CHAPTER 204

AUTHORIZING STATE OF DELAWARE TO BORROW $1,280,000.00

AND ISSUE BONDS THEREFOR

AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW THE SUM OF ONE MILLION TWO HUNDRED EIGHTY THOUSAND DOLLARS ($1,280,000) AND TO ISSUE BONDS THEREFOR TO REDEEM AND REFUND A PORTION OF CERTAIN BONDS OF THE STATE OF DELAWARE KNOWN AS "STATE HIGHWAY REFUNDING BONDS," AND APPROPRIATING FUNDS FOR THE PAYMENT OF COSTS AND EXPENSES INCIDENT TO THE CALLING OF SAID BONDS AND THE ISSUANCE OF THE NEW BONDS, TO PAY THE INTEREST ON SAID NEW BONDS AND TO REDEEM THE OUTSTANDING BONDS.

WHEREAS, by a certain act of the General Assembly of the State of Delaware entitled "AN ACT AUTHORIZING THE REFUNDING OF CERTAIN HIGHWAY BONDS OF THE STATE OF DELAWARE BY ISSUING REFUNDING BONDS THEREFOR," approved April 9, 1935, the State of Delaware was authorized and empowered to borrow the sum of Two Million Eight Hundred Forty Thousand Dollars ($2,840,000) and to issue bonds to secure the same; and

WHEREAS, under the provisions of said act bonds of the State of Delaware were issued; and

WHEREAS, of the bonds so issued there now remains unpaid and outstanding the sum of Nine Hundred Thousand Dollars ($900,000) with the annual interest rate of 21/2 % and Six Hundred Fifty Thousand Dollars ($650,000) with the annual interest rate of 23/1 % ; and

WHEREAS, under the provisions of said act authorizing the issuance of said bonds it is provided that said bonds may be redeemed, at the option of the State of Delaware, at the rate of 1021/2 % of the principal debt of said bonds on any first day of April or first day of October after the said bonds have been issued for one year; and

WHEREAS, it is now proposed to redeem a portion of said bonds thus authorized and issued and outstanding and to refund the same; NOW, THEREFORE,

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

Section 1. The Governor, Secretary of State and State Treasurer of the State of Delaware, herein sometimes referred to as the "Issuing Officers," are hereby authorized, fully empowered and directed to borrow upon the faith and credit of the State of Delaware a sum of money not in excess of One Million Two Hundred Eighty Thousand Dollars ($1,280,000), which shall be used for the purpose of refunding that portion of the bonds of the State of Delaware issued and outstanding which were authorized under the provisions of an act of the General Assembly of the State of Delaware entitled "AN ACT AUTHORIZING THE REFUNDING OF CERTAIN HIGHWAY BONDS OF THE STATE OF DELAWARE BY ISSUING REFUNDING BONDS THEREFOR," approved April 9, 1935, which mature on April 1, 1952, and annually thereafter to and including April 1, 1964; and the said "Issuing Officers" are hereby authorized, fully empowered and directed to sell, execute and deliver bonds in conformity with the provisions of this act to an amount not to exceed the said sum of One Million Two Hundred Eighty Thousand Dollars ($1,280,000). The said bonds shall be issued in such series and amounts as the "Issuing Officers" shall determine.

Section 2. The said bonds issued in accordance with the provisions of this act shall be direct general obligations of the State, and the public faith and credit of the State of Delaware are hereby expressly pledged for the full and complete payment of the debt, principal and interest by this act authorized, of the bonds hereby authorized to be issued and the coupons thereto attached, and the said bonds shall be exempt from taxation by the State or any political subdivisions thereof for any purpose.

Section 3. The said bonds shall recite that they are issued for the purposes set forth in Section 1 of this Act, that they are issued in pursuance of this act and the Constitution of this State, and upon the sale and delivery of any such bond, such recitals shall be conclusive upon the State of Delaware and all

and every other person whatsoever of the right, power and authority for the issuance of said bonds and the legality and validity of such bonds and of the principal debt and interest represented thereby, and the legality and validity of such bonds thereafter shall never be questioned in any court of law or equity by the State of Delaware or 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 any such bond or bonds.

