The proceeds of any bonds issued by a municipality shall be placed in the municipal treasury or depository, if there be one, as a special fund, and shall be used for no other purpose than that for which such bonds were authorized to be issued. If the governing authorities of such municipality, or any member thereof, or any other officer, shall wilfully divert, or aid or assist in diverting any such fund, or any part thereof, to any purpose other than that for which such bonds were authorized to be issued, then such person shall be guilty of a felony and, upon conviction, shall be punished by imprisonment in the state penitentiary for a term not exceeding five years and, in addition, he shall be liable personally and on his official bond for the amount so diverted. Any member of such governing authorities may escape the penalty provided for above by requesting and having his vote recorded in the negative on any illegal diversion of the proceeds of such bonds.
Structure Mississippi Code
Chapter 33 - Taxation and Finance
§ 21-33-301. Uniform system for issuance of municipal bonds; purposes for which bonds may be issued
§ 21-33-303. Limitation of indebtedness
§ 21-33-305. Revenues of public utilities may be pledged for payment of bonds
§ 21-33-307. Initiating procedures for issuance of bonds
§ 21-33-309. Holding of bond election
§ 21-33-311. Results of election
§ 21-33-313. Details of municipal bonds; supplemental powers conferred in issuance of bonds
§ 21-33-315. Maturities and interest
§ 21-33-317. Proceeds of bonds not to be diverted
§ 21-33-319. Transfer of residue of bond proceeds
§ 21-33-321. Bond and interest fund may be used to buy outstanding bonds
§ 21-33-325. Borrowing in anticipation of taxes