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Bill Number: 4037 Ratification Number: 620 Act Number 624 Introducing Body: House Subject: Orangeburg County to issue general obligation bonds
(A624, R620, H4037)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF ORANGEBURG COUNTY SCHOOL DISTRICT NO. 2 TO ISSUE GENERAL OBLIGATION BONDS OF THE DISTRICT TO SUCH EXTENT PERMITTED BY THE BOND DEBT LIMITATION OF THE DISTRICT, WITHOUT THE REQUIREMENT OF A PUBLIC SALE, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THEIR PROCEEDS MAY BE EXPENDED, AND TO MAKE PROVISION FOR THE PAYMENT OF THE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
Section 1. The General Assembly finds that there is a continuing need to repair and renovate the present facilities of Orangeburg County School District No. 2 (the school district) and the requirement to construct and acquire additional public school facilities in order to provide for the continual growth of the school population of the school district and has therefore determined to empower the board of trustees of the school district (the trustees) to renovate and repair the present facilities and to construct and acquire additional public school facilities for the school district and to raise there for within the constitutional debt limit from time to time applicable to the school district such sums as may be needed to defray the costs of acquiring, constructing, renovating and repairing public school facilities through the private sale of bonds. School facilities shall include, without limitation, portable classrooms, enlarging, remodeling and renovation of present buildings, building sites, new construction and equipment for new and existing buildings.
May issue bonds
Section 2. The trustees are hereby authorized to issue general obligation bonds of the school district (without the necessity of holding an election) either as a single issue, or from time to time as several separate issues, on such occasions as the trustees shall determine and such amounts as shall, on the occasion of the issuance of any bonds, be within the constitutional debt limitation then applicable to the school district, for the purposes set forth in Section 1.
Section 3. All bonds issued pursuant to this act shall mature in such annual series or installments as the trustees shall provide for, except that the first maturing bonds of any issue shall mature not later than three years from the date as of which they shall be issued; and no bond shall mature later than twenty-five years from the date as of which it shall be issued.
Section 4. Any bond issued pursuant to this act may be issued with a provision permitting its redemption prior to its stated maturity, at par and accrued interest, plus such redemption premium as may be prescribed by the trustees, but no bond shall be redeemable prior to its stated 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 thereof that must be given as to bonds made redeemable prior to their stated maturities.
Section 5. The bonds issued pursuant to this act shall be in such form as the trustees shall by resolution prescribe.
Section 6. The bonds issued pursuant to this act shall be made payable at such place, within or without the State, as the trustees shall provide.
Section 7. Bonds issued pursuant to this act shall bear interest at rates determined by the trustees.
Denomination and execution
Section 8. The bonds and the coupons to be there unto attached shall be in such denomination and shall be executed in such manner as the trustees shall by resolution prescribe.
Section 9. Bonds issued pursuant to this act shall be sold at a price of not less than par and accrued interest to the date of their respective deliveries. They may be sold at private sale without the necessity of advertisement.
Section 10. For the payment of the principal and interest of all bonds issued pursuant to this act, as they respectively mature, and for the creation of such sinking fund as may be necessary therefor, the full faith, credit and taxing power of the school district shall be irrevocably pledged, and there shall be levied annually by the Auditor of Orangeburg County, and collected by the Treasurer of Orangeburg County, in the same manner as county taxes are levied and collected, on all taxable property in the school district, a tax sufficient to pay the principal of and interest on the bonds as they respectively mature and to create such sinking fund as may be necessary there for.
Exempt from taxes
Section 11. The principal and interest of bonds issued pursuant to this act shall have the tax exempt status prescribed by Section 12-1-60, Code of Laws of South Carolina, 1976.
Section 12. The proceeds derived from the sale of any bonds issued pursuant to this act shall be paid to the Treasurer of Orangeburg County, to be deposited in a bond account fund for the school district and shall be expended from time to time and made use of as follows:
(a) Any accrued interest shall be applied to the payment of the first installments 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 expended, upon the warrant or order of the trustees, for the following purposes:
(1) To defray the costs of issuing the bonds authorized by this act;
(2) To provide for the acquisition and construction of additional public school facilities for the school district as well as to provide for the renovating, extending and repairing of the present facilities of the school district in the manner contemplated by Section 1 of this act.
(d) If, after the final completion of the trustees' program, the trustees shall certify to the Treasurer of Orangeburg County that any remaining balance in the bond account is no longer needed for its program, then such balance shall be held by the Treasurer and used to effect the retirement of bonds then outstanding, which shall have been issued pursuant to this act.
Pending the use of bond proceeds, the same shall be invested and reinvested by the Treasurer of Orangeburg County in investments of the type set forth in Section 6-5-10, Code of Laws of South Carolina, 1976, as amended. All earnings from such investments shall be applied, at the direction of the trustees, either (1) to defray the cost of the undertakings for which the bonds were issued or (2) to pay the first maturing installments of interest on the bonds. Powers to be additional
Section 13. The powers and authorizations hereby conferred upon the trustees shall be in addition to all other powers and authorizations previously vested in the trustees and may be availed of pursuant to action taken at any regular or special meeting of the trustees.
When to be issued
Section 14. All bonds issued pursuant to the authorizations of this act shall be issued within three year~ of the effective date of this act.
Section 15. This act shall take effect upon approval by the Governor.