S*263 Session 106 (1985-1986)
S*0263(Rat #0119, Act #0077 of 1985) General Bill, By C.L. Powell, Drummond and
T.E. Garrison
A Bill to amend Chapter 9 of Title 13, as amended, Code of Laws of South
Carolina, 1976, relating to the Clark's Hill-Russell Authority, so as to
increase the number of the members of the Authority's Board, to require at
least one of the members to be a resident of Anderson County recommended by
the county's legislative delegation, to provide for removal of members, to
provide for a quorum of members, and to provide for powers of the Board; and
to amend Act 1 of 1983, relating to the Clark's Hill-Russell Authority, so as
to designate Sections of the Act as Sections of the Code, to detail the
projects for which the Authority may issue revenue bonds, to authorize the
authority to enter into financing agreements relating to projects, to revise
the provisions which may be contained in Resolutions by the Authority's Board
which authorize revenue bonds and which are a part of the contract between the
Authority and holders of the bonds, to provide for the interest rates on the
bonds, to exempt from taxation the principal of and interest on the bonds and
all security agreements, indentures, and financing agreements, to provide the
requirements for the issuance of bonds, to provide that responsibilities and
obligations of the Authority and the State relating to the issuance of bonds,
to provide for the net earnings and the unexpended funds of the Authority, to
establish determinations which must be made by the Authority's Board before
projects may be undertaken, to provide for the obligations of the Authority
and any company with which the Authority has a financing agreement, to provide
for the application of the proceeds, premiums, and accrued interest from the
sale of bonds, and to detail the cost of acquiring any project.-amended title
02/19/85 Senate Introduced, read first time, placed on calendar
without reference SJ-582
02/27/85 Senate Read second time SJ-679
02/28/85 Senate Read third time and sent to House SJ-714
03/05/85 House Introduced and read first time HJ-1095
03/05/85 House Referred to Committee on Ways and Means HJ-1095
04/30/85 House Committee report: Favorable Ways and Means HJ-2732
04/30/85 House Read second time HJ-2736
05/01/85 House Amended HJ-2782
05/01/85 House Read third time HJ-2794
05/01/85 House Returned HJ-2794
05/01/85 Senate Concurred in House amendment and enrolled SJ-1875
05/07/85 Ratified R 119
05/13/85 Signed By Governor
05/13/85 Effective date 05/13/85
05/13/85 Act No. 77
05/21/85 Copies available
(A77, R119, S263)
AN ACT TO AMEND CHAPTER 9 OF TITLE 13, AS AMENDED, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE CLARK'S HILL-RUSSELL AUTHORITY, SO AS TO INCREASE
THE NUMBER OF THE MEMBERS OF THE AUTHORITY'S BOARD, TO REQUIRE AT LEAST ONE OF
THE MEMBERS TO BE A RESIDENT OF ANDERSON COUNTY RECOMMENDED BY THE COUNTY'S
LEGISLATIVE DELEGATION, TO PROVIDE FOR REMOVAL OF MEMBERS, TO PROVIDE FOR A
QUORUM OF MEMBERS, AND TO PROVIDE FOR POWERS OF THE BOARD; AND TO AMEND ACT 1 OF
1983, RELATING TO THE CLARK'S HILL-RUSSELL AUTHORITY, SO AS TO DESIGNATE SECTIONS
OF THE ACT AS SECTIONS OF THE CODE, TO DETAIL THE PROJECTS FOR WHICH THE
AUTHORITY MAY ISSUE REVENUE BONDS, TO AUTHORIZE THE AUTHORITY TO ENTER INTO
FINANCING AGREEMENTS RELATING TO PROJECTS, TO REVISE THE PROVISIONS WHICH MAY BE
CONTAINED IN RESOLUTIONS BY THE AUTHORITY'S BOARD WHICH AUTHORIZE REVENUE BONDS
AND WHICH ARE A PART OF THE CONTRACT BETWEEN THE AUTHORITY AND HOLDERS OF THE
BONDS, TO PROVIDE FOR THE INTEREST RATES ON THE BONDS, TO EXEMPT FROM TAXATION
THE PRINCIPAL OF AND INTEREST ON THE BONDS AND ALL SECURITY AGREEMENTS,
INDENTURES, AND FINANCING AGREEMENTS, TO PROVIDE THE REQUIREMENTS FOR THE
ISSUANCE OF BONDS, TO PROVIDE THE RESPONSIBILITIES AND OBLIGATIONS OF THE
AUTHORITY AND THE STATE RELATING TO THE ISSUANCE OF BONDS, TO PROVIDE FOR THE NET
EARNINGS AND THE UNEXPENDED FUNDS OF THE AUTHORITY, TO ESTABLISH DETERMINATIONS
WHICH MUST BE MADE BY THE AUTHORITY'S BOARD BEFORE PROJECTS MAY BE UNDERTAKEN,
TO PROVIDE FOR THE OBLIGATIONS OF THE AUTHORITY AND ANY COMPANY WITH WHICH THE
AUTHORITY HAS A FINANCING AGREEMENT, TO PROVIDE FOR THE APPLICATION OF THE
PROCEEDS, PREMIUMS, AND ACCRUED INTEREST FROM THE SALE OF BONDS, AND TO DETAIL
THE COST OF ACQUIRING ANY PROJECT.
