Current Status Bill Number:4681 Ratification Number:430 Act Number:353 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960227 Primary Sponsor:Koon All Sponsors:Koon Drafted Document Number:dka\3541jm.96 Date Bill Passed both Bodies:19960514 Governor's Action:S Date of Governor's Action:19960529 Subject:Business development corporations
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19960606 Act No. A353
------ 19960529 Signed by Governor
------ 19960523 Ratified R430
Senate 19960514 Read third time, enrolled for
ratification
Senate 19960429 Read second time
Senate 19960424 Recalled from Committee, 06 SF
placed on the Calendar
Senate 19960402 Introduced, read first time, 06 SF
referred to Committee
House 19960328 Read third time, sent to Senate
House 19960327 Read second time
House 19960321 Committee report: Favorable 30 HWM
House 19960227 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A353, R430, H4681)
AN ACT TO AMEND SECTION 33-37-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SOUTH CAROLINA BUSINESS DEVELOPMENT CORPORATIONS AND THE PROVISION THAT SUCH CORPORATIONS AND ITS SECURITIES ARE EXEMPT FROM TAXATION, SO AS TO PROVIDE THAT THE CORPORATION IS NOT SUBJECT TO ANY CORPORATION LICENSE TAX OR FEE IMPOSED BY CHAPTER 20 OF TITLE 12; TO AMEND SECTION 33-37-250, AS AMENDED, RELATING TO SOUTH CAROLINA BUSINESS DEVELOPMENT CORPORATIONS AND THEIR POWERS, SO AS TO PERMIT THE BORROWING OF MONEY FROM "SUCH OTHER LENDING SOURCES WHICH ARE APPROVED BY THE BOARD OF DIRECTORS OF THE CORPORATION"; AND TO AMEND SECTION 33-37-460, AS AMENDED, RELATING TO LOANS TO SOUTH CAROLINA BUSINESS DEVELOPMENT CORPORATIONS BY MEMBERS, SO AS TO DELETE THE PROVISION THAT SUCH LOANS MUST BEAR INTEREST AT A CERTAIN RATE.
Be it enacted by the General Assembly of the State of South Carolina:
Not subject to corporation license tax or fee
SECTION 1. Section 33-37-70 of the 1976 Code is amended to read:
"Section 33-37-70. The corporation is not subject to any taxes based upon or measured by income which are now or may be hereafter levied by the State; and the securities, evidences of indebtedness, and shares of the capital stock issued by the corporation established under the provisions of this chapter, their transfer, income therefrom, and deposits of financial institutions invested therein are free at all times from taxation within the State. The corporation is not subject to any corporation license tax or fee imposed by Chapter 20 of Title 12."
Power to borrow money expanded
SECTION 2. Section 33-37-250(3) of the 1976 Code is amended to read:
"(3) To borrow money only from (i) the members, (ii) the Small Business Administration, an agency of the United States Government, and (iii) such other lending sources which are approved by the board of directors of the corporation for any of the purposes of the corporation, to issue therefor its bonds, debentures, notes or other evidences of indebtedness, whether secured or unsecured, and to secure them by mortgage, pledge, deed of trust or other lien on its property, franchises, rights and privileges of every kind and nature or any part thereof or interest therein, without securing stockholder or member approval; provided, that no loan to the corporation may be secured in any manner unless all outstanding loans to the corporation are secured equally and ratably in proportion to the unpaid balance of such loans and in the same manner;"
Rate-of-interest provision deleted
SECTION 3. Section 33-37-460(5) of the 1976 Code, as last amended by Act 123 of 1995, is further amended to read:
"(5) All loans to the corporation by members must be evidenced by bonds, debentures, notes, or other evidences of indebtedness of the corporation which are freely transferable at all times."
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Approved the 29th day of May, 1996.