Mississippi Code 1972 (2023) › Title 31 - PUBLIC BUSINESS, BONDS AND OBLIGATIONS (§§ 31-1-1 — 31-31-41) › Chapter 19 - PUBLIC DEBTS (§§ 31-19-1 — 31-19-33) › Section 31-19-25 - Sale of bonds to be advertised

All bonds issued pursuant to any laws of this state and hereafter sold by the governing authority of or on behalf of any county, road district, school district, drainage district or other political subdivision or instrumentality of this state shall be advertised for sale on sealed bids, which may be submitted in electronic form, or at public auction. Such advertisement shall be published at least two (2) times in a newspaper published in the county in which the political subdivision or instrumentality is situated, and if no newspaper is published in such county, then in a newspaper published in an adjoining county; with respect to a political subdivision or instrumentality which is composed of more than one (1) county, such advertisement shall be published at least two (2) times in a newspaper having a general circulation in each county all or a portion of which is part of the political subdivision or instrumentality. The first publication in each case shall be made at least ten (10) days preceding the date fixed for the reception of bids, and such notice shall give the time and place of sale.
The governing authority may reject any and all bids, whether so stated in the notice of sale or not. If the bonds are not sold pursuant to such advertisement, they may be sold by the governing authority by private sale at any time within sixty (60) days after the date advertised for the reception of bids; but no such private sale shall be made at a price less than the highest bid which shall have been received pursuant to such advertisement. If not so sold at private sale, said bonds shall be readvertised in the manner herein prescribed.
Every bid for the purchase of any of such bonds shall be accompanied by a wire transfer or a cashier's check, certified check or exchange, payable to the proper governing authority, issued or certified by a bank in the amount of not less than two percent (2%) of the par value of the bonds offered for sale, as a guaranty that the bidder will carry out his contract and purchase the bonds if the bid is accepted. If the successful bidder fails to purchase the bonds pursuant to his bid and contract, the amount of such good faith check shall be retained by the governing authority and covered into the proper fund as liquidated damages for such failure.
This section shall not apply to the sale of bonds by the State of Mississippi through the State Bond Commission or the sale of bonds or any other indebtedness incurred by a county in connection with a project as defined under Section
57-75-5(f)(xxviii)
, Section
57-75-5(f)(xxix)
, Section
57-75-5(f)(xxxi)
, Section
57-75-5(f)(xxxii)
or Section
57-75-5(f)(xxxiii)
.
A failure to comply with any provision of this section shall not invalidate such bonds, but any member of the governing board, commission or other governing authority who shall willfully violate any of said provisions and shall willfully fail to give the notices herein required shall be liable personally and on his official bond for a penalty in each case of Five Hundred Dollars ($500.00) and, in addition thereto, for all financial loss that may result to the county, municipality, road district, school district, drainage district or other political subdivision or instrumentality of the state or county resulting from such willful failure to comply herewith. Such penalty and damages may be recovered by suit of the Attorney General, a district attorney or of any citizen of such county or other political subdivision in any court of competent jurisdiction, for the use and benefit of the county or other such political subdivision or instrumentality.
Codes, 1942, § 4357-01; Laws, 1946, ch. 325, §§ 1, 2; Laws, 1987, ch. 434, eff. 3/30/1987.
Amended by Laws, 2024EX2, ch. (number not assigned at time of publication), SB 2001,§ 11, eff. 1/30/2024.
Amended by Laws, 2024EX1, ch. (number not assigned at time of publication), HB 1,§ 9, eff. 1/22/2024.
Amended by Laws, 2022EX1, ch. 1, HB 1,§ 9, eff. 11/17/2022.
Amended by Laws, 2020, ch. 480, HB 24,§ 1, eff. 7/8/2020.
Amended by Laws, 2016EX1, ch. 1, HB 1,§ 15, eff. 2/8/2016.
Amended by Laws, 2013EX1, ch. 1, HB 1,§ 11, eff. 4/28/2013.