South Carolina Code of Laws
Chapter 11 - Particular Airports
Section 55-11-150. Issuance of revenue bonds.

The commission may, on behalf of the district, borrow money and make and issue negotiable bonds, notes and other evidences of indebtedness payable solely from the revenue derived from the operation of any revenue-producing facility or facilities in its charge. The sums borrowed may be those needed to pay costs incident to the operation and maintenance of its airport facility or such sums as may be needed to pay the cost of any extension, addition or improvement to its airport facility, or both. If the method of financing authorized by this section is used, neither the faith and credit of this State nor of any county lying within the district nor of the district itself shall be pledged to the payment of the principal and interest of the obligations, and there shall be on the face of such obligation a statement, plainly worded, to that effect. Neither the members of the commission nor any person signing the obligations shall be personally liable thereon. That a convenient procedure for borrowing money pursuant to this section may be prescribed, the district may avail itself of all powers granted by Chapter 17, Title 6, notwithstanding the fact that the district shall not otherwise be deemed to be a municipality. In exercising the powers conferred upon the district by such code provisions, the district may make all pledges and covenants authorized by any provision thereof, and may confer upon the holders of its securities all rights and liens authorized by such code provisions. Specifically, and notwithstanding contrary provisions in any such code provisions, the district may:
(1) provide that such bonds, notes or other evidences of indebtedness be payable, both as to principal and interest, from the net revenues derived from the operation of any revenue-producing facility or facilities, as such net revenues may be defined by the Commission;
(2) covenant and agree that upon its being adjudged in default as to the payment of any installment of principal and interest upon any obligation issued by it or in default as to the performance of any covenant or undertaking made by it, that in such event the principal of all obligations of such issue may be declared forthwith due and payable, notwithstanding that any of them may not have then matured;
(3) confer upon a corporate trustee the power to make disposition of the proceeds from all borrowings and also all revenues derived from the operation of the revenue-producing facility whose revenues are pledged for the payment of such obligations, in accordance with and in the order of priority prescribed by resolutions adopted by the commission as an incident to the issuance of any notes, bonds or other evidences of indebtedness;
(4) dispose of its obligations at public or private sale and upon such terms and conditions as it shall approve;
(5) make such provision for the redemption of any obligations issued by it prior to their stated maturity, with or without a premium, and on such terms and conditions as the commission shall approve;
(6) covenant and agree that any cushion fund established to further secure the payment of principal and interest of any obligation shall be in a fixed amount;
(7) covenant and agree that it will not enter into any agreements with any person or with the government of this State, the United States, or any of their political subdivisions, for the furnishing of free services where such services are ordinarily charged for;
(8) prescribe the procedure, if any, by which the terms of the contract with the holders of its obligations may be amended, the number of obligations whose holders must consent thereto, and the manner in which such consent shall be given; and
(9) prescribe the evidences of default and conditions upon which all or any obligation shall become or may be declared due before maturity, and the terms and conditions upon which such declaration and its consequences may be waived.
HISTORY: 1962 Code Section 2-319; 1959 (51) 101; 2012 Act No. 270, Section 5, eff June 18, 2012.
Effect of Amendment
The 2012 amendment made nonsubstantive changes.
CROSS REFERENCES
Disposition of unpledged revenues, see Section 55-11-160.
Public finance, generally, see Section 11-1-10 et seq.
NOTES OF DECISIONS
In general 1
1. In general
The only constitutional limitation controlling the debt limit of the district created by this article is the 8% limitation found in Section 5 of Art 10 of the Constitution. Berry v. Milliken (S.C. 1959) 234 S.C. 518, 109 S.E.2d 354.

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