H 4550 Session 111 (1995-1996)
H 4550 General Bill, By Boan
A Bill to amend Chapter 117, Title 59, Code of Laws of South Carolina, 1976,
relating to the University of South Carolina, by adding Article 5 enacting the
University of South Carolina Revenue Bond Act authorizing the University of
issue revenue bonds to finance improvements and equipment and to provide the
terms and conditions under which the bonds may be issued.
02/06/96 House Introduced and read first time HJ-175
02/06/96 House Referred to Committee on Ways and Means HJ-175
03/14/96 House Committee report: Favorable with amendment Ways
and Means HJ-7
03/20/96 House Amended HJ-35
03/20/96 House Read second time HJ-38
03/21/96 House Read third time and sent to Senate HJ-23
03/26/96 Senate Introduced and read first time SJ-26
03/26/96 Senate Referred to Committee on Finance SJ-26
AMENDED
March 20, 1996
H. 4550
Introduced by REP. Boan
S. Printed 3/20/96--H.
Read the first time February 6, 1996.
A BILL
TO AMEND CHAPTER 117, TITLE 59, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO THE UNIVERSITY
OF SOUTH CAROLINA, BY ADDING ARTICLE 5 ENACTING
THE UNIVERSITY OF SOUTH CAROLINA REVENUE BOND
ACT AUTHORIZING THE UNIVERSITY TO ISSUE REVENUE
BONDS TO FINANCE IMPROVEMENTS AND EQUIPMENT
AND TO PROVIDE THE TERMS AND CONDITIONS UNDER
WHICH THE BONDS MAY BE ISSUED.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 147
Higher Education
Revenue Bond Act
Section 59-147-10. This chapter may be cited as the Higher
Education Revenue Bond Act.
Section 59-147-20. As used in this chapter:
(1) `board' means the board of trustees of the university;
(2) `equipment' means items with a useful life of at least fifteen
years;
(3) `facilities' means the real and personal property and
equipment specified in Section 59-147-20(2) of this chapter whether
or not the acquisition or construction thereof is financed from the
proceeds of bonds issued pursuant to this chapter;
(4) `revenues' means the revenues derived or to be derived from
the operation, sale, lease, or other disposition of the facilities; and
(5) `university' means all research and four-year public
institutions of higher education.
Section 59-147-30. Subject to the approval of the State Budget
and Control Board by resolution duly adopted, the university may
issue revenue bonds of the university for the purpose of financing
or refinancing in whole or in part the cost of acquisition,
construction, reconstruction, renovation and improvement of land,
buildings, and other improvements to real property and equipment
for the purpose of providing facilities serving the needs of the
university including, but not limited to, dormitories, apartment
buildings, dwelling houses, bookstore and other university operated
stores, laundry, dining halls, cafeterias, parking facilities, student
recreational, entertainment and fitness related facilities, inns,
conference and other nondegree educational facilities and similar
auxiliary facilities of the university and any other facilities which
are auxiliary to any of the foregoing excluding, however, athletic
department projects which primarily serve varsity athletic teams of
the university.
