose of paying operational and other incidental expenses of the hospital on the following terms and conditions:

(a) The Board of Trustees of the North Sunflower County Hospital shall recommend in writing to the Board of Supervisors of Sunflower County the amount or amounts to be borrowed for the purpose of paying operational and other incidental expenses of the hospital.

(b) The Board of Supervisors of Sunflower County may, thereafter, by resolution duly adopted and spread upon its minutes, authorize the Board of Trustees of the North Sunflower County Hospital to execute a long-term multi-draft loan agreement from any lending institution for such sum or sums of money as the Board of Supervisors deems reasonably necessary for the purpose of paying operational and other incidental expenses upon such terms and conditions as the board of supervisors in its resolution shall direct, including, but not limited to, the following:

(i) The maximum total amount which may be authorized to be borrowed pursuant to this act shall not exceed Seven Hundred Fifty Thousand Dollars ($750,000.00). Loans made pursuant to this act may be borrowed as and when necessary but the total amount borrowed shall never exceed Seven Hundred Fifty Thousand Dollars ($750,000.00).

(ii) There may be pledged for the repayment of the multi-draft loan agreement a percentage of the total annual revenue of the hospital to be determined by the board of supervisors and, if necessary, a portion of the taxes authorized to be levied and collected for the support of the hospital by Section 41-13-25, Mississippi Code of 1972, as the board of supervisors shall deem appropriate, which when added to the amount levied for current needs of the hospital, shall not exceed the maximum five (5) mills authorized by Section 41-13-25, Mississippi Code of 1972.

(iii) The term of the long-term multi-draft loan agreement shall not exceed ten (10) years.

(iv) The interest rate shall not exceed ten percent (10%) per annum.

(v) The matter of the issuance of the note or notes to evidence the sum or sums to be borrowed may, but shall not be required to, be advertised and issued in accordance with the terms and provisions of Section 19-9-27, Mississippi Code of 1972.

SECTION 2. This act shall take effect and be in force from and after its passage and shall be repealed on July 1, 2003.