CHAPTER 172 - AUTHORIZING LAUREL SPECIAL SCHOOL DISTRICT TO ISSUE BONDS

AN ACT AUTHORIZING THE LAUREL SPECIAL SCHOOL DISTRICT TO BORROW MONEY AND TO ISSUE BONDS THEREFOR FOR THE PURPOSE OF REDEEMING AND REFUNDING OUTSTANDING BONDS OF SAID DISTRICT.

WHEREAS, the Laurel Special School District has heretofore issued Fifty-five Thousand Dollars ($55,000.00) of bonds under and by virtue of the authority of an Act of the General Assembly of the State of Delaware entitled "School Laws of the State of Delaware" approved June 24th, A. D., 1920, being Chapter 48, Volume 30, of the Laws of Delaware; and

WHEREAS the said Bonds were redeemed and the debt refunded pursuant to an Act of the General Assembly of the State of Delaware entitled "An Act authorizing Laurel Special School District to borrow Fifty-five Thousand Dollars ($55,000.00) to redeem certain bonds issued and outstanding under the authority of Chapter 48, Volume 31, Laws of Delaware," approved March 18, 1927, being Chapter 159, Volume 35, of the Laws of Delaware; and

WHEREAS the said Bonds bear interest at the rate of five per centum per annum and it is desirable to redeem said Bonds and to refund the debt evidenced thereby at a lower rate of interest, but there are no funds available for the redemption of said 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 of the Legislature concurring therein):

Section 1. That the Board of Education of the Laurel Special School District be and it is hereby authorized and empowered to borrow on the faith and credit of the Laurel Special School District, the sum of Fifty-five Thousand Dollars ($55,000.00), or so much thereof as may be necessary to carry out the provisions and purposes of this Act.

Section 2. That the said Board of Education of the said Laurel Special School District is hereby authorized and directed to call the Fifty-five Thousand Dollars ($55,000.00) of bonds issued under the authority of Chapter 159, Volume 35, Laws of Delaware, or so much thereof as shall be outstanding on July 1, 1937, for redemption during the year 1937 according to the option reserved in the Laurel Special School District by the terms of the said bonds, and to pay the said bonds with the money secured under the provisions of this Act.

Section 3. That the Board of Education of the Laurel Special School District, for the purpose set forth in Section 1 of this Act, shall have full power and authority to issue bonds of the Laurel Special School District, said bonds to be denominated "Laurel Special School District Refunding Bonds, Series of 1937" to an amount not exceeding in the aggregate the sum of Fifty-five Thousand Dollars ($55,000.00).

The said bonds shall be issued in such denomination or denominations as the Board of Education of the Laurel Special School District shall determine, shall bear date July 1, 1937, shall be numbered consecutively beginning with number one, and shall bear interest at such rate per annum as the said Board of Education shall determine, not exceeding five per centum per annum, payable on the first days of January and July at the Farmers Bank of the State of Delaware at Georgetown. The principal of the said bonds shall also be payable at the Farmers Bank of the State of Delaware at Georgetown.

Section 4. That the Board of Education of the Laurel Special School District 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 Board of Education may deem expedient, the proceeds of such sales, shall be applied to carrying into effect the provisions of this Act.

Section 5. That the form of said bonds shall be prescribed by the Board of Education of the said Laurel Special School District, and the said bonds shall be signed by the President and by one of the Members of the Board of Education of said Laurel Special School District, and sealed with the corporate seal of said district, and shall be exempt from State, County and municipal taxation.

The bonds may or may not have coupons attached as the said Laurel Special School District shall determine.

As the said bonds shall be paid the same shall be cancelled as the said Board of Education of the Laurel Special School District shall direct.

Section 6. That the Board of Education of the Laurel Special School District is hereby authorized and required to levy and raise by taxation in each year, a sum of money sufficient to pay all interest accruing on said bonds whilst any of said bonds shall remain unpaid. Said Board of Education shall also levy and raise by taxation in each year, a sum of money sufficient to pay at least Two Thousand Dollars ($2,000.00) on the principal of said bonds, and shall retire bonds of the value of at least Two Thousand Dollars ($2,000.00) in each and every year so long as any bonds remain outstanding. The bonds to be retired shall be ascertained each year by lot and when called for redemption shall be surrendered by the holders thereof on the date fixed for redemption. Interest on said bonds so called for redemption shall cease on the date fixed for redemption. The taxes for the said purpose shall be levied and collected as other taxes in said Special School District are, and shall be assessed on the head and on the property and shall be in excess of, and in addition to the sum or amount heretofore authorized to be raised by the said Laurel Special School District.

Section 7. That the faith of the Laurel Special School District is hereby pledged for the payment of any bonds that may be issued under the provisions of this Act.

Section 8. The bonds to be paid by the moneys arising from the sale of bonds issued under the provisions of this Act shall be cancelled when so paid by writing distinctly on the face of each bond the words "Cancelled and paid" with the date of payment and signed by the President and Secretary of the said Laurel Special School District and the bonds so cancelled shall be preserved by the Treasurer or Secretary of the Laurel Special School District.

Approved May 5, 1937.