South Carolina Supremes OK Transportation Bank Governance

BRADENTON, Fla. – The South Carolina Supreme Court has upheld the governance of the state’s Transportation Infrastructure Bank.

The court said in a June 13 ruling that legislators, who serve on the board of the South Carolina Transportation Infrastructure Bank, do not violate a prohibition against dual office holding, and do not violate the constitutional provisions regarding the separation of powers.

The ruling was in response to a lawsuit filed by the South Carolina Public Interest Foundation and Edward D. Sloan Jr. challenging whether the bank’s governance was constitutional.

The TIB’s seven-member board makes policy decisions and approves financing for major transportation projects across the state.

The bank was created in 1997 by the General Assembly, and receives administrative and management support from the South Carolina Department of Transportation. Its financial advisor is Public Financial Management Inc.

The TIB had $2.1 billion of revenue bonds and $45.95 million of general obligation bonds outstanding as of June 30, 2012.

The revenue bonds are rated A by Fitch Ratings and A1 by Moody’s Investors Service.

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