CHAPTER 18 - AUTHORIZING STATE OF DELAWARE TO BORROW $425,000.00 AND ISSUE BONDS THEREFOR

AN ACT AUTHORIZING THE BORROWING OF MONEY AND THE CREATION OF A DEBT BY OR IN BEHALF OF THE STATE OF DELAWARE, FOR THE ERECTION, REPAIRS AND IMPROVEMENTS OF BUILDINGS AT INSTITUTIONS OF THE STATE, AND FOR THE PAYMENT OF A PORTION OF THE COST OF CONSTRUCTION OF THE INLET WITH THE INDIAN RIVER AND REHOBOTH BAYS, AND THE ISSUANCE OF BONDS THEREFOR.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met (three-fourths of all the members elected to each branch thereof concurring therein):

Section 1. That the Governor, the State Treasurer and the Secretary of State, of the State of Delaware, herein sometimes referred to as the "issuing officers", are hereby authorized, fully empowered and directed, to borrow, upon the faith and credit of the State of Delaware, a sum of money not in excess of Four Hundred and Twenty-five Thousand Dollars ($425,000.00), Three Hundred and Twenty-five Thousand Dollars ($325,000.00) of which is to be used for the erection, repairs and improvements of buildings at Institutions of the State, One Hundred Thousand Dollars ($100,000.00) to be used to pay a portion of the cost of construction of the Inlet into the Indian River and Rehoboth Bays, and to issue bonds of The State of Delaware in a sum not in excess of Four Hundred and Twenty-five Thousand Dollars ($425,000.00) for the said purpose. The said bonds 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 bonds, 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 the said bonds shall be exempt from taxation by the State or by any political subdivision thereof, for any purpose whatever.

Section 3. That the said bonds 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 shall be authenticated by the signature or facsimile signature of the State Treasurer. The said bonds 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 said bonds.

Section 4. That the said bonds 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 said bonds and of their validity. Any such bonds 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 bonds 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 bonds shall bear interest payable semi-annually at a rate of interest not exceeding three percent (3%) per annum.

Section 7. That the said bonds shall mature as the "issuing officers" may determine; provided, however, that beginning after June 30, 1937, not less than Fifteen Thousand Dollars ($15,000.00) of the principal debt hereby authorized shall be paid each year until the total of the said debt is fully paid.

Section 8. That all money received from the sale of the said bonds authorized under the provisions of this Act shall be deposited by the State Treasurer in a Special Fund, at the Farmers' Bank of the State of Delaware, at Dover, to be opened by him for such purpose, and shall be used exclusively for the purpose set forth in this Act, and shall be allocated to the institutions of the State and the project referred to in Section 1 of this Act, in the amounts and proportions to each, as designated in and allocated by certain Acts of the present General Assembly appropriating to such institutions of the State the money received from the sale of the said bonds authorized by this Act.

Section 9. That the Budget Appropriation Bill enacted and approved by the General Assembly at the One Hundred and Sixth 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 said bonds 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 the said bonds and the payment of the interest thereon.

Approved April 12, 1935.