(1) The bonds issued under the provisions of this chapter shall be payable from the special fund provided therefor as hereinafter set out and shall be the general obligations of the State of Mississippi and backed by the full faith and credit of the state, and if the funds supplied by the board to the State Treasurer from the sources prescribed by this chapter be insufficient to fully pay the interest on the bonds when due or to pay the principal of the bonds when due or when declared to be due as provided in the resolution authorizing the issuance of the bonds, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated, and all such bonds shall contain recitals on their face substantially covering the foregoing provisions of this section.

The amount of bonds issued for the acquisition and planned development of any one state port, harbor or waterway shall not exceed the sum of Eighty Million Dollars ($80,000,000.00) outstanding at any one time, nor shall any additional bonds be issued to complete the planned development of any other port, harbor or waterway to exceed in the aggregate the sum of Eighty Million Dollars ($80,000,000.00), outstanding at any one (1) time. However, such limitation on the amount of bonds that may be issued shall not apply to any additional bonds issued in connection with the planned development of any other port, harbor or waterway not to exceed in the aggregate the sum of One Hundred Thirty Million Dollars ($130,000,000.00) notwithstanding the provisions of Section 59-5-47, nor any other provisions to the contrary. The entire proceeds of the One Hundred Thirty Million Dollars ($130,000,000.00) shall be used solely for the construction or acquisition of ships, vessels, shipyards, shipbuilding facilities, machinery and equipment, dredges, floating dry docks, graving docks, marine railways, tugboats or any other facilities required or incidental to the construction, outfitting, dry docking or repair of ships or vessels. However, no such additional bonds shall be issued except where such facility or facilities are to be leased or sold, in whole or in part, for industrial purposes and the annual payments made under the lease contract and/or proceeds of sale shall be sufficient to pay the interest on the bonds when due and to pay the principal of the bonds at or prior to maturity as provided in the resolution authorizing the issuance of the bonds to finance such project, and all costs in connection therewith. Such lease shall have been first fully guaranteed by such person, firm or corporation, if any, having control, ownership or management of the lessee. Such lease and/or sale contract and the terms and conditions thereof, shall require the joint and several approval of the board of supervisors of the county in which the port is located, the port authority and the Department of Economic and Community Development. No borrowing under this section shall be finalized prior to ten (10) days after written notice of intent to borrow is furnished to the Legislative Budget Office.

No bonds shall be issued under this chapter after April 25, 2013.

(2) The full five-mill ad valorem levy provided for by this chapter shall be levied and collected as needed for the retirement of any bonds issued under this chapter, and all rents, emoluments and charges made and collected by the port authority, less maintenance cost and incidental expenses, shall be covered in a fund to be used to retire all bonds issued under this chapter; and also all receipts from the two-mill state ad valorem levy, disbursed to such city, county or other port or harbor agency, shall be used to service such bonds.

(3) In the event any city, county or other port, or harbor agency, however designated, shall pay to the board an amount insufficient to meet all bond and interest payments when due on their respective obligations, then any such delinquency paid by the state shall be deducted from future reimbursements for homestead exemptions under the provisions of Sections 27-33-1 through 27-33-65 from that portion reimbursed to the general county fund. Should the amount deducted from the homestead exemption reimbursement be insufficient to meet the delinquency, then the remainder of such delinquency shall be deducted from any distributions made under the provisions of Section 27-5-101 for gasoline taxes.

(4) In the event all of the above-listed sources prove inadequate to pay the principal and interest on the bonds issued and paid for by the State of Mississippi under this chapter, then such city, county or other port or harbor agency shall levy and collect an additional ad valorem levy of not more than five (5) mills per year on all the taxable property of such city, county or other port or harbor agency, which funds so secured shall be applied toward such obligations to the State of Mississippi.

(5) The requirements of subsections (2), (3) and (4) of this section shall not be applicable to the additional bonds in the aggregate amount of One Hundred Thirty Million Dollars ($130,000,000.00) authorized in subsection (1) of this section for the construction or acquisition of ships, vessels, shipyards, shipbuilding facilities, machinery and equipment, dredges, floating dry docks, graving docks, marine railways, tugboats or any other facilities required or incidental to the construction, outfitting, dry docking or repair of ships or vessels; provided, such county shall, at the time of issuance of any of such bonds, convey to the State of Mississippi all of its right, title and interest in and to all of the land and above-mentioned shipbuilding facilities, together with the county’s right, title and interest in and to any leases, deeds, contracts or other customary business instruments which have been entered into in connection with the land and shipbuilding facilities, but such conveyance or conveyances shall be subject to the terms and provisions of such leases, deeds, contracts or other customary business instruments entered into in connection therewith. The right, title and interest of the State of Mississippi in the land and shipbuilding facilities shall be under the supervision and control of the Department of Economic and Community Development.