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1132Ratification Number: 392Act Number: 596Introducing Body: SenateSubject: Authorize the Board of Trustees of Harleyville-Ridgeville School District No. 3 of Dorchester County to issue general obligation bonds of the district up to a specified limit for certain purposes
(A596, R392, S1132)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF HARLEYVILLE-RIDGEVILLE SCHOOL DISTRICT NO. 3 OF DORCHESTER COUNTY TO ISSUE GENERAL OBLIGATION BONDS OF THE DISTRICT UP TO A SPECIFIED LIMIT FOR CERTAIN PURPOSES; TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THE PROCEEDS MAY BE EXPENDED AND TO MAKE PROVISION FOR THE PAYMENT OF THE BONDS; AND TO PROVIDE FOR A REFERENDUM TO DETERMINE WHETHER OR NOT THE BOARD OF TRUSTEES MAY LEVY TAXES FOR THE OPERATION OF THE DISTRICTS SCHOOLS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that Harleyville-Ridgeville School District No. 3 of Dorchester County (the school district) will, in the current 1985-86 fiscal year, experience a revenue shortfall. There presently exists no statutory authorization for the school district to incur bonded indebtedness to fund an operating deficit. The General Assembly has determined to authorize the board of trustees of the school district (the board) to issue general obligation bonds of the school district to fund the deficit to the extent permitted under the constitutional debt limit applicable to the school district under Section 15 of Article X of the Constitution of this State.
Board may issue bonds
SECTION 2. For the purpose of funding the 1985-86 deficit of the school district, the board may on or before July 1, 1986, issue, without an election, general obligation bonds of the school district, in an amount as is on the occasion of the bonds issued pursuant to the authorization of this act, within the constitutional debt limitation applicable to the school district. General obligation bonds issued on or before July 1, 1986, pursuant to this authorization may not exceed sixty percent of the constitutional debt limit.
SECTION 3. All bonds issued pursuant to this act must mature in annual series or installments as the board prescribes. The final maturity of the bonds must be at least five years and no more than ten years from the date they are issued. The maturity level of the bonds sold pursuant to this act must be established at a level requiring the minimum millage levy practicable.
SECTION 4. Any bonds issued pursuant to this act may be issued with a provision for their redemption prior to their maturity at par and accrued interest, plus a redemption premium as may be prescribed by the board, but no bond is redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, provision must be made specifying the manner of call and the notice of call that must be given.
SECTION 5. The bonds issued pursuant to this act may be in the form of negotiable coupon bonds payable to bearer or in the form of fully registered bonds or notes payable to or upon the order of the registered owner, upon conditions as the board may prescribe. When issued in registered form, all bonds issued pursuant to this act have all attributes of negotiable instruments under the Uniform Commercial Code.
SECTION 6. The bonds issued pursuant to this act must be in a denomination and must be made payable at a place, within or without the State, as the board prescribes.
SECTION 7. Bonds issued pursuant to this act must bear interest at a rate determined by the board within the limitations of Section 11-9-350 of the 1976 Code.
Method of execution
SECTION 8. The bonds and the coupons to be attached to the bonds, if any, must be executed in a manner as the board prescribes by resolution.
SECTION 9. Bonds issued pursuant to this act must be sold at a price of not less than par and accrued interest to the date of their respective deliveries. Bonds authorized by this act may be sold at public or private sale upon the terms prescribed by the board.
Full faith, credit, and taxing power pledged
SECTION 10. 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 a sinking fund as may be necessary therefor, the full faith, credit, and taxing power of the school district must be irrevocably pledged, and there must be levied annually by the auditor of Dorchester County, and collected by the treasurer of Dorchester County, in the same manner as county taxes are levied and collected, a tax on all taxable property in the school district sufficient to pay the principal of and interest on the bonds as they respectively mature and to create a sinking fund as may be necessary therefor.
Principal and interest are tax exempt
SECTION 11. The principal of and interest on bonds issued pursuant to this act have the tax exemption prescribed by Section 12-1-60 of the 1976 Code.
SECTION 12. The proceeds derived from the sale of any bonds issued pursuant to this act must be paid to the treasurer of Dorchester County, to be deposited in the Bond Account Fund for the school district and must be expended and made use of by the board as follows:
(a) Any accrued interest must be applied to the payment of the first installment of interest to become due on the bonds.
(b) Any premium must be applied to the payment of the first installment of principal of the bonds.
(c) The remaining proceeds must be used to defray the costs of issuing bonds authorized by this act and to fund the 1985-86 deficit of the school district, or a portion of the deficit.
(d) If any balance remains, it must be held by the treasurer of Dorchester County in a special fund and used to effect the retirement of these bonds.
Powers and authorizations are additional
SECTION 13. The powers and authorizations conferred upon the board by this act are in addition to all other powers and authorizations previously vested in the board and may be availed of pursuant to action taken at any regular or special meeting of the board by a resolution to take effect immediately upon its adoption.
No elections required
SECTION 14. No elections prescribed as a condition precedent to the issuance of the bonds and no action other than that prescribed in this act need to be taken to effect the issuance of the bonds nor are required to obtain the approval of any other public agency to any action taken pursuant to these authorizations of this act.
Referendum must be held
SECTION 15. A referendum must be held at the time of the general election of 1986 to determine whether or not the registered electors of Harleyville-Ridgeville School District No. 3 in Dorchester County desire the trustees of that district to have the power to levy taxes for the operational expenses of the school district. The referendum must be conducted by the Dorchester County Election Commission and the ballots must be furnished at all polling places in the school district with the following words printed thereon: "Shall the trustees of Harleyville-Ridgeville School District No. 3 have the power to levy the necessary taxes for the operational expenses of the school district?
Yes / /
No / /
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes' and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."
The election commission shall certify the results of the referendum to the State Election Commission and the Dorchester County Legislative Delegation.
SECTION 16. This act shall take effect upon approval by the Governor.