Q May a school district invest sixteenth section principal funds in bonds or other direct obligations of any municipality, county, or school district in Mississippi?

A Yes, Section 29-3-113 authorizes a school board to invest sixteenth section principal funds in interest bearing deposits or other obligations of the types described in Section 27-105-33 or in any other investment allowed for any other political subdivision of the State of Mississippi. Section 19-9-29(c) authorizes a board of supervisors to invest excess county funds in “bonds of other direct obligations of…any county municipality or school district of this state, if such county municipal or school district bonds have been approved by a reputable bond attorney or have been validated by a decree of the chancery court.” (Attorney General’s Opinion to Allen, November 30, 2016)