MS HB1425

Authorizes issuance of state general obligation bonds not to exceed $6,500,000 to fund repair, rehabilitation, construction, and improvement of a railroad line running approximately 175 miles from Southaven to near Canton, Mississippi.

Creates the "2011 Railroad Improvements Fund" as a separate special fund within the State Treasury, maintained by the State Treasurer and not subject to lapsing into the General Fund.

Grants the Mississippi Development Authority discretion to disburse funds for railroad project costs, with expenditures authorized by warrants issued by the Department of Finance and Administration.

Requires the State Bond Commission to act as issuing agent, prescribe bond form, determine sale method, and handle all aspects of bond issuance and sale; bonds may be issued at any time until July 1, 2014.

Pledges the full faith and credit of the State of Mississippi for bond repayment, exempts bonds from state taxation, and allows bonds to mature over up to 25 years from issue date with interest rates not exceeding statutory limits.