S*702 Session 110 (1993-1994)
S*0702(Rat #0169, Act #0167) General Bill, By Senate Education
A Bill to amend Sections 59-109-30, 59-109-50, 59-109-70, 59-109-80,
59-109-90, 59-109-100, 59-109-110, 59-109-120, 59-109-130, 59-109-140, and
59-109-150, Code of Laws of South Carolina, 1976, relating to the Educational
Facilities Authority Act for Private Nonprofit Institutions of Higher
Learning, so as to revise definitions and provide additional definitions; to
revise and add additional powers to the Authority, including the power to
enter into agreements necessary or incidental for issuing bonds or completing
a project, to enter into financing agreements, to make bond proceeds available
by loan pursuant to a financing agreement, to lease or sell projects pursuant
to a financing agreement, to pledge or assign funds pursuant to a financing
agreement to the payment of bonds; to authorize the Authority to acquire land
for the acquisition of projects; to authorize projects owned by the Authority
and leased to a participating institution to be transferred to the
institution, and to authorize financing agreements to contain provisions
allowing options to renew a lease or purchase a project before retirement of
the bonds, including purchase at less than fair market value; to provide
additional provisions which may be included in proceedings authorizing or
trust agreement providing for bonds and a related financing agreement; to
provide that only amounts paid by a participating institution pursuant to a
financing agreement are pledged to the payment of the bonds; to provide that
financing agreements require institutions to complete projects if bond
proceeds are insufficient, to make sufficient payments to pay principal,
interest, and any premiums on bonds, and to maintain reserves as set by the
Authority, and to allow the Authority to require other setasides of amounts
derived from financing agreements; to provide that bonds may be issued
pursuant generally to proceedings rather only by resolution, and to provide
that a participating public institution of higher learning in operating or
maintaining a project is an essential public function.
04/15/93 Senate Introduced, read first time, placed on calendar
without reference SJ-9
04/20/93 Senate Read second time SJ-40
04/21/93 Senate Read third time and sent to House SJ-9
04/22/93 House Introduced and read first time HJ-13
04/22/93 House Referred to Committee on Education and Public
Works HJ-14
05/12/93 House Committee report: Favorable Education and Public
Works HJ-4
05/26/93 House Read second time HJ-22
05/27/93 House Read third time and enrolled HJ-117
06/10/93 Ratified R 169
06/16/93 Signed By Governor
06/16/93 Effective date 06/16/93
07/07/93 Copies available
(A167, R169, S702)
AN ACT TO AMEND SECTIONS 59-109-30, 59-109-50, 59-109-70,
59-109-80, 59-109-90, 59-109-100, 59-109-110, 59-109-120, 59-109-130,
59-109-140, AND 59-109-150, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE EDUCATIONAL FACILITIES
AUTHORITY ACT FOR PRIVATE NONPROFIT INSTITUTIONS OF
HIGHER LEARNING, SO AS TO REVISE DEFINITIONS AND
PROVIDE ADDITIONAL DEFINITIONS; TO REVISE AND ADD
ADDITIONAL POWERS TO THE AUTHORITY, INCLUDING THE
POWER TO ENTER INTO AGREEMENTS NECESSARY OR
INCIDENTAL FOR ISSUING BONDS OR COMPLETING A PROJECT,
TO ENTER INTO FINANCING AGREEMENTS, TO MAKE BOND
PROCEEDS AVAILABLE BY LOAN PURSUANT TO A FINANCING
AGREEMENT, TO LEASE OR SELL PROJECTS PURSUANT TO A
FINANCING AGREEMENT, TO PLEDGE OR ASSIGN FUNDS
PURSUANT TO A FINANCING AGREEMENT TO THE PAYMENT OF
BONDS; TO AUTHORIZE THE AUTHORITY TO ACQUIRE LAND
FOR THE ACQUISITION OF PROJECTS; TO AUTHORIZE PROJECTS
OWNED BY THE AUTHORITY AND LEASED TO A PARTICIPATING
INSTITUTION TO BE TRANSFERRED TO THE INSTITUTION, AND
TO AUTHORIZE FINANCING AGREEMENTS TO CONTAIN
PROVISIONS ALLOWING OPTIONS TO RENEW A LEASE OR
PURCHASE A PROJECT BEFORE RETIREMENT OF THE BONDS,
INCLUDING PURCHASE AT LESS THAN FAIR MARKET VALUE;
TO PROVIDE ADDITIONAL PROVISIONS WHICH MAY BE
INCLUDED IN PROCEEDINGS AUTHORIZING OR TRUST
AGREEMENT PROVIDING FOR BONDS AND A RELATED
FINANCING AGREEMENT; TO PROVIDE THAT ONLY AMOUNTS
PAID BY A PARTICIPATING INSTITUTION PURSUANT TO A
FINANCING AGREEMENT ARE PLEDGED TO THE PAYMENT OF
THE BONDS; TO PROVIDE THAT FINANCING AGREEMENTS
REQUIRE INSTITUTIONS TO COMPLETE PROJECTS IF BOND
PROCEEDS ARE INSUFFICIENT, TO MAKE SUFFICIENT
