MS HB1224

Amends Section 21-33-323 to allow municipalities to invest excess funds in U.S. Treasury obligations subject to repurchase agreements and interest-bearing deposits with municipal and state depositories.

Modifies Section 27-105-315 to permit financial institutions to qualify as county depositories by receiving county funds up to the amount insured by the Federal Deposit Insurance Corporation through arrangements with banks and savings and loan associations.

Brings forward Section 19-9-29 regarding county investment of excess funds in interest-bearing time certificates of deposit with county and state depositories for 14 days to one year, with negotiated rates of interest as an alternative to bonds and obligations.

Establishes that interest derived from various fund investments may be deposited into the general fund or maintained in the original fund depending on the fund type, with specific rules for school bond funds and federal assistance funds.

Takes effect July 1, 2012.