MCA Chapter 57

in effect

Miss. Code Ann. § 57-57-1 Short title.

This chapter may be cited as the “Mississippi Export Trade Development Act.”

Miss. Code Ann. § 57-57-3 Legislative findings and declarations.

The Legislature of the State of Mississippi hereby finds and declares that the economy of the State of Mississippi is increasingly dependent upon the international export of Mississippi manufactured goods, commodities, and services, and the export of these products and services has become vital to the stimulation and development of the state’s economy, and that expanding international export markets is essential to the creation of and increase in the number of jobs in these sectors of the state’s economy. Therefore, it is declared to be the purpose of this chapter to promote the general welfare of all of the people of the state and increase job opportunities through the development and expansion of international export markets for Mississippi products and services, especially those of small and medium sized businesses, by assisting in the creation of an export trade company and by providing financial assistance and tax incentives for Mississippi businesses engaging in export sales.

Miss. Code Ann. § 57-57-5 Definitions.

For the purposes of this chapter, the following terms shall have the meanings ascribed to them in this section, unless the context clearly indicates otherwise: “Committee” means a committee, consisting of the chairman of the Certified Development Company of Mississippi, Inc., or his designee, two (2) bankers and two (2) Mississippi businessmen who are members of the Certified Development Company of Mississippi, Inc., created pursuant to Section 57-10-167, and actively involved in exporting. “Company” means the Certified Development Company of Mississippi, Inc., created pursuant to Section 57-10-167. “Bank” means any state or national bank doing business in Mississippi, which is approved by the company. “Eligible export trade transaction” means a transaction consisting of a loan from any Mississippi bank to finance an international pre-export or export, which in the judgment of the company will create or maintain employment in Mississippi and shall contain at least fifty percent (50%) of value added in goods or services at a location in Mississippi. “Guarantee” means additional security by the State of Mississippi for the eligible export trade transaction of any Mississippi business. “Business” means any person, corporation, partnership, proprietorship, association, organization or agency domiciled in the State of Mississippi. “Guarantee fee” means a fee charged by the Certified Development Company of Mississippi, Inc., for processing the guarantee. “Board” means the Mississippi Department of Economic Development operating through its executive director. “Commercial loss” means failure of the buyer to pay to the Mississippi business when due all or part of the gross invoice value of an eligible export trade transaction due to the insolvency of the buyer. “Political loss” means failure of the buyer to pay to the Mississippi business when due all or part of the gross invoice value of an eligible export trade transaction due to dollar transfer delays, war, revolution, license revocation or diversion of goods.

Miss. Code Ann. § 57-57-7 Creation of committee; funds; guarantee against political or commercial loss.

The Certified Development Company of Mississippi, Inc., is hereby given the authority to create a committee to assist the company in implementing this chapter and establishing a source of guarantees and financial assistance to support export development, particularly to small business as defined in Section 503 of the Small Business Investment Act of 1958, as amended. The company is hereby authorized to: Utilize any funds not to exceed one million dollars ($1,000,000.00), authorized to be expended under Chapter 10, Title 57, Mississippi Code of 1972. Provide a guarantee against political or commercial loss in whole or in part of the outstanding principal balance on any eligible export trade transaction. Such a guarantee may include, without limitation, the cost of insurance provided by the exporting business against loss up to a stated amount. The maximum amount payable under any guarantee shall be specifically set forth in writing, and shall not exceed seventy-five percent (75%) of the total principal amount. The amount of all outstanding loan guarantees shall not exceed five million dollars ($5,000,000.00) at any one (1) time. A reasonable and legal guarantee fee may be set by the company. Any guarantee entered into by the company hereunder shall not constitute a general obligation of the State of Mississippi. Any guarantee made by the company hereunder shall not be terminated, cancelled, or otherwise revoked except in accordance with the terms thereof; shall be conclusive evidence that such guarantee complies fully with the provisions of this chapter; and shall be valid and incontestable in the hands of a holder in due course of a guaranteed eligible export trade transaction. Prior to providing a guarantee, the participating bank shall make a thorough credit investigation of the exporting business in order to determine its viability, the economic benefits to be derived therefrom, the prospects for repayment, and such other facts as it deems necessary in order to determine that such a guarantee is consistent with the purpose of this chapter. The company shall provide a guarantee if, and only if and to the extent that, it determines that such a guarantee is reasonably necessary in order to stimulate or facilitate the making of the eligible export trade transaction, upon terms which will enable the export transaction to be reasonably competitive with export transactions in other states or in foreign countries, or such guarantee is reasonably necessary in order to stimulate or facilitate the sale or resale of such eligible export trade transaction to a holder in due course which would not otherwise purchase such eligible export trade transaction; provided, however, that the guarantee provided by the company to the bank shall be loaned to the business at a fixed interest rate and term as the company may from time to time require. The interest rate and term of such loan shall not be in violation of the 1947 General Agreement on Tariffs and Trade. The company may condition the provision of guarantee hereunder upon such terms and conditions as it may deem desirable to carry out the provisions of this chapter.

Miss. Code Ann. § 57-57-9 Reports.

An annual report of the activities by the company and the committee under this chapter shall be submitted along with other annual reports of the Certified Development Company of Mississippi, Inc., to the board.

Miss. Code Ann. § 57-57-11 Creation and participation in export trading company.

The board is hereby authorized to assist in the creation of and actively participate in an export trading company as defined in Title I, Section 103 of the United States Export Trading Company Act of 1982 to promote and facilitate increased exports in Mississippi.

Miss. Code Ann. § 57-57-13 Rules and regulations.

The board may promulgate necessary rules and regulations and prescribe procedures to effectuate the purposes of this chapter.