Bill Text: MS SB2771 | 2013 | Regular Session | Introduced


Bill Title: Bonds; require RFPs for bond counsel and approval of the State Bond Commission for bonds issued by certain entities.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-02-05 - Died In Committee [SB2771 Detail]

Download: Mississippi-2013-SB2771-Introduced.html

MISSISSIPPI LEGISLATURE

2013 Regular Session

To: Accountability, Efficiency, Transparency; Finance

By: Senator(s) Fillingane

Senate Bill 2771

AN ACT TO REQUIRE BOND COUNSEL FOR BONDS ISSUED BY THE MISSISSIPPI DEVELOPMENT BANK, THE MISSISSIPPI HOME CORPORATION AND THE MISSISSIPPI BUSINESS FINANCE CORPORATION TO BE SELECTED BY A COMPETITIVE BID PROCESS BASED ON QUALIFICATIONS, EXPERIENCE AND FEES USING A REQUEST FOR PROPOSAL PROCESS; TO PROVIDE THAT IN ORDER TO RESPOND TO SUCH A REQUEST FOR PROPOSALS, A RESPONDENT MUST MAKE CERTAIN CERTIFICATIONS; TO REQUIRE THE MISSISSIPPI DEVELOPMENT BANK, THE MISSISSIPPI HOME CORPORATION AND THE MISSISSIPPI BUSINESS FINANCE CORPORATION TO FILE QUARTERLY REPORTS WITH THE LEGISLATIVE BUDGET OFFICE CONTAINING CERTAIN INFORMATION; TO AMEND SECTIONS 31-25-37, 43-33-729, 57-10-209, 57-10-213, 57-10-309 AND 57-10-419, MISSISSIPPI CODE OF 1972, TO REQUIRE THE STATE BOND COMMISSION TO APPROVE THE ISSUANCE OF CERTAIN BONDS AUTHORIZED TO BE ISSUED BY THE MISSISSIPPI DEVELOPMENT BANK, THE MISSISSIPPI HOME CORPORATION AND THE MISSISSIPPI BUSINESS FINANCE CORPORATION; AND FOR RELATED PURPOSES.

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

     SECTION 1.  (1)  (a)  Bond counsel for bonds authorized to be issued by the Mississippi Development Bank shall be selected by a competitive bid process based on qualifications, experience and fees using a request for proposals process.

          (b)  Requests for proposals required by this section shall be provided to attorneys and law firms listed in the section entitled "Municipal Bond Attorneys" in the Mississippi section of the most recent edition of the Bond Buyer's Municipal Marketplace, and posted on the Mississippi Development Bank's website.

          (c)  The form of the requests for proposals shall be approved by the State Bond Commission.

          (d)  To be eligible to respond to a request for proposals required by this section, a certification by the respondent is required to each of the following:

              (i)  That the respondent is listed in the section entitled "Municipal Bond Attorneys" in the Mississippi section of the most recent edition of the Bond Buyer's Municipal Marketplace;

              (ii)  That the respondent has given solo validity and tax opinions in financing transactions since the passage of the Tax Reform Act of 1986;

              (iii)  That the attorneys who will be primarily responsible for providing the legal services requested by the request for proposals are licensed to practice law in the State of Mississippi and satisfy the requirements of paragraph (b) of this subsection; and

              (iv)  That no member of the Legislature of the State of Mississippi, or any elected or appointed official of the State of Mississippi, or any partner or associate of any member of the Legislature of the State of Mississippi, or any elected or appointed official of the State of Mississippi, will directly or indirectly receive any compensation from the respondent which is in any way related to the legal services to be performed by the respondent in response to the request for proposal.

     (2)  The Mississippi Development Bank shall file a quarterly report with the Legislative Budget Office which shall include the following:

          (a)  The total amount of bonds issued by the bank during the quarter;

          (b)  The entity on whose behalf the bonds were issued, the purposes for which the bonds were issued and the amount issued;

          (c) The name and business address of any person, firm, corporation or other entity deriving any income for services performed with respect to any bonds issued by the bank during the quarter.  The report shall specify the amount of funds, whether from bond proceeds or otherwise, paid or to be paid to each such person or entity for services performed for each bond issue.

