Bonds; authorize issuance to provide funds for the 2026 Local Governments Disaster Recovery Emergency Loan Fund.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Deweese

HOUSE BILL NO. 4090

AN ACT TO AUTHORIZE THE ISSUANCE OF STATE GENERAL OBLIGATION 1
BONDS TO PROVIDE FUNDS FOR THE 2026 LOCAL GOVERNMENTS DISASTER 2
RECOVERY EMERGENCY LOAN FUND ESTABLISHED IN SENATE BILL NO. 2632, 3
2026 REGULAR SESSION; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. (1) As used in this section, the following words 6
shall have the meanings ascribed herein unless the context clearly 7
requires otherwise: 8
(a) "Accreted value" of any bonds means, as of any date 9
of computation, an amount equal to the sum of (i) the stated 10
initial value of such bond, plus (ii) the interest accrued thereon 11
from the issue date to the date of computation at the rate, 12
compounded semiannually, that is necessary to produce the 13
approximate yield to maturity shown for bonds of the same 14
maturity. 15
(b) "State" means the State of Mississippi. 16
(c) "Commission" means the State Bond Commission. 17
(2) (a) The commission, at one time, or from time to time, 18
may declare by resolution the necessity for issuance of general 19
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obligation bonds of the State of Mississippi to provide funds for 20
the 2026 Local Governments Disaster Recovery Emergency Loan Fund 21
created in Section 4 of Senate Bill No. 2632, 2026 Regular 22
Session. Upon the adoption of a resolution by the Department of 23
Finance and Administration declaring the necessity for the 24
issuance of any part or all of the general obligation bonds 25
authorized by this subsection, the Department of Finance and 26
Administration shall deliver a certified copy of its resolution or 27
resolutions to the commission. Upon receipt of such resolution, 28
the commission, in its discretion, may act as the issuing agent, 29
prescribe the form of the bonds, determine the appropriate method 30
for sale of the bonds, advertise for and accept bids or negotiate 31
the sale of the bonds, issue and sell the bonds so authorized to 32
be sold, and do any and all other things necessary and advisable 33
in connection with the issuance and sale of such bonds. The total 34
amount of bonds issued under this section shall not exceed Fifty 35
Million Dollars ($50,000,000.00). No bonds authorized under this 36
section shall be issued after July 1, 2030. 37
(b) The proceeds of bonds issued pursuant to this 38
section shall be deposited into the 2026 Local Governments 39
Disaster Recovery Emergency Loan Fund created pursuant to Section 40
4 of Senate Bill No. 2632, 2026 Regular Session. Any investment 41
earnings on bonds issued pursuant to this section shall be used to 42
pay debt service on bonds issued under this section, in accordance 43
with the proceedings authorizing issuance of such bonds. 44
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(3) The principal of and interest on the bonds authorized 45
under this section shall be payable in the manner provided in this 46
subsection. Such bonds shall bear such date or dates, be in such 47
denomination or denominations, bear interest at such rate or rates 48
(not to exceed the limits set forth in Section 75-17-101, 49
Mississippi Code of 1972), be payable at such place or places 50
within or without the State of Mississippi, shall mature 51
absolutely at such time or times not to exceed twenty-five (25) 52
years from date of issue, be redeemable before maturity at such 53
time or times and upon such terms, with or without premium, shall 54
bear such registration privileges, and shall be substantially in 55
such form, all as shall be determined by resolution of the 56
commission. 57
(4) The bonds authorized by this section shall be signed by 58
the chairman of the commission, or by his facsimile signature, and 59
the official seal of the commission shall be affixed thereto, 60
attested by the secretary of the commission. The interest 61
coupons, if any, to be attached to such bonds may be executed by 62
the facsimile signatures of such officers. Whenever any such 63
bonds shall have been signed by the officials designated to sign 64
the bonds who were in office at the time of such signing but who 65
may have ceased to be such officers before the sale and delivery 66
of such bonds, or who may not have been in office on the date such 67
bonds may bear, the signatures of such officers upon such bonds 68
and coupons shall nevertheless be valid and sufficient for all 69
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purposes and have the same effect as if the person so officially 70
signing such bonds had remained in office until their delivery to 71
the purchaser, or had been in office on the date such bonds may 72
bear. However, notwithstanding anything herein to the contrary, 73
such bonds may be issued as provided in the Registered Bond Act of 74
the State of Mississippi. 75
(5) All bonds and interest coupons issued under the 76
provisions of this section have all the qualities and incidents of 77
negotiable instruments under the provisions of the Uniform 78
Commercial Code, and in exercising the powers granted by this 79
section, the commission shall not be required to and need not 80
comply with the provisions of the Uniform Commercial Code. 81
(6) The commission shall act as the issuing agent for the 82
bonds authorized under this section, prescribe the form of the 83
bonds, determine the appropriate method for sale of the bonds, 84
advertise for and accept bids or negotiate the sale of the bonds, 85
issue and sell the bonds so authorized to be sold, pay all fees 86
and costs incurred in such issuance and sale, and do any and all 87
other things necessary and advisable in connection with the 88
issuance and sale of such bonds. The commission is authorized and 89
empowered to pay the costs that are incident to the sale, issuance 90
