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Bill Number: 474 Ratification Number: 199 Act Number 194 Introducing Body: Senate Subject: $8,500,000 Clemson University Stadium note
(A194, R199, S474)
AN ACT TO EMPOWER CLEMSON UNIVERSITY TO REFUND EITHER OR BOTH OF AN $8,500,000 CLEMSON UNIVERSITY STADIUM NOTE ISSUED PURSUANT TO AN ACT OF 1983, BEARING RATIFICATION NUMBER 9, AND THE OUTSTANDING STADIUM IMPROVEMENT BONDS DATED APRIL 1, 1978, ISSUED PURSUANT TO ACT 1277 OF 1970; TO PROVIDE THE PROCEDURE THEREFOR; TO PROVIDE THE TERMS AND CONDITIONS OF THE OBLIGATIONS ISSUED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that acting pursuant to the authorizations of an act of 1983 bearing ratification number 9, the Board of Trustees (Trustees) of Clemson University (Clemson) borrowed $8,500,000 evidenced by a note in that amount bearing interest payable quarterly at 8.5 percent per annum and maturing (unless earlier redeemed in accordance with its terms) in annual installments of $850,000 on April 1 in the years 1984 to 1993 inclusive, but with the right reserved in Clemson to prepay without penalty the note as a whole at anytime or in part on any interest payment date. For the payment of the loan, there are pledged all revenues derived from the use of the stadium not presently pledged to the payment of certain outstanding Stadium Revenue Bonds issued pursuant to Act 1277 of 1970 as amended (Act 1277) and all donations and revenues made available to Clemson by Clemson IPTAY Club (IPTAY) for such purpose, IPTAY being a not-for-profit unincorporated association organized for the furtherance of scholastic and athletic activities at Clemson. It further finds that market conditions now indicate that it is to be the advantage of Clemson to refund the note and perhaps to simultaneously advance refund the outstanding (as of April 2, 1983) $3,575,000 of Clemson University Stadium Improvement Bonds, Series of 1978 (Outstanding Stadium Bonds).
Trustees may borrow
SECTION 2. The Trustees may borrow an amount of money necessary to pay the outstanding $8,500,000 Stadium Improvement Revenue Notes issued pursuant to an act of 1983 bearing ratification number 9 (the Outstanding Note); or instead to borrow an amount of money necessary to effect the refunding of both the Outstanding Note and the Outstanding Stadium Bonds.
SECTION 3. In the event the Trustees elect merely to refund only the Outstanding Note, they may borrow the required amount from any bank, investment banker or other financial institution they select, with the approval of the State Treasurer. To evidence such borrowing the Trustees shall issue one or more refunding notes. Such refunding notes must be payable over such period of time and must have such terms and conditions as the Trustees, with the approval of the State Budget and Control Board (Budget and Control Board), determines. For the payment of the refunding notes, the interest and other sums to become due on them, there is pledged all revenues derived by Clemson from the use of the Stadium not pledged to the payment of the Outstanding Stadium Bonds, all donations and revenues made available to Clemson by IPTAY for such purpose, and any other revenues of Clemson not otherwise pledged and that may be made applicable by the Trustees to the payment of the principal and interest of the refunding notes.
Election to refund note
SECTION 4. Instead of merely refunding the Outstanding Note alone, Clemson may elect to refund the Outstanding Note and simultaneously advance refund the Outstanding Stadium Bonds with the proceeds of an issue of Refunding and Improvement Stadium Revenue Notes or Bonds. In order to provide a procedure for the issuance of such notes or bonds, the Trustees may utilize for such purpose the provisions of statute law authorizing refunding and advance refunding of bonds payable from revenue producing projects, and the applicable provisions of Act 1277. In determining the size of the issue required, the Trustees may provide for the immediate establishment of such cushion or reserve for debt service considered desirable.
For the payment of such bonds, there is pledged:
1. The special student fee authorized by Act 1277;
2. The admission fee authorized by Act 1277;
3. All other revenues derived by Clemson from the use of the Stadium;
4. Any other revenues of Clemson not otherwise pledged that may be made applicable by the Trustees to the payment of the principal and interest of the bonds.
In fixing the quantum of the special student fee and the admission fee, the Trustees must take into account all other revenues that may become applicable to debt service of the notes or bonds. Clemson shall secure its obligations with respect to the notes and bonds issued pursuant to this section by covenants and agreements as the Trustees with the approval of the Budget and Control Board shall determine and all other terms and conditions of the notes or bonds issued pursuant to this section including this maturity must be determined by the Trustees with the approval of the Budget and Control Board.
Notes or bonds sold pursuant to this section may be disposed of at public or private sale and under such conditions as the Budget and Control Board approves.
SECTION 5. This act shall take effect upon approval by the Governor.