     SECTION 2.  (1)  (a)  Bond counsel for bonds authorized to be issued by the Mississippi Home Corporation shall be selected by a competitive bid process based on qualifications, experience and fees using a request for proposals process.

          (b)  Requests for proposals required by this section shall be provided to attorneys and law firms listed in the section entitled "Municipal Bond Attorneys" in the Mississippi section of the most recent edition of the Bond Buyer's Municipal Marketplace,

and posted on the Mississippi Home Corporation's website.

          (c)  The form of the requests for proposals shall be approved by the State Bond Commission.

          (d)  To be eligible to respond to a request for proposals required by this section, a certification by the respondent is required to each of the following:

              (i)  That the respondent is listed in the section entitled "Municipal Bond Attorneys" in the Mississippi section of the most recent edition of the Bond Buyer's Municipal Marketplace;

              (ii)  That the respondent has given solo validity and tax opinions in financing transaction since the passage of the Tax Reform Act of 1986;

              (iii)  That the attorneys who will be primarily responsible for providing the legal services requested by the request for proposal are licensed to practice law in the State of Mississippi and satisfy the requirements of paragraph (b) of this subsection; and

              (iv)  That no member of the Legislature of the State of Mississippi, or any elected or appointed official of the State of Mississippi, or any partner or associate of any member of the Legislature of the State of Mississippi, or any elected or appointed official of the State of Mississippi, will directly or indirectly receive any compensation from the respondent which is in any way related to the legal services to be performed by the respondent in response to the request for proposal.

     (2)  The Mississippi Home Corporation shall file a quarterly report with the Legislative Budget Office which shall include the following:

          (a)  The total amount of bonds issued by the corporation during the quarter;

          (b)  The entity on whose behalf the bonds were issued, the purposes for which the bonds were issued and the amount issued;

          (c)  The name and business address of any person, firm, corporation or other entity deriving any income for services performed with respect to any bonds issued by the corporation during the quarter.  The report shall specify the amount of funds, whether from bond proceeds or otherwise, paid or to be paid to each such person or entity for services performed for each bond issue.

     SECTION 3.  (1)  (a)  Bond counsel for bonds authorized to be issued by the Mississippi Business Finance Corporation shall be selected by a competitive bid process based on qualifications, experience and fees using a request for proposals process.

          (b)  Requests for proposals required by this section shall be provided to attorneys and law firms listed in the section entitled "Municipal Bond Attorneys" in the Mississippi section of the most recent edition of the Bond Buyer's Municipal Marketplace,

and posted on the Mississippi Business Finance Corporation's website.

          (c)  The form of the requests for proposals shall be approved by the State Bond Commission.

          (d)  To be eligible to respond to a request for proposals required by this section, a certification by the respondent is required to each of the following:

              (i)  That the respondent is listed in the section entitled "Municipal Bond Attorneys" in the Mississippi section of the most recent edition of the Bond Buyer's Municipal Marketplace;

              (ii)  That the respondent has given solo validity and tax opinions in financing transaction since the passage of the Tax Reform Act of 1986;

               (iii)  That the attorneys who will be primarily responsible for providing the legal services requested by the request for proposals are licensed to practice law in the State of Mississippi and satisfy the requirements of paragraph (b) of this subsection; and

          (iv)  That no member of the Legislature of the State of Mississippi, or any elected or appointed official of the State of Mississippi, or any partner or associate of any member of the Legislature of the State of Mississippi, or any elected or appointed official of the State of Mississippi, will directly or indirectly receive any compensation from the respondent which is in any way related to the legal services to be performed by the respondent in response to the request for proposal.

     (2)  The Mississippi Business Finance Corporation shall file a quarterly report with the Legislative Budget Office which shall include the following:

          (a)  The total amount of bonds issued by the corporation during the quarter;

          (b)  The entity on whose behalf the bonds were issued, the purposes for which the bonds were issued and the amount issued;

          (c) The name and business address of any person, firm, corporation or other entity deriving any income for services performed with respect to any bonds issued by the corporation during the quarter.  The report shall specify the amount of funds, whether from bond proceeds or otherwise, paid or to be paid to each such person or entity for services performed for each bond issue.

