House Bill 1138

(As Passed the House)

AN ACT TO AMEND SECTION 31-18-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE NET PRESENT VALUE SAVINGS TO MATURITY REQUIREMENT FOR THE ISSUANCE OF VARIABLE RATE REFUNDING BONDS BY THE STATE SHALL NOT APPLY IN THE CASE OF THE RESTRUCTURING OF VARIABLE RATE BONDS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 31-18-7, Mississippi Code of 1972, is amended as follows:

31-18-7. (1) This section and other applicable provisions of this chapter, without reference to any other statute, shall be deemed full and complete authority for the issuance of variable rate refunding bonds by the state, and shall be construed as an additional and alternative method therefor.

(2) The state, acting by and through the commission, may refund outstanding bonds through the issuance of variable rate refunding bonds. Any such refunding may be effected whether or not the bonds to be refunded shall have then matured or shall thereafter mature.

(3) Variable rate refunding bonds issued pursuant to this chapter may be secured by a pledge of: (a) the same source of security as the bonds to be refunded, or (b) such other security as the state may lawfully pledge, or both; all as may be provided by resolution of the commission.

(4) At the time of the issuance of such variable rate refunding bonds, the commission shall find by resolution that at the time of such refunding, such refunding is expected to result in an overall net present value savings to maturity of not less than two percent (2%) of the bonds being refunded, except in the case of the restructuring of variable rate bonds.

SECTION 2. This act shall take effect and be in force from and after July 1, 2018.