Bill Text: MS SB2187 | 2013 | Regular Session | Introduced
Bill Title: Counties; revise authority to invest excess funds.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Failed) 2013-02-05 - Died In Committee [SB2187 Detail]
Download: Mississippi-2013-SB2187-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: County Affairs; Finance
By: Senator(s) Jackson (11th), Simmons (12th)
Senate Bill 2187
AN ACT TO AMEND SECTION 19-9-29, MISSISSIPPI CODE OF 1972, TO ALLOW COUNTIES TO INVEST EXCESS FUNDS IN CERTIFICATES OF DEPOSITS FOR MORE THAN ONE YEAR, TO ALLOW INVESTMENTS IN CERTAIN STATE AND FEDERAL BONDS OR OTHER OBLIGATIONS EVEN WHEN COUNTIES ARE ABLE TO INVEST EXCESS FUNDS IN CERTIFICATES OF DEPOSIT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 19-9-29, Mississippi Code of 1972, is amended as follows:
19-9-29. * * * (1) When any county * * * has on hand any bond and
interest funds, any funds derived from the sale of bonds, special funds, or any
other funds in excess of the sums * * * that will be required to meet the
current needs and demands of no more than seven (7) business days, the board of
supervisors of * * *
the county shall invest * * * the excess funds in the following
manner:
(a) * * * The excess funds * * * may be invested for periods of
from fourteen (14) days to * * * five (5) years in interest-bearing
time certificates of deposit with or through county depositories serving in
accordance with Section 27-105-303 * * * that are willing to accept the
same, at a negotiated rate of interest. The negotiated rate of interest shall
be at the highest rate possible at the date of purchase or investment for * * * those time certificates of deposit
or interest-bearing accounts, but * * * the rate of interest shall not be
less than the rate of interest paid to the general public on passbook savings.
The rate of interest established * * * in this subsection shall be the
minimum rate of interest and there shall be no maximum rate of interest * * *;
(b) The * * * excess funds * * * may be invested in interest-bearing
time certificates of deposit for the same maturity periods and at the same rate
of interest as prescribed in paragraph (a) of this * * * subsection in or through state
depositories located in * * *such the county * * * that are willing to accept the
same, to the same extent as * * * the depositories are eligible for
invested state funds * * *;
(c) * * *
The excess funds * * * may be * * * invested in any bonds
or other direct obligations of the United States of America, the State of
Mississippi, or any county, municipality or school district of this state, if * * * the county, municipal or school
district bonds have been approved by a reputable bond attorney or have been
validated by a decree of the chancery court * * *;
(d) The * * * excess funds
may be * * * invested, together with any other funds required
for current operation, in obligations issued or guaranteed in full as to
principal and interest by the United States of America * * * that are subject to a repurchase
agreement with a county or state depository * * *; or
(e) The * * * excess funds may be * * * deposited in interest-bearing
accounts with a county or state depository. * * *
(2) Any excess funds
invested in certificates of deposit or interest-bearing accounts with county or
state depositories under this section shall be secured in the manner required
by Section 27-105-315. The proceeds of * * * the certificates of deposit shall
be immediately reinvested on the date of maturity in accordance with * * * this section,
unless the board of supervisors determines that * * * the funds are required for current
operation.
(3) When bonds or
other obligations have been purchased, the same may be sold or surrendered for
redemption at any time * * * by order or resolution of * * * the board of supervisors. The
president of the board of supervisors, when authorized by * * * that order or resolution, * * * may
execute all instruments and take * * * other necessary action * * * to sell or redeem the bonds or other obligations.
When * * * the
bonds or other obligations are sold or redeemed, the proceeds * * * of the sale or redemption,
including accrued interest * * * on the proceeds, shall be paid
into the same fund as that from which the investment was made and shall in all
respects be dealt with as are other monies in * * * the fund. The bonds or
obligations purchased may have any maturity date, provided that they shall
mature or be redeemable before the time that the funds so invested will be
needed for expenditure.
(4) * * * Any interest
derived from the investments authorized in this section may * * * be deposited into the
general fund of the county * * *, except for the following:
(a) Any interest
derived from the investment of sums received under the terms of the federal
State and Local Fiscal Assistance Act of 1972, and any * * * later revisions or
reenactments of that act, shall be paid into the same fund as that from which
the investment was made * * *.;
(b) Any
interest derived from the investment of school bond funds shall be handled as
provided in Section 37-59-43 * * *;
(c) Any
interest derived from the investment of other bond proceeds, * * * any bond and interest
fund, any bond reserve fund or any bond redemption sinking fund
shall be deposited either in the same fund from which the investment was made
or in the bond and interest fund established for payment of the principal or
interest on the bonds * * *;
and
(d) Any interest derived from special purpose funds which are outside the function of general county government shall be paid into that special purpose fund.
SECTION 2. This act shall take effect and be in force from and after its passage.