Section 4. The bonds issued under the authority of this act shall be in denominations of One Thousand Dollars ($1,000), or multiple thereof, as shall be decided by the "Issuing Officers," or the majority of them, with coupons thereto attached for each half year's interest thereon. The said bonds shall be numbered consecutively, and shall bear such date as the "Issuing Officers" shall fix and shall bear interest at such rate as shall be determined by the bid accepted by the "Issuing Officers," which interest shall be payable semi-annually in each year that such bonds remain unpaid, at the Farmers Bank of the State of Delaware, at Dover, upon presentation of a coupon representing such semi-annual interest.

The said bonds shall mature at the rate of One Hundred Thousand Dollars ($100,000) per annum from April 1, 1952, to April 1, 1963, inclusive, and Eighty Thousand Dollars ($80,000) shall be due April 1, 1964.

The said bonds shall be executed an behalf of the State of Delaware by the Governor, the Secretary of State and the State Treasurer and shall have the impression of the Great Seal of the State thereon. The signatures of the Governor and the Secretary of State may be engraved or printed on such bonds, but the signature of the State Treasurer shall be in his own proper handwriting.

Attached interest coupons shall bear the signature of the State Treasurer which may be engraved, printed or written on such coupons. The coupons attached to each bond shall bear the same number as the bond to which they are attached.

The said bonds, with the coupons attached, may be issued notwithstanding that any of the officers executing them in the manner herein provided shall have ceased to hold office at the time of such issue or at the time of the delivery of the said bonds.

Section 5. For the purpose of designation and identification any bond issued under the authority of this act shall be known and styled "State Highway Refunding Bond of 1949."

Section 6. The said bonds shall be in the following form, to wit:

UNITED STATES OF AMERICA

STATE OF DELAWARE

No.

State Highway Refunding Bond of 1949

THESE PRESENTS CERTIFY AND MAKE KNOWN That the STATE OF DELAWARE is held and firmly bound unto the bearer in the sum of Dollars ($ ), lawful money of the United States of America, which the said State promises and binds itself to pay to the bearer at the Farmers Bank of the State of Delaware, at Dover, Delaware, on the day of , A. D. 19 , with interest at the rate of per centum ( %), per annum, likewise payable at the Farmers Bank of the State of Delaware, at Dover, Delaware, on the day of

and of each and every year, while the said principal sum remains unpaid, upon the presentation of the coupons hereto annexed representing such semi-annual installments of interest.

This bond is one of the bonds authorized to be issued by an act of the 115th Session of the General Assembly of the State of Delaware entitled "AN ACT AUTHORIZING THE STATE OF DELAWARE TO BORROW THE SUM OF ONE MILLION TWO HUNDRED EIGHTY THOUSAND DOLLARS ($1,280,000) AND TO ISSUE BONDS THEREFOR TO REDEEM AND REFUND A PORTION OF CERTAIN BONDS OF THE STATE

OF DELAWARE KNOWN AS 'STATE HIGHWAY REFUNDING BONDS,' AND APPROPRIATING FUNDS FOR THE PAYMENT OF COSTS AND EXPENSES INCIDENT TO THE CALLING OF SAID BONDS AND THE ISSUANCE OF THE NEW BONDS, TO PAY THE INTEREST ON SAID NEW BONDS AND TO REDEEM THE OUTSTANDING BONDS," AND IS ISSUED FOR THE PURPOSE set forth in Section 1 of said act and in pursuance of said act and the Constitution of the State of Delaware.

Dated at Dover, Delaware, the day of

, A. D. 19 .

WITNESS the Great Seal of the State of Delaware and the Hands of the Governor, Secretary of State and State Treasurer, the day and year aforesaid.

Governor

Secretary of State

State Treasurer

And the coupons shall be in the following form, to wit: No.

The State of Delaware will pay to the bearer at the Farmers Bank of the State of Delaware, at Dover, Delaware, on the first day of , A. D. 19 , the sum of

Dollars ($ ) for six months' interest on Bond No.

State Highway Refunding Bond of 1949.

