H*4154 Session 107 (1987-1988)
H*4154(Rat #0708, Act #0767 of 1988) General Bill, By Harvin
A Bill to authorize the Board of Trustees of School District 1 of Clarendon
County to issue general obligation bonds at one time or from time to time in
an amount not exceeding three hundred thirty-seven thousand dollars to fund an
operating deficit, 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.-amended title
04/13/88 House Introduced and read first time HJ-2709
04/13/88 House Referred to delegation from Clarendon HJ-2710
05/17/88 House Delegation report: Favorable with amendment
Clarendon HJ-3810
05/17/88 House Amended HJ-3811
05/17/88 House Read second time HJ-3811
05/18/88 House Read third time and sent to Senate HJ-3835
05/24/88 Senate Intd. & placed on loc. & uncontested cal. w/o
referenc SJ-14
05/25/88 Senate Read second time SJ-22
05/26/88 Senate Read third time and enrolled SJ-36
05/31/88 Ratified R 708
06/01/88 Signed By Governor
06/01/88 Effective date 06/01/88
06/01/88 Act No. 767
06/21/88 Copies available
(A767, R708, H4154)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF SCHOOL DISTRICT 1 OF CLARENDON
COUNTY TO ISSUE GENERAL OBLIGATION BONDS AT ONE TIME OR FROM TIME TO TIME IN AN
AMOUNT NOT EXCEEDING THREE HUNDRED THIRTY-SEVEN THOUSAND DOLLARS TO FUND AN
OPERATING DEFICIT, 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:
Findings
SECTION 1. The General Assembly finds that School District 1 of Clarendon
County experienced in the 1986-87 fiscal year a revenue shortfall and by Act 258
of 1987 the General Assembly authorized the school district to issue general
obligation bonds in an amount not exceeding two hundred thousand dollars to
satisfy the deficit. The school district experienced a higher deficit than
anticipated in fiscal year 1986-87 and the school district anticipates a revenue
shortfall in the current fiscal year 1987-88.
Article X, Section 7 of the Constitution of this State provides that each
school district shall prepare and maintain annual budgets which provide for
sufficient income to meet its estimated expenses for each year. Whenever it
happens that the ordinary expenses of a political subdivision for any year exceed
the income of such political subdivision, the governing body of such political
subdivision shall provide for levying a tax in the ensuing year sufficient, with
other sources of income, to pay the deficiency of the preceding year together
with the estimated expenses for the ensuing year.
There presently exists no statutory authorization for the school district to
incur bonded indebtedness to fund an operating deficit. The General Assembly has
determined it is in the best interest of the school district and the State of
South Carolina to authorize the board of trustees of the school district to issue
at one time or from time to time general obligation bonds of the school district
to fund the 1986-87 fiscal year deficit and the current 1987-88 fiscal year
deficit, for a total aggregate principal amount not exceeding three hundred
thirty-seven thousand dollars.
Bond issue
SECTION 2. For the purpose of funding the fiscal year 1986-87 deficit of the
school district and the current fiscal year 1987-88 anticipated deficit, the
board of the school district may on, before, or after July 1, 1988, issue,
without an election, general obligation bonds of the school district at one time
or from time to time, in an amount not exceeding the fiscal year 1986-87 deficit
and the district may on or after July 1, 1988, issue, without an election,
general obligation bonds of the school district at one time or from time to time
in an amount not exceeding the fiscal year 1987-88 deficit, for a total aggregate
principal amount not exceeding three hundred thirty-seven thousand dollars.
Maturity
SECTION 3. All bonds issued 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 ten years from the date of issue.
Redemption
SECTION 4. 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 which must be given.
Form
SECTION 5. The bonds issued pursuant to this act must be in the form of fully
registered bonds or notes payable to or upon the order of the registered owner,
upon conditions as the board may prescribe.
Where payable - denomination
SECTION 6. 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 7. Bonds issued pursuant to this act must bear interest at a rate
determined by the board within the limitations of Section 11-9-350 of the 1976
Code.
Execution
SECTION 8. The bonds must be executed in a manner as the board prescribes by
resolution.
Sale
SECTION 9. 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 public or private sale upon the terms
prescribed by the board.
Payment
SECTION 10. For payment of the principal of and interest on all bonds issued
pursuant to this act, as they respectively mature, and for the creation of such
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 Clarendon County, and collected by the
treasurer of Clarendon 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 such sinking fund as may be necessary therefor.
Tax exempt
SECTION 11. The principal of and interest on bonds issued pursuant to this act
have the tax exemption prescribed by Section 12-1-60 of the 1976 Code.
Use of proceeds
SECTION 12. The proceeds derived from the sale of any bonds issued pursuant to
this act must be paid to the treasurer of Clarendon County, to be deposited in
the Bond Account Fund for the
school district and must be expended and made use of by the board 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 to defray the costs of issuing bonds
authorized by this act and to fund the 1986-87 and 1987-88 deficit of the school
district, or a portion of the deficit.
(4) If any balance remains, it must be held by the treasurer of Clarendon
County in a special fund and used to effect the retirement of these bonds.
Powers additional
SECTION 13. The powers and authorizations conferred upon the board of the
school district 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.
Further action unnecessary
SECTION 14. No election is prescribed as a condition precedent to the issuance
of the bonds and no action other than that prescribed in this act needs to be
taken to effect the issuance of the bonds. No approval of any other public
agency including the Clarendon County Board of Education is required for any
action taken pursuant to the authorizations of this act.
Time effective
SECTION 15. This act takes effect upon approval by the Governor. |