CHAPTER 168 - LAUREL

AN ACT AUTHORIZING THE MAYOR AND COUNCIL OF LAUREL, DELAWARE, TO BORROW TWENTY-SEVEN THOUSAND DOLLARS ($27,000.00) TO REDEEM CERTAIN OUTSTANDING BONDS AND VARIOUS FORMS OF INDEBTEDNESS OF THE MAYOR AND COUNCIL OF LAUREL, DELAWARE.

WHEREAS, the Mayor and Council of Laurel, Delaware, has heretofore issued Twenty-seven Thousand Dollars ($27,000.00) for indebtedness of various forms of the Town of Laurel, Delaware, being an indebtedness of said Town of Laurel, Delaware, and whereas the said bonds and various forms of indebtedness bear interest at a rate higher than is necessary to pay for money at the present time, and it is desirable to redeem said bonds and various forms of indebtedness and to refund the debts evidenced thereby at a lower rate of interest, but there are no funds now available for the redemption of the said bonds and the various forms of indebtedness. Now, therefore,

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

Section 1. That the Mayor and Council of Laurel, Delaware, is hereby authorized and empowered to borrow on the faith and credit of the Town of Laurel, Delaware, the sum of Twenty-seven Thousand Dollars ($27,000.00), or so much thereof as may be necessary to redeem the Outstanding bonds and various forms of indebtedness of the Town of Laurel, Delaware.

Section 2. That the Mayor and Council of Laurel, Delaware, for the purpose set forth in Section 1 of this Act, shall have full power and authority to issue bonds of the Town of Laurel, Delaware, said bonds to be denominated "Laurel Refunding Bonds, Water Department, Series of 1935" to an amount not exceeding in the aggregate the sum of Twenty-seven Thousand Dollars ($27,000.00).

The said bonds shall be issued in denominations of One Thousand Dollars 01,000.00) each, shall bear date January 1, 1935, shall be numbered consecutively beginning with number one, and shall bear interest at a rate not exceeding four per centum per annum, payable semi-annually on the first day of January and July of each year. It shall be the duty of the said Mayor and Council of Laurel, Delaware, to pay the principal of at least two of said bonds each year beginning with the year 1940 and the bonds to be selected for redemption shall be drawn consecutively beginning with number one at par.

On and after January 1, 1940, any or all the bonds may be called at par at the option of the Mayor and Council of Laurel, Delaware, on any interest date on thirty (30) days' notice. Publication of said call for redemption in any newspaper in Sussex County,' State of Delaware, shall be due notice of said call by said Mayor and Council of Laurel, Delaware.

Section 3. The Mayor and Council of Laurel, Delaware, shall direct and effect the preparation and sale of said bonds authorized by this Act, at such time or times and on such terms as the said Mayor and Council of Laurel, Delaware, shall deem expedient, but no moneys derived from the sale of said bonds shall be applied or utilized for the principal of any new indebtedness of the said Mayor and Council of Laurel, Delaware, but shall be used exclusively for the purpose of refunding outstanding indebtedness.

Section 4. That the form of said bonds shall be prescribed by the said Mayor and Council of Laurel, Delaware, and the said bonds shall be signed by the Mayor and by the Treasurer of said Mayor and Council of Laurel, Delaware, and be sealed by the corporate seal of said corporation, and shall be exempt from State, County and municipal taxation.

Section 5. The principal of such Bonds shall be paid, at the rate of not less than Two Thousand Dollars ($2,000.00) each year, out of receipts of the water department of said town, or from the Town treasury.

The Treasurer of the Town may, if the Mayor and Council of Laurel, Delaware, deem proper, be required to give additional bond with sufficient surety for such sum as said Mayor and Council of Laurel, Delaware, shall determine and approve.

Section 6. That the faith of the Mayor and Council of Laurel, Delaware, is hereby pledged for the payment of any bonds that may be issued under the provisions of this act.

Section 7. The Twenty-seven Thousand Dollars ($27,000.00) of bonds and various forms of indebtedness to be paid by the moneys arising from the sale of bonds issued under the provisions of this Act shall be cancelled when the same is paid by writing on the face of each bond or other form of indebtedness the words "Cancelled and paid" with the date of payment and signed by the Mayor and Town Clerk of the Mayor and Council of Laurel, Delaware, and the bonds or other forms of indebtedness so cancelled shall be preserved by the Town clerk of the Town of Laurel, Delaware.

Approved February 6, 1935.