CHAPTER 159 - NEW CASTLE
AN ACT AUTHORIZING "THE MAYOR AND COUNCIL OF NEW CASTLE" TO BORROW MONEY AND ISSUE BONDS THEREFOR FOR THE PURPOSE OF REDEEMING AND REFUNDING THE OUTSTANDING "SEWER BONDS" OF SAID CITY.
WHEREAS, the Mayor and Council of New Castle, a Municipal Corporation of the State of Delaware, pursuant to the authority and provisions of Chapter 121, Volume 35, Laws of Delaware, did issue a total of $170,000.00 Sewer Bonds, of said City, for the purpose of the construction of the sewer system in said City, which bonds numbered 1 to 170 inclusive for $1000.00 each, bore date as of April 2, 1928, with interest at five per centum per annum payable serially in $5000.00 lots, commencing April 1, 1931 and each year thereafter until all mature; which Bonds all contained a provision for redemption at the option of the Sewer Commission at any interest period after the expiration of five years from date at a premium of five per centum of the principal sum due.
AND WHEREAS, the Sewer Commission of said City has heretofore fully paid and cancelled a total of $84,000.00 of said Bonds, numbered 1 to 84 inclusive, at maturity or by call for redemption, leaving outstanding and unpaid the balance of $86,000.00 of said Bonds, numbered 85 to 170 inclusive.
AND WHEREAS, it is deemed desirable to call and redeem all of the remainder of said Bonds and refund the debt evidenced thereby at a lower rate of interest; and for this purpose to issue Sewer Refunding Bonds of said City sufficient, with other funds available, to redeem and pay off all of said outstanding Sewer Bonds.
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 concurring therein):
Section 1. For the purpose of redeeming the outstanding "Sewer Bonds" of the City, the Mayor and Council of New Castle, a Municipal Corporation of the State of Delaware, be and it is hereby authorized and empowered to borrow on the faith and credit of the said Municipal Corporation a sum or sums of money not exceeding $86,000.00, and for this purpose to issue Bonds of the said Municipal Corporation not exceeding in the aggregate that amount.
Section 2. The said money shall be borrowed and the Bonds issued at such times as the ''Sewer Commission" of the said Corporation, created and existing under said Chapter 121, Volume 35, Laws of Delaware, shall determine. They shall be issued in denominations of $1000.00 each, and shall bear interest as fixed by the "Sewer Commission", not exceeding the rate of Three and One-Half Per Centum per annum. The "Sewer Commission" shall direct and effect the preparation and printing of and negotiate the sale and delivery of said Bonds. They shall each be signed by the Mayor, the President of Council and the Treasurer of the said Municipal Corporation, and be sealed with the Corporate Seal of the Corporation, and shall be exempt from State, County and Municipal taxation. It shall be the duty of said officers to execute said Bonds when directed so to do by the "Sewer Commission."
The moneys received from the sale of the said Bonds shall be paid over to the Treasurer of the Municipal Corporation, and used by the "Sewer Commission" for the carrying out of the purpose of this Act.
Section 3. The total amount of Bonds hereby authorized shall be divided into two classes, to be known as "Sewer Refunding Bonds, Class A", and "Sewer Refunding Bonds, Class B".
The "Sewer Refunding Bonds, Class A", shall be issued for a total of $48,000.00, comprising 48 Bonds for $1000.00 each, numbered from 1 to 48 consecutively, and payable serially, $2000.00 each year. Bonds Number 1 and Number 2 shall be payable at the expiration of one year from the date of the issue, and thereafter two of said Bonds, in their numerical order, shall mature and be payable each year, until all said Bonds have matured.
The "Sewer Refunding Bonds, Class B", shall be issued for a total of $38,000.00, comprising 38 Bonds for $1000.00 each, numbered from 1 to 38 consecutively, and shall all be payable at the expiration of twenty years from the date of issuance. They shall contain a provision for the redemption of all or any of said Bonds, at the option of the "Sewer Commission" of said Municipal Corporation, at any interest period after the expiration of one year from the date of issuance at a premium of Two Per Cent of the principal sum due, provided notice of such intention to redeem be published at least three times in two newspapers in the City of Wilmington, Delaware, commencing at least sixty days prior to the redemption date, and after the date set for such redemption, no further interest shall accrue.
Section 4. The Mayor and Council of New Castle is authorized to levy and raise by taxation such sums of money as may be required to pay the interest on said Bonds, and also for such Sinking Fund as may be adequate for the redemption of said Bonds at their maturity. Such taxes shall be levied and collected as are the other taxes of said City.
Approved April 7, 1937.