     SECTION 4.  Section 31-25-37, Mississippi Code of 1972, is amended as follows:

     31-25-37.  (1)  Upon approval of the State Bond Commission, the bank shall have the power, from time to time, to issue bonds for any of its corporate purposes, including, without limitation, to pay bonds, including the interest thereon, and whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any of its corporate purposes.  The refunding bonds may be exchanged for bonds to be refunded or sold and the proceeds applied to the purchase, redemption or payment of such bonds.

     (2)  The bank shall have power to make contracts for the future sale from time to time of bonds, pursuant to which the purchaser shall be committed to purchase and the bank shall have the power to pay such consideration as it shall deem proper for such commitments.

     (3)  Except as otherwise provided in this subsection (3), every issue of bonds of the bank shall be general obligations of the bank payable out of any revenues or funds of the bank, subject only to the provisions of the resolution of the bank authorizing the issuance of, or to any agreements with the holders of, particular bonds pledging any particular revenues or funds.  Any such bonds may be additionally secured by a pledge of any grants, subsidies, contributions, funds or * * *moneys monies from the United States of America or the state or any agency or instrumentality thereof, or any other governmental unit.  However, bonds issued by the bank under Section 31-25-21(k) for the purposes provided in Section 31-25-20(g) shall be general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged.  If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated.  All such state general obligation bonds shall contain recitals on their faces substantially covering these provisions.

     (4)  Any law to the contrary notwithstanding, a bond issued under this chapter is fully negotiable and each holder or owner of a bond, or of any coupon appurtenant thereto, by accepting the bond or coupon shall be conclusively deemed to have agreed that the bond or coupon is fully negotiable for those purposes subject only to any provisions of bonds for registration.

     (5)  Bonds of the bank shall be authorized by resolution of the board of the bank, may be issued as serial bonds payable in annual installments or as term bonds or as a combination thereof, and shall bear such date or dates, mature at such time or times, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be payable from such sources in such medium of payment at such place or places within or without the state, and be subject to such terms of redemption, with or without premiums, as such resolution or resolutions may provide, except that no bond shall mature more than forty (40) years from the date of its issue.  The bonds may bear interest at such rate or rates as the bank may by resolution determine, and such rate or rates shall not be limited by any other law relating to the issuance of bonds except that the interest rate on any bonds issued as general obligation bonds of the State of Mississippi shall not exceed the limits set forth in Section 75-17-101.  The bonds and coupons appertaining thereto may be executed in such manner as shall be determined by the bank.  In case any of the members or officers of the bank whose signatures appear on any bonds or coupons shall cease to be such members or officers before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such members or officers had remained in office until such delivery.

     (6)  Bonds of the bank may be sold at public or private sale at such time or times and at such price or prices as the bank shall determine.

     (7)  In connection with the issuance of bonds, the board of the bank may delegate to the executive director of the bank the power to determine the time or times of sale of such bonds, the amounts of such bonds, the maturities of such bonds, the rate or rates of interest of such bonds, and such other terms and details of the bonds, as may be determined by the board of the bank; * * *provided, however, the board of the bank shall have adopted a resolution making such delegation and such resolution shall specify the maximum amount of the bonds which may be outstanding at any one time, the maximum rate of interest or interest rate formula (to be determined in the manner specified in such resolution) to be incurred through the issuance of such bonds and the maximum maturity date of such bonds.  The board of the bank may also provide in the resolution authorizing the issuance of such bonds, in its discretion, (a) for the employment of one or more persons or firms to assist the bank in the sale of the bonds, (b) for the appointment of one or more banks or trust companies, either within or without the State of Mississippi, as depository for safekeeping, and as agent for the delivery and payment, of the bonds, (c) for the refunding of such bonds, from time to time, without further action by the board of the bank, unless and until the board of the bank revokes such authority to refund, and (d) other terms and conditions as the board of the bank may deem appropriate.  In connection with the issuance and sale of such bonds, the board of the bank may arrange for lines of credit with any bank, firm or person for the purpose of providing an additional source of repayment for bonds issued pursuant to this section.  Amounts drawn on such lines of credit may be evidenced by negotiable or nonnegotiable bonds or other evidences of indebtedness, containing such terms and conditions as the board of the bank may authorize in the resolution approving the same, and such notes or other evidences of indebtedness shall constitute bonds issued under their act.  The board of the bank is authorized to pay all costs of issuance of the bonds.

