CHAPTER 191 - FREE PUBLIC SCHOOLS - SMYRNA SPECIAL SCHOOL DISTRICT AUTHORIZED TO BORROW $20,000. AND TO ISSUE BONDS THEREFOR.

AN ACT AUTHORIZING SMYRNA SPECIAL SCHOOL DISTRICT TO BORROW TWENTY-THOUSAND DOLLARS ($20,000.00) AND TO ISSUE BONDS THEREFOR FOR THE PURPOSE OF REDEEMING AND REFUNDING OUTSTANDING BONDS OF SAID DISTRICT.

WHEREAS, Smyrna Special School District has heretofore issued bonds in the amount of Sixty-five Thousand Dollars ($65,000.00) 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 24, 1920, being Chapter 48, Volume 31, Laws of Delaware; and

WHEREAS the outstanding bonds of the aforesaid issue, being Series of 1921, were redeemed and the bonded indebtedness refunded pursuant to Act of the General Assembly of the State of Delaware entitled: "AN ACT AUTHORIZING SMYRNA SPECIAL SCHOOL DISTRICT TO BORROW FIFTY THOUSAND DOLLARS ($50,000.00) TO REDEEM CERTAIN BONDS ISSUED AND OUTSTANDING UNDER THE AUTHORITY OF CHAPTER 48, VOLUME 31, LAWS OF DELAWARE", approved April 17, 1929, and being Chapter 219, Volume 36, Laws of Delaware; and

WHEREAS, there remains outstanding of the aforesaid refunding bonds, Series of 1929, bands in the amount of Twenty Thousand Dollars ($20,000.00); and

WHEREAS, said outstanding bonds bear interest at the rate of five per centum per annum and it is desirable to redeem said outstanding bonds and to refund the bonded indebtedness evidenced thereby at a lower rate of interest but there being no funds available for the redemption of said outstanding 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 of the Members elected to each Branch of the Legislatures', concurring therein)

Section 1. That the Board of Education of Smyrna Special School District be and it is hereby authorized and empowered to borrow on the faith and credit of Smyrna Special School District the sum of Twenty Thousand Dollars ($20,000.00), 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 said Smyrna Special School District is hereby authorized and directed to call Twenty Thousand Dollars ($20,000.00) of bonds issued under the authority of Chapter 219, Volume 36, Laws of Delaware, for redemption during the year 1941 according to the option for redemption reserved in Smyrna Special School District by the terms of said bonds, Series of 1929, and to pay the said bonds, Series of 1929, with the moneys secured under the provisions of this Act.

Section 3. That the Board of Education of Smyrna Special School District, for the purposes set forth in Section 1 and Section 2 of this Act, shall have full authority to issue bonds of Smyrna Special School District, said bonds to be denominated "SMYRNA SPECIAL SCHOOL DISTRICT REFUNDING BONDS, SERIES OF 1941" and in an amount not exceeding in the aggregate the sum of Twenty Thousand Dollars ($20,000.00).

The said bonds shall be authorized by a resolution or resolutions of said Board of Education and shall be issued in such denomination or denominations, shall be issued in series or otherwise, shall bear such date or dates, shall mature at such time or times not exceeding fifteen years from their respective dates, shall bear interest at such rate or rates not exceeding four per centum per annum, and said interest shall be payable at such time or times, all as said Board of Education shall determine and as shall be set out in the bonds. Both the interest on and the principal of said bonds shall be payable at the Farmers Bank of the State of Delaware at Dover.

Any and all ei said bonds may be redeemed at the option of said Board of Education at par and accrued interest at such interest period or periods and after the expiration of such time or times from the respective dates of said bonds, all as shall be determined by said Board of Education and as shall be set out in said bonds, and if said Board of Education shall elect to redeem any or all of said bonds as provided therein, such redemption shall be made pursuant to such notice as shall be determined by said Board of Education and as shall be set out in said bonds. Such notice shall indicate the bonds so called for redemption and said Board of Education shall select the bonds to be called in such manner as said Board of Education shall determine and as shall be set out in said bonds. Any and all bonds maturing or called for redemption shall be surrendered by the holders thereof on the maturity date or on the date fixed for redemption, as the case may be. All interest on bonds maturing or bonds called for redemption shall cease on the maturity date or on the call date, as the case may be.

Section 4. That the Board of Education of Smyrna 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 and the proceeds of such sales shall be applied to carrying into effect the provisions of this Act.

Section 5. That the form of the bonds authorized by this Act shall be prescribed by the Board of Education of the Smyrna Special School District and said bonds shall be signed by the President and by one of the members of the Board of Education of Smyrna Special School District, and shall be sealed with the corporate seal of said District, and shall be exempt from State, County and municipal taxation. Said bonds may or may not have coupons attached, as said Board of Education may deem expedient. As the bonds authorized by this Act shall be paid, the said bonds shall be cancelled as the said Board of Education of Smyrna Special School District shall direct.

Section 6. That the Board of Education of Smyrna 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 while 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 a portion on the principal of said bonds, and shall retire bonds, the value of which shall be determined by the Board of Education, in each and every year so long as any of the bonds authorized by this Act remain outstanding.

Taxes for interest and for redemption of said bonds shall be levied and collected as are other taxes in said Smyrna Special School District, and shall be assessed on the head and on the property of the taxables of said District and shall be in excess of and in addition to the sum or amount heretofore authorized to be raised by said Smyrna Special School District for any and all other purposes.

Section 7. That the faith of Smyrna 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 the 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 Smyrna Special School District, and the bonds so cancelled shall be preserved among the records of said District by the Secretary of Smyrna Special School District.

Section 9. That a statement appearing in the bonds to be issued under the authority of this Act to the effect that such bonds have been duly authorized pursuant to this Act, shall be deemed and held to be conclusive evidence in favor of the holder of any of said bonds that all the terms and conditions of this Act have been fully met and complied with.

Approved February 20, 1941.