In the authorizing ordinance the governing body of the borrower shall set aside monthly (or more often if deemed advisable) and shall pledge either the gross revenues or net revenues of the system, project, or combined system, as the governing body of the borrower may determine, into separate and special funds as follows: Out of the revenues there shall be set aside a sum sufficient to pay the principal of and the interest upon the bonds as and when they become due and payable. If the revenues of any calendar, operating, or fiscal year shall be insufficient to pay the principal of and interest on the bonds maturing in any such calendar, operating, or fiscal year, an additional amount sufficient to pay the principal of and interest on such bonds outstanding and unpaid shall be set aside out of the revenues of the next succeeding calendar, operating, or fiscal year and applied to the payment of the principal of and interest on such outstanding and unpaid bonds. This fund shall be designated the "bond and interest redemption fund". Out of the revenues there also shall be set aside a sum sufficient to provide for the payment of all expenses of administration and operation and such expenses for maintenance as may be necessary to preserve the system, project or combined system in good repair and working order. This fund shall be designated the "operation and maintenance fund". If the pledge made is of gross revenues, the order of the foregoing set asides shall be first to the bond and interest redemption fund and next to the operation and maintenance fund; if the pledge is of net revenues, the order of the foregoing set asides shall be first to the operation and maintenance fund and next to the bond and interest redemption fund. Out of the remaining revenues there shall be next set aside a sum sufficient to build up a reserve for depreciation of the existing system or combined system. This fund shall be designated the "depreciation fund". Out of the remaining revenues there shall be next set aside a sum sufficient to build up a reserve for improvements, betterments, and extensions to the existing system, project, or combined system, other than those necessary to maintain it in good repair and working order as herein provided. This fund shall be designated the "contingent fund". Any surplus revenues thereafter remaining shall be disposed of by the governing body of the borrower as it may determine from time to time to be for the best interest of the borrower.
In the event the proceedings for the issuance of bonds provide for their repayment in whole or in part from front-foot assessments, the borrower need not make the payments provided for in this section for application for the payment of principal and interest on a monthly basis but may make them at least annually, provided that the payments shall be in such amounts and at such times that sufficient funds will be available to pay the principal and interest upon the bonds as and when they become due and payable.
HISTORY: 1962 Code Section 59-402; 1952 Code Section 59-402; 1942 Code Section 9264; 1933 (38) 411; 1980 Act No. 365; 1990 Act No. 603, Section 9.
Structure South Carolina Code of Laws
Chapter 21 - Revenue Bond Act For Utilities
Section 6-21-5. Transportation authorities; power to establish and finance.
Section 6-21-10. "Borrower" defined.
Section 6-21-20. "Governing body" defined.
Section 6-21-30. "Municipality" defined.
Section 6-21-40. "System" defined.
Section 6-21-45. Definition of "hospitals, nursing home and care facilities".
Section 6-21-50. Authorized public works which may be purchased or constructed.
Section 6-21-70. Joint projects.
Section 6-21-80. Improvement of existing system.
Section 6-21-90. Construction on private property.
Section 6-21-100. Construction and operation of works; acquisition of property.
Section 6-21-110. Condemnation of property.
Section 6-21-130. Option or contract of purchase.
Section 6-21-140. Estimate of cost of system.
Section 6-21-150. Estimate of repairs and betterments when existing works acquired.
Section 6-21-160. Ordinances or resolutions which may be adopted for purposes of chapter.
Section 6-21-180. Acceptance of Federal loans and grants.
Section 6-21-190. Bond issues authorized.
Section 6-21-200. Bonds shall not be subject to certain limitations.
Section 6-21-210. Bond issue must be authorized by ordinance or resolution.
Section 6-21-220. Terms, form and execution of bonds.
Section 6-21-230. Additional provisions as to form of bonds.
Section 6-21-250. Undelivered bonds executed by ex-officers shall be valid.
Section 6-21-260. Bonds shall be negotiable.
Section 6-21-270. Bonds shall be tax exempt.
Section 6-21-280. Sale of bonds.
Section 6-21-290. Bonds shall be legal investments.
Section 6-21-300. Deposit of and security for proceeds from bonds.
Section 6-21-310. Use of proceeds from bonds.
Section 6-21-320. Payment of bonds before maturities.
Section 6-21-330. Statutory lien of bondholders on system or project.
Section 6-21-340. Pledge of water revenues for water and sewer system.
Section 6-21-350. Enforcement of lien of bondholders.
Section 6-21-360. Appointment and powers of receiver.
Section 6-21-370. Additional bonds for further improvements.
Section 6-21-380. Revenue refunding bonds.
Section 6-21-390. Rates for service.
Section 6-21-400. Rates shall not be subject to regulations; permits shall not be required.
Section 6-21-410. Payment for service by borrower.
Section 6-21-420. Accounting basis of system or project.
Section 6-21-430. Custodian of Gross Revenues; Funds shall be In Form of Trust.
Section 6-21-440. Segregation of revenues to several funds.
Section 6-21-450. Payment of expenses of operation or maintenance from other funds.
Section 6-21-460. Bonds payable only from bond and interest redemption fund.
Section 6-21-470. Excess contributions to bond and interest redemption fund.
Section 6-21-480. Disposition of surplus in operation and maintenance fund.
Section 6-21-490. Disposition of surplus in depreciation fund.
Section 6-21-500. Disposition of surplus in contingent fund.
Section 6-21-510. Books and accounts; annual report; inspection.
Section 6-21-520. Limitation on obligation which may be incurred by municipality.
Section 6-21-530. Issuance of bonds without election or notice.
Section 6-21-540. Effect of former Public Works Administration Act.
Section 6-21-550. Effect of chapter on existing contracts and liens.