CHAPTER 54

AUTHORIZING THE BORROWING OF MONEYS

AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW MONEYS FROM THE STATE SCHOOL FUND AND FUNDS ALLOCATED TO THE STATE HIGHWAY DEPARTMENT FOR USE OF THE GENERAL FUND.

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

Section 1. That for the fiscal year beginning July 1, 1939 and ending June 30, 1940 the State Treasurer is hereby authorized and directed in behalf of the State of Delaware and for the use of the General Fund of this State to borrow from the funds now or hereafter allocated to the State Highway Department the sum of Five Hundred Thousand Dollars ($500,000.00), or any part thereof, and also to borrow from the State School Fund the gum of Two Hundred Thousand Dollars ($200,000.00) or any part thereof; and for the fiscal year beginning July 1, 1940 and ending June 30, 1941 the State Treasurer is hereby authorized and directed in behalf of the State of Delaware and for the use of the General Fund of this State to borrow from the funds now or hereafter allocated to the State Highway Department the sum of Five Hundred Thousand Dollars ($500,000.00), or any part thereof, and also to borrow from the State School Fund the sum of Two Hundred Thousand Dollars ($200,000) or any part thereof, provided, however, that in case the total amount borrowed during each fiscal year from the two funds shall be less than Seven Hundred Thousand Dollars ($700,000.00), the amount borrowed from the Highway Department and from the School Fund shall be approximately in the ratio of five to two.

Section 2. On the date of the borrowing of the sums noted above, or any part thereof, there shall be delivered to the State Treasurer a certificate of indebtedness for such sum or sums borrowed, which certificates shall not bear interest. These certificates shall be in non-negotiable form.

They 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 said State impressed thereon or affixed thereto. Said certificates shall be a direct general obligation of the State and the public faith and credit of the State of Delaware is hereby expressly pledged for the full and complete payment of the debt. The principal of such certificate shall be exempt from taxation by the State or any political sub-division thereof for any purpose.

Such certificate of indebtedness shall recite that it is issued for the purpose set forth in Section 1 of this Act and that it is 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 of Delaware to issue such certificate and of its validity. Upon the sale and delivery to said Treasurer of the certificate of indebtedness for which provision is made in this Act, the legality and validity of such certificate shall never thereafter be questioned in any court of law or equity by the State of Delaware or by 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 certificate of indebtedness.

Section 3. Form of Certificate:--Such certificates of indebtedness shall conform as nearly as possible to the following form, to wit:

(a) Certificate of indebtedness to the Trustee of the School Fund.

(b) Certificate of indebtedness to the State Highway Department.

Pursuant to the constitution of the State of Delaware these presents certify and make known to all whom it may concern that the State of Delaware acknowledges its indebtedness to, and pledges its faith to pay to the State School Fund (or State Highway Department) in the full sum of $ lawful money of the United States of America to be used for the purpose of replenishing the General Fund of the State of Delaware, without interest. This certificate of indebtedness shall be payable at the aforesaid Farmer's Bank at Dover, Delaware, upon presentation thereat and surrender thereof but not within five years of its date of issue, but it may be redeemed at the option of the State of Delaware at face value on the first day of March or on the first day of September after it shall have been issued two years. This certificate is not negotiable.

In Witness Whereof the Great Seal of the State of Delaware is hereunto affixed, and the hands of the Governor and Secretary of State and State Treasurer sub-

scribed this day of

in the year of our Lord One Thousand

Nine Hundred and

Governor

Secretary of State

State Treasurer

Section 4. After the creation of the indebtedness of this State as authorized by this Act, for the purpose of amortizing and paying said indebtedness and retiring the certificates of indebtedness evidencing the same, the State Treasurer shall be and he is hereby authorized and directed to apply the Sinking Fund of the State or any other fund which may be specifically provided for that purpose by legislative act.

Section 5. This Act shall become in full force and effect on July 1, 1939.

Approved May 4, 1939.