PAYMENTS TO PAY PRINCIPAL, INTEREST, AND ANY PREMIUMS
ON BONDS, AND TO MAINTAIN RESERVES AS SET BY THE
AUTHORITY, AND TO ALLOW THE AUTHORITY TO REQUIRE
OTHER SETASIDES OF AMOUNTS DERIVED FROM FINANCING
AGREEMENTS; TO PROVIDE THAT BONDS MAY BE ISSUED
PURSUANT GENERALLY TO PROCEEDINGS RATHER ONLY BY
RESOLUTION, AND TO PROVIDE THAT A PARTICIPATING
PUBLIC INSTITUTION OF HIGHER LEARNING IN OPERATING OR
MAINTAINING A PROJECT IS AN ESSENTIAL PUBLIC
FUNCTION.
Be it enacted by the General Assembly of the State of South Carolina:
Definitions
SECTION 1. Section 59-109-30 of the 1976 Code is amended to read:
"Section 59-109-30. As used in this chapter, unless the context
otherwise requires:
(1) `Authority' means the State Budget and Control Board acting as the
Educational Facilities Authority for Private Nonprofit Institutions of Higher
Learning.
(2) `Project' means any land or any interest therein, one or more
structures, buildings, additions, extensions, improvements, or other
facilities, whether or not located on the same site or contiguous sites,
machinery, equipment, furnishings, and other real or personal property
necessary, suitable, or convenient for the instruction of students, the
conducting of research, the operation of an institution for higher learning,
or the orderly conduct of the affairs of an institution for higher learning,
and shall include, without limitation, dormitories or other housing facilities,
including housing facilities for student nurses, dining halls, student union
facilities, administration or office facilities, academic facilities, libraries,
laboratories, research facilities, classrooms, athletic facilities, health care
facilities, and maintenance, storage, or utility facilities, and shall also
include, without limitation, all necessary, convenient, or related
landscaping, site preparation, furniture, equipment, furnishings, machinery,
apparatus, appliances, appurtenances, and physical amenities, but shall not
include any facility used or to be used for sectarian instruction or as a place
of religious worship or any facility which is used or to be used primarily in
connection with any part of the program of a school or department of
divinity for any religious denomination.
(3) `Cost', as applied to a project or any portion thereof, means all or
any part of the cost of construction, acquisition, alteration, enlargement,
reconstruction, improvement, and remodeling of a project including,
without limitation, all lands, structures, real or personal property, rights,
rights-of-way, franchises, easements, and interests acquired or used for or
in connection with a project; the cost of demolishing, removing, or
relocating any buildings or structures, including the cost of acquiring any
lands or interests therein to which such buildings or structures may be
moved; the cost of all machinery, fixed and moveable equipment,
apparatus, appliances, and furnishings; financing charges and interest prior
to, during, and for a period of not more than two years after the estimated
date of completion of construction and acquisition of a project; provisions
for working capital and reserves for principal and interest and for
extensions, enlargements, additions, and improvements; the cost of
architectural, engineering, planning, financial, consulting and legal service,
plans, specifications, studies, surveys, estimates of cost and of revenues,
administrative expenses, expenses necessary or incident to determining the
feasibility of practicability of constructing or acquiring a project; such other
expenses as may be necessary or incident to the construction or acquisition
of a project, the financing of such construction or acquisition and the
placing of a project in operation; the cost of issuing bonds including,
without limitation, legal and accounting fees and expenses, printing costs,
and all other costs incurred in connection with issuing bonds; monies
necessary to refinance or refund any indebtedness of any participating
institution for higher learning incurred at any time for the purpose of
providing a project; and the costs of reimbursing any participating
institution for higher learning for any amounts expended for items that
would have been proper costs of a project within the meaning of this
definition had the expenditure been made directly by the authority.
