Current Status BillNumber: 2178 Ratification Number: 8 Act Number: 251 Introducing Body: House Subject: Denmark-Olar School District No. 2 general obligation bondsView additional legislative information at the LPITS web site.
(A251, R8, S2178)
AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF DENMARK-OLAR SCHOOL DISTRICT NO. 2. OF BAMBERG COUNTY TO ISSUE GENERAL OBLIGATION BONDS OF THE DISTRICT UP TO ITS CONSTITUTIONAL DEBT LIMIT TO FUND AN OPERATING DEFICIT; 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 Denmark-Olar School District No. 2. of Bamberg County (the school district) shall, in the present 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. 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 fund the deficit 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.
Bond issue authorized
SECTION 2. For the purpose of funding the 1986-87 deficit of the school district, the board may on or before July 1, 1987, 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 Bamberg County Board of Education must approve the bond issue.
SECTION 4. All bonds issued pursuant to this act shall mature in annual series or installments as the board prescribes. No bond may mature later than ten years from the date it is issued.
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 that 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. When issued in registered form, all bonds issued pursuant to this act have all attributes of negotiable instruments under the Uniform Commercial Code.
Denominations - where payable
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 determined by the board within the limitations of Section 11-9-350 of the 1976 Code.
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.
Payment - tax levy
SECTION 11. 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 Bamberg County, and collected by the treasurer of Bamberg 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 taxexempt status prescribed by Section 12-1-60 of the 1976 Code.
Use of proceeds
SECTION 13. The proceeds derived from the sale of any bonds issued pursuant to this act must be paid to the treasurer of Bamberg 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 1986-87 deficit of the school district, or a portion of the deficit.
(d) If any balance remains, it must be held by the treasurer of Bamberg 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.
No elections or further approval required
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.
Approved the 12th day of February, 1987.