Introduced by Senator Land

1 INTRODUCED 2 February 12, 2003 3 4 S. 358 5 6 Introduced by Senator Land 7 8 L. Printed 2/12/03--S. 9 Read the first time February 12, 2003. 10 11

1 [358-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL 12 DISTRICT NO. 1 OF CLARENDON COUNTY TO ISSUE 13 GENERAL OBLIGATION BONDS TO PROVIDE FUNDS 14 NECESSARY TO MEET ITS COSTS OF OPERATIONS AND 15 MAINTENANCE TO REPLACE FUNDS LOST AS A 16 CONSEQUENCE OF REDUCTIONS IN STATE 17 APPROPRIATIONS. 18 19 Be it enacted by the General Assembly of the State of South 20 Carolina: 21 22 SECTION 1. The General Assembly finds that owing to 23 reductions in state appropriations for fiscal years 2001-02 and 24 2002-03, School District No. 1 of Clarendon County, the school 25 district, will experience a shortfall in funds necessary to meet its 26 operating budget for fiscal year 2002-03. The General Assembly 27 has determined to authorize the board of trustees of the school 28 district, the board, to issue general obligation bonds of the school 29 district to provide funds necessary to meet its costs of operation 30 and maintenance. 31 32 SECTION 2. In order to raise funds to meet costs of operation 33 and maintenance of the school district, the board may issue and 34 sell a general obligation bond or bonds of the school district, the 35 bond, as a single issue or several issues, without the necessity of 36 holding an election, in an amount not to exceed the available eight 37 percent debt limit as prescribed by Article X, Section 15 of the 38 South Carolina Constitution. 39 40 SECTION 3. The bond shall mature no more than ten years from 41 the date of issuance. 42

1 [358] 1 1 SECTION 4. The bond may be issued with a provision permitting 2 its prepayment before its stated maturity upon terms prescribed by 3 the board. 4 5 SECTION 5. The bond must be in the form of a fully registered 6 bond upon conditions the board prescribes. 7 8 SECTION 6. The bond must be made payable in places, within or 9 without the State, prescribed by the board. 10 11 SECTION 7. The bond must bear interest at a rate determined in 12 the manner and payable upon the dates prescribed by the board. 13 14 SECTION 8. The bond must be in a denomination or 15 denominations and executed in a manner the board prescribes. 16 17 SECTION 9. The bond must be sold at a price of not less than par 18 and accrued interest, if any, from its dated date to the date of its 19 delivery. The bond may be sold at public sale pursuant to Section 20 59-71-130 of the 1976 Code and Title 11, Chapter 27 of the 1976 21 Code, or private sale and without advertisement if, not less than 22 seven days before its delivery, notice of intention to sell the bond 23 at private sale is given by publication in a newspaper of general 24 circulation in the school district. The notice must be set forth the 25 purchaser, the purchase price, interest rate, and maturity of the 26 bond. 27 28 SECTION 10. For the payment of the principal and interest of 29 the bond, the full faith, credit, and taxing power of the school 30 district shall be irrevocably pledged, and there must be levied 31 annually by the Auditor of Clarendon County, and collected by the 32 Treasurer of Clarendon County, in the same manner as county 33 taxes are levied and collected on all taxable property in the school 34 district, a tax sufficient to pay the principal and interest of the 35 bond. 36 37 SECTION 11. The principal of and interest on the bond shall 38 have the tax-exempt status prescribed by Section 12-2-50 of the 39 1976 Code. 40 41 SECTION 12. The proceeds derived from the sale of the bond 42 issued under the provisions of this act must be paid to the 43 Treasurer of Clarendon County and must be used to meet the costs

1 [358] 2 1 of its issuance, and to pay the costs of operations and maintenance 2 of the school district or to pay all or a portion of the principal and 3 interest on a tax anticipation note of the school district issued as of 4 July 1, 2002. 5 6 SECTION 13. The powers and authorizations conferred by this 7 act upon the board are in addition to all other powers and 8 authorizations previously vested in the board and may be availed 9 of pursuant to action taken at a regular or special meeting of the 10 board of trustees. 11 12 SECTION 14. No action other than that prescribed in this act 13 must be taken to effect the issuance of the bond authorized in this 14 act, nor is the board required to obtain approval of a public agency 15 or board for any action taken pursuant to the authorizations of this 16 act. 17 18 SECTION 15. This act takes effect upon approval by the 19 Governor. 20 ----XX---- 21

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