Current Status BillNumber: 3052 Ratification Number: 202 Act Number: 261 Introducing Body: House Subject: General obligation bonds for the Board of Trustees of Colleton CountyView additional legislative information at the LPITS web site.
(A261, R202, H3052)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT OF COLLETON COUNTY TO ISSUE GENERAL OBLIGATION BONDS OF THE DISTRICT NOT EXCEEDING ONE MILLION, TWO HUNDRED THOUSAND DOLLARS BUT IN NO EVENT TO EXCEED ITS CONSTITUTIONAL DEBT LIMIT FOR CERTAIN PURPOSES, 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 BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that the school district of Colleton County, in the current 1986-87 fiscal year, will experience a revenue shortfall due to a deficit in fiscal years 1985-86 and 1986-87. There presently exists no statutory authorization for the school district to incur bonded indebtedness to fund an operating deficit or operating fund contingency. The General Assembly has determined to authorize the board of trustees of the school district to issue general obligation bonds of the school district to fund the deficit and an operating fund contingency to the extent permitted under the constitutional debt limit applicable to the school district under Section 15 of Article X of the Constitution of this State.
SECTION 2. For the purpose of funding this deficit and an operating fund contingency for fiscal year 1987-88 of the school district, the
board is authorized to issue, without an election, general obligation bonds of the school district, in an amount not exceeding one million,
two hundred thousand dollars but in no event to exceed the constitutional debt limitation applicable to the school district. No bonds may be issued pursuant to the provisions of this act without the approval by resolution of the county council of Colleton County.
SECTION 3. All bonds issued pursuant to this act shall mature in series or installments as the board prescribes, but in no event to exceed a period of seven years.
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, provisions must be made specifying the manner of call and the notice of call that must be given.
Form of bonds
SECTION 5. The bonds issued pursuant to this act may be in the form of negotiable coupon bonds payable to the bearer or 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. Except when issued in registered form, all bonds issued pursuant to this act have all attributes of negotiable instruments under the Uniform Commercial Code.
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.
SECTION 7. Bonds issued pursuant to this act shall bear interest at a rate determined by the board within the limitations of Section 11-9-350 of the 1976 Code.
SECTION 8. The bonds and the coupons to be attached to the bonds, if any, must be executed in a manner as the board prescribes by resolution.
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.
SECTION 10. For the payment of the principal of and interest on all bonds issued pursuant to this act, as they respectively mature, and for the creation of a 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 Colleton County, and collected by the treasurer of Colleton 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 a sinking fund as may be necessary therefor.
SECTION 11. The principal of and interest on bonds issued pursuant to this act have the taxexempt status prescribed by Section 12-1-60 of the 1976 Code.
SECTION 12. The proceeds derived from the sale of any bonds issued pursuant to this act must be paid to the treasurer of Colleton 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 cost of issuing bonds authorized by this act, to fund this deficit of the school district or a portion of the deficit, and to provide a contingency for the operating fund of the school district.
Powers and authorizations
SECTION 13. The powers and authorizations conferred upon the board 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.
SECTION 14. No elections prescribed as a condition precedent to the issuance of the bonds and no action other than that prescribed in this act need to be taken to effect the issuance of the bonds nor are required to obtain the approval of any other public agency or any action taken pursuant to the authorizations by this act other than that prescribed in this act.
SECTION 15. This act takes effect upon approval by the Governor.
Approved the 2nd day of June, 1987.