(4) `Bonds' means revenue bonds of the authority issued under the
provisions of this chapter, including revenue refunding bonds,
notwithstanding that the same may be secured by a mortgage or the full
faith and credit of a participating institution for higher learning or any other
lawfully pledged security of a participating institution for higher
learning.
(5) `Institution for higher learning' means a nonprofit educational
institution within the State authorized by law to provide a program of
education beyond the high school level and which does not receive state
financial support, but shall not include any state-supported institution.
(6) `Participating institution for higher learning' means an institution for
higher learning which, pursuant to the provisions of this chapter,
undertakes the financing and construction or acquisition of a project or
undertakes the refunding or refinancing of bonds or obligations or of a
mortgage or advances as provided in this chapter.
(7) `Financing agreement' means any agreement entered into by and
between the authority and any one or more participating institutions for
higher learning for the purpose of assisting a participating institution for
higher learning in undertaking a project pursuant to the provisions of this
chapter and pursuant to which the participating institution or institutions for
higher learning agree to pay to (and to secure if so required) the authority
or to any assignee thereof, the sums required to meet the payment of
amounts due with respect to any bonds including, without limitation, an
agreement whereby the authority shall lease or sell a project to a
participating institution for higher learning or any agreement whereby the
authority shall loan the proceeds of bonds to a participating institution for
higher learning."
Powers
SECTION 2. Section 59-109-50 of the 1976 Code is amended to read:
"Section 59-109-50. The purpose of the authority is to assist
institutions for higher learning in the acquisition, construction, financing,
and refinancing of projects, and for this purpose the authority is authorized
and empowered to:
(1) adopt rules and regulations for the conduct of its affairs and
business;
(2) adopt an official seal and alter the same at pleasure;
(3) maintain an office at such place or places as it may
designate;
(4) sue and be sued in its own name, plead, and be impleaded;
(5) enter into any agreements with any participating institution for
higher learning necessary or incidental to the issuance of bonds or the
acquisition, construction, operation, maintenance, or improvement of a
project;
(6) determine the location and character of any project to be
financed under the provisions of this chapter which is to be owned by the
authority, and to construct, reconstruct, remodel, maintain, manage,
enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate
the same, and to enter into contracts for any or all of such purposes, to enter
into contracts for the management and operation of a project owned by the
authority, and to designate a participating institution for higher learning as
its agent, to determine the location and character of a project owned by the
authority and undertaken by such participating institution for higher
learning under the provisions of this chapter and, as the agent of the
authority, to acquire, construct, reconstruct, remodel, maintain, manage,
enlarge, alter, add to, repair, operate, lease, as lessee or lessor, and regulate
the same, and as the agent of the authority, to enter into contracts for any or
all of such purposes, including contracts for the management and operation
of such project;
(7) enter into financing agreements with any participating institution
for higher learning prescribing the payments to be made by the
participating institution for higher learning to the authority or its assignee
to meet the payments that shall become due with respect to any bonds, and
any terms and conditions relating to the acquisition, construction, and use
of a project and the issuance of bonds as the authority may determine;
(8) issue bonds, including bond anticipation notes pursuant to
Sections 11-17-10 to 11-17-110, and other obligations of the authority for
any of the purposes of this chapter and to refinance or refund the same all
as provided in this chapter, and to secure the payment of such bonds, bond
anticipation notes, and other obligations as provided in this chapter;
(9) fix and revise from time to time and charge and collect rates, rents,
fees, and charges for the use of and for the services furnished or to be
furnished by a project owned by the authority or any portion thereof and to
contract with any person, partnership, association, or corporation, or other
body public or private in respect of any project;
(10) establish rules and regulations for the use of a project owned by
the authority or any portion thereof and to designate a participating
institution for higher learning as its agent to establish rules and regulations
for the use of a project owned by the authority and undertaken for such
participating institution for higher learning;
(11) employ consulting engineers, architects, attorneys, accountants,
