H*4681(Rat #0430, Act #0353 of 1996)  General Bill, By Koon
 A Bill to amend Section 33-37-70, Code of Laws of South Carolina, 1976,
 relating to South Carolina Business Development Corporations and the provision
 that such corporations and its securities are exempt from taxation, so as to
 provide that the corporation is not subject to any corporation license tax or
 fee imposed by Chapter 20 of Title 12; to amend Section 33-37-250, as amended,
 relating to South Carolina Business Development Corporations and their powers,
 so as to permit the borrowing of money from "such other lending sources which
 are approved by the Board of Directors of the corporation"; and to amend
 Section 33-37-460, as amended, relating to loans to South Carolina Business
 Development Corporations by members, so as to delete the provision that such
 loans must bear interest at a certain rate.

   02/27/96  House  Introduced and read first time HJ-2
   02/27/96  House  Referred to Committee on Ways and Means HJ-3
   03/21/96  House  Committee report: Favorable Ways and Means HJ-3
   03/27/96  House  Read second time HJ-129
   03/28/96  House  Read third time and sent to Senate HJ-16
   04/02/96  Senate Introduced and read first time SJ-16
   04/02/96  Senate Referred to Committee on Finance SJ-16
   04/24/96  Senate Recalled from Committee on Finance SJ-4
   04/29/96  Senate Read second time SJ-31
   05/14/96  Senate Read third time and enrolled SJ-75
   05/23/96         Ratified R 430
   05/29/96         Signed By Governor
   05/29/96         Effective date 05/29/96
   06/06/96         Copies available
   06/06/96         Act No. 353

AN ACT TO AMEND SECTION 33-37-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SOUTH CAROLINA BUSINESS DEVELOPMENT CORPORATIONS AND THE PROVISION THAT SUCH CORPORATIONS AND ITS SECURITIES ARE EXEMPT FROM TAXATION, SO AS TO PROVIDE THAT THE CORPORATION IS NOT SUBJECT TO ANY CORPORATION LICENSE TAX OR FEE IMPOSED BY CHAPTER 20 OF TITLE 12; TO AMEND SECTION 33-37-250, AS AMENDED, RELATING TO SOUTH CAROLINA BUSINESS DEVELOPMENT CORPORATIONS AND THEIR POWERS, SO AS TO PERMIT THE BORROWING OF MONEY FROM "SUCH OTHER LENDING SOURCES WHICH ARE APPROVED BY THE BOARD OF DIRECTORS OF THE CORPORATION"; AND TO AMEND SECTION 33-37-460, AS AMENDED, RELATING TO LOANS TO SOUTH CAROLINA BUSINESS DEVELOPMENT CORPORATIONS BY MEMBERS, SO AS TO DELETE THE PROVISION THAT SUCH LOANS MUST BEAR INTEREST AT A CERTAIN RATE.

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

Not subject to corporation license tax or fee

SECTION 1. Section 33-37-70 of the 1976 Code is amended to read:

"Section 33-37-70. The corporation is not subject to any taxes based upon or measured by income which are now or may be hereafter levied by the State; and the securities, evidences of indebtedness, and shares of the capital stock issued by the corporation established under the provisions of this chapter, their transfer, income therefrom, and deposits of financial institutions invested therein are free at all times from taxation within the State. The corporation is not subject to any corporation license tax or fee imposed by Chapter 20 of Title 12."

Power to borrow money expanded

SECTION 2. Section 33-37-250(3) of the 1976 Code is amended to read:

"(3) To borrow money only from (i) the members, (ii) the Small Business Administration, an agency of the United States Government, and (iii) such other lending sources which are approved by the board of directors of the corporation for any of the purposes of the corporation, to issue therefor its bonds, debentures, notes or other evidences of indebtedness, whether secured or unsecured, and to secure them by mortgage, pledge, deed of trust or other lien on its property, franchises, rights and privileges of every kind and nature or any part thereof or interest therein, without securing stockholder or member approval; provided, that no loan to the corporation may be secured in any manner unless all outstanding loans to the corporation are secured equally and ratably in proportion to the unpaid balance of such loans and in the same manner;"

Rate-of-interest provision deleted

SECTION 3. Section 33-37-460(5) of the 1976 Code, as last amended by Act 123 of 1995, is further amended to read:

"(5) All loans to the corporation by members must be evidenced by bonds, debentures, notes, or other evidences of indebtedness of the corporation which are freely transferable at all times."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.

Approved the 29th day of May, 1996.