CHAPTER 20 - REFUNDING OF CERTAIN HIGHWAY BONDS

AN ACT AUTHORIZING THE REFUNDING OF CERTAIN HIGHWAY BONDS OF THE STATE OF DELAWARE BY ISSUING REFUNDING BONDS THEREFOR.

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

Section 1. That The State of Delaware is hereby authorized and empowered to borrow, upon the faith and credit of The State of Delaware, the sum of Two Million Eight Hundred and Forty Thousand Dollars ($2,840,000.00), for the purpose of refunding certain State Highway Bonds in said total sum of Two Million Seven Hundred and Five Thousand Dollars ($2,705,000.00), heretofore issued by The State of Delaware pursuant to law, and for the purpose of securing the payment of such sum to issue new bonds therefor, to be known as "State Highway Refunding Bonds."

Section 2. That the said bonds shall be of the denomination of One Thousand Dollars ($1,000.00) each, with coupons thereto attached for each half year's interest thereon. The said bonds shall be dated the first day of April, A. D. 1935, and shall be numbered consecutively. The said bonds shall bear interest from and after the first day of April, A. D. 1935, at the following rates, to-wit: all of the said bonds included in Classes A to J, inclusive, and maturing in any of the years 1938 to 1947 inclusive, as provided in Section 3 of this Act, shall bear interest from and after the first day of April A. D. 1935, at the rate of two and one-fourth percentum (2 1/4%) per annum; and all of the said bonds included in Classes K to T, inclusive, and maturing in any of the years 1948 to 1957, inclusive, as provided in said Section 3 of this Act, shall bear interest from and after the said first day of April A. D. 1935, at the rate of Two and one-half percentum (2 1/2%) per annum; and all of the said bonds included in Classes U to CC, inclusive, and maturing in any of the years 1958 to 1966, inclusive, as provided in said Section 3 of this Act, shall bear interest from and after the said first day of April, A. D. 1935, at the rate of two and three-fourths percent (2 3/4%) per annum; the said interest shall be payable semi-annually; on the first day of October and April in each year thereafter in which the said bonds remain unpaid, at the Farmers' Bank of The State of Delaware, at Dover, upon presentation of coupons representing such semi-annual interest.

Section 3. That the said bonds shall be divided into twenty-nine classes and paid at their face value as follows:

Class

Amounts

Year of Maturity

A

100,000.00

1938

B

100,000.00

1939

C

100,000.00

1940

D

100,000.00

1941

E

100,000.00

1942

F

100,000.00

1943

G

100,000.00

1944

H

100,000.00

1945

I

100,000.00

1946

J

100,000.00

1947

K

100,000.00

1948

L

100,000.00

1949

M

100,000.00

1950

N

100,000.00

1951

0

100,000.00

1952

P

100,000.00

1953

Q

100,000.00

1954

R

100,000.00

1955

S

100,000.00

1956

T

100,000.00

1957

U

100,000.00

1958

V

100,000.00

1959

W

100,000.00

1960

X

100,000.00

1961

Y

100,000.00

1962

Z

100,000.00

1963

AA

100,000.00

1964

BB

100,000.00

1965

CC

40,000.00

1966

Section 4. The principal of said bonds shall be payable at the Farmers' Bank of The State of Delaware, at Dover, on the first day of April of the year of maturity, according to the class thereof, as provided by Section 3 of this Act, on presentation and surrender of said bonds, but the said bonds, or any of them, may be redeemed when so determined by the Governor and State' Treasurer, at the option of The State of Delaware, at the rate of one hundred and two and one-half per centum (102 1/2%) of the principal debt of the bond redeemed, on any first day of April or first day of October after the said bond or any of them shall have been issued one year, upon thirty (30) days' notice published in one newspaper in the City of Philadelphia, and one newspaper published in The State of Delaware, indicating by their numbers and/or class the bonds thereby called and elected to be redeemed.

