(1) Upon the adoption of a resolution by the Highway Commission, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this chapter, the Highway Commission shall deliver a certified copy of its resolution or resolutions to the Bond Commission. Upon receipt of same, the Bond Commission shall, in its discretion, act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds.

(2) For the payment of said bonds and the interest thereon, the full faith, credit, and taxing power of the State of Mississippi are hereby irrevocably pledged. If the legislature shall find that there are funds available in the General Fund of the Treasury of the State of Mississippi in amounts sufficient to pay maturing principal and accruing interest of said general obligation bonds, and if the legislature shall appropriate such available funds to the bond retirement fund for the purpose of paying such maturing principal and accruing interest, then the maturing principal and accruing interest of said bonds shall be paid from appropriations made from the General Fund of the Treasury of the State of Mississippi by the legislature thereof. But, if there are not available sufficient funds in the bond retirement fund and General Fund of the Treasury of the State of Mississippi to pay the maturing principal and accruing interest of said bonds, or if such funds are available and the legislature should fail to appropriate a sufficient amount thereof to pay such principal and accruing interest as the same becomes due, then, and in that event, there shall annually be levied upon all taxable property within the State of Mississippi an ad valorem tax at the rate sufficient to provide the funds required to pay the said bonds at maturity and the interest thereon as the same accrues.

(3)

(a) From and after that year in which the state shall become obligated to make the final expenditure of the ten million dollars ($10,000,000.00) required by Section 65-26-7, there is hereby pledged the net revenue derived from the funds received by the State of Mississippi from the Tennessee Valley Authority in lieu of ad valorem taxes, being twelve and two-tenths percent (12.2%) of the total funds paid by the Authority in Mississippi, as provided in Section 27-37-301, Mississippi Code of 1972, said funds to be deposited directly into the bond retirement fund. Such funds paid by the Authority in lieu of ad valorem taxes are hereby pledged for the payment of principal of and interest on bonds authorized by subsection (1) of Section 65-26-15. When twenty-five percent (25%) of the total costs of the bonds and the debt service thereon has been paid by the use of funds of the State of Mississippi, the diversion of such funds from the Authority from the general fund of the State of Mississippi into the bond retirement fund shall cease.

(b) For repayment to the State of Mississippi to the extent of the local share of all bonds issued under the authority of this chapter and the interest thereon, there are hereby pledged the following revenues:

(i) From and after January 1, 1976, any sum in excess of the sum received in 1975 by the counties of Alcorn, Chickasaw, Clay, Itawamba, Kemper, Lee, Lowndes, Monroe, Noxubee, Pontotoc, Prentiss and Tishomingo from funds paid by the Tennessee Valley Authority to said counties under the provisions of Section 27-37-301, Mississippi Code of 1972, which shall be deposited directly into the bond retirement fund;

(ii) The revenue derived from the one (1) mill special improvement ad valorem tax levied by Section 65-26-13;

(iii) The revenue derived from the levy of tolls as required by Section 65-26-11; provided, however, that no toll shall be levied or collected until such time as the revenue from the following sources is insufficient to pay the annual cost of the principal of the bonds and the interest thereon; the funds paid the state as set forth in subparagraph (a) until terminated as provided therein, the funds paid the counties as set forth in subparagraph (b)(i), the one (1) mill tax as set forth in subparagraph (b)(ii), and a sum equal to the portion of the balance of the bond retirement fund representing the state’s participation therein;

(iv) The revenue derived from the levy of the bridge tax as provided in Section 65-26-17; provided, however, that no such tax shall be levied or collected until revenue from the following sources shall be insufficient to pay the annual costs of the principal of the bonds and the interest thereon: the funds paid the state as set forth in subparagraph (a) until terminated as provided therein, the funds paid the counties as set forth in subparagraph (b)(i), the one (1) mill tax set forth in subparagraph (b)(ii), the tolls as set forth in subparagraph (b)(iii) and a sum equal to the portion of the balance of the bond retirement fund representing the state’s participation therein.

(c)

(i) If the revenue provided for in subparagraphs (b)(i), (b)(ii) and (b)(iii) is sufficient for a period of two (2) consecutive years, to meet the cost of the principal of the bonds and the interest maturing thereon, the levy of the bridge tax as set forth in subparagraph (b)(iv) of this section shall cease;

(ii) If the revenue provided for in subparagraphs (b)(i) and (b)(ii) is sufficient, for a period of two (2) consecutive years, to meet the cost of the principal of the bonds and the interest maturing thereon, the tolls as set forth in subparagraph (b)(iii) of this section shall cease to be collected.

(d)

(i) If, at any time after the bridge tax shall cease to be collected to be used to pay the cost of the principal of the bonds and interest thereon, the revenue provided for in subparagraphs (b)(i), (b)(ii) and (b)(iii) shall be insufficient to pay the annual costs of the principal and interest on the bonds, the state tax commission shall again levy the bridge tax.

(ii) If, at any time after the tolls shall cease to be collected for payment of the bonds and interest thereon, the revenue provided for in subparagraphs (b)(i) and (b)(ii) shall be insufficient to pay the annual costs of the principal and interest on the bonds, the State Highway Commission shall again collect the tolls.

(4) Such bonds shall bear date or dates, be in such denomination or denominations, bear interest at such rate or rates, be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times, be redeemable prior to maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the bond commission. Provided, however, that such bonds shall mature in annual installments beginning not more than two (2) years from date thereof and extending not more than twenty (20) years from date thereof.

(5) Such bonds shall be signed by the chairman of the Bond Commission, or by his facsimile signature, and the official seal of the bond commission shall be affixed thereto, attested by the secretary of the bond commission. The interest coupons to be attached to such bonds may be executed by the facsimile signatures of said officers. Whenever any such bonds shall have been signed by the officials herein designated to sign the bonds, who were in office at the time of such signing but who may have ceased to be such officers prior to the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until the delivery of the same to the purchaser, or had been in office on the date such bonds may bear.