CHAPTER 173 - NEW CASTLE - AUTHORIZING BOND ISSUE FOR REDEEMING OUTSTANDING BONDS

AN ACT AUTHORIZING THE MAYOR AND COUNCIL OF NEW CASTLE TO BORROW MONEY AND ISSUE BONDS THEREFOR FOR THE PURPOSE OF REDEEMING AND REFUNDING CERTAIN OUTSTANDING STREET IMPROVEMENT BONDS OF THE 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 127, Vol. 34, Laws of Delaware, did issue a total of Twenty Thousand Dollars ($20,000.00) Street Improvement Bonds of said City, for the purpose of improving the roads and streets within the City of New Castle, which bonds numbered 1 to 40 inclusive for Five Hundred Dollars ($500.00) each, bore date of October 1, 1925, with interest at five per centum (5%) per annum, payable October 1, 1945; and

WHEREAS, it is desirable and necessary to refund the debt evidenced by the said bonds, and for this purpose to issue Street Refunding Bonds of said City sufficient to redeem and pay off all of the said outstanding Street Improvement Bonds;

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

Section 1. For the purpose of redeeming the outstanding Street Improvement Bonds of the City of New Castle, dated the First day of October, A. D. 1925, 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 Twenty Thousand Dollars ($20,000.00) 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 Council of the said municipal corporation shall determine. They shall be issued in denominations of One Thousand Dollars ($1,000.00) each and shall bear interest as fixed by the Council. The Council shall direct and effect the preparation and printing of and negotiate the sale and delivery of said bonds. The said bonds shall bear date when issued and shall bear interest from date, payable semi-annually. They shall be signed by the Mayor, the President of Council and the Treasurer of the said City of New Castle, and be sealed with the corporate seal of the said municipal corporation. Said bonds shall be exempt from State, County and Municipal taxation.

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 Council for the carrying out of the purpose of this Act.

Section 3. The Street Refunding Bonds shall be issued for a total of Twenty Thousand Dollars ($20,000.00) comprising twenty (20) bonds of One Thousand Dollars ($1,000.00) each, numbered from one to twenty consecutively, and payable serially Two Thousand Dollars ($2,000.00)* each year. Bonds Numbers 1 and 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 of said bonds have matured.

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 the said bonds at their maturity. Such taxes shall be levied and collected as are the other taxes of the said City.

Section 5. The bonds provided for in this Act shall be issued under ordinance of the City.

Section 6. The purchasers and holders of the bonds authorized by this Act shall be in no way liable for the application, misapplication or non-application of the proceeds of the sale of the said bonds, nor for the failure on the part of the said City in the performance of any act or condition required in this Act.

Approved April 19, 1945.