S.C. Code Ann. § 11-15-590
The proceeds derived from the sale of any such bonds shall be deposited in a special fund, separate and distinct from all other funds, and applied solely to the purposes for which the bonds are issued, except that the premium, if any, shall be placed in the sinking fund established by Section 11-15-540 and the accrued interest, if any, shall be used to discharge in part the first interest to become due on such bonds.