construction and financial experts, superintendents, managers, and such
other employees and agents as may be necessary in its judgment, and fix
their compensation;
(12) receive and accept from any public agency loans or grants for or
in aid of the acquisition or construction of a project or any portion thereof,
and to receive and accept loans, grants, aid, or contributions from any
source of either money, property, labor, or other things of value to be held,
used, and applied only for the purposes for which such loans, grants, aid,
and contributions are made;
(13) mortgage any project owned by the authority or any portion
thereof for the benefit of the holders of bonds;
(14) issue bonds to refinance or refund outstanding obligations,
mortgages, or advances issued, made, or given by a participating institution
for higher learning for the cost of a project;
(15) charge to and apportion among participating institutions for
higher learning its administrative costs and expenses incurred in the
exercise of the powers and duties conferred by this chapter;
(16) make and execute contracts and agreements necessary or
incidental to the exercise of its powers and duties under this chapter, with
persons, firms, corporations, governmental agencies, and others;
(17) make the proceeds of any bonds available by way of a loan to a
participating institution for higher learning pursuant to a financing
agreement;
(18) lease or sell a project to a participating institution for higher
learning pursuant to a financing agreement;
(19) pledge or assign any money, rents, charges, fees, or other
revenues, including any proceeds of insurance or condemnation awards,
pursuant to any financing agreement to the payment of bonds;
(20) do all things necessary or convenient to carry out the purposes of
this chapter."
Powers
SECTION 3. Section 59-109-70 of the 1976 Code is amended to read:
"Section 59-109-70. The authority is authorized and empowered
directly or by and through a participating institution for higher learning, as
its agent, to acquire by purchase solely from funds provided under the
authority of this chapter, or by gift or devise, such lands, structures,
property, real or personal, rights, rights-of-way, franchises, easements, and
other interests in lands, including lands lying under water and riparian
rights, which are located within the State as it considers necessary or
convenient for the acquisition, construction, or operation of a project, upon
such terms and at such prices as may be considered by it to be reasonable
and can be agreed upon between it and the owner thereof, and to take title
thereto in the name of the authority or in the name of a participating
institution for higher learning as its agent."
Bonds
SECTION 4. Section 59-109-80 of the 1976 Code is amended to read:
"Section 59-109-80. (A) When the principal of and interest on
bonds of the authority issued to finance the cost of a particular project or
projects owned by the authority and leased to a participating institution for
higher learning, including any refunding bonds issued to refund and
refinance such bonds, have been fully paid and retired or when adequate
provision has been made to fully pay and retire the same, and all other
conditions of the trust agreement authorizing the same have been satisfied
and the lien of such trust agreement has been released in accordance with
the provisions thereof, the authority shall promptly do such things and
execute such deeds and conveyances as are necessary and required to
convey title to such project or projects to such participating institution for
higher learning, free and clear of all liens and encumbrances, all to the
extent that title to such project or projects shall not, at the time, then be
vested in such participating institution for higher learning.
(B) Any financing agreement in the form of a lease of any project may
include a provision that the participating institution for higher learning
shall have options to renew such lease and/or to purchase any or all of such
project prior to the retirement of the bonds issued to finance such project or
any bonds issued to refund or refinance such bonds on such terms, at such
times, and upon such consideration as the authority shall determine. The
consideration for any renewal of such lease or for the purchase of any or all
of such project need not require the payment by the participating institution
for higher learning of the full market value thereof, but may be fixed at
such consideration as the authority shall determine."
Bonds
SECTION 5. Section 59-109-90 of the 1976 Code is amended to read:
"Section 59-109-90. (A) In anticipation of the sale of bonds, the
authority may issue bond anticipation notes.
(B) The bonds and notes of every issue shall be payable solely out of
revenues derived by the authority pursuant to the financing agreement or
agreements with respect to the project or projects which such bonds or
notes are issued to finance.
Notwithstanding that bonds and notes may be payable from a special
fund, they shall be and be deemed to be, for all purposes, negotiable
instruments, subject only to the provisions of the bonds and notes for
registration.
