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Bill Number: 3700 Ratification Number: 378 Act Number 766 Introducing Body: House Subject: Authorization to issue bonds
(A766, R378, H3700)
AN ACT TO AUTHORIZE THE DISTRICT BOARD OF EDUCATION OF CHESTERFIELD COUNTY SCHOOL DISTRICT TO ISSUE AND SELL GENERAL OBLIGATION BONDS OF THE SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED FIVE HUNDRED THOUSAND DOLLARS, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSE FOR WHICH THEIR PROCEEDS MAY BE EXPENDED, AND TO PROVIDE FOR THE PAYMENT OF THE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
Authorization to issue bonds
SECTION 1. The District Board of Education of Chesterfield County School District is authorized to issue general obligation bonds without an election in an amount not exceeding five hundred thousand dollars. The proceeds of the bonds, together with other funds of the school district, must be used for the following:
(1) defraying the cost of complying with the Asbestos Hazard Emergency Response Act;
(2) purchasing copy machines for several of the schools within the school district and for the school district's offices;
(3) purchasing various computer equipment for use at the schools within the school district and at the school district's offices;
(4) purchasing various maintenance equipment;
(5) repairing the maintenance facility of the school district;
(6) purchasing furniture and equipment for the warehouse of the school district;
(7) purchasing real property to be used as the maintenance facility of the school district; and
(8) any other purposes as determined by the board in a resolution authorizing the bond issue.
Maturity of bonds
SECTION 2. All bonds issued and sold pursuant to this act must mature in annual series or installments as the board prescribes. The final maturity of the bonds must be no more than five years from the date they are issued.
Redemption of bonds
SECTION 3. A bond may be issued with a provision permitting its redemption prior to its maturity at par and accrued interest, plus a redemption premium as may be prescribed by the board. No bond is redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, a provision must be made specifying the manner of call and the notice of call that must be given.
Bonds must be fully registered
SECTION 4. The bonds must be in the form of fully registered bonds, upon the conditions as the board may prescribe.
Place for payment
SECTION 5. The bonds issued pursuant to this act must be made payable at a place, within or without the State, as the board prescribes.
Interest rates of bonds
SECTION 6. The bonds issued pursuant to this act must bear interest at rates as determined by the board within the limitations of Section 11-9-350, Code of Laws of South Carolina, 1976.
Price, place for sale of bonds
SECTION 7. The 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. They may be sold at a private sale and without advertisement, if, not less than ten days prior to their delivery, notice of intention to sell the bonds at a private sale is given by publication in a newspaper of general circulation in the school district. The notice must include the purchaser, the purchase price, interest rates, and the maturity schedule of the bonds.
Levying of tax for delaying payment of bonds
SECTION 8. For the payment of the principal and interest of all bonds issued, as they respectively mature and for the creation of a sinking fund as may be necessary, 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 Chesterfield County, and collected by the treasurer of Chesterfield 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 and interest of the bonds.
Tax-exempt status of the principal and interest
SECTION 9. The principal of and interest on the bonds issued have the tax-exempt status prescribed by Section 12-1-60, Code of Laws of South Carolina, 1976.
Payment and use of proceeds
SECTION 10. The proceeds derived from the sale of any bonds under this act must be paid to the treasurer of Chesterfield County to be deposited in a bond account fund for the school district and must be expended and used as follows:
(1) Any accrued interest must be applied to the payment of the first installment of interest to become due on the bonds.
(2) Any premium must be applied to the payment of the first installment of principal of the bonds.
(3) The remaining proceeds must be used, upon a warrant or order by the board, to defray the costs of issuing the bonds authorized by this act.
(4) If any balance remains, it must be held by the treasurer of Chesterfield County and used to effect the retirement of bonds.
SECTION 11. The powers and authorizations conferred upon the board by this act are in addition to all other powers and authorizations previously vested in the district board of education and may be availed of pursuant to action taken at a regular or special meeting of the board.
Requirement to effectuate sale
SECTION 12. No action other than that prescribed in this act is necessary to effect the issuance of the bonds nor is the board required to obtain the approval of a public agency for any action taken pursuant to the authorizations of this act.
SECTION 13. This act takes effect upon approval by the Governor.