59-7-417 - Exercise of authority for issuance of bonds; form, terms and conditions of bonds; execution of bonds; negotiability and sale of bonds; interim certificates.
§ 59-7-417. Exercise of authority for issuance of bonds; form, terms and conditions of bonds; execution of bonds; negotiability and sale of bonds; interim certificates.
The power to issue bonds or other obligations authorized by Section 59-7-415 shall be vested in, and may be exercised from time to time by the governing body of any such municipality described in said section. Such bonds or other obligations shall be authorized by resolution of the governing body of any such municipality and shall bear such date or dates, mature at such time or times, not exceeding twenty (20) years from their respective dates, be in such denomination, be in such form, either coupon or registered, carry such registration privileges, be executed in such a manner, be payable in such medium of payment, at such place or places, and be subject to such terms of prior redemption, with or without premium, as such resolution or resolutions may provide. Such bonds shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103. No bond shall bear more than one (1) rate of interest; each bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid; all bonds of the same maturity shall bear the same rate of interest from date to maturity; all interest accruing on such bonds so issued shall be payable semiannually or annually, except that the first interest coupon attached to any such bond may be for any period not exceeding one (1) year.
No interest payment shall be evidenced by more than one (1) coupon and neither cancelled nor supplemental coupons shall be permitted. The lowest interest rate specified for any bonds issued shall not be less than seventy percent (70%) of the highest interest rate specified for the same bond issue. The interest rate of any one (1) interest coupon shall not exceed the maximum interest rate on such bonds.
Each interest rate specified in any bid must be in multiples of one-eighth of one percent (1/8 of 1%) or in multiples of one-tenth of one percent (1/10 of 1%). Such bonds shall be executed by the manual or facsimile signature of the mayor and clerk of such municipality, with the seal of the municipality affixed thereto. At least one (1) signature on each bond shall be a manual signature, as specified in the resolution. The coupons may bear only the facsimile signatures of such mayor and clerk. Such bonds or other obligations may be sold at public or private sale for such price or prices as the governing body of such municipality shall determine, but in no case to exceed the rate of interest hereinbefore provided. No bonds shall be issued and sold under the provisions of this article for less than par and accrued interest.
Such bonds or other obligations may be issued by any municipality described in Section 59-7-415 in a principal amount not exceeding Seven Million Five Hundred Thousand Dollars ($7,500,000.00) outstanding at any one (1) time for any purpose or purposes authorized by Section 59-7-405. Such municipality shall have power, out of any funds available, to purchase any bonds or other obligations issued by it pursuant to this article, and all bonds or other obligations so purchased shall be cancelled, and no bonds or other obligations shall be issued in lieu thereof. In anticipation of the issuance of the definitive bonds authorized by this article, any such municipality may issue interim certificates. Such interim certificates shall be in such form, contain such terms, conditions or provisions, bear such date or dates, and evidence such agreement or agreements, relating to their discharge by payment or by the delivery of the definitive bonds, as such municipality, by resolution of its governing body, may determine. Any bonds, interim certificates or other obligations issued pursuant to this article shall be fully negotiable within the meaning and for all the purposes of the Mississippi Uniform Commercial Code, and may be validated as provided by statute.
Sources: Codes, 1942, § 7601; Laws, 1940, ch. 290; Laws, 1960, ch. 344, § 3; Laws, 1970, ch. 500, § 1; Laws, 1981, ch. 462, § 17; Laws, 1982, ch. 434, § 30; Laws, 1983, ch. 541, § 38; Laws, 1984, ch. 444, § 3; Laws, 1988, ch. 452, eff from and after passage (approved April 26, 1988).