SEC. 59-7-419. Disposition of proceeds of bonds; penalties for diversion; guarantee of payment.
The proceeds from the sale of any bonds or other obligations issued pursuant to this article shall be placed to the credit of such municipality in a bank or banks, which are members of the federal deposit insurance corporation and may be withdrawn therefrom in accordance with any agreement or agreements entered into between such municipality and the purchaser or purchasers of such bonds or other obligations and shall be used for no other purpose than the purpose of such municipality. Any officer or other person diverting or assisting to divert any such funds to any other purpose or purposes than the purpose or purposes originally set forth in said resolution of the governing body of said municipality shall be guilty of a felony and punishable accordingly, and shall be liable both personally and on official bonds for such diversion.
Nothing in this article shall be construed as a guarantee on the part of the State of Mississippi to pay the principal or interest on any bonds or other obligations issued pursuant to this article.
SOURCES: Codes, 1942, Sec. 7602; Laws, 1940, ch. 290; 1944, ch. 216, Sec. 2.