(C) The bonds may be issued as serial bonds or as term bonds, or both,
as determined by the authority. The bonds shall be authorized by
resolution of the authority and shall bear such date, mature at such time, not
exceeding fifty years from their respective dates, bear interest at such rate,
payable at such time, be in denominations, be in such form, either coupon
or registered, carry such registration privileges, be executed in such
manner, be payable in lawful money of the United States of America at
such place, and be subject to such terms of redemption, as the authority
shall determine. The bonds or notes may be sold at public or private sale
for such price as the authority shall determine.
(D) Neither the members of the authority nor any person executing the
bonds or notes shall be liable personally on the bonds or notes or be subject
to any personal liability or accountability by reason of the issuance
thereof."
Bonds
SECTION 6. Section 59-109-100 of the 1976 Code is amended to
read:
"Section 59-109-100. (A) In the discretion of the authority any
bonds issued under the provisions of this chapter may be secured by a trust
agreement by and between the authority and a corporate trustee, which may
be any trust company or bank having the powers of a trust company within
the State. Any bank or trust company which may act as depository of the
proceeds of bonds or of revenues or other monies may furnish such
indemnifying bonds or pledge such securities as may be required by the
authority. All expenses incurred in carrying out the provisions of such trust
agreement or proceedings may be treated as a part of the cost of the
operation of a project.
(B) The proceedings authorizing or any trust agreement providing for
any bonds and any financing agreement related thereto may contain any
agreements and provisions, which shall be a part of the contract with the
holders of such bonds, as the authority considers necessary or convenient
including, without limiting the generality of the foregoing, provisions as
to:
(1) pledging all or any part of the revenues of a project, including
revenues to be derived pursuant to a financing agreement, to secure the
payment of the bonds issued to defray the cost, or any portion of the cost,
of such project;
(2) the fixing and collection of the sums payable by the participating
institution for higher learning to the authority pursuant to the financing
agreement;
(3) the rentals, fees, and other charges to be charged, and the amounts
to be raised in each year thereby, and the use and disposition of the
revenues;
(4) the setting aside of reserves or sinking funds, and the regulation
and disposition thereof;
(5) limitations on the right of the authority or its agent or a
participating institution for higher learning to restrict and regulate the use
of the project;
(6) limitations on the purpose to which the proceeds of sale of any
issue of revenue bonds then or thereafter to be issued may be applied and
pledging such proceeds to secure the payment of the revenue bonds or any
issue of the revenue bonds;
(7) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured, and the refunding of
outstanding bonds;
(8) the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which such
consent may be given;
(9) limitations on the amount of monies derived from the project to be
expended for operating, administrative, or other expenses of the
authority;
(10) defining the acts or omissions to act which shall constitute a
default in the duties of the authority to holders of its obligations and
providing the rights and remedies of the trustee and such holders in the
event of a default and any restrictions thereon; and
(11) the mortgaging of a project or any portion thereof for the purpose
of securing the bondholders."
Not a debt
SECTION 7. Section 59-109-110 of the 1976 Code is amended to
read:
"Section 59-109-110. Bonds issued under the provisions of this
chapter shall not be considered to constitute a debt or liability of the State
or of any political subdivision thereof or a pledge of the faith and credit of
the State or of any such political subdivision, but shall be payable solely
from the funds herein provided therefor. All such bonds shall contain on
the face thereof a statement to the effect that neither the State of South
Carolina nor the authority shall be obligated to pay the same or the interest
thereon except from amounts to be paid by the participating institution for
higher learning pursuant to the financing agreement relating to such bonds
and that neither the faith and credit nor the taxing power of the State of
South Carolina or of any political subdivision thereof is pledged to the
payment of the principal of or the interest on such bonds. The issuance of
bonds under the provisions of this chapter shall not directly or indirectly or
contingently obligate the State or any political subdivision thereof to levy
or to pledge any form of taxation whatever therefor or to make any
appropriation for their payment."
