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INTRODUCED
February 12, 2003
S. 358
L. Printed 2/12/03--S. [SEC 2/13/03 2:28 PM]
Read the first time February 12, 2003.
TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT NO. 1 OF CLARENDON COUNTY TO ISSUE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS NECESSARY TO MEET ITS COSTS OF OPERATIONS AND MAINTENANCE TO REPLACE FUNDS LOST AS A CONSEQUENCE OF REDUCTIONS IN STATE APPROPRIATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that owing to reductions in state appropriations for fiscal years 2001-02 and 2002-03, School District No. 1 of Clarendon County, the school district, will experience a shortfall in funds necessary to meet its operating budget for fiscal year 2002-03. The General Assembly has determined to authorize the board of trustees of the school district, the board, to issue general obligation bonds of the school district to provide funds necessary to meet its costs of operation and maintenance.
SECTION 2. In order to raise funds to meet costs of operation and maintenance of the school district, the board may issue and sell a general obligation bond or bonds of the school district, the bond, as a single issue or several issues, without the necessity of holding an election, in an amount not to exceed the available eight percent debt limit as prescribed by Article X, Section 15 of the South Carolina Constitution.
SECTION 3. The bond shall mature no more than ten years from the date of issuance.
SECTION 4. The bond may be issued with a provision permitting its prepayment before its stated maturity upon terms prescribed by the board.
SECTION 5. The bond must be in the form of a fully registered bond upon conditions the board prescribes.
SECTION 6. The bond must be made payable in places, within or without the State, prescribed by the board.
SECTION 7. The bond must bear interest at a rate determined in the manner and payable upon the dates prescribed by the board.
SECTION 8. The bond must be in a denomination or denominations and executed in a manner the board prescribes.
SECTION 9. The bond must be sold at a price of not less than par and accrued interest, if any, from its dated date to the date of its delivery. The bond may be sold at public sale pursuant to Section 59-71-130 of the 1976 Code and Title 11, Chapter 27 of the 1976 Code, or private sale and without advertisement if, not less than seven days before its delivery, notice of intention to sell the bond 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 rate, and maturity of the bond.
SECTION 10. For the payment of the principal and interest of the bond, the full faith, credit, and taxing power of the school district shall be irrevocably pledged, and there must 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 on all taxable property in the school district, a tax sufficient to pay the principal and interest of the bond.
SECTION 11. The principal of and interest on the bond shall have the tax-exempt status prescribed by Section 12-2-50 of the 1976 Code.
SECTION 12. The proceeds derived from the sale of the bond issued under the provisions of this act must be paid to the Treasurer of Clarendon County and must be used to meet the costs of its issuance and to pay the costs of operations and maintenance of the school district or to pay all or a portion of the principal and interest on a tax anticipation note of the school district issued as of July 1, 2002.
SECTION 13. The powers and authorizations conferred by this act upon the board are in addition to all other powers and authorizations previously vested in the board and may be availed of pursuant to action taken at a regular or special meeting of the board of trustees.
SECTION 14. No action other than that prescribed in this act must be taken to effect the issuance of the bond authorized in this act nor is the board required to obtain approval of a public agency or board for any action taken pursuant to the authorizations of this act.
SECTION 15. This act takes effect upon approval by the Governor.
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