Dated , 19

State Treasurer

It shall be the duty of the State Treasurer to provide a record of the proper size and form to be retained in his office, in which he shall keep a record of all bonds which shall be paid

and redeemed according to the number thereof, and in addition thereto he shall cause any such bond to be cancelled by making lines with red ink through the signatures of the Governor, Secretary of State and State Treasurer, and also by writing across the face thereof in red ink the following:

"This bond paid and redeemed this

day of , A D. 19

State Treasurer"

As the said coupons are paid, it shall be the duty of the State Treasurer to mark the same in red ink across the face "Paid." All bonds paid and redeemed, as well as all coupons paid and cancelled as aforesaid, shall be safely kept by the State Treasurer so long as any bond authorized by this act is unpaid and not redeemed.

Section 7. Whenever the bonds authorized by this act may be issued in conformity with the provisions of this act, the "Issuing Officers" are hereby directed to advertise twice a week for four successive weeks in such newspapers and journals in and out of the State as in their judgment may be conducive to the sale of said bonds, that they will receive bids at such place or places that may be named in said advertisement for such bonds under such regulations as may be made in the discretion of the "Issuing Officers," and the accrued interest between the date of the bonds and the time of sale and delivery of and payment of said bonds shall be adjusted with the purchaser thereof under such regulations as may be made in the discretion of the "Issuing Officers," provided that any overdue coupons attached to the bonds shall, before the sale of said bonds, be detached and cancelled in accordance with the provisions of this act, and upon the day mentioned in said advertisement as the day for opening bids for said bonds, the "Issuing Officers," or the majority of them, shall receive such bids for the purchase of the bonds designated in said advertisement to be sold, and on the opening of said bids, as many of said bonds as shall have been bid for shall be awarded by the said "Issuing Officers" to the highest responsible bidder or bidders therefor, for cash, provided, the amount bid is adequate in the judgment of the "Issuing

Officers," or the majority of them, and is not less than par. If two or more bidders have made the same bid and such bid is the highest, and the bonds so bid for by the highest responsible bidders are in excess of or equal to the whole amount of the bonds so offered for sale, such bonds shall be awarded to such highest, responsible bidders bidding the same price in a ratable proportion. If any of said bonds so offered for sale are not bid for, or if any insufficient price be bid for them, they may be subsequently disposed of under the direction of the "Issuing Officers," at private sale upon the best terms they can obtain for the same, provided that they shall not be sold at private sale for less than par and accrued interest.

Section 8. All moneys received from the sale of any or all of said bonds shall be deposited by the State Treasurer in the Farmers Bank of the State of Delaware, at Dover, and shall be used exclusively for the purposes set forth in this act, and for no other purpose whatsoever.

Section 9. As soon as practicable after the receipt of the moneys from the sale of bonds authorized by this act, the outstanding highway bonds of the State of Delaware issued pursuant to the provisions of the act of the General Assembly entitled "AN ACT AUTHORIZING THE REFUNDING OF CERTAIN HIGHWAY BONDS OF THE STATE OF DELAWARE BY ISSUING REFUNDING BONDS THEREFOR," approved April 9, 1935, herein authorized to be redeemed and refunded, shall be called for payment by the proper officers and shall be redeemed and fully paid and cancelled.

Section 10. There is hereby appropriated out of the General Funds of the State of Delaware not otherwise appropriated such sum of money as shall be sufficient to pay (1) the proper charges and expenses incident to the preparation and sale of the bonds authorized by this act; (2) the proper charges and expenses incident to the calling for redemption of the outstanding bonds to be refunded by the provisions of this act; (3) the interest of the bonds authorized' by this act from the date of the issue thereof to the end of the ensuing biennium on June 30, 1951; and (4) the difference between the amount required to redeem the outstanding bonds and the amount received from the sale of the bonds herein authorized, if any.

The Budget Appropriation Bill which shall be enacted and , approved by the General Assembly at the 116th Session and at each and every subsequent biennial Session thereof, shall contain under the Debt Service Item provisions for the payment of interest and principal maturities of said bonds issued under the authority of this act, and such of the revenues of the State of Delaware as are not prohibited by constitutional provision or committed by preceding statutes for other purposes are hereby pledged for the redemption and cancellation of said bonds and payment of interest thereon.

Approved June 8, 1949.