     (8)  Neither the members of the bank nor any other person executing the bank's bonds issued pursuant to this chapter shall be liable personally on such bonds by reason of the issuance thereof.

     (9)  Bonds of the bank may be issued under this chapter without obtaining the consent of any department, division, commission, board, body, bureau or agency of the state, except the State Bond Commission, and without any other proceeding or the happening of any other conditions or things other than those proceedings, conditions or things which are specifically required by this chapter and by provisions of the resolution authorizing such bonds.

     (10)  Bonds of the bank may be validated in accordance with the provision of Sections 31-13-1 through 31-13-11 in the same manner as provided therein for bonds issued by a municipality.  Any such validation proceedings shall be held in the First Judicial District of Hinds County, Mississippi.  Notice thereof shall be given by publication in any newspaper published in the City of Jackson, Mississippi, and of general circulation through the state.

     SECTION 5.  Section 43-33-729, Mississippi Code of 1972, is amended as follows:

     [Through June 30, 2014, this section shall read as follows:]

     43-33-729.  (1)  Upon approval of the State Bond Commission, the corporation may, from time to time, issue its negotiable bonds and notes in such principal amounts as, in the opinion of the corporation, shall be necessary to provide sufficient funds for achieving the corporate purposes thereof, including operating expenses and reserves, the payment of interest on bonds and notes of the corporation, establishment of reserves to secure such bonds and notes, and all other expenditures of the corporation incident to and necessary or convenient to carry out its corporate purposes and powers.  Provided, except as otherwise authorized herein, bonds and notes may be issued annually under this article in an aggregate principal amount not to exceed Three Hundred Fifty Million Dollars ($350,000,000.00), excluding bonds and notes issued to refund outstanding bonds and notes, bonds and notes in which the corporation acts as a conduit issuer and bonds and notes issued for purposes related to Hurricane Katrina.  Such annual period shall be the same as the fiscal year of the state, commencing with the annual period of July 1, 2009, to June 30, 2010.

     (2)  The provisions of Sections 75-71-1 through 75-71-57, Mississippi Code of 1972 (the "Mississippi Securities Act"), shall not apply to bonds and notes issued under the authority of this article, and no application for a formal exemption from the provisions of such act shall be required with respect to such bonds and notes.

     (3)  Except as may otherwise be expressly provided by the corporation, all bonds and notes issued by the corporation shall be general obligations of the corporation, secured by the full faith and credit of the corporation and payable out of any monies, assets or revenues of the corporation, subject only to any agreement with the bondholders or noteholders pledging any particular monies, assets or revenues.

     The corporation may issue bonds or notes to which the principal and interest are payable:

          (a)  Exclusively from the revenues of the corporation resulting from the use of the proceeds of such bonds or notes; or

          (b)  Exclusively from any particular revenues of the corporation, whether or not resulting from the use of the proceeds of such bonds or notes.

     (4)  Any bonds or notes issued by the corporation may be additionally secured:

          (a)  By private insurance, by a direct pay or standby letter of credit, or by any other credit enhancement facility procured by the corporation for the payment of any such bonds;

          (b)  By a pledge of any grant, subsidy or contribution from the United States or any agency or instrumentality thereof, or from the state or any agency, instrumentality or political subdivision thereof, or from any person, firm or corporation; or

          (c)  By the pledge of any securities, funds or reserves (or earnings thereon) available to the corporation.

     (5)  Bonds and notes issued by the corporation shall be authorized by a resolution or resolutions of the corporation adopted as provided for by this article; provided, that any such resolution authorizing the issuance of bonds or notes may delegate to an officer or officers of the corporation the power to issue such bonds or notes from time to time and to fix the details of any such issues of bonds or notes by an appropriate certification of such authorized officer.