Said bonds shall be prepared under the supervision of the Secretary of State, and shall be signed by the Governor, Secretary of State and State Treasurer on behalf of The State of Delaware, and shall have the Great Seal of the State impressed thereon.

The signature of the said State Treasurer shall be engraved, printed or written on each coupon, and when printed or engraved shall have the same effect as if written, and the coupons attached to each bond shall be numbered consecutively, and bear the number and/or class of the bond to which it is attached to identify it therewith.

Section 5. That the bonds to be issued shall be in the following form, except that the blanks shall be appropriately filled in before the said bonds shall be issued, to-wit:

UNITED STATES OF AMERICA

THE STATE OF DELAWARE

Class ______

Number _____ $1,000.00

STATE HIGHWAY REFUNDING BONDS

These presents certify and make known that The State of Delaware is held and firmly bound unto the bearer in the sum of One Thousand Dollars ($1,000.00), lawful money of the United States of America, which the said State promises and binds itself to pay to the bearer at the Farmers' Bank of the State of Delaware, at Dover, on the first day of April A. D. 19_, with interest at the rate of (if the said bond is included in any of the Classes A to J, inclusive, and maturing in any of the years 1938 to 1947, inclusive, as provided in Section 3 of this Act, "two and one-fourth percentum (2 1/4%) per annum"; if the said bond is included in any of the Classes K to T, inclusive, and maturing in any of the years 1948 to 1957, inclusive, as provided in said Section 3 of this Act, "two and one-half percentum (2 1/2%) per annum"; and if the said bond is included in any of the Classes U to CC inclusive, and maturing in any of the years 1958 to 1966, inclusive, as provided in said Section 3 of this Act, "two and three-fourths percentum (2 3/4 %) per annum",) likewise payable at the Farmers' Bank of the State of Delaware, at Dover, on the first days of October and April of each and every year, while the said principal sum remains unpaid, upon the presentation of the coupon as hereto annexed representing such semi-annual installment of interest provided, however, and it is expressly stipulated, that the said State reserves the right and power, at its option, to call in, pay and redeem this bond at the rate of one hundred and two and one-half percentum (102 1/2%) of the principal debt hereof, on any first day of October or April on or after April 1, A. D. 1936, pursuant to the notice in that behalf prescribed by the Act of the General Assembly under authority of which this bond is issued; and provided further, that when this bond shall be called by the notice aforesaid, interest hereon shall cease to accrue from and after the first day of October or April (as the case may be) next succeeding the date of such notice.

Dated at Dover the first day of April, A. D. 1935.

WITNESS the Great Seal of The State of Delaware, and the hands of the Governor, Secretary of State and State Treasurer, the day and year aforesaid.

(Great Seal)

_______________

Governor

_______________

Secretary of State

_______________

State Treasurer

And the coupons shall be in the following form, to-wit:

No _______

The State of Delaware will pay to the bearer at the Farmers' Bank of The State of Delaware, at Dover, on the first day of ______, A. D. 19__, the sum of _______ Dollars ($ _____), for six months' interest on bond No. ____ Class ____ of State Highway 'Refunding Bonds.

Dated April 1, 1935.

___________________

State Treasurer

Section 6. That the public faith and credit of The State of Delaware is hereby expressly pledged for the full and complete payment of the debt, principal and interest by this Act authorized and the bonds hereby authorized to be issued and the coupons thereto attached, and the said bonds shall be exempt from taxation by the State or any political subdivision thereof for any purpose.

Section 7. That upon the sale and delivery to the purchaser thereof of any bond issued under the provisions of this Act, the right, power and authority for the issuance of said bonds and the legality and validity of such bonds and of the principal debt and interest represented thereby shall be conclusive upon The State of Delaware, and all and every other person whatsoever, and the legality and validity of such bonds thereafter shall never be questioned in any Court of law or equity by The State of Delaware or any person or persons for its use or in its behalf, and this provision shall be and become part of the contract and obligation represented by said bond.