Be it enacted by the General Assembly of the State of South Carolina:
Clark's Hill-Russell Authority
SECTION 1. Chapter 9 of Title 13 of the 1976 Code is amended to read:
"CHAPTER 9
Clark's Hill-Russell Authority
Section 13-9-10. There is created the Clark's Hill-Russell Authority of South
Carolina, referred to in this chapter as the 'authority'. The governing body of
the authority consists of an eight member board appointed by the Governor for
terms of four years and until successors are appointed and qualify.
At least two of the appointed members must be residents of McCormick County
recommended by the legislative delegation of that county.
At least two of the appointed members must be residents of Abbeville County
recommended by the legislative delegation of that county.
At least one of the appointed members must be a resident of Anderson County
recommended by the legislative delegation of that county.
Vacancies on the board for any reason must be filled for the unexpired term in
the manner of original appointment. Members may be removed by the Governor for
cause or at will.
Section 13-9-20. The members of the board shall elect one member as chairman and
one as vice-chairman and shall also elect a secretary. The board shall meet upon
the call of its chairman, and four members constitute a quorum for the
transaction of its business.
Section 13-9-30. The board of the authority has the power to manage the business
and affairs of the authority and to take action as it may consider advisable,
necessary, or convenient in carrying out its powers. The powers of the board
include the following:
(a) to have perpetual succession;
(b) to sue and be sued;
(c) to adopt, use, and alter a seal;
(d) to make and amend bylaws for regulation of its affairs consistent with the
provisions of this chapter;
(e) to acquire, purchase, hold, use, improve, lease, mortgage, pledge, sell,
transfer, and dispose of any property, real, personal, or mixed, or any interest
in any property, or revenues of the authority as security for notes, bonds,
evidences of indebtedness, or other obligations of the authority. The authority
has no power to pledge the credit and the taxing power of the State or any of its
political subdivisions;
(f) to receive contributions, donations, and payments and to invest and
disperse the authority's funds;
(g) to make inquiry into the status of, and plans for, the development of the
Clark's Hill-Russell project and the Richard B. Russell project by the United
States Government, by the State of Georgia, or by any other agency or
instrumentality;
(h) to encourage, assist, promote___,___ and cooperate in the development of
the Savannah River and the streams, canals, or watercourses now or at a later
time connected to or flowing into the river and to appear on behalf of the State
before any agency, department, or commission of this State, of the United States,
or of any other state in furtherance of the development or of any matter
connected with the development or related to the development;
(i) to negotiate agreements, accords, or compacts on behalf of and in the name
of the State with the State of Georgia or the United States, or both, with any
agency, department, or commission of either or both, or with any other state or
any agency, department, or commission of the other state, relating to the
development of the Savannah River and the development of the streams, canals, or
watercourses now or at a later time connected to or flowing into the river, and
particularly in reference to joint or concurrent action in the furtherance of
agreements, accords, or contracts. Interstate compacts made by the authority are
subject to approval by concurrent resolution of the General Assembly;
(j) to act as the designated agency of the State to receive, purchase, hold
title to, and to manage any real property in the Clark's Hill Reservoir project
area, in the Richard B. Russell Reservoir project area, and of the Savannah River
basin, including its tributaries, streams, canals, and water courses now or at
a later time connected to or flowing into the river, in the State acquired by
release of surplus real property, by purchase, by lease, or by exchange and to
develop and promote the development of the land for recreational, transportation,
residential, commercial, and industrial purposes, both public and private, and
to lease, sublease, or convey title in fee simple to the real property subject
to approval by the State Budget and Control Board.