     (6)  Except as specifically provided in this article, no notice, consent or approval by any governmental body or public officer shall be required as a prerequisite to the issuance, sale or delivery of any bonds or notes of the corporation pursuant to the provisions of this article.  However, all bonds or notes issued pursuant to this article may be validated, except as otherwise provided in this section, in accordance with the provisions of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972, in the same manner as provided therein for bonds issued by a municipality.  Any such validation proceedings shall be held in the First Judicial District of Hinds County, Mississippi. Notice thereof shall be given by publication in any newspaper published in the City of Jackson, Mississippi, and of general circulation throughout the state.

     (7)  It is hereby determined that the corporation is the sole entity in the state authorized to issue bonds or notes for the purposes of financing low and moderate income rental or residential housing as set forth in this article.  In addition, the corporation shall have the power to issue mortgage credit certificates, as provided by Section 25 of the Internal Revenue Code of 1954, as amended, and to comply with all of the terms and conditions set forth in Section 25, as the same may be amended from time to time.

     [From and after July 1, 2014, this section shall read as follows:]

     43-33-729.  (1)  Upon approval of the State Bond Commission, the corporation may, from time to time, issue its negotiable bonds and notes in such principal amounts as, in the opinion of the corporation, shall be necessary to provide sufficient funds for achieving the corporate purposes thereof, including operating expenses and reserves, the payment of interest on bonds and notes of the corporation, establishment of reserves to secure such bonds and notes, and all other expenditures of the corporation incident to and necessary or convenient to carry out its corporate purposes and powers.  Provided, except as otherwise authorized herein, bonds and notes shall not be issued under this article in an aggregate principal amount exceeding the aggregate principal amount of bonds and notes outstanding on July 1, 2014, excluding bonds and notes issued to refund outstanding bonds and notes, bonds and notes in which the corporation acts as a conduit issuer and bonds and notes issued for purposes related to Hurricane Katrina.

     (2)  The provisions of Sections 75-71-1 through 75-71-57, Mississippi Code of 1972 (the "Mississippi Securities Act"), shall not apply to bonds and notes issued under the authority of this article, and no application for a formal exemption from the provisions of such act shall be required with respect to such bonds and notes.

     (3)  Except as may otherwise be expressly provided by the corporation, all bonds and notes issued by the corporation shall be general obligations of the corporation, secured by the full faith and credit of the corporation and payable out of any monies, assets or revenues of the corporation, subject only to any agreement with the bondholders or noteholders pledging any particular monies, assets or revenues.

     The corporation may issue bonds or notes to which the principal and interest are payable:

          (a)  Exclusively from the revenues of the corporation resulting from the use of the proceeds of such bonds or notes; or

          (b)  Exclusively from any particular revenues of the corporation, whether or not resulting from the use of the proceeds of such bonds or notes.

     (4)  Any bonds or notes issued by the corporation may be additionally secured:

          (a)  By private insurance, by a direct pay or standby letter of credit, or by any other credit enhancement facility procured by the corporation for the payment of any such bonds;

          (b)  By a pledge of any grant, subsidy or contribution from the United States or any agency or instrumentality thereof, or from the state or any agency, instrumentality or political subdivision thereof, or from any person, firm or corporation; or

          (c)  By the pledge of any securities, funds or reserves (or earnings thereon) available to the corporation.

     (5)  Bonds and notes issued by the corporation shall be authorized by a resolution or resolutions of the corporation adopted as provided for by this article; provided, that any such resolution authorizing the issuance of bonds or notes may delegate to an officer or officers of the corporation the power to issue such bonds or notes from time to time and to fix the details of any such issues of bonds or notes by an appropriate certification of such authorized officer.

     (6)  Except as specifically provided in this article, no notice, consent or approval by any governmental body or public officer shall be required as a prerequisite to the issuance, sale or delivery of any bonds or notes of the corporation pursuant to the provisions of this article.  However, all bonds or notes issued pursuant to this article may be validated, except as otherwise provided in this section, in accordance with the provisions of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972, in the same manner as provided therein for bonds issued by a municipality.  Any such validation proceedings shall be held in the First Judicial District of Hinds County, Mississippi. Notice thereof shall be given by publication in any newspaper published in the City of Jackson, Mississippi, and of general circulation throughout the state.

