H*4184 Session 107 (1987-1988)
H*4184(Rat #0693, Act #0788 of 1988) General Bill, By K.E. Bailey
A Bill to authorize the Board of Trustees of Orangeburg School District No. 2
to issue not more than one million, six hundred thousand dollars of general
obligation bonds of the District, to prescribe the conditions under which the
bonds may be issued and the purposes for which their proceeds may be expended,
and to make provision for the payment of the bonds.
04/14/88 House Introduced, read first time, placed on calendar
without reference HJ-2957
04/14/88 House Unanimous consent for second reading on next
legislative day HJ-2957
04/14/88 House Unanimous consent for third reading on next
legislative day HJ-2957
04/15/88 House Read second time HJ-3005
04/19/88 House Read third time and sent to Senate HJ-3023
04/20/88 Senate Intd. & placed on loc. & uncontested cal. w/o
referenc SJ-34
05/25/88 Senate Read second time SJ-22
05/25/88 Senate Unanimous consent for third reading on next
legislative day SJ-22
05/26/88 Senate Read third time and enrolled SJ-35
05/31/88 Ratified R 693
06/01/88 Signed By Governor
06/01/88 Effective date 06/01/88
06/01/88 Act No. 788
06/16/88 Copies available
(A788, R693, H4184)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF ORANGEBURG SCHOOL DISTRICT 2 TO
ISSUE NOT MORE THAN ONE MILLION, SIX HUNDRED THOUSAND DOLLARS OF GENERAL
OBLIGATION BONDS OF THE DISTRICT, TO PRESCRIBE THE CONDITIONS UNDER WHICH THE
BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THEIR 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:
Authorization for issue of general obligation bonds
SECTION 1. (A) By referendum of the qualified electors of Orangeburg School
District 2 conducted on September 17, 1985, by the election commission for
Orangeburg County, a majority of the electors voted in favor of the issue, in a
single issue, or from time to time as several separate issues, of not more than
one million, six hundred thousand dollars of general obligation bonds of the
school district to finance certain improvements to be made to the Bowman
Elementary School campus and Bowman High School of the school district.
(B) The school district has proceeded, through interim financing in
anticipation of the issue of the bonds, to acquire and construct the
improvements. The school district presently anticipates that the bonds may not
be issued until after September 17, 1988.
(C) The General Assembly finds that the school district is in need of the
improvements and authorizes the board of trustees of Orangeburg School District
2 to effect the acquisition and construction of the improvements through the
issuance by the school district of general obligation bonds in the aggregate
principal amount of not more than one million, six hundred thousand dollars or
a lesser sum as, upon the issuance of the bonds, may be determined to be
necessary by the board.
Disposition of the proceeds
SECTION 2. In order to obtain funds for the purposes set forth in this act, the
board is authorized to issue, without the approval of the Orangeburg County Board
of Education, not more than one million, six hundred thousand dollars of general
obligation bonds of the school district. The proceeds derived from the sale of
the bonds must be deposited in a special fund and disposed 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 used upon warrants of the board to defray
the cost of issuing the authorized bonds and to acquire and construct the
improvements as provided in this act.
(4) If any balance remains, it must be held by the Orangeburg County
Treasurer in a special fund and used to effect the retirement of bonds authorized
by this act.
Conditions of issue
SECTION 3. The bonds may be issued as a single issue, or from time to time as
several separate issues in the discretion of the board. However, no bonds may
be issued later than September 17, 1990. All bonds mature serially in successive
annual installments of amounts as may be determined by the board, except that the
maturity date of the last installment of any bonds issued under this act falls
due not later than twenty-five years from the date the bonds bear. Any bond
issued pursuant to this act, at the discretion of the board, may contain a
provision permitting its redemption before its stated maturity at a redemption
premium as the board prescribes. The bonds must be of a denomination, must bear
a rate of interest, and must be payable on occasions the board determines. The
bonds must be issued as registered bonds with registration of the holder of them
to be noted on the books of the school district or its designee, and the
principal made payable to the registered holder, upon conditions as the board may
prescribe. The bonds must bear a date and must be payable at the places the
board prescribes.
Execution
SECTION 4. The bonds must be executed in the manner the board prescribes.
Sale
SECTION 5. The bonds may be sold at a price not less than par at a private sale
to the United States or any agency of the United States. If not so sold, the
bonds must be sold by the board at not less than par and accrued interest on the
bonds to the date of their respective deliveries at public sale, and at least ten
days before any sale, notice, announcing the intention to receive bids for the
sale of bonds authorized by this act, must be published in a newspaper of general
circulation in this State.
Tax exemption
SECTION 6. The bonds and all interest to become due on the bonds have the
tax-exempt status as prescribed by Section 59-71-160 of the Code of Laws of South
Carolina, 1976.
Payment
SECTION 7. For the payment of the principal and interest of all bonds issued
pursuant to this act as the bonds respectively mature, and for the creation of
a sinking fund as may be necessary, the full faith, credit, and taxing power of
the school district must be pledged irrevocably, and there must be levied
annually by the Orangeburg County Auditor and collected by the Orangeburg County
Treasurer, 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 and interest of the bonds as they respectively mature and to create
a sinking fund as may be necessary. However, the ad valorem tax levy must be
reduced to the extent that there is on deposit with the Orangeburg County
Treasurer, on the occasion in each year when the ad valorem tax levy is to be
made, monies derived from contributions or grants from the State to the school
district for capital improvements for school facilities which can be used for the
payment of the principal and interest, and in all instances where an annual tax
levy is so reduced, the monies derived from the contributions and grants must be
applied to payment of the principal and interest and to no other purpose.
Board of trustees' action
SECTION 8. Any action required of the board may be taken at any meeting of the
board, regular or special, and at the meeting a majority of its members
constitutes a quorum for the purpose of adopting a resolution making provision
for the issuance of bonds pursuant to this act, awarding the sale of the bonds,
or taking any other action permitted or required of the board by the provisions
of this act.
Investment
SECTION 9. All executors, administrators, guardians, committees, and other
fiduciaries and all sinking fund commissions may invest any monies in their hands
in bonds issued under this act.
Time effective
SECTION 10. This act takes effect upon approval by the Governor. |