SEC. 55-19-19. Details of bonds; interest; execution and negotiability of bonds; application of supplemental powers and authorizations provisions.
(1) All such bonds provided for in section 55-19-17 shall be lithographed or engraved and printed in two (2) or more colors to prevent counterfeiting. They shall be in denominations of not less than one thousand dollars ($1,000.00) nor more than five thousand dollars ($5,000.00), and may be registered as issued. They shall be numbered in a regular series from one (1) upward. Each such bond shall specify on its face the purpose for which it was issued, the total amount authorized to be issued, the interest on the bond, that it is payable to bearer, and that the interest to accrue thereon is evidenced by proper coupons attached thereto.
(2) Such bonds shall contain such covenants and provisions; shall be executed; shall be in such form, format, type, denomination or denominations; shall be payable as to principal and interest, at such place or places; and shall mature at such time or times, all as shall be determined by such board of directors and set forth in the resolution pursuant to which such bonds shall be issued. The date of maturity of such bonds shall not exceed thirty-five (35) years from the date of the bond.
(3) All bonds shall bear interest at such rate or rates not to exceed a net interest cost to maturity of seven percent (7%) per annum. 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. 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 supplemental coupons, cancelled coupons and zero interest coupons will not be permitted. No interest coupon shall vary more than twenty-five percent (25%) in interest rate for any other interest coupon in the same bond issue. The interest rate on any one (1) interest coupon shall not exceed seven percent (7%).
(4) Such bonds shall be signed by the president and secretary-treasurer of the district with the seal of the district affixed thereto; however, the coupons may bear only the facsimile signatures of such president and secretary-treasurer.
(5) Any provisions of the general laws to the contrary notwithstanding, any bonds and interest coupons issued pursuant to the authority of this chapter shall be securities within the meaning of article 8 of the Uniform Commercial Code, being sections 75-8-101 et seq., Mississippi Code of 1972. Such bonds and interest coupons shall be exempt from all state, county, municipal and other taxation under the laws of the state of Mississippi.
(6) Notwithstanding the foregoing provisions of this section, bonds referred to hereinabove may be issued pursuant to the supplemental powers and authorizations conferred by the provisions of the Registered Bond Act, being sections 31-21-1 through 31-21-7.
SOURCES: Codes, 1942, Sec. 5977.5-13; Laws, 1972, ch. 329, Sec. 13; 1983, ch. 494, Sec. 25, eff from and after passage (approved April 11, 1983).