     (7)  It is hereby determined that the corporation is the sole entity in the state authorized to issue bonds or notes for the purposes of financing low- and moderate-income rental or residential housing as set forth in this article.  In addition, the corporation shall have the power to issue mortgage credit certificates, as provided by Section 25 of the Internal Revenue Code of 1954, as amended, and to comply with all of the terms and conditions set forth in Section 25, as the same may be amended from time to time.

     SECTION 6.  Section 57-10-209, Mississippi Code of 1972, is amended as follows:

     57-10-209.  Upon approval of the State Bond Commission and receipt of a certificate of public convenience and necessity from the Executive Director of the Mississippi * * *Department of Economic and Community Development Development Authority, the company shall have the power to borrow money and to issue from time to time its bonds to pay the cost of the projects for which such bonds have been issued, including, but not limited to, the power to issue from time to time bonds to renew or to pay bonds, including the interest thereon.  Whenever bonds can be refunded to obtain interest rates on refunding bonds which are lower than the interest rates on the bonds to be refunded it shall have the power to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund outstanding bonds.  Refunding bonds may be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded, or exchanged for the bonds to be refunded.  The company may undertake the financing of the cost of a project for an eligible business from the proceeds of its bonds by one or more of the following methods: 

          (a)  Entering into a lease for the facilities of the eligible business being financed;

          (b)  Selling such facilities to the eligible business under a sales contract;

          (c)  Lending the proceeds of the sale of the bonds under a loan agreement with the eligible business;

          (d)  Entering into a loan to lenders transaction in the manner described in Section 57-10-227; or

          (e)  Entering into such other transaction or transactions as the company deems appropriate to accomplish the purposes of this article.

     SECTION 7.  Section 57-10-213, Mississippi Code of 1972, is amended as follows:

     57-10-213.  In addition to, and not as a limitation upon, the powers of the company to issue bonds as elsewhere conferred in this article, and upon approval of the State Bond Commission and the receipt of a certificate of public convenience and necessity from the Executive Director of the Mississippi * * *Department of Economic and Community Development Development Authority, the company also shall have the power to issue bonds, the proceeds of which, after payment of the costs of issuance thereof, will be used to make loans to finance or refinance the projects of eligible businesses.  The company shall promulgate such rules and regulations as may be necessary to carry out the purposes of this section and to provide procedures for the making of such loans and the repayment thereof.

     SECTION 8.  Section 57-10-309, Mississippi Code of 1972, is amended as follows:

     57-10-309.  (1)  The corporation may make mortgage or secured loans, including, but not limited to, mortgage or secured loans insured, guaranteed or otherwise secured by the federal government or a federal governmental agency or instrumentality, a state agency or private mortgage insurers, to beginning farmers to provide financing for agricultural land and agricultural improvements or depreciable agricultural property.

     (2)  Mortgage or secured loans shall contain terms and provisions, including interest rates, and be in a form established by rules of the corporation.  The corporation may require the beginning farmer to execute a note, loan agreement or other evidence of indebtedness and furnish additional assurances and guarantees, including insurance, reasonably related to protecting the security of the mortgage or secured loan, as the corporation deems necessary.

     (3)  The corporation may enter into a loan agreement with a beginning farmer to finance in whole or in part the acquisition by construction or purchase of agricultural land, agricultural improvements or depreciable agricultural property.  The repayment obligation of the beginning farmer may be unsecured, or may be secured by a mortgage or security agreement or by other security as the corporation deems advisable, and may be evidenced by one or more notes of the beginning farmer.  The loan agreement may contain terms and conditions as the corporation deems advisable.

     (4)  Upon approval of the State Bond Commission, the corporation may issue its bonds and notes for the purposes set forth in this article and Title 57, Chapter 10, Article 7, Mississippi Code of 1972, relating to the issuance of bonds and notes by the corporation and may enter into a lending agreement or purchase agreement with one or more bondholders or noteholders containing the terms and conditions of the repayment of and the security for the bonds or notes.  Bonds and notes must be authorized by a resolution of the corporation and approved by the State Bond Commission.  The corporation and the bondholders or noteholders may enter into an agreement to provide for any of the following:

          (a)  That the proceeds of the bonds and notes and investments thereon may be received, held and disbursed by the bondholders or noteholders, or by a trustee or agent designated by the corporation.

