The board of directors of the district is hereby authorized and empowered, in its discretion, to borrow money from time to time, in an amount not to exceed Nine Hundred Thousand Dollars ($900,000.00) in the aggregate outstanding at any one (1) time, in order to defray expenses of the district for the purpose of acquiring, repairing, maintaining, strengthening and rebuilding dams, reservoirs, channels, levees, pumps and other flood control works and improvements for the district.

Before any money is borrowed under the provisions of this section, the board of directors shall adopt a resolution declaring the necessity for such borrowing and specifying the purpose for which the money borrowed is to be expended, the amount to be borrowed, the date or dates of the maturity thereof, and how such indebtedness is to be evidenced. The resolution shall be certified over the signature of the president of the board of directors.

The borrowing shall be evidenced by negotiable notes or certificates of indebtedness of the district which shall be signed by the president and secretary of the district. All such notes or certificates of indebtedness shall be offered at public sale by the district after not less than ten (10) days’ advertising in a newspaper having general circulation within the district. Each sale shall be made to the bidder offering the lowest rate of interest or whose bid represents the lowest net cost to the district; however, the rate of interest shall not exceed ten percent (10%). No such notes or certificates of indebtedness shall be issued and sold for less than par and accrued interest. All notes or certificates of indebtedness shall mature in approximately equal installments of principal and interest over a period not to exceed fifteen (15) years from the dates of the issuance thereof. Principal shall be payable annually, and interest shall be payable annually or semiannually; provided, however, that the first payment of principal or interest may be for any period not exceeding one (1) year. Provided, however, if negotiable notes are outstanding from not more than one (1) previous issue authorized under the provisions of this section, then the schedule of payments for a new or supplementary issue may be so adjusted that the schedule of maturities of all notes or series of notes hereunder shall, when combined, mature in approximately equal installments of principal and interest over a period of fifteen (15) years from the date of the new or supplementary issue; or, if a lower interest rate will thereby be secured on notes previously issued and outstanding, a portion of the proceeds of any issue authorized hereunder may be used to refund the balance of the indebtedness previously issued under the authority of this section. Such notes or certificates of indebtedness shall be issued in such form and in such denominations as may be determined by the board of directors and may be made payable at the office of any bank or trust company selected by the board of directors. In such case, funds for the payment of principal and interest due thereon shall be provided in the same manner provided by law for the payment of the principal and interest due on bonds issued by the board of directors.

For the prompt payment of notes or certificates of indebtedness at maturity, both principal and interest, there is hereby pledged the avails of the ad valorem tax authorized in Section 51-35-333, Mississippi Code of 1972, and any other available funds of the district designated by the board of directors. Pledged funds shall be paid into a sinking fund and used exclusively for the payment of principal of and interest on the notes or certificates of indebtedness. Until needed for expenditure, monies in the sinking fund may be invested in the same manner as municipalities are authorized by law to invest surplus funds.

The proceeds of any notes or certificates of indebtedness issued under the provisions of this section shall be placed in a special fund and shall be expended only for the purpose or purposes for which they were issued as shown by the resolution authorizing the issuance thereof. If a balance shall remain of the proceeds of such notes or certificates of indebtedness after the purpose or purposes for which they were issued shall have been accomplished, such balance shall be used to pay such obligations at or before maturity and may be transferred to any sinking fund previously established for the payment thereof.

Proceeds from the sale of notes or certificates of indebtedness not immediately necessary for expenditure shall be invested in the same manner as surplus funds of municipalities may be invested.