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Oktibbeha County sets $55 million permanent trust from hospital sale proceeds
Summary
The Oktibbeha County Board of Supervisors voted June 22 to place $55,000,000 of the $59,979,684.70 net proceeds from the sale of OCH Regional Medical Center into a permanent trust, adopting a remedial fiduciary sequestration strategy to meet House Bill 4110 deadlines while the county completes procurement for an investment advisor.
The Oktibbeha County Board of Supervisors on June 22 adopted a resolution to establish a permanent trust containing $55,000,000 of the $59,979,684.70 net proceeds from the sale of OCH Regional Medical Center. County Administrator Wayne Carpenter presented the resolution and the Board voted to adopt it, defining $55 million as the permanent Trust corpus and leaving the remainder in an operational proceeds fund to be set later.
The action responds to House Bill 4110, which requires the county to establish a trust using at least 80% of the proceeds by July 1, 2026. Because the county could not complete a legally compliant request-for-proposal process before that deadline, the adopted resolution executes a "remedial fiduciary sequestration" strategy to immediately secure the corpus in a non-speculative interest-bearing escrow while the county conducts a transparent procurement schedule targeting award of an investment advisor contract by Oct. 5, 2026.
Board members debated the exact percentage split before approving the measure. On a motion by Supervisor Pattie Little, seconded by Supervisor Joe Williams, the Board voted to adopt Resolution No. RS-20260622-xx as presented. The motion passed unanimously. The resolution also extends the date to name the investment advisor and directs county staff to complete the procurement schedule and related documentation required by state law.
The resolution places procedural safeguards in the near term: securing the funds in an escrow account and setting a timeline for naming a Qualified Institutional Fiduciary and completing procurement. The Board did not name an investment advisor at the meeting; county officials said the procurement process will be completed under the timeline set by the resolution.
The Board adjourned to its next regular meeting scheduled for July 6, 2026, where further trust-administration steps and any proposed advisor contracts are expected to appear on the agenda.
