SEC. 31-25-37. Issuance of bonds by Bank for corporate purposes.

(1) 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) 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 from the United States of America or the state or any agency or instrumentality thereof, or any other governmental unit.

(4) Any law to the contrary notwithstanding, a bond issued under this act 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. 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 act shall be liable personally on such bonds by reason of the issuance thereof.

(9) Bonds of the bank may be issued under this act without obtaining the consent of any department, division, commission, board, body, bureau or agency of the state, 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 act 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 to 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. Notice thereof shall be given by publication in any newspaper published in the City of Jackson and of general circulation through the state.

SOURCES: Laws, 1986, ch. 455, Sec. 19, eff from and after passage (approved April 10, 1986).

1997 Amendment:

SECTION 3. Section 31-25-37, Mississippi Code of 1972, is amended as follows:

31-25-37. (1) 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 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 act 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 act shall be liable personally on such bonds by reason of the issuance thereof.

(9) Bonds of the bank may be issued under this act without obtaining the consent of any department,
division, commission, board, body, bureau or agency of the state, 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 act 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 to
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. Notice thereof shall
be given by publication in any newspaper published in the City of Jackson and of general circulation
through the state.

SOURCE: 1997 Laws, Chapter 302, Sec. 3, HB1633, Effective AP-February 24, 1997.