Download This Version in Microsoft Word format
TO AMEND SECTIONS 11-15-590, 11-21-60, AS AMENDED, 11-41-150, 41-43-110, AS AMENDED, 57-11-380, 59-71-180, 59-107-170, AND 59-146-140, ALL OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, AND ALL RELATING TO THE USE OF BOND SALE PROCEEDS FOR GENERAL OBLIGATION BONDS ISSUED BY THE STATE AND POLITICAL SUBDIVISIONS OF THE STATE UNDER THE VARIOUS AUTHORIZING STATUTES, SO AS TO ELIMINATE THE REQUIREMENT THAT BOND PREMIUMS BE APPLIED ONLY TO THE FIRST INSTALLMENT OF PRINCIPAL DUE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 11-15-590 of the 1976 Code is amended to read:
"Section 11-15-590. The proceeds derived from the sale of any such these bonds shall must be deposited in a special fund, separate and distinct from all other funds, and applied solely to the purposes for which the bonds are issued, except that the premium, if any, shall be placed in the sinking fund established by Section 11-15-540 and the accrued interest, if any, shall must be used to discharge in part the first interest to become due on such the bonds."
SECTION 2. Section 11-21-60 of the 1976 Code, as last amended by Act 65 of 1991, is further amended to read:
"Section 11-21-60. On the delivery of any refunding bonds issued pursuant to this chapter, the proceeds thereof of the bonds, less the proceeds of that portion of any refunding bonds issued pursuant to Chapter 17, Title 6 for improvements, shall must be deposited with a corporate trustee and held by it under a written trust agreement and in a special trust account, except that the premium, if any, shall be used to pay the first principal to become due on such refunding bonds, and the accrued interest, if any, shall must be used to discharge in part the first interest to become due on such the refunding bonds. It shall be is the duty of the corporate trustee to keep such the proceeds invested and reinvested to the extent that it shall be practical in obligations of the United States or any agency thereof of the United States and to apply the principal and interest of the trust so established in the manner prescribed in such the trust agreement."
SECTION 3. Section 11-41-150 of the 1976 Code, as added by Act 254 of 2002, is amended to read:
"Section 11-41-150. The proceeds of the sale of bonds must be received by the State Treasurer and applied by him the State Treasurer to the purposes for which issued, except that the accrued interest, if any, may be used to discharge in part the first interest to become due on the bonds, and the premium, if any, must be used to discharge the payment of the first installment of principal to become due on the bonds, but the purchasers of the bonds in no way are liable for the proper application of the proceeds to the purposes for which they are intended."
SECTION 4. Section 41-43-110(D) of the 1976 Code is amended to read:
"(D) The proceeds from the sale of any bonds must be applied only for the purpose for which the bonds were issued. Any premium and accrued interest received in any such sale must be applied to the payment of the principal of or the interest on the bonds sold. If for any reason any portion of the proceeds is not needed for the purpose for which the bonds were issued, the unneeded portion of the proceeds must be applied to the payment of the principal of or the interest on the bonds."
SECTION 5. Section 57-11-380 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 57-11-380. The proceeds of the sale of state highway bonds shall must be received by the State Treasurer and applied by him the State Treasurer to the purposes for which issued, except that the accrued interest, if any, shall must be used to discharge in part the first interest to become due on such the bonds, and the premium, if any, shall be used to discharge the payment of the first installment of principal to become due on such bonds, but the purchasers of such the bonds shall in no wise be are not liable for the proper application of the proceeds to the purposes for which they are intended."
SECTION 6. Section 59-71-180 of the 1976 Code is amended to read:
"Section 59-71-180. The proceeds derived from the sale of the bonds shall must be deposited with the treasurer of the county wherein in which the operating school unit is located, in whole or in part, in a special fund to the credit of the operating school unit and shall must be applied solely to the purposes for which the bonds were issued, except that the premium, if any, shall be placed in the sinking fund established by Section 59-71-150 and the accrued interest, if any, shall must be used to discharge in part the first interest to become due on such the bonds."
SECTION 7. Section 59-107-170 of the 1976 Code is amended to read:
"Section 59-107-170. The proceeds of sale of state institution bonds shall must be received by the State Treasurer and placed in a fund to the credit of the State Board subject to withdrawal on their order, except that all accrued interest received shall must be used by him the State Treasurer to discharge the first installment of interest coming due, and any premium shall be used to discharge the first installment of principal coming due on such bonds. On the occasion that he receives the proceeds of state institution bonds from the purchaser, the State Treasurer shall segregate the proceeds for the account of the state institution or institutions for which the bonds shall be are issued. The purchasers of the state institution bonds shall in no wise be are not liable for the application of the proceeds of the bonds to the purposes for which they are intended."
SECTION 8. Section 59-146-140 of the 1976 Code, as added by Act 28 of 1999, is amended to read:
"Section 59-146-140. The proceeds of the sale of state school facilities bonds shall must be received by the State Treasurer and applied by him the State Treasurer to the purposes for which issued, except that the accrued interest, if any, shall must be used to discharge in part the first interest to become due on such the bonds, and the premium, if any, shall be used to discharge the payment of the first installment of principal to become due on such bonds, but the purchasers of such the bonds shall in no way be are not liable for the proper application of the proceeds to the purposes for which they are intended."
SECTION 9. This act takes effect upon approval by the Governor.
This web page was last updated on Thursday, June 25, 2009 at 10:20 A.M.