MS HB1431

Authorizes issuance of $10,000,000 in state general obligation bonds to fund the Small Municipalities and Limited Population Counties Fund, with no bonds to be issued after July 1, 2015.

Bonds mature in no more than 25 years, bear interest rates not exceeding limits in Section 75-17-101, and are backed by the full faith and credit of Mississippi.

Proceeds from bonds are deposited into the Small Municipalities and Limited Population Counties Fund and disbursed as grants to municipalities with populations of 10,000 or less and counties with populations of 30,000 or less.

Allows the Mississippi Development Authority to reimburse up to 3% of bond proceeds for actual administrative costs incurred in providing project assistance, with separate accounting required for each project.

Bond income and the bonds themselves are exempt from all taxation in Mississippi and qualify as legal investments for trustees, fiduciaries, banks, and insurance companies.