Section 8. That the said bonds, or any part thereof, may be sold when and as the Governor, Secretary of State and the State Treasurer of this State, or the majority of them, shall determine, and to this end, the Governor, Secretary of State and State Treasurer of this State are hereby authorized and directed to advertise twice a week for four successive weeks in such newspapers and journals in and out of the State as in their judgment may be conducive to the sale of said bonds, that they will receive bids at such place or places that may be named in said advertisement for such bonds under such regulations as may be made in the discretion of the Governor, Secretary of State and State Treasurer; and the accrued interest between the date of the bonds and the time of the sale and delivery of and payment of such bonds shall be adjusted with the purchaser thereof under such regulations as may be made in the discretion of the Governor, Secretary of State and State Treasurer; provided, that any overdue coupons attached to the bonds shall, before the sale of said bonds, be detached and cancelled in accordance with the provisions of this Act, and upon the day mentioned in said advertisement as the day for opening of the bids for said bonds, the said Governor, Secretary of State and State Treasurer, or the majority of them, shall receive such bids for all or such number of the bonds as designated in said advertisement to be sold, and on opening of said bids as many of said bonds shall have been bid for, shall be awarded by the said Governor, Secretary of State and State Treasurer, to the highest responsible bidder or bidders therefor, for cash; provided, that the amount bidden is adequate in the judgment of the Governor, Secretary of State and State Treasurer, or the majority of them. If two or more bidders have made the same bid and such bid is the highest, and the bonds so bid for by the highest responsible bidders are in excess of the whole amount of the bonds so offered for sale, such bonds shall be awarded to such highest responsible bidders bidding the same price in a rateable proportion. If any of said bonds so offered for sale are not bid for, or if any insufficient price be bid for them, they may be subsequently disposed of under the direction of the Governor, Secretary of State and State Treasurer, at private sale upon the best terms they can obtain for the same; provided, that they shall not be sold at private sale for less than par and accrued interest.

Section 9. That all moneys received from the sale of any or all of said bonds, after the payment of the proper charges and expenses incident to the preparation and sale thereof, shall be deposited with the Farmers' Bank of The State of Delaware, at Dover, by the State Treasurer, in a separate account, to be opened by him for that purpose, and shall be used for the payment and/or refunding of State Highway Bonds heretofore issued under authority of Chapter 63 of Volume 29, Delaware Laws, as amended, and for no other purpose whatever.

Section 10. That as soon as practical after the receipt of moneys from the sale of bonds authorized by this Act, the now outstanding State Highway Bonds of this State, issued pursuant to the provisions of Chapter 63 of Volume 29, Delaware Laws, as amended, shall be called for payment by the proper officers and shall be redeemed and fully paid and cancelled pursuant to the provisions of said Chapter 63 of Volume 29, Laws of Delaware.

Section 11. That it shall be the duty of the State Treasurer to provide a record of proper size and form to be retained in his office so ruled as to afford a separate space for each coupon and the space at the top of each page of said record for each bond when paid, and each space at the top of said record shall bear the same number and class as the bond, the record whereof is intended to be preserved. As the said coupons are paid, it shall be the duty of the State Treasurer to mark the same in red ink across the face "Paid", cut each of them in two lengthwise, paste the pieces in the aforesaid spaces for each coupon in the record aforesaid, and as the said bonds shall be paid and redeemed, the State Treasurer shall cause the same to be cancelled by making lines with red ink through the signatures of the Governor, Secretary of State and State Treasurer, also by writing across the face thereof, in red ink, the words

This bond paid and redeemed this _____ day of _____ A.D. ____"

__________________

State Treasurer

And all coupons unmatured and surrendered with each bond redeemed shall each likewise be endorsed "Cancelled by the redemption of Bond No " in red ink. When paid or redeemed the said bonds shall be pasted in the proper spaces aforesaid.

Approved April 9, 1935.