As Amended
SEC. 43-41-505. Establishment of fund; conditions as to loans and their repayment.
(1) There is hereby established within the State Treasury a special fund to be designated as the Local Disaster Emergency Grant and Loan Fund. Into such fund shall be placed all repayments of principal and interest resulting from loans made under the provisions of this section prior to July 1, 1984. Any repayments of loans made from appropriations of general fund monies which were made available for the purposes of this section prior to July 1, 1984, shall remain in such fund to be used as appropriated by the Legislature or to repay funds borrowed from special fund sources for the purposes of this section by the State Bond Commission.
(2) Any loans made to a county or municipality under the provisions of this section prior to July 1, 1984, are hereby made full faith and credit obligations of such counties and municipalities to the State of Mississippi and binding on the governing bodies obtaining such loans and their successors in office until repaid in full as to principal and interest thereon without regard to existing statutory limitations.
(3) All loans made under the provisions of this section prior to July 1, 1984, shall be evidenced by negotiable promissory notes of the county or municipality to be in such standard form and content of acceptable banking standards, shall mature of such times and bear interest as hereinafter provided, and shall bear the signature of the president or presiding officer and clerk of the board of supervisors and the official seal, or the mayor or presiding officer and city clerk and the official seal.
(4) The loans made hereunder shall bear no interest for the first two (2) years from the date of the loan. However, the loans shall bear the following interest rates thereafter:
Third year Six percent (6%) per annum
Fourth year Seven percent (7%) per annum
Fifth year Eight percent (8%) per annum
Sixth year and thereafter Nine percent (9%) per annum
(5) The governing authorities borrowing money under this article are hereby authorized and empowered to levy not to exceed two (2) mills on all of the taxable property of the county or municipality at any time after the loan is made, and said levy is hereby designated to repay only the loan and any interest thereon and it shall not be charged against the existing general laws as to limitations of millage for local governmental purposes. The tax levied herein shall not be reimbursable under any provisions of the homestead exemption laws of the state.
(6) In the event that such loan has not been repaid or arrangements satisfactory to the State Fiscal Officer have not been made to repay same within five (5) years from the making of such loan, the State Fiscal Officer shall determine that there is a default in the terms of the promissory note, including any interest due thereon, shall enter an order to that effect upon its official minutes and send a certified copy of said order by certified mail, postage prepaid, to the chancery clerk or city clerk, as the case may be. If said default is not satisfied in full within sixty (60) days after receipt of said order, a local ad valorem tax of two (2) mills or so much thereof as may be required to liquidate the entire indebtedness owed the state within a reasonable number of years as determined by the State Fiscal Officer shall be levied by the county or municipality on all the taxable property in said county or city to be collected in the same manner, time and form as the existing local ad valorem tax levies, and shall be paid into the State Treasury. Failure or refusal of any county or municipality to levy the tax hereinabove referred to or to otherwise discharge its obligation to the state shall forfeit the right of said county or municipality to receive reimbursement for homestead exemption until such time as its indebtedness has been discharged or arrangements to discharge said indebtedness satisfactorily to the State Fiscal Officer have been made. Homestead exemption funds forfeited hereby shall, upon demand by the State Fiscal Officer, made in writing upon the Mississippi State Tax Commission, be paid to the State Fiscal Officer and applied to the discharge of the obligation.
SOURCES: Laws, 1980, ch. 435, Sec. 3; 1984, ch. 488, Sec. 210; 1989, ch. 532, Sec. 65, eff from and after July 1, 1989.