Bill 640

                    Current Status

Bill Number:               640
Ratification Number:       192
Act Number:                287
Introducing Body:          Senate
Subject:                        Authorize the Board of Trustees of
                           School District No. 6 of Orangeburg County to
                           issue

(A287, R192, S640)

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF SCHOOL DISTRICT NO. 6 OF ORANGEBURG COUNTY TO ISSUE GENERAL OBLIGATION BONDS OF THE DISTRICT UP TO ITS CONSTITUTIONAL DEBT LIMIT FOR CERTAIN PURPOSES; TO EXEMPT THE TAX LEVIES REQUIRED TO COVER THE SCHOOL DISTRICT'S DEFICIT FROM THE ACT BEARING RATIFICATION NO. 66 OF 1985 WHICH LIMITS ANY INCREASE IN THE SCHOOL DISTRICT'S TAX LEVY; 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.

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

Legislative findings

SECTION 1. The General Assembly finds that School District No. 6 of Orangeburg County (the school district) will, in the present fiscal year, experience a revenue shortfall. There presently exists no statutory authorization for the school district to incur bonded indebtedness to fund such a 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 refund 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. The school district shall fund the balance of the deficit by the issuance of tax anticipation notes to be repaid out of the school district's 1985-86 operating levy.

Exempt from limitation

SECTION 2. Any tax levy imposed to pay the deficit or tax anticipation notes or bonds, or both, issued to fund the deficit, or a portion of the deficit, is not limited by the last sentence of Section 1 of the act bearing Ratification No. 66 approved by the Governor on April 29, 1985. Any levy to cover the deficit, or a portion of the deficit, is exempt from the limitation of the last sentence of Section 1 of the act. The last sentence of Section 1 of the act bearing Ratification No. 66 of 1985 has no application to any levy.

Authorization to issue bonds

SECTION 3. For the purpose of refunding the deficit of the school district, the board is authorized to issue, without an election, general obligation bonds of the school district, in an amount as is on the occasion of the issuance of the bonds pursuant to the authorization of this act, within the constitutional debt limitation applicable to the school district.

Maturity of bonds

SECTION 4. All bonds issued pursuant to this act shall mature in annual series or installments as the board prescribes, except that no bond may mature later than five years from the date as of which it is issued.

Redemption

SECTION 5. 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.

Form of bonds

SECTION 6. The bonds issued pursuant to this act may be in the form of negotiable coupon bonds payable to bearer or in the form of a single fully registered bond or note payable to or upon the order of the registered owner, upon conditions as the board may prescribe. Except when issued in registered form, all bonds issued pursuant to this act have all attributes of negotiable instruments under the Uniform Commercial Code.

Denomination of bonds

SECTION 7. 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.

Interest

SECTION 8. Bonds issued pursuant to this act shall bear interest at a rate determined by the board within the limitations of Section 11-9-350 of the 1976 Code.

Execution

SECTION 9. 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.

Selling of bonds

SECTION 10. 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 private sale upon the terms prescribed by the board.

Full faith, credit, and taxing power pledged

SECTION 11. 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 Orangeburg County, and collected by the treasurer of Orangeburg 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 the bonds as they respectively mature and to create a sinking fund as may be necessary therefor.

Tax exempt status

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

Procedure

SECTION 13. The proceeds derived from the sale of any bonds issued pursuant to this act must be paid to the treasurer of Orangeburg County, to be deposited in a 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 cost of issuing bonds authorized by this act and to refund the deficit of the school district, or a portion of the deficit.

(d) If any balance remains, it must be held by the treasurer of Orangeburg County in a special fund and used to effect the retirement of bonds authorized by this act.

Powers and authorizations conferred upon the board

SECTION 14. 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.

Issuance of bonds

SECTION 15. 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 the authorizations by this act.

Time effective

SECTION 16. This act shall take effect upon approval by the Governor.