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Bill Number: 2217 Ratification Number: 6 Act Number 1 Introducing Body: House Subject: Clarks-Hill-Russel Authority of South Carolina
(A1, R6, H2217)
AN ACT TO AMEND SECTION 13-9-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLARKS HILL-RUSSELL AUTHORITY OF SOUTH CAROLINA, SO AS TO AUTHORIZE THE AUTHORITY TO PURCHASE LANDS IN THE PROJECT AREA OF THE AUTHORITY, TO AUTHORIZE THE AUTHORITY TO ISSUE REVENUE BONDS FOR THE PURPOSE OF FINANCING OR REFINANCING THE COST OF LAND, STRUCTURES, AND ROADS, AND TO PROVIDE FOR THE REPAYMENT OF SUCH BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
Powers of authority
SECTION 1. Item (4) of Section 13-9-30 of the 1976 Code, as last amended by Act 533 of 1978, is further amended to read:
"(4) Act as the designated agency of the State to receive, purchase, hold title to, and to manage any lands in the Clarks Hill Reservoir project area, and the Richard B. Russell Reservoir project area in the State acquired by release of surplus land, by purchase, by lease, or by exchange and to develop and promote the development of such land for recreational, residential, commercial, and industrial purposes, both public and private, and to lease, sublease, or convey title in fee simple to such land subject to approval by the State Budget and Control Board."
Authority may issue revenue bonds
SECTION 2. The Clarks Hill-Russell Authority (the authority) may issue revenue bonds of the authority for the purpose of financing or refinancing, in whole or in part, the cost of purchasing real estate, of constructing, reconstructing, or improving roads, bridges, and culverts, or in constructing, reconstructing, improving, or equipping water distribution systems, sewer treatment and distribution facilities, and buildings.
Authorization of bonds
SECTION 3. Revenue bonds issued under this act are authorized by resolution of the board of the authority. The resolution may contain provisions which are a part of the contract between the authority and the several holders of the bonds as to:
(1) The custody, security, use, expenditure, or application of the proceeds of the bonds.
(2) The purchase of the real estate or the construction and completion of the roads, bridges, culverts, water distribution systems, sewer treatment and distribution facilities, or buildings for which the bonds are issued.
(3) The use, regulation, operation, maintenance, insurance, or disposition of the land or improvements for which the bonds are issued, or any restrictions on the exercise of the powers of the board to dispose of or limit or regulate the use of such land or improvements.
(4) The payment of the principal of or interest on the bonds and the sources and methods thereof, the rank or priority of any bonds as to any lien or security, or the acceleration of the maturity of any bonds.
(5) The use and disposition of the revenues derived or to be derived from the operation of land or improvements.
(6) The pledging, setting aside, depositing, or entrusting of the revenues from which the bonds are made payable to secure the payment of the principal of and interest on the bonds or the payment of expenses of operation and maintenance of land or improvements.
(7) The setting aside of revenues or reserves or sinking funds and the source, custody, security, regulation, and disposition thereof.
(8) The determination of the definition of revenues or of the expenses of operation and maintenance of the land, improvements, or facilities for which the bonds are issued.
(9) The rentals, fees, or other charges derived from the use of the land, improvements, or facilities and the fixing, establishing, collection, and enforcement thereof, the amount or amounts of revenues to be produced thereby, and the disposition and application of the amounts charged or collected.
(10) Limitations on the issuance of additional bonds or any other obligations or the incurrence of indebtedness payable from the same revenues from which the bonds are payable.
(11) Rules to insure the use of the land or improvements by the public or private sector to the maximum extent to which the land or improvements are capable of serving the public or private sector.
(12) The granting, subject to approval by the State Budget and Control Board, of a real estate mortgage or other security interest upon a part or all of the lands owned by the authority.
(13) Any other matter or course of conduct which, by recital in the resolution authorizing the bonds, is declared to further secure the payment of the principal of or interest on the bonds.
Bonds may be issued in series
SECTION 4. The revenue bonds may be issued in one or more series, may bear a date, may mature at a time not exceeding forty years from their respective dates, may bear interest at a rate not exceeding twelve percent per annum, payable semiannually, may be payable in such medium of payment and at such place, may be in such denomination, may be in such form, either coupon or registered, may carry such registration privileges, may be subject to such terms of redemption before maturity, with or without premium, and may contain such terms, covenants, and conditions as the resolution authorizing the issuance of the bonds may provide. The bonds shall be fully negotiable within the meaning of and for the purposes of the Uniform Commercial Code.
Bonds exempt from taxes
SECTION 5. The bonds are exempt from state, county, municipal, and school taxes.
Validation of issuance
SECTION 6. No issuance of bonds made hereunder are valid until approved by resolution of the State Budget and Control Board.
Bonds must be signed
SECTION 7. The bonds must be signed in the name of the board of the authority by the chairman and countersigned by the chairman of the State Budget and Control Board. Interest coupons attached to the bonds must be signed by the facsimile signatures of such officers. The bonds may be issued notwithstanding that any of the officials signing them or whose facsimile signatures appear on the coupons have ceased to hold office at the time of such issue or at the time of the delivery of the bonds to the purchaser.
Sale of bonds
SECTION 8. The bonds must be sold at public or private sale upon such terms and conditions as the State Budget and Control Board considers advisable.
Board must file description of obligations
SECTION 9. The board or its proper administrative officers must file with the State Treasurer within thirty days from the date of their issuance a complete description of all obligations entered into by the board with the rates of interest, maturity dates, annual payments, and all pertinent data.
Provisions of resolution constitute legal and binding contract
SECTION 10. All provisions of a resolution authorizing the issuance of the bonds in accordance with this act and any covenants and agreements constitute legally binding contracts between the authority and the several holders of the bonds, regardless of the time of issuance of such bonds, and are enforceable by any such holder by mandamus or other appropriate action, suit, or proceeding at law or in equity in any court of competent jurisdiction.
Bonds payable from revenues
SECTION 11. The bonds must be made payable solely from the revenues derived by the authority from the operation of the land or improvements, or from the sale of real estate owned by the authority, or, in the discretion of the board, from such other revenue of the authority as the authority may consider advisable. The bonds must not be obligations of the State.
SECTION 12. This act shall take effect upon approval by the Governor.