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Bill Number: 3361 Ratification Number: 327 Act Number 620 Introducing Body: House Subject: Mullins School District No. 2-borrowing authorized
(A620, R327, H3361)
AN ACT TO AUTHORIZE THE TRUSTEES OF MULLINS SCHOOL DISTRICT NO. 2 OF MARION COUNTY AND THE TREASURER OF MARION COUNTY TO BORROW NOT EXCEEDING THREE HUNDRED THOUSAND DOLLARS TO BE USED FOR SCHOOL BUILDING PURPOSES AND TO PROVIDE FOR THE PAYMENT OF THE LOAN.
Be it enacted by the General Assembly of the State of South Carolina:
Mullins school District No. 2-borrowing authorized
Section 1. The Board of Trustees of Mullins School District No. 2 of Marion County, and the county treasurer are hereby authorized to borrow not exceeding three hundred thousand dollars from the Division of General Services or any other lending agency at the lowest interest rate available for school building purposes. The amount borrowed shall be evidenced by notes to be executed by each member of the board of trustees of the school district and by the county treasurer. The interest shall be paid annually and the principal shall be paid in not exceeding five equal, annual installments with the right to anticipate payment thereof at any annual interest paying period.
Payment of notes
Section 2. For the payment of the notes the board of trustees of the school district and the county treasurer shall pledge the annual grant from the State Educational Finance Commission for the repayment of the loan and the interest thereon.
Security for loan
Section 3. As additional security for the loan, in the event the annual grant to the school district by the State Educational Finance Commission shall be insufficient to pay the principal and interest on the loan, the county auditor shall levy, and the county treasurer shall collect, an annual tax upon all of the taxable property of the district sufficient to retire the loan and the interest due thereon, and the entire proceeds of such levy shall be applied to the payment of the notes, inclusive of interest, in full, at which time the levy provided therein shall be terminated. In the event the school district may receive or have on hand any funds not otherwise pledged nor designated for a particular use, such funds may be used for payment of the loan and interest thereon. Should the monies be borrowed from the Division of General Services and should there be default in any payment, the State Treasurer is directed to withhold any funds accruing to the county and to transmit such funds to the Division of General Services. The full faith, credit and taxing power of the school district are irrevocably pledged for payment of the loan.
Section 4. This act shall take effect upon approval by the Governor.