SEC. 51-23-39. Depository for funds of district.
(1) The board of directors shall designate one or more qualified state depositories within the district to serve as depositories for the funds of the district, and all funds of the district shall be deposited in such depository or depositories. Any such designated depository shall be eligible to hold funds of the district to the extent that it is qualified as a depository for state funds.
(2) Before designating a depository or depositories, the board of directors shall issue a notice stating the time and place the board will meet for such purpose and inviting the qualified state depositories in the district to submit applications to be designated depositories. The term of service for depositories shall be fixed by the board, but shall not exceed three (3) years. Such notices shall be mailed to all qualified state depositories located in the district at least two (2) weeks prior to the time set for the receipt of bids.
(3) At the time fixed in said notice, the board shall consider the applications and the management and condition of the depositories which offer the most favorable terms and conditions for the handling of the funds of the district, and the qualified state depository or depositories offering the most favorable terms and which the board finds have proper management and are in condition to warrant handling of district funds, and which agree to handle said funds in the manner provided under the chapter on depositories, shall be designated as depositories for the district for such term as may be fixed by the board, not to exceed three (3) years. Membership on the board of directors of an officer or director of a depository shall not disqualify such depository from being designated as a depository.
(4) If no applications acceptable to the board are received by the time stated in the notice, the board shall designate some qualified state depository or depositories within the district upon such terms and conditions as it may find advantageous to the district. Any such designated depository shall be eligible to hold funds of the district to the extent that it is qualified as a depository for state funds.
(5) If, at any time, the district shall have on deposit funds in excess of the amount reasonably anticipated to be expended by the district during the ensuing three (3) months or longer period of time, and if, in the opinion of the board, a greater return can be made from the investment of surplus funds than could be realized under the terms of any depository agreement, the board is authorized to direct the treasurer to invest all such funds of the district in any bonds or other direct obligations of the United States of America or the State of Mississippi, or of any county, school district or municipality of this state, which such county, school district, or municipal bonds have been approved by a reputable bond attorney or have been validated by decree of the chancery court; and in any event the bonds or obligations in which such funds are invested shall mature or be redeemable prior to the time the funds so invested will be needed for expenditure. When bonds or other obligations have been so purchased, the same may be sold or surrendered for redemption at any time by order or resolution of the board of directors; and the treasurer, when authorized by such order or resolution, shall have the power and authority to execute all instruments and take such other action as is necessary to effectuate the sale or redemption thereof.
SOURCES: Codes, 1942, Sec. 5956-362; Laws, 1966, Ex. Sess., ch. 49, Sec. 12; 1968, ch. 268, Sec. 2; 1988, ch. 473, Sec. 17, eff from and after December 1, 1988.
1997 Amendment
SECTION 8. Sections 51-23-19, 51-23-21, 51-23-23, 51-23-25, 51-23-27, 51-23-29, 51-23-31, 51-23-33, 51-23-35, 51-23-37, 51-23-39, 51-23-41, 51-23-43, 51-23-45, 51-23-47 and 51-23-49, Mississippi Code of 1972, which place certain requirements on the issuance of construction contracts, authorize the district to provide park and recreation facilities, authorize the board of directors to adopt rules and regulations and to designate depositories for district funds, authorize the board of directors to issue bonds and notes, provide for a limitation on the amount on and for validation of bonds and notes, authorize the board of directors to enter into trust agreements and to issue refunding bonds, declare bonds as legal investments, provide for certain agreements, cooperation with other government agencies and severability, exempt the district and its bonds from taxation and provide the intent of the Legislature regarding overflow of school lands, are repealed.
SOURCE: 1997 Laws, Chapter 403, Sec. 8, SB2937, Effective July 1, 1997.