Bill 3596

                    Current Status

Bill Number:               3596
Ratification Number:       382
Act Number                 594
Introducing Body:          House
Subject:                   Chesterfield County to issue general
                           obligation bonds

(A594, R382, H3596)

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT OF CHESTERFIELD COUNTY TO ISSUE GENERAL OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED ONE MILLION DOLLARS; TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSE FOR WHICH THEIR PROCEEDS MAY BE EXPENDED; AND TO MAKE PROVISION FOR THEIR REPAYMENT.

Be it enacted by the General Assembly of the State of South Carolina:

Bonds authorized

Section 1. In order to enable the School District of Chesterfield County (the school district) to provide adequate public school facilities, the General Assembly has determined to authorize the board of trustees (the trustees) of the school district to issue, without an election, general obligation bonds in an amount not to exceed one million dollars.

Further

Section 2. For the purpose of constructing a gymnatorium at McBee High School the trustees are empowered to issue, without an election, general obligation bonds of the school district, either single issue or from time to time as several separate issues, in the aggregate principal amount of not exceeding one million dollars or in such lesser amount as shall be within the constitutional debt limitation then applicable to the school district.

Conditions for issuance of bonds

Section 3. All bonds issued pursuant to this act shall mature in such annual series or installments as the trustees shall provide, except that the first maturing bonds of any issue shall mature not later than three years from the date of issue and no bond shall mature later than twenty-five years from the date of issue.

Redemption of bonds

Section 4. Any bond issued pursuant to this act may be issued with a provision for its redemption prior to the stated maturity at par and accrued interest, plus such redemption premium as may be prescribed by the trustees, but no bond shall be redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of such bonds, provision shall be made specifying the manner of call and the notice that must be given.

Form of bonds

Section 5. The bonds shall be in the form of negotiable coupon bonds, payable to bearer, but may be issued with the privilege to any holder of having them registered as to principal on the books of the treasurer of Chesterfield County upon such conditions as the trustees may prescribe. Except when so registered, all bonds shall have all attributes of negotiable instruments.

Further

Section 6. The bonds shall be made payable at such places, within or without the State, as the trustees shall prescribe, and shall bear such interest as may be determined by the trustees within the limitations prescribed by Section 11-9-350 of the 1976 Code.

Further

Section 7. The bonds and coupons to be attached shall be executed in such manner as the trustees shall prescribe by resolution.

Sale of bonds

Section 8. The bonds shall be sold at a price of not less than par and accrued interest to the date of their respective deliveries. They shall be sold at public sale after public advertisement of the sale in a newspaper of general circulation in South Carolina or in a financial journal published in the City of New York. The published notice shall appear not less than seven days prior to the occasion set for opening bids.

Payment of principal of interest

Section 9. For the payment of the principal of and interest on all bonds issued pursuant to this act, as they respectively mature, and for the creation of such sinking fund as may be necessary for such payment, the full faith, credit and taxing power of the school district shall be irrevocably pledged and there shall be levied annually by the auditor and collected by the treasurer of the county, in the same manner as county taxes are levied and collected, a tax without limit on all taxable property in the school district sufficient to pay the principal of and interest on such bonds as they respectively mature and to create such sinking fund as may be necessary for such payment.

Further

Section 10. The principal of and interest on bonds issued pursuant to this act shall have the tax-exempt status prescribed by Section 12-1-60 of the 1976 Code.

Proceeds from sale of bonds

Section 11. The proceeds derived from the sale of any bonds issued pursuant to this act shall be paid to the treasurer of Chesterfield County to be deposited in a bond account fund for the district and expended and made use of by the trustees as follows:

(a) Any accrued interest shall be applied to the payment of the first installment of interest to become due on such bonds;

(b) Any premium shall be applied to the payment of the first installment of principal of such bonds;

(c) The remaining proceeds shall be used to defray the cost of issuing the bonds authorized and pay the cost of providing a gymnatorium for McBee High School;

(d) Any balance remaining shall be held by the treasurer of the county in a special fund and used to pay the interest which accrues during the first year after issuance of the bonds.

Powers and authorizations of trustees

Section 12. The powers and authorizations conferred upon the trustees are in addition to all others previously vested in them and may be exercised at any regular or special meeting by a resolution to become effective immediately upon its adoption at the meeting at which it is presented and no other approval or consent shall be required to exercise the authorizations of this act.

Further

Section 13. The authorizations granted by this act shall remain in full force and effect until they are rescinded by subsequent enactment and no time limit is set for the issuance of bonds pursuant to this act.

Election not a condition precedent for Issuance of bonds

Section 14. No election is prescribed as a condition precedent to the issuance of the bonds and no action other than that prescribed need be taken to effect the issuance of the bonds nor shall the trustees be required to obtain the approval of any other public agency, board, commission or governing body to any action taken pursuant to the authorizations of this act.

Time effective

Section 15. This act shall take effect upon approval by the Governor.