Bill 4184

                    Current Status

Bill Number:               4184
Ratification Number:       693
Act Number                 788
Introducing Body:          House
Subject:                   Issue of general obligation bonds

(A788, R693, H4184)

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF ORANGEBURG SCHOOL DISTRICT 2 TO ISSUE NOT MORE THAN ONE MILLION, SIX HUNDRED THOUSAND DOLLARS OF GENERAL OBLIGATION BONDS OF THE DISTRICT, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THEIR 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:

Authorization for issue of general obligation bonds

SECTION 1. (A) By referendum of the qualified electors of Orangeburg School District 2 conducted on September 17, 1985, by the election commission for Orangeburg County, a majority of the electors voted in favor of the issue, in a single issue, or from time to time as several separate issues, of not more than one million, six hundred thousand dollars of general obligation bonds of the school district to finance certain improvements to be made to the Bowman Elementary School campus and Bowman High School of the school district.

(B) The school district has proceeded, through interim financing in anticipation of the issue of the bonds, to acquire and construct the improvements. The school district presently anticipates that the bonds may not be issued until after September 17, 1988.

(C) The General Assembly finds that the school district is in need of the improvements and authorizes the board of trustees of Orangeburg School District 2 to effect the acquisition and construction of the improvements through the issuance by the school district of general obligation bonds in the aggregate principal amount of not more than one million, six hundred thousand dollars or a lesser sum as, upon the issuance of the bonds, may be determined to be necessary by the board.

Disposition of the proceeds

SECTION 2. In order to obtain funds for the purposes set forth in this act, the board is authorized to issue, without the approval of the Orangeburg County Board of Education, not more than one million, six hundred thousand dollars of general obligation bonds of the school district. The proceeds derived from the sale of the bonds must be deposited in a special fund and disposed of 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 warrants of the board to defray the cost of issuing the authorized bonds and to acquire and construct the improvements as provided in this act.

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

Conditions of issue

SECTION 3. The bonds may be issued as a single issue, or from time to time as several separate issues in the discretion of the board. However, no bonds may be issued later than September 17, 1990. All bonds mature serially in successive annual installments of amounts as may be determined by the board, except that the maturity date of the last installment of any bonds issued under this act falls due not later than twenty-five years from the date the bonds bear. Any bond issued pursuant to this act, at the discretion of the board, may contain a provision permitting its redemption before its stated maturity at a redemption premium as the board prescribes. The bonds must be of a denomination, must bear a rate of interest, and must be payable on occasions the board determines. The bonds must be issued as registered bonds with registration of the holder of them to be noted on the books of the school district or its designee, and the principal made payable to the registered holder, upon conditions as the board may prescribe. The bonds must bear a date and must be payable at the places the board prescribes.

Execution

SECTION 4. The bonds must be executed in the manner the board prescribes.

Sale

SECTION 5. The bonds may be sold at a price not less than par at a private sale to the United States or any agency of the United States. If not so sold, the bonds must be sold by the board at not less than par and accrued interest on the bonds to the date of their respective deliveries at public sale, and at least ten days before any sale, notice, announcing the intention to receive bids for the sale of bonds authorized by this act, must be published in a newspaper of general circulation in this State.

Tax exemption

SECTION 6. The bonds and all interest to become due on the bonds have the tax-exempt status as prescribed by Section 59-71-160 of the Code of Laws of South Carolina, 1976.

Payment

SECTION 7. For the payment of the principal and interest of all bonds issued pursuant to this act as the bonds 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 pledged irrevocably, and there must be levied annually by the Orangeburg County Auditor and collected by the Orangeburg County Treasurer, 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 and interest of the bonds as they respectively mature and to create a sinking fund as may be necessary. However, the ad valorem tax levy must be reduced to the extent that there is on deposit with the Orangeburg County Treasurer, on the occasion in each year when the ad valorem tax levy is to be made, monies derived from contributions or grants from the State to the school district for capital improvements for school facilities which can be used for the payment of the principal and interest, and in all instances where an annual tax levy is so reduced, the monies derived from the contributions and grants must be applied to payment of the principal and interest and to no other purpose.

Board of trustees' action

SECTION 8. Any action required of the board may be taken at any meeting of the board, regular or special, and at the meeting a majority of its members constitutes a quorum for the purpose of adopting a resolution making provision for the issuance of bonds pursuant to this act, awarding the sale of the bonds, or taking any other action permitted or required of the board by the provisions of this act.

Investment

SECTION 9. All executors, administrators, guardians, committees, and other fiduciaries and all sinking fund commissions may invest any monies in their hands in bonds issued under this act.

Time effective

SECTION 10. This act takes effect upon approval by the Governor.