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March 5, 2002
L. Printed 3/5/02--S.
Read the first time March 5, 2002.
TO AUTHORIZE THE BOARD OF TRUSTEES OF SCHOOL DISTRICT 1 OF CLARENDON COUNTY TO ISSUE GENERAL OBLIGATIONS BONDS OF THE DISTRICT UP TO ITS CONSTITUTIONAL DEBT LIMIT TO FUND AN OPERATING DEFICIT AND CURRENT OPERATING EXPENDITURES; 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 THE BONDS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that School District 1 of Clarendon County did, in fiscal year 2000-01, experience a revenue shortfall and shall, in the current fiscal year, experience a revenue shortfall. There presently exists no statutory authorization for the school district to incur bonded indebtedness to fund an operating deficit or to fund current operating expenditures. 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 operating expenditures to the extent permitted under the constitution 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 the 2000-01 deficit of the school district and for the purpose of paying operating expenses for fiscal year 2001-02 so as to avoid a deficit for fiscal year 2001-02, the board may on or before July 1, 2002, issue, without an election, general obligation bonds of the school district, in an amount as is on the occasion of the issuance of the bonds pursuant to the authorization of this act, within the constitutional debt limitation applicable to the school district.
SECTION 3. Prior to the issuance of the bonds, the Clarendon County Board of Education must approve the bond issue if the amount of the bonds to be issued exceeds one million dollars.
SECTION 4. All bonds issued pursuant to this act shall mature in annual series or installments as the board prescribes.
SECTION 5. 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, provision must be made specifying the manner of call and the notice of call must be given.
SECTION 6. The bonds issued pursuant to this act may be 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.
SECTION 7. 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 8. Bonds issued pursuant to this act shall bear interest at a rate or rates determined by the board within the limitations provided by law.
SECTION 9. The bonds must be executed in a manner as the board prescribes by resolution.
SECTION 10. 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 private or public sale upon the terms prescribed by the board.
SECTION 11. For the payment of 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 may be levied annually by the Auditor of Clarendon County, and collected by the Treasurer of Clarendon 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 12. The principal of and interest on bonds issued pursuant to this act have the tax-exempt status prescribed by Section 12-2-50 of the 1976 Code.
SECTION 13. The proceeds derived from the sale of any bonds issued pursuant to this act must be paid to the Treasurer of Clarendon County, to be deposited in a bond account fund for the school district and must be expended and made use of by the board as follows:
(a) any accrued interest must be applied to the payment of the first installment of interest to become due on the bonds;
(b) any premium must be applied to the payment of the first installment of principal on the bonds;
(c) the remaining proceeds must be used to defray the cost of issuing bonds authorized by this act and to fund the operating deficit for fiscal year 2000-01 and to pay operating expenses for fiscal year 2001-02 so as to avoid a deficit for fiscal year 2001-02;
(d) if any balance remains, it must be held by the Treasurer of Clarendon County in a special fund and used to effect the retirement of bonds.
SECTION 14. 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 15. 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 to any action taken pursuant to the authorizations by this act except the County Board of Education prescribed by Section 3.
SECTION 16. This act takes effect upon approval by the Governor.
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