The authority may retain, carry forward, and expend any proceeds derived from
the sale, lease, rental, or other use of real and personal property under the
authority's exclusive jurisdiction. The proceeds may only be used in the
development and the promotion of the authority as provided by this chapter and
for the purposes authorized by this chapter;
(k) to promulgate regulations affecting the use, management, and control of
real property acquired pursuant to item (j) of this section;
(1) to borrow money, make and issue notes, bonds, and other evidences of
indebtedness, including refunding and advanced refunding notes and bonds, of the
authority; to secure the payment of the obligations or any part by mortgage,
lien, pledge, or deed of trust, on any of its property, contracts, franchises,
or revenues, including the proceeds of any refunding and advanced refunding
notes, bonds, and other evidences of indebtedness and the investments in which
proceeds are invested and the earnings on and income from the investments; to
invest its monies, including without limitation its revenues and proceeds of the
notes, bonds, or other evidences of indebtedness, in obligations of, or
obligations the principal of and interest on which are guaranteed by or are fully
secured by contracts with, the United States, in obligations of any agency,
instrumentality, or corporation which has been or may at a later time be created
by or pursuant to an act of the United States Congress as an agency,
instrumentality, or corporation, in direct and general obligations of this State,
and in certificates of deposit issued by any bank, trust company, or national
banking association; to make agreements with the purchasers or holders of the
notes, bonds, or other evidences of indebtedness or with others in connection
with any notes, bonds, or other evidences of indebtedness, whether issued or to
be issued, as the authority considers advisable; and to provide for the security
for the notes, bonds, or other evidences of indebtedness and the rights of the
holders of the notes, bonds, or other evidences of indebtedness.
In the exercise of the powers granted in this section to issue advanced
refunding notes, bonds, or other evidences of indebtedness the authority may, but
is not required to, avail itself of or comply with any of the provisions of
Chapter 21 of Title 11. The authority, when investing in certificates of
deposit, shall invest in certificates of deposit issued by institutions
authorized to do business in this State if the institutions offer terms which,
in the opinion of the authority, are equal to or better than those offered by
other institutions;
(m) to loan the proceeds of notes, bonds, or other evidences of indebtedness
to a person, corporation, or partnership to construct, acquire, improve, or
expand the projects described in Section 13-9-40;
(n) to make contracts, including service contracts with a person, corporation,
or partnership, to provide the services provided in Section 13-9-40, and to
execute all instruments necessary or convenient for the carrying out of
business."
Authority may issue bonds
SECTION 2. Sections 2 through 11 of Act 1 of 1983 are designated as and are
amended to read:
"Section 13-9-40. The authority may issue revenue bonds for the purpose
of financing or refinancing, in whole or in part, the cost of the following
projects:
(a) purchasing real estate;
(b) constructing, reconstructing, or improving roads, bridges, culverts, or
other transportation facilities;
(c) constructing, reconstructing, improving, or equipping water distribution
systems, sewer treatment and distribution facilities, buildings, or environmental
utilities;
(d) constructing, reconstructing, and improving recreational facilities,
including but not limited to marinas, docks, swimming pools, parks, dams, ponds,
golf courses, racquetball and tennis facilities, and equestrian and archery
complexes.
In connection with the issuance of bonds, the authority may enter into an
agreement with a company to construct, operate, maintain, and improve a project,
and the authority may enter into a financing agreement with the company
prescribing the terms and conditions of the payments to be made by the company
to the authority, or its assignee, to meet the payments that become due on bonds.