Financing agreements
SECTION 8. Section 59-109-120 of the 1976 Code is amended to
read:
"Section 59-109-120. Every financing agreement shall contain
covenants obligating such participating institution for higher learning to
effect the completion of the project if the proceeds of the bonds available
therefor prove insufficient. Every financing agreement shall obligate the
participating institution for higher learning to make payments which shall
be sufficient (1) to pay the cost of maintaining, repairing, and operating the
project and each and every portion thereof, to the extent that the payment of
such cost has not otherwise been adequately provided for, (2) to pay the
principal of and the premium, if any, and the interest on outstanding bonds
of the authority issued in respect of such project as the same shall become
due, and payable and (3) to create and maintain reserves deemed by the
authority to be advisable in connection with the project. Such payments
shall not be subject to supervision or regulation by any department,
commission, board, body, bureau, or agency of this State other than the
authority. In connection with any bonds, the authority may set aside from
amounts derived from a financing agreement, or may cause a participating
institution for higher learning to set aside, at such time or times as shall be
determined by the authority, such amounts as may be determined by the
authority in a sinking or other similar fund which may be pledged to, and
charged with, the payment of the principal of and the interest on such
revenue bonds as the same shall become due, and the redemption price or
the purchase price of bonds retired by redemption or purchase as therein
provided. Such pledge shall be valid and binding from the time when the
pledge is made; the monies so pledged and thereafter received by the
authority or the participating institution for higher learning shall
immediately be subject to the lien of such pledge without physical delivery
thereof or further act, and the lien of any such pledge shall be valid and
binding as against all parties having claims of any kind in tort, contract or
otherwise, against the authority or the participating institution for higher
learning, irrespective of whether such parties have notice thereof.
The use and disposition of money to the credit of such sinking or other
similar fund shall be subject to the provisions of the proceedings
authorizing the issuance of such bonds or of the trust agreement securing
such bonds. Any such proceedings or trust agreement may provide that
such sinking or other similar fund shall be the fund for a particular project
at an institution for higher learning from which such funds are derived and
for the bonds issued to finance such project and may, additionally, permit
and provide for the issuance of bonds having a subordinate lien in respect
of the security herein authorized to other revenue bonds of the authority
and, in such case, the authority may create separate or other similar funds in
respect of such subordinate lien bonds."
Trust funds
SECTION 9. Section 59-109-130 of the 1976 Code is amended to
read:
"Section 59-109-130. All monies received pursuant to the
authority of this chapter, whether as proceeds from the sale of bonds or as
revenues, shall be deemed to be trust funds to be held and applied solely as
provided in this chapter. Any officer with whom, or any bank or trust
company with which, such monies shall be deposited shall act as trustees of
such monies and shall hold and apply the same for the purposes hereof,
subject to such regulations as this chapter and the proceedings authorizing
the bonds of any issue or the trust agreement securing such bonds may
provide."
Bondholder rights
SECTION 10. Section 59-109-140 of the 1976 Code is amended to
read:
"Section 59-109-140. Any holder of bonds issued under the
provisions of this chapter and the trustee under any trust agreement, except
to the extent the rights herein given may be restricted by any proceedings
authorizing the issuance of or any such trust agreement securing such
bonds, may, either at law or in equity, by suit, action, mandamus, or other
proceedings, protect and enforce any and all rights under the laws of the
State or granted hereunder or under such proceedings or trust agreement,
and may enforce and compel the performance of all duties required by this
chapter or by such proceedings or trust agreement to be performed by the
authority or by any officer, employee, or agent thereof, including the fixing,
charging, and collecting of the rates, rents, fees, charges, and other amounts
herein authorized and required by the provisions of such proceedings or
trust agreement to be fixed, established, and collected."
Public function
SECTION 11. Section 59-109-150 of the 1976 Code is amended to
read:
"Section 59-109-150. The exercise of the powers granted by this
chapter will be in all respects for the benefit of the people of this State, for
the increase of their commerce, welfare, and prosperity, and for the
improvement of their health and living conditions, and as the operation and
maintenance of a project by the authority or its agent or a participating
institution for higher learning will constitute the performance of an
essential public function, neither the authority nor its agent shall be
required to pay any taxes or assessments upon or in respect of a project or
any property acquired or owned by the authority under the provisions of
this chapter or upon the income therefrom, and any bonds issued under the
provisions of this chapter, their transfer, and the income therefrom,
including any profit made on the sale thereof, shall at all times be free from
taxation of every kind by the State and by the municipalities and other
political subdivisions in the State."
Time effective
SECTION 12. This act takes effect upon approval by the Governor.
Approved the 16th day of June, 1993. |