H*4231(Rat #0270, Act #0221)  General Bill, By L.L. Elliott
 A Bill to authorize the Board of Trustees of School District 3 in Marion
 County to borrow not exceeding three hundred thousand dollars for the purpose
 of constructing, improving, and repairing schools and school buildings in the
 district; to provide for the method of payment of the loan and interest by the
 Board; and to provide that the interest earned is not taxable income or
 subject to insurance premium taxes.

   05/25/93  House  Introduced, read first time, placed on calendar
                     without reference HJ-12
   05/26/93  House  Read second time HJ-21
   05/27/93  House  Read third time and sent to Senate HJ-111
   05/27/93  Senate Intd. & placed on local & uncontested cal. w/o
                     reference SJ-9
   05/27/93  Senate Amended SJ-9
   05/27/93  Senate Unanimous consent for second reading on next
                     legislative day SJ-9
   05/27/93  Senate Unanimous consent for third reading on next
                     legislative day SJ-9
   05/28/93  Senate Read second time SJ-106
   06/01/93  Senate Read third time and returned to House with
                     amendments SJ-61
   06/02/93  House  Concurred in Senate amendment and enrolled HJ-8
   06/10/93         Ratified R 270
   06/16/93         Signed By Governor
   06/16/93         Effective date 06/16/93
   07/13/93         Copies available

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF SCHOOL DISTRICT 3 IN MARION COUNTY TO BORROW NOT EXCEEDING THREE HUNDRED THOUSAND DOLLARS FOR THE PURPOSE OF CONSTRUCTING, IMPROVING, AND REPAIRING SCHOOLS AND SCHOOL BUILDINGS IN THE DISTRICT; TO PROVIDE FOR THE METHOD OF PAYMENT OF THE LOAN AND INTEREST BY THE BOARD; AND TO PROVIDE THAT THE INTEREST EARNED IS NOT TAXABLE INCOME OR SUBJECT TO INSURANCE PREMIUM TAXES.

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

Board authorized to borrow money

SECTION 1. The Board of Trustees of School District 3 in Marion County is authorized to borrow a sum of money, not exceeding three hundred thousand dollars for the purpose of constructing, improving, or repairing schools and school buildings in Marion School District 3 of Marion County. The loan must be secured by a note or notes to be executed by a majority of the board of trustees of the district and shall bear the least interest available from a financial institution or other lending institution doing business in Marion County. The note or notes must be made payable at such date or dates as the board may determine, not to exceed twenty years from the date of issuance.

Loan may be refinanced

SECTION 2. The board of trustees may refinance any portion of the outstanding indebtedness due on the note or notes at any time and from time to time within the twenty-year period by the issuance of new notes; however, new notes shall mature not later than twenty years from the date of the original issuance.

Property tax levied, repay loan

SECTION 3. In order to provide for the repayment of such loan and interest thereon there is levied an annual tax upon all of the taxable property of School District 3, sufficient to pay all interest and the note or notes as they become due. The principal and interest may be paid annually. When the loan is paid the tax levied for this purpose no longer may be levied. It is the duty of the auditor of Marion County to levy the special tax annually on all of the taxable property of the school district, and the duty of the county treasurer to collect the tax levied as other taxes are collected by law and to pay the principal and interest on the note or notes as the same severally become due, according to the terms of the notes. The full faith and credit and taxing power of School District 3 are irrevocably pledged for the payment of the notes and interest.

Deposit and expenditure of funds

SECTION 4. The amount borrowed pursuant to this act must be deposited with the county treasurer of Marion County to the credit of Marion School District 3 to be expended upon warrants or orders of the proper school officials for the purposes mentioned in this act.

Interest earned is not taxable

SECTION 5. The interest earned by a financial institution is not taxable income for South Carolina state income tax purposes and in the case of an insurance company is not subject to insurance premium taxes.

Time effective

SECTION 6. This act takes effect upon approval by the Governor.

Approved the 16th day of June, 1993.