Section 13-9-50. Revenue bonds issued under this chapter for any project
described in Section 13-9-40 must be authorized by resolution of the board of the
authority. The resolution may contain provisions which are a part of the
contract between the authority and the several holders of the bonds as to:
(a) the custody, security, use, expenditure, or application of the proceeds of
the bonds;
(b) the acquisition, construction, and completion of any project for which the
bonds are issued;
(c) the use, regulation, operation, maintenance, insurance, or disposition of
the project for which the bonds are issued, or any restrictions on the exercise
of the powers of the board to dispose of or limit or regulate the use of the
project;
(d) the payment of the principal of or interest on the bonds and the sources
and methods of payment, the rank or priority of any bonds as to any lien or
security, or the acceleration of the maturity of any bonds;
(e) the use and disposition of the revenues derived or to be derived from the
operation of any project;
(f) the pledging, setting aside, depositing, or entrusting of the revenues from
which the bonds are made payable to secure the payment of the principal of and
interest on the bonds or the payment of expenses of operation and maintenance of
the project;
(g) the setting aside of revenues reserves, or sinking funds and the source,
custody, security, regulation, and disposition of the revenues, reserves, or
sinking funds;
(h) the determination of the definition of revenues or of the expenses of
operation and maintenance of the project for which the bonds are issued;
(i) the rentals, fees, or other charges derived from the use of the project and
the fixing, establishing, collection, and enforcement of the rentals, fees, or
other charges, the amount or amounts of revenues to be produced by the rentals,
fees, or other charges, and the disposition and application of the amounts
charged or collected;
(j) limitations on the issuance of additional bonds or any other obligations
or the incurrence of indebtedness payable from the same revenues from which the
bonds are payable;
(k) rules to insure the use of the project by the public or private sector to
the maximum extent to which the project are capable of serving the public or
private sector;
(l) any other matter or course of conduct which, by recital in the resolution
authorizing the bonds, is declared to further secure the payment of the principal
of or interest on the bonds.
Section 13-9-60. The bonds may be issued in one or more series, may bear a date,
may mature at a time not exceeding forty years from their respective dates, may
bear interest at the rate or rates per annum as approved by the State Budget and
Control Board, may be payable in a medium of payment and at a place, may be in
a denomination, may be in a form, either coupon or registered, may carry
registration privileges, may be subject to terms of redemption before maturity,
with or without premium, and may contain terms, convenants, and conditions as the
resolution authorizing the issuance of the bonds may provide. The interest rate
on bonds issued by the authority, the proceeds of which are loaned to a company
pursuant to a financing agreement to construct or acquire a project authorized
under Section 13-9-40, are not subject to approval by the State Budget and
Control Board. The bonds are fully negotiable within the meaning of and for the
purposes of the Uniform Commercial Code.
Section 13-9-70. The principal of and interest on bonds issued under this
chapter are exempt from taxation, as provided in Section 12-1-60. All security
agreements, indentures, and financing agreements made pursuant to the provisions
of this chapter are exempt from state stamp and transfer taxes.
Section 13-9-80. No bonds may be issued pursuant to the provisions of this
chapter until the proposal of the board of the authority to issue the bonds
receives the approval of the State Budget and Control Board. When the board
proposes to issue bonds, it shall file a proposal with the Budget and Control
Board setting forth:
(a) a brief description of the project proposed to be undertaken and its
anticipated effect upon the economy of the area in which the project is to be
located;
(b) a reasonable estimate of the cost of the project;
(c) a general summary of the terms and conditions of any financing agreement
and security agreement.
Upon the filing of the proposal the Budget and Control Board shall, as soon as
practicable, make an independent investigation, as it considers necessary or
appropriate, and if it finds that the project is intended to promote the purposes
of this chapter, it may approve the project. At any time following the approval,
the board may proceed with the acquisition and financing of the project. If the
proceeds of the bonds are to be made available to a company to construct a
project, as provided in Section 13-9-40, notice of the approval of any project
by the Budget and Control Board must be published at least once by the authority
in a newspaper having general circulation in the county where the project is to
be located.
Any interested party may, within twenty days after the date of the publication
of notice, but not after the twenty days, challenge the validity of the approval
in the court of common pleas in the county where the project is to be located.
Section 13-9-90. The bonds must be signed in the name of the board of the
authority by the manual or facsimile signature of the chairman of the board and
attested with the manual or facsimile signature of the secretary of the board.
Interest coupons attached to the bonds must be signed by the facsimile signatures
of the officers. The bonds may be issued notwithstanding that any of the
officials signing them or whose facsimile signatures appear on the bonds or the
coupons have ceased to hold office at the time of issue or at the time of the
delivery of the bonds to the purchaser.
Section 13-9-100. The bonds must be sold at public or private sale upon terms
and conditions as the State Budget and Control Board considers advisable.
Section 13-9-110. The board of the authority or its proper administrative
officers shall file with the State Treasurer within thirty days from the date of
their issuance a complete description of all obligations entered into by the
board with the rates of interest, maturity dates, annual payments, and all
pertinent data.
Section 13-9-120. All provisions of a resolution authorizing the issuance of the
bonds in accordance with this chapter and any covenants and agreements constitute
legally binding contracts between the authority and the several holders of the
bonds, regardless of the time of issuance of the bonds, and are enforceable by
any holder by mandamus or other appropriate action, suit, or proceeding at law
or in equity in any court of competent jurisdiction.