and delivery of the bonds authorized under this section from the 91
proceeds derived from the sale of such bonds. The commission 92
shall sell such bonds on sealed bids at public sale or may 93
negotiate the sale of the bonds for such price as it may determine 94
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to be for the best interest of the State of Mississippi. All 95
interest accruing on such bonds so issued shall be payable 96
semiannually or annually. 97
If the bonds are to be sold on sealed bids at public sale, 98
notice of the sale of any such bonds shall be published at least 99
one time, not less than ten (10) days before the date of sale, and 100
shall be so published in one or more newspapers published or 101
having a general circulation in the City of Jackson, Mississippi, 102
selected by the commission. 103
The commission, when issuing any bonds under the authority of 104
this section, may provide that bonds, at the option of the State 105
of Mississippi, may be called in for payment and redemption at the 106
call price named therein and accrued interest on such date or 107
dates named therein. 108
(7) The bonds issued under the provisions of this section 109
are general obligations of the State of Mississippi, and for the 110
payment thereof the full faith and credit of the State of 111
Mississippi is irrevocably pledged. If the funds appropriated by 112
the Legislature are insufficient to pay the principal of and the 113
interest on such bonds as they become due, then the deficiency 114
shall be paid by the State Treasurer from any funds in the State 115
Treasury not otherwise appropriated. All such bonds shall contain 116
recitals on their faces substantially covering the provisions of 117
this subsection. 118
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(8) Upon the issuance and sale of bonds under the provisions 119
of this section, the commission shall transfer the proceeds of any 120
such sale or sales to the 2026 Local Governments Disaster Recovery 121
Emergency Loan Fund created in Section 4 of Senate Bill No. 2632, 122
2026 Regular Session. The proceeds of such bonds shall be 123
disbursed as provided in such section under such restrictions, if 124
any, as may be contained in the resolution providing for the 125
issuance of the bonds. 126
(9) The bonds authorized under this section may be issued 127
without any other proceedings or the happening of any other 128
conditions or things other than those proceedings, conditions and 129
things which are specified or required by this section. Any 130
resolution providing for the issuance of bonds under the 131
provisions of this section shall become effective immediately upon 132
its adoption by the commission, and any such resolution may be 133
adopted at any regular or special meeting of the commission by a 134
majority of its members. 135
(10) The bonds authorized under the authority of this 136
section may be validated in the Chancery Court of the First 137
Judicial District of Hinds County, Mississippi, in the manner and 138
with the force and effect provided by Chapter 13, Title 31, 139
Mississippi Code of 1972, for the validation of county, municipal, 140
school district and other bonds. The notice to taxpayers required 141
by such statutes shall be published in a newspaper published or 142
having a general circulation in the City of Jackson, Mississippi. 143
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(11) Any holder of bonds issued under the provisions of this 144
section or of any of the interest coupons pertaining thereto may, 145
either at law or in equity, by suit, action, mandamus or other 146
proceeding, protect and enforce any and all rights granted under 147
this section, or under such resolution, and may enforce and compel 148
performance of all duties required by this section to be 149
performed, in order to provide for the payment of bonds and 150
interest thereon. 151
(12) All bonds issued under the provisions of this section 152
shall be legal investments for trustees and other fiduciaries, and 153
for savings banks, trust companies and insurance companies 154
organized under the laws of the State of Mississippi, and such 155
bonds shall be legal securities which may be deposited with and 156
shall be received by all public officers and bodies of this state 157
and all municipalities and political subdivisions for the purpose 158
of securing the deposit of public funds. 159
(13) Bonds issued under the provisions of this section and 160
income therefrom shall be exempt from all taxation in the State of 161
Mississippi. 162
(14) The proceeds of the bonds issued under this section 163
shall be used solely for the purposes therein provided, including 164
the costs incident to the issuance and sale of such bonds. 165
(15) The State Treasurer is authorized, without further 166
process of law, to certify to the Department of Finance and 167
Administration the necessity for warrants, and the Department of 168
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ST: Bonds; authorize issuance to provide funds
for the 2026 Local Governments Disaster Recovery
Emergency Loan Fund.
Finance and Administration is authorized and directed to issue 169
such warrants, in such amounts as may be necessary to pay when due 170
the principal of, premium, if any, and interest on, or the 171
accreted value of, all bonds issued under this section; and the 172
State Treasurer shall forward the necessary amount to the 173
designated place or places of payment of such bonds in ample time 174
to discharge such bonds, or the interest thereon, on the due dates 175
thereof. 176
(16) This section shall be deemed to be full and complete 177
authority for the exercise of the powers therein granted, but this 178
section shall not be deemed to repeal or to be in derogation of 179
any existing law of this state. 180
SECTION 2. This act shall take effect and be in force from 181
and after July 1, 2026. 182