Bill 387

                    Current Status

BillNumber:                387
Ratification Number:       34
Act Number:                275
Introducing Body:          Senate
Subject:                   General obligation bonds for Laurens County School 
                           District No. 55

(A275, R34, S387)

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF LAURENS COUNTY SCHOOL DISTRICT NO. 55 TO ISSUE AND SELL GENERAL OBLIGATION BONDS OF THE SCHOOL DISTRICT IN AN AMOUNT NOT TO EXCEED FOUR HUNDRED THOUSAND DOLLARS, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE BONDS MAY BE ISSUED AND THE PURPOSE FOR WHICH THEIR PROCEEDS MAY BE EXPENDED, AND TO PROVIDE FOR THE PAYMENT OF THE BONDS.

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

Findings; use of proceeds of bonds

SECTION 1. The General Assembly finds that the Board of Trustees of Laurens County School District No. 55 should be authorized to issue general obligation bonds in the principal amount not exceeding four hundred thousand dollars, the proceeds of which, together with other funds of the school district, must be used to refinance a construction loan entered into by the board of trustees in order to defray the cost of constructing additional classrooms at the Laurens Primary School.

Authorization

SECTION 2. In order to raise funds for the purpose described in Section 1, the board of trustees of the school district is authorized to issue and sell general obligation bonds of the school district, without the necessity of holding an election, in an amount not to exceed four hundred thousand dollars.

Maturity of bonds

SECTION 3. All bonds issued and sold pursuant to this act shall mature in such annual series or installments as the board of trustees shall provide, except that the last maturing bonds shall mature within five years from the date of issue.

Redemption of bonds

SECTION 4. Any bond may be issued with a provision permitting its redemption prior to its stated maturity, at par and accrued interest, plus such redemption premium as may be prescribed by the board of trustees, but no bond is redeemable prior to its stated maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of such bonds, provision must be made specifying the manner of call and the notice that must be given as to bonds made redeemable prior to their stated maturities.

Form of bonds

SECTION 5. The bonds must be in the form of fully registered bonds upon such conditions as the board of trustees may prescribe.

Bonds made payable

SECTION 6. The bonds must be made payable at such places, within or without the State, as the board of trustees shall provide.

Interest

SECTION 7. The bonds must bear interest at rates prescribed by the board of trustees.

Denomination; execution of bonds

SECTION 8. The bonds must be in such denomination and executed in such manner as the board of trustees prescribe by resolution.

Bonds to be sold; notice

SECTION 9. The bonds must be sold at a price of not less than par and accrued interest to the date of their respective deliveries. They may be sold at private sale and without advertisement if, not less than ten days prior to their delivery, notice of intention to sell the bonds at private sale is given by publication in a newspaper of general circulation in the school district. The notice must set forth the purchaser, the purchase price, interest rates, and maturity schedule of the bonds.

Payment of principal and interest; sinking fund; tax

SECTION 10. For the payment of the principal and interest of 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 Laurens County, and collected by the treasurer of Laurens County, in the same manner as county taxes are levied and collected, on all taxable property in the school district, a tax sufficient to pay the principal and interest of the bonds as they respectively mature and to create a sinking fund as may be necessary therefor.

Tax-exempt status

SECTION 11. The principal and interest of the bonds have the tax-exempt status prescribed by Section 12-1-60 of the 1976 Code.

Payment of proceeds; deposit, expenditure

SECTION 12. The proceeds derived from the sale of any bonds under this act must be paid to the treasurer of Laurens County, to be deposited in a bond account fund for the school district, and must be expended and made use of 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 expended, upon the warrant or order of the board of trustees, for the following purposes:

(a) to defray the costs of issuing the bonds authorized by this act;

(b) to provide for the additional public school facilities for the school district in the manner contemplated by Section 1 of this act.

(4) If, after the completion of the board of trustees' program, the board of trustees certifies to the treasurer of Laurens County that any remaining balance in the bond account is no longer needed for its program, then that balance must be held by the treasurer of Laurens County and used to effect the retirement of bonds then outstanding, which were issued pursuant to this act.

Powers and authorizations additional

SECTION 13. The powers and the authorizations conferred by this act upon the board of trustees are in addition to all other powers and

authorizations previously vested in the board of trustees and may be availed of pursuant to action taken at any regular or special meeting of the board of trustees.

Further action not required

SECTION 14. No action other than that prescribed in this act need be taken to effect the issuance of the bonds herein authorized; nor is the board of trustees required to obtain the approval of any public agency, including the Laurens County Board of Education, for any action taken pursuant to the authorizations of this act.

Time effective

SECTION 15. This act takes effect upon approval by the Governor.

Approved the 30th day of March, 1987.