Section 13-9-130. The bonds authorized by the chapter are limited obligations
of the authority. The principal and interest are payable solely out of the
revenues derived by the authority, including any revenues that may be derived by
the authority pursuant to the financing agreement with respect to the project
which the bonds are issued to finance. The bonds are an indebtedness payable
solely from a revenue producing source or from a special source which does not
include revenues from any tax or license. The bonds do not constitute nor give
rise to a pecuniary liability of the authority, the State, or any political
subdivision of the State, or to a charge against the general credit of the
authority, the State, or any political subdivision of the State or taxing powers
of the State, or any political subdivision of the State, and this fact must be
plainly stated on the face of each bond. The principal of and interest on any
bonds issued under this chapter must be secured by a pledge of the revenues from
which the bonds are payable, may be secured by a security agreement, including
a mortgage or any property given as security pursuant to a financing agreement,
and may be additionally secured by a pledge of the financing agreement with
respect to the project. In making any agreements or provisions, the board of the
authority does not have the power to obligate itself with respect to any project
for which the proceeds of bonds issued under this chapter have been loaned to a
company, except with respect to the project and the application of the revenues
from the financing agreement, and does not have the power to incur a pecuniary
liability or a charge upon its general credit.
The trustee under any security agreement or indenture, or any depository
specified by the security agreement or indenture, may be any person, or
corporation as the authority designates, notwithstanding that the trustee may be
a nonresident of this State or incorporated under the laws of the United States
or the laws of other states.
Section 13-9-140. The net earnings of the authority, beyond that necessary for
retirement of its bonds or other obligations or to implement the purposes of this
chapter, may not inure to the benefit of any person other than the authority.
Upon termination of the existence of the authority, title to all property, real
and personal, owned by it, including net earnings, vests in the State.
Section 13-9-150. The authority may retain any unexpended funds at the close of
the fiscal year of the State regardless of the source of the funds and expend the
funds in subsequent fiscal years.
Section 13-9-160. A. Prior to undertaking any project authorized by Section
13-9-40, the board of the authority shall make a determination:
(1) that the project will serve the purposes of this chapter;
(2) that the project is anticipated to benefit the general public welfare of
the locality by providing services, employment, recreation, or other public
benefits not otherwise provided locally;
(3) that the project will give rise to no pecuniary liability of the authority,
the State, or any political subdivision of the State, or charge against the
general credit of the authority, the State, or any political subdivision of the
State, or taxing power of the State or any political subdivision of the State if
the proceeds are loaned by the authority to a company to construct a project;
(4) as to the amount of bonds required to finance the project;
(5) as to the amount necessary in each year to pay the principal of and the
interest on the bonds proposed to be issued to finance the project;
(6) as to the amount necessary to be paid each year into any reserve funds
which the board may consider advisable to establish in connection with the
retirement of the proposed bonds and the maintenance of the project.
The determinations of the board must be set forth in the proceedings under
which the proposed bonds are to be issued.
B. Every financing agreement between the authority and a company with respect
to a project shall contain an agreement obligating the company to complete the
project if the proceeds of the bonds prove insufficient, and obligating the
company to pay an amount under the terms of a financing agreement, which, upon
the basis of the determinations made by the board, is sufficient:
(1) to pay the principal of and interest on the bonds issued to finance the
project;
(2) to build up and maintain any reserves considered by the board to be
advisable in connection with the project;
(3) to pay the costs of maintaining the project in good repair and keeping it
properly insured, unless the financing agreement obligates the company to pay for
the maintenance and insurance of the project.
Section 13-9-170. The proceeds from the sale of any bonds issued under authority
of this chapter may be applied only for the purpose for which the bonds were
issued, except any premium and accrued interest received in any sale must be
applied to the payment of the principal of or the interest on the bonds sold, and
if for any reason any portion of the proceeds are not needed for the purpose for
which the bonds were issued, that portion of the proceeds must be applied to the
payment of the principal of or the interest on the bonds.
The cost of acquiring any project includes the following:
(a) the actual cost of the construction of any part of a project, including
architects', engineers', and attorneys' fees;
(b) the purchase price of any part of a project that may be acquired by
purchase;
(c) all expenses in connection with the authorization, sale, and issuance of
the bonds to finance the acquisition;
(d) the interest on the bonds for a reasonable time prior to construction and
for not exceeding one year after completion of the construction."
Time effective
SECTION 3. This act shall take effect upon approval by the Governor. |