South Carolina Code 31-9-50. Loan agreements; obligations of developer; issuance of additional parity bonds
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Terms Used In South Carolina Code 31-9-50
- Bonds: shall include notes, bonds, refunding notes or bonds and other obligations authorized to be issued by this chapter. See South Carolina Code 31-9-10
- City: shall mean any incorporated municipality of the State. See South Carolina Code 31-9-10
- Developer: shall mean any person, firm or partnership who enters into a loan agreement with the city whereby the developer agrees to construct, operate and maintain or procure the construction, operation and maintenance of buildings or other facilities or improvements upon land purchased with the proceeds of bonds. See South Carolina Code 31-9-10
- Governing board: shall mean the governing body of any city. See South Carolina Code 31-9-10
- Land: shall mean any real estate, whether improved or unimproved, located within any city which the governing board of such city proposes to acquire from the proceeds derived from the issuance of bonds after making a determination that the acquisition of such land is necessary in connection with any slum clearance or redevelopment work. See South Carolina Code 31-9-10
- Loan agreement: shall mean any agreement, including without limitation, an agreement whereby the city shall lease land to a developer, made by and between a governing board and a developer by which the developer agrees to pay (and to secure if so required) the city or to any assignee thereof, the sums required to meet the payment of the principal, interest and redemption premium, if any, on any bonds. See South Carolina Code 31-9-10
Every loan agreement shall contain a covenant obligating the developer to effect the completion of the buildings or other facilities or improvements described therein upon the land at no cost to the city and each such loan agreement shall obligate the developer to make payments which shall be sufficient (a) to pay the principal of and interest on the bonds issued for such land, (b) to build up and maintain any reserves deemed by the governing board to be advisable in connection therewith and (c) in the event the city owns the land and leases it to the developer, to pay to the city and any other taxing bodies in which the land is located, annually an amount equal to the taxes which would be paid to the city and such taxing authorities if the land were privately owned. The loan agreement may provide for the issuance of additional parity bonds in order to acquire additional land.