Mississippi § 57-77-31 - Redemption, repayment, purchase or cancellation of bonds and notes; appropriations for payment of principal and interest on bonds and notes; rate of interest on loans made using funds from Venture Capital Fund.

§ 57-77-31. Redemption, repayment, purchase or cancellation of bonds and notes; appropriations for payment of principal and interest on bonds and notes; rate of interest on loans made using funds from Venture Capital Fund.

All bonds issued under the authority of this chapter shall be redeemed at maturity, together with all interest due, from time to time, on the bonds, and these principal and interest payments shall be paid from the general fund. In the event that all or any part of the bonds and notes are purchased, they shall be canceled and returned to the loan and transfer agent as canceled and paid bonds and notes; and, thereafter, all payments of interest thereon shall cease and the canceled bonds, notes and coupons shall be destroyed as promptly as possible after cancellation but not later than two (2) years after cancellation. A certificate evidencing the destruction of the canceled bonds, notes and coupons shall be provided by the loan and transfer agent to the seller. The State Treasurer shall determine and report to the Department of Finance and Administration and Joint Legislative Budget Office by September 1 of each year the amount of money necessary for the payment of the principal of and interest on outstanding obligations for the following fiscal year and the times and amounts of the payments. It shall be the duty of the Governor to include in every executive budget submitted to the Legislature full information relating to the issuance of bonds and notes under the provisions of this chapter and the status of the general fund for the payment of the principal of and interest on the bonds and notes. Except as otherwise provided by law, the rate of interest on any loans made using funds from the Venture Capital Fund shall be in accordance with Section 57-77-17. Notwithstanding the provisions of any other law to the contrary, the interest rate charged shall not be set such that the aggregate of the interest, penalties and other payments in connection with such assistance made using funds from the Venture Capital Fund will cause the bonds issued pursuant to this chapter to be deemed arbitrage bonds pursuant to Section 148 of the Internal Revenue Code of 1986 and the regulations promulgated thereunder. In the case of assistance initially funded from the proceeds of notes and subsequently funded from renewal bonds and notes, the interest rate to be charged on the assistance shall be established in accordance with Section 57-77-17 upon the sale of bonds or notes, as the case may be, for such assistance.