CHAPTER 17 - AUTHORITY TO BORROW MONEY AND ISSUE CERTIFICATES OF INDEBTEDNESS THEREFOR

AN ACT AUTHORIZING THE BORROWING OF MONEY AND THE CREATION OF A DEBT BY AND ON BEHALF OF THE STATE OF DELAWARE, AND THE ISSUANCE OF CERTIFICATES OF INDEBTEDNESS OF THE STATE, IN A SUM NOT TO EXCEED SEVEN HUNDRED THOUSAND DOLLARS, TO MEET A CASUAL DEFICIENCY IN THE GENERAL FUND OF THE STATE.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That the Governor, the Secretary of State, and the State Treasurer, of the State of Delaware, herein sometimes referred to as the "issuing officers", are hereby authorized, fully empowered and directed, to borrow from the President, Directors and Company of the Farmers Bank of the State of Delaware, a corporation of the State of Delaware, upon the faith and credit of the State of Delaware, a sum not in excess of Seven Hundred Thousand Dollars, to meet any casual deficiency or deficiencies in the General Fund occurring during the remainder of the fiscal year ending June 30, 1935, and to issue certificates of indebtedness of the State for said purpose. The said certificates may be issued at one time, or from time to time, and the said "issuing officers" shall determine all matters in connection therewith, subject to the provisions contained in this act.

Section 2. That the said certificates of indebtedness, issued in accordance with the provisions of this act, shall be a direct general obligation of the State, and the public faith and credit of the State is hereby expressly pledged for the full and complete payment of the debt, principal and interest. The principal and interest of such certificates shall be exempt from taxation by the State or by any political subdivision thereof, for any purpose.

Section 3. That the said certificates of indebtedness shall be signed in the name of the State of Delaware by the Governor, the Secretary of State, and the State Treasurer, and shall have the great seal of the State impressed thereon. Attached interest coupons, if any, shall be authenticated by the signature or facsimile signature of the State Treasurer. The said certificates may be issued notwithstanding that any of the officers signing them or whose facsimile signature appears on the coupons shall have ceased to hold office at the time of such issue or at the time of the delivery of such certificates to the said Farmers Bank.

Section 4. That the said certificates of indebtedness shall recite that they are issued for the purpose set forth in Section One of this act, and that they are issued in pursuance of this act, and the constitution of this State, and such recital shall be conclusive evidence of the authority of the State to issue such certificates and of their validity. Any such certificates containing such recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, executed and delivered in conformity herewith, and shall be incontestable for any cause.

Section 5. That the said certificates of indebtedness shall be in such form and in such denomination and may contain such other and further recital and be subject to such terms and conditions, with such privileges as to registration, conversion, reconversion, redemption, and exchange, and may contain such other provisions, as may be determined by the said "issuing officers."

Section 6. That the said certificates of indebtedness, shall bear interest payable semi-annually at a rate of interest not exceeding two percentums per annum.

Section 7. That the said certificates of indebtedness shall mature as the "issuing officers" may determine.

Section 8. That any and all money received under the provisions of this act shall be at once credited to the general fund of the State and shall be used exclusively for the purpose set forth in this act.

Section 9. That the Budget Appropriation Bill enacted and approved by the General Assembly at the One Hundred and Fifth' Session, and at each and every subsequent biennial session thereof, shall contain under the Debt Service Item provisions for the payment of maturity principal and interest of certificates of indebtedness issued by virtue of this act, and such revenues of the State of Delaware that are not prohibited by constitutional provisions or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellations of such certificates of indebtedness and the payment of the interest thereon.

Approved February 4, 1935.