Section 59-147-40. Revenue bonds issued under this chapter
must be authorized by a resolution or resolutions of the board of the
university. The resolution of the university may, in the discretion
of the board, contain provisions, which shall constitute a part of the
contract between the university and the several holders of the
bonds, as to any of the following:
(1) the custody, security, use, expenditure, or application of the
proceeds of the bonds including, without limitation, the use of bond
proceeds to pay the cost of acquisition, construction, reconstruction
or renovation of facilities, expenses of issuance of the bonds,
interest on the bonds for such period of time as the board may
determine and the cost of bond insurance or other credit
enhancement and to fund reserves established with respect to the
bonds;
(2) the acquisition, renovation, construction, reconstruction, or
completion of the facilities for which the bonds are issued;
(3) the use, regulation, operation, maintenance, insurance, or
disposition of the facilities the revenues from which are pledged to
secure payments with respect to the bonds or restrictions on the
exercise of the powers of the board to dispose of or to limit or
regulate the use of such facilities;
(4) the payment of the principal of, redemption premium, if
any, or interest on the bonds and the sources and the methods of the
payment, the rank or priority of the bonds as to any lien or security
or the acceleration of the maturity of the bonds;
(5) the use and disposition of the revenues including, without
limitation, the pledging, setting aside, or depositing with a trustee
all or part of the revenues to secure the payment of the principal of,
redemption premium, if any, and interest on the bonds and the
payment of expenses of operation and maintenance of the facilities;
(6) the setting aside out of bond proceeds, the revenues or other
available funds of reserves or sinking funds and the source, custody,
security, regulation, and disposition of them;
(7) the determination of the revenues, subject to the provisions
of Section 59-147-110 or other available funds to be pledged as
security for payments with respect to the bonds and for the
expenses of operation and maintenance of the facilities;
(8) the fixing, establishment, collection, and enforcement of the
rentals, fees, or other charges from students, faculty members, and
others using or being served by, or having the right to use or be
served by, the facilities the revenues from which are pledged to
secure payments with respect to the bonds and the disposition and
application of the revenues so charged and collected;
(9) 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;
(10) rules to ensure the use of the facilities by students or
members of the faculty of the university to the maximum extent to
which the building or equipment is capable of serving the students
or faculty members;
(11) the procedure, if any, by which the terms of any covenant or
contract with, or duty to, the holders of the bonds may be amended
or abrogated, the amount of bonds to which the holders of which
must consent, and the manner in which the consent may be given or
evidenced; and
(12) any other matter or course of conduct which, by recital in
the resolution or resolutions authorizing or providing for the bonds,
is declared to further secure the payment of the principal of or the
interest on the bonds or to further the purposes for which the
facilities are being acquired, constructed, reconstructed, renovated,
or equipped and the bonds being issued.
Section 59-147-50. Revenue bonds may be issued in one or more
series at such prices, may bear such date or dates, may mature at
such time or times, not exceeding forty years from their respective
date, may bear interest at such fixed or variable rate or rates, may
be payable in such medium of payment and at such place or places,
may be in such denomination or denominations, may be in such
form, either coupon or registered and either certified or
uncertificated, may carry such registration privileges, may be
subject to such terms of redemption before maturity, with or
without premium, and may contain such terms, covenants, and
conditions as the resolution authorizing the issuance of the bonds
may provide. Except as otherwise specified in the authorizing
resolution, the bonds shall be fully negotiable within the meaning of
and for all the purposes of the Uniform Commercial Code.
Section 59-147-60. The bonds shall be exempt from all state,
county, municipal, and school taxes and franchise and license fees.
Section 59-147-70. The bonds must be signed in the corporate
name of the university by the manual or facsimile signature of the
acting chairman of the board of the university, under the corporate
seal of the university attested by the manual or facsimile signature
of the acting secretary of the board. Any interest coupons attached
to the bonds must be signed by the facsimile signatures of these
officers. The bonds may be issued notwithstanding that any of the
officials signing them or whose facsimile signatures appear on the
coupons have ceased to hold office at the time of the issue or at the
time of the delivery of the bonds to the purchaser.
Section 59-147-80. The bonds must be sold at public or private
sale upon such terms and conditions as the board of the university
considers advisable.
Section 59-147-90. The board 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 59-147-100. All provisions of a resolution authorizing
or providing for the issuance of the bonds in accordance with
Section 59-147-40 and of the covenants and agreements constitute
valid and legally binding contracts between the university and the
several holders of the bonds, regardless of the time of issuance of
the bonds, and are enforceable by the holder or holders by
mandamus or other appropriate action, suit, or proceeding at law or
in equity in any court of competent jurisdiction.
Section 59-147-110. The bonds must be made payable solely
from all or such portion of the revenues as the university in its
discretion may designate pursuant to the authorizing resolution and
also from any other available funds of the university designated by
the university pursuant to the authorizing resolution except funds of
the university derived from appropriations received from the
General Assembly and any tuition funds pledged to the repayment
of state institution bonds. The use of academic fees must be
approved by the university's board. The bonds are not general
obligations of the State. Neither the members of the board nor any
person signing the bonds shall be personally liable for the bonds.
No bonds may be issued pursuant to this chapter unless an
identified source or sources of revenue are designated for the
repayment of the bonds.
Section 59-147-120. This chapter may not be construed as
allowing any research or four-year public institution of higher
education to issue any revenue bonds of a type not otherwise
allowed by law for the particular institution as of June 30,
1996."
SECTION 2. This section takes effect July 1, 1996.
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