(1) The district may issue negotiable special improvement bonds to provide funds for the purpose of planning, design, construction, operation, maintenance or improvement of any project of the district, including acquisition of land. The bonds shall be payable primarily from special assessments authorized in Section 49-28-29 and, if provided in the proceedings authorizing the bonds, the avails of the ad valorem tax levy authorized in Section 49-28-27. In addition, if provided in the proceedings authorizing the bonds and agreed to by resolution of the board of supervisors authorizing the board of commissioners to make that pledge, the bonds shall also be payable from the avails of the ad valorem tax levy provided for in subsection (2) of this section, or from any combination of monies from those special assessments and tax levies. The bonds may be issued without an election being held upon the question of their issuance and without the publication of any notice of intention to issue the bonds. The board of commissioners of the district shall issue bonds of the district by resolution spread upon the minutes of the board. The bonds shall contain covenants and provisions, be executed, bear interest at the rate or rates not to exceed fourteen percent (14%) per annum, be in denomination or denominations, be payable, both as to principal and interest, at the place or places, mature at the time or times not exceeding twenty-five (25) years from their date of issuance, as shall be determined by the board of commissioners and set forth in the resolution under which the bonds are issued. However, any bonds which are secured by a pledge of special assessments shall mature at the time or times not exceeding the time period over which the special assessments are payable, as determined by the board of commissioners under Section 49-28-29. Notwithstanding any provision of general law to the contrary, any bonds and interest coupons issued under this chapter shall possess all of the qualities of negotiable instruments, and the bonds, premium, if any, and interest thereon shall be exempt from all state, county, municipal and other taxation under the laws of the State of Mississippi. Any bonds issued under the authority of this chapter may be refunded in the manner provided in this chapter upon a finding by the board of commissioners that the refunding is in the public interest. Bonds for the improvement or extension of any structures or facilities of the district may be included with any refunding bonds. The bonds may be sold without the necessity of advertising for bids and may be sold by negotiated private sale and on any terms, conditions and covenants as may be agreed to by and between the issuing authority and the purchasers of the bonds. The total amount of bonds issued under this chapter shall not exceed One Million Dollars ($1,000,000.00).

(2) If provided in the proceedings authorizing the issuance of the bonds and agreed to by resolution of the board of supervisors authorizing the board of commissioners of the district to make a pledge, then when there are insufficient revenues received from special assessments authorized under Section 49-28-29 and the avails of the ad valorem tax levy authorized under Section 49-28-27, or from both together, according to the provisions made in the proceedings authorizing the issuance of the bonds, to meet the interest or principal payments, or both, when due on any bonds issued under this chapter (excluding for this purpose any amounts in a reserve fund for those bonds), then, upon certification of that fact by the board of commissioners of the district to the board of supervisors, the board of supervisors shall levy an ad valorem tax on all taxable property within the geographical limits of the district. The avails of the tax, together with any other monies available for that purpose, shall be sufficient to provide for the payment of the principal of and interest on the bonds as the principal and interest falls due. If provided in the proceedings for the issuance of the bonds, the avails of the tax may also be used to replenish any reserve fund established for the bonds.