South Carolina Code 6-24-130. Assurance of payment of principal or interest on bonds
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Terms Used In South Carolina Code 6-24-130
- Contract: A legal written agreement that becomes binding when signed.
- Governing body: means the duly constituted governing body of a governmental entity. See South Carolina Code 6-24-20
- Joint agency: means a public body and body corporate and politic organized in accordance with the provisions of this chapter. See South Carolina Code 6-24-20
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
If a joint agency undertakes a project requiring financing, in whole or in part, with the proceeds of bonds, and the payment of principal or interest on the bonds is assured directly or indirectly by a contract with one or more members, the project must not be undertaken without the approval of the governing body of each member which provides assurance. For these purposes, a member has not assured payment on bonds unless its obligation pursuant to the contract is absolute and without regard to the completion or operation of the project.