          (b)  That the bondholders or noteholders or a trustee or agent designated by the corporation may collect, invest and apply the amounts payable under the loan agreement or any other security instrument securing the debt obligation of the beginning farmer.

          (c)  That the bondholders or noteholders may enforce the remedies provided in the loan agreement or security instrument on their own behalf without the appointment or designation of a trustee and if there is a default in the principal of or interest on the bonds or notes or in the performance of any agreement contained therein, the payment or performance may be enforced in accordance with the provisions contained therein.

          (d)  That if there is a default in the payment of the principal or interest on a mortgage or security instrument or a violation of an agreement contained in the mortgage or security instrument, the mortgage or security instrument may be foreclosed or enforced and any collateral sold under proceedings or actions permitted by law and a trustee under the mortgage or security agreement or the holder of any bonds or notes secured thereby may become a purchaser if it is the highest bidder.

          (e)  Other terms and conditions.

     (5)  The corporation shall provide in the resolution authorizing the issuance of the bonds or notes that the principal and interest shall be limited obligations payable solely out of the revenues derived from the debt obligation, collateral or other security furnished by or on behalf of the beginning farmer, and that the principal and interest does not constitute an indebtedness of the corporation, the state or any political subdivision thereof.

     SECTION 9.  Section 57-10-419, Mississippi Code of 1972, is amended as follows:

     57-10-419.  (1)  Upon approval of the State Bond Commission, the corporation may issue in its own name, from time to time, for the purpose of financing the approved costs of an economic development project, its bonds and may pledge for the payment thereof funds derived in respect of any financing agreement or other arrangement entered into by the corporation and an approved company under Sections 57-10-401 through 57-10-445.

     (2)  In anticipation of the issuance of bonds, the corporation, upon approval of the State Bond Commission, may provide for the issuance, at one time or from time to time, of bond anticipation notes.  The principal of and the interest on the notes shall be payable solely from the funds herein provided for the payment.  Any notes may be made payable from the proceeds of bonds or renewal notes; or, if bond or renewal note proceeds are not available, the notes may be paid from any available revenues or assets of the corporation.

     (3)  The bonds issued under Sections 57-10-401 through 57-10-445 shall be authorized by a resolution of the corporation, shall bear such date or dates, and shall mature at such time or times as such resolution may provide, except that no bond shall mature more than twenty-five (25) years from the date of issue. Bonds which are not subject to taxation shall bear interest at such rate or rates, be in such denominations, be in such form, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, including redemption before maturity, as such resolution may provide.  Except as expressly provided otherwise in Sections 57-10-401 through 57-10-445, the provisions of other laws of the state relating to the issuance of revenue bonds shall not apply to bonds issued by the corporation.  As to bonds issued hereunder and designated as taxable bonds by the corporation, any immunity to taxation by the United States government of interest on such bonds or notes is hereby waived.  Bonds of the corporation may be sold by the corporation at public or private sale, from time to time, and at such price or prices as the corporation shall determine.

     (4)  The proceeds of any bonds shall be used solely for the purposes for which issued and shall be disbursed in the manner and under the restrictions, if any, that the corporation may provide in the resolution authorizing the issuance of the bonds or in a trust indenture securing the same.

     (5)  The principal and interest on the bonds issued by the corporation shall be payable solely and only from proceeds derived under a financing agreement and shall be secured solely by the economic development project, the proceeds of the financing agreement, and such other assets as may be available, but not including revenues of the state.

     (6)  Before the preparation of definitive certificates evidencing the bonds, the corporation may issue, under like restrictions, interim receipts or temporary certificates, with or without coupons, exchangeable for definitive certificates when the certificates have been executed and are available for delivery. The corporation may also provide for the replacement of any certificates which become mutilated or are destroyed or lost.

     SECTION 10.  This act shall take effect and be in force from and after July 1, 2013.


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