in Mississippi

6. Bond Insurance (if any)
Bond insurance may be obtained if such insurance appears to be cost-effective.
7. Private Placements
Issues may be sold without Official Statements if sold at “private placement” in
compliance with federal securities laws. There is often confusion between the term
“public sale” under state law when the issue is sold at bid, and the term “private
placement” which refers to qualifying under federal securities laws and regulations for
disclosure exemption.
8. Award
A resolution will be adopted awarding the bonds to the conforming bid presenting the
lowest net interest cost if bids are being received. At a negotiated sale, a bond purchase
agreement will be executed.
9. Preparation of Bond Transcript
The county board attorney and/or the clerk of the board will prepare the bond transcript—
all legal documents, including appropriate minutes of the governing authority, pertaining
to the authority to issue. This may be done just prior to or subsequent to the bond sale. In
the former case, a supplemental transcript will be subsequently prepared to include the
sale. The bond transcript is required for validation and is usually required by the
purchaser as a condition of sale.
10. Validation
This is a process initiated by filing the bond transcript with the local Chancery County,
after having been first submitted to and approved by the State Bond Attorney (not to be
confused with the county’s bond counsel). Notice is given to taxpayers to present any
legal objection they might have. If properly approved by the court following such notice,
a judgment is entered validating the bonds. This is intended to foreclose questions as to
the authority to issue the bonds to the extent that matters are properly presented in the
bond transcript.
11. Delivery/Issuance
Bonds are issued when exchanged for payment. Closing papers appropriate to the type of
bonds being issued are executed and opinions of bond counsel and attorney for the county
are delivered. Moneys are deposited as directed.
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