GENERAL OBLIGATION BONDS

Local political entities in Mississippi also have the authority to issue general obligation bonds for the purpose of acquiring sites and constructing facilities for lease to new or expanding industries with rentals sufficient to amortize the principal and interest on the bonds provided such improvements are in an industrial park. General obligation bonds carry the full faith and credit of the issuing political entity. As title to the property remains with the political entity issuing the bonds, no taxes are assessed on the improvements made with the proceeds of such bonds.  An agreement is negotiated between the industry and the political entity covering the details